British Airways PLC: Impact of External Factors on the Company

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Added on  2023/06/14

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This report provides an analysis of British Airways PLC, focusing on both internal and external environmental factors that influence the airline's operations. It utilizes SWOT and PESTLE frameworks to assess the company's strengths, weaknesses, opportunities, and threats, as well as the political, economic, social, technological, environmental, and legal factors impacting its business. The report highlights British Airways' strong brand image as a key strength, while also acknowledging challenges such as infrastructure issues and increasing competition from Middle Eastern airlines. External factors, including government regulations, economic downturns, social trends, environmental concerns, technological advancements, and legal liabilities, are discussed in detail, illustrating their effects on the company's performance and strategic decisions. The analysis concludes that British Airways must adapt to these evolving factors to maintain its competitive edge and ensure long-term sustainability.
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Introduction
The report is based on British Airways that are operating
more than 20 countries, it has provided most convenient
options according to the customer that’s is why there are
more than 5000 people are daily travelling through this
airway. Further, the report evaluated internal and external
factor that are affected the organisation. Also, discussing
different ways in which chosen firm impacted on the
external environment.
British Airways PLC And Its Environment
Name of the Student
External Environment
The external environment is related to all the factors which are affect the British Airways
such as society, regulation and political system, competition, economy etc.
How the company impact its context
External Environment
The company is impacted because the
competition is increases day by day and that is
why the customers are shifted to middle eastern
airlines. That has impacted the organisation for
declining the productivity. Also, government has
passed the law regarding pandemic which has
also affect the number of customers due to
current process
Internal Factors
The internal factors are related to the SWOT analysis in
which the biggest strength of the organisation is brand
image, the brand image of British Airways are
comparatively high in the market so there are large
number of customers who have daily travel. Also, the
weakness is related to disruption due to infrastructure
system issues. Some of the major opportunities are
venturing global operations that are help for planning in
order to initiate for improvement customer experience and
efficiency. Further, threats are related to intense
competition which are affected the company by middle
eastern airlines.
References
Gupta, A., Gupta, N. and Gupta, M., 2019. British Airways-A SWOT and PESTLE Analysis-
The impact of Europe 2020 policy. NOLEGEIN-Journal of Corporate & Business Laws, pp.1-
11.
George, R., 2021. Tourism and Hospitality Marketing Planning. In Marketing Tourism and
Hospitality (pp. 149-182). Palgrave Macmillan, Cham.
Chodakowska, A., 2018. The mobility revolution in the automobile industry. Electric cars and
battery management.
Chapman, R. J., 2019. Exploring the value of risk management for projects: improving
capability through the deployment of a maturity model. IEEE Engineering Management
Review. 47(1). pp.126-143.
External factors-
Political factors- In the year 2016, there are more than $750 billion are globally generated by British airways, some of the
government regulations are addressing for concerning about security of passenger, safety or many other issues. Also, large number
of companies are generating the value in order to partnering with other airline companies. So, it can be beneficial for governments
as well as companies & passengers. Moreover, globally the corporate and businesses travellers are enjoying major benefits. Also,
the industrial regulation is harmonized manner profits for the entire world.
Economic- These factors also influencing the airline industry, the industry have been impacted by several downturns. The Airlines
companies are affected by the recent seen and economic growth are slow. The air travel markets saw a low in early 2009 so, it was
premium travel which were more badly affected.
Social- Airlines creating social value as related to the other businesses doing in this type of there are many industries which are
help in profit from the airline industry. Along with this, it is the hospitality industry in order to attain globally that depends on
heavily transports. This industry impacted on the basis of social forces. These stimulated the demand for the air travel that reducing
the prices. Also it has help to created employment. There are some of the result that has been seen as improvement in social image.
Environmental- The effect of environmental factors is the airline industry that might higher than most of industries. Fuel is the
major expenditure for it. As a result, the company need for investment more in fuel-efficient and environment-friendly carriers.
Technological- Technological factors are important that can be understand from the heavy use of technology for aviation. There are
both of the companies and travellers know how great a role it plays, technology means speed but also convenience and safety.
Whether it is passenger or air traffic safety, that critical role of technology. There world wide web that has brought in the higher
revenues and profits. Along with this, there are most of the bookings that are taking place online even in the aircraft which are
enable by best in class technology.
Legal- The passenger’s safety one of the important area on which airlines are held liable in order to air crashes or any other kind of
disaster. The Air transport are also regulated with several acts which are important. Some of new laws have been enforced related
to how airlines treating their passengers.
CONCLUSION
It has been concluded that British Airways is
one of the biggest and major in the airline
industry. Also the report discussed internal and
external factors with the help of PESTLE and
SWOT analysis that are impacted the chosen
firm. Further, explained external environment
and its impact on the company.
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