Contemporary Developments in British Airways Business and Management

This report provides a comprehensive analysis of British Airways' business and management practices, focusing on the impact of external factors and corporate social responsibility (CSR). It begins with an introduction to business and management, emphasizing the importance of adapting to internal and external changes. The report identifies and analyzes the primary influences on British Airways using a PESTLE analysis, examining political, economic, social, technological, environmental, and legal factors. It then delves into British Airways' CSR initiatives, discussing its ethical and environmental guidelines, stakeholder engagement, and the impact of CSR on attracting talent and enhancing profits. The report critically evaluates the effectiveness of the organization's response to these factors, highlighting strategies for customer satisfaction, employee well-being, and community engagement. It also suggests areas for improvement, such as enhancing environmental sustainability, strengthening ethical practices, and improving operational efficiency. The report concludes with a summary of the key findings and recommendations for British Airways to maintain long-term sustainability in the market.

CONTEMPORARY
DEVELOPMENTS IN
BUSINESS AND
MANAGEMENT

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................3
Identification of primary influence to which British Airways is subject and analysing the
importance of each factor to organisation ..................................................................................3
TASK 2............................................................................................................................................1
(i) Corporate Social Responsibility and Sustainability ..............................................................1
(ii) Critical evaluation of the effectiveness of the organization's response.................................2
(iii) Areas of Improvement..........................................................................................................4
CONCLUSION ...............................................................................................................................7

INTRODUCTION
Business can be defined as an occupation which includes purchase and sale of goods or
services in exchange of money. Business management can be defined as an activity associated
with running as well as administrating business activities. In present highly dynamic business
managing business has become as complex but crucial tasks. Managing company in systematic
manner is very much essential in order to maintain long term business sustainability in the
market. The changes in internal and external factors has direct effect on business operations. It
also has significant influence on the business decisions taken by management in an organisation.
It is very much important for firms to develop business according to the recent trends in the
market, as failure to complying with the same can have adverse effect on the performance of
organisations.
The report will emphasize on analysing the external factors which are influencing the
business operations of an enterprise in context of British Airways. It is basically a flag carrier
airline in United Kingdom. Study will also have focus on evaluating the effectiveness of
response given by firm to changes in external factors. Report will also include the relevance and
influence of corporate social responsibility on organisation.
TASK 1
Identification of primary influence to which British Airways is subject and analysing the
importance of each factor to organisation
British Airways is basically a second Largest airline in UK in terms of fleet size as well
as passengers carried. As British Airways is operating business at international level, changes in
the macro environmental factors can have great effect on the business operations of an
enterprise. It can also have significant influence on the decisions taken by manager in an
enterprise. PESTLE analysis is considered to be as an effective strategic technique which can be
utilised by manager in British Airways for addressing those external variables which can effect
its business. Some factors which can have impact on Business operations as well as management
decision in British Airways are :
Political Factors
All the businesses requires to be regulated. The political stability is great strengths of the
nation. Still, Brexit has made uncertainties and political debates. Similar, industry is subjective to

high regulations. These are helpful for the paths which are selected by the airline. The airport
slots utilised, the fare that is set, the business partners which its performs with and infrastructure
costs paid. Governments of various nations all over the world put foreword many security
measures to conflict the risk of force and improper regulations immigrations. The political
condition and stability is extremely essential in determining the representation of destinations in
areas which attracts travellers (Sammut‐Bonnici and Galea, 2015). The conflict, terrorism also
have negative impact on growth of travel industry. There are certainly other elements involving
the political unrest, strikes and travelling laws and regulations determined by the each state and
areas government consultant. Some time, political instability can make negative publicity which
reasons an ineluctable reduction in tourist reaching. Travel and tourist brings investment in any
nation, so that political instability will bring serious outcomes to the fun, comfort, safety and
leisure of travellers.
Economic Factors
It involves inflation rate, currency exchange rates and whole economic climate in the UK
which has direct and essential significances on the performance of the British Airways. The UK
is the 5th biggest economy by nominal GDP in the world. Due to increasing the prices of oil and
services, exceeding fiscal situations faced by the UK and sickness of superior. Therefore,
business travel is highly decreasing duet to these declines. The uncertainties in capital markets,
eroding of household budgets, increasing unemployment and falling house prices which led to
major drop in the airline industry and customer confidence (Bharwani and Mathews, 2012). The
airline industry has been considered as one of the best businesses in the world economically. The
fluctuation in currency rates among nations directly impact on marketing supplier of
international travel. The profits of airline business is driven by larger disposable income and
modification lifestyle of customers. In order to that, airline business has to keep in view state
laws while hiring and selecting employees.
Social Factors
It includes cultural, feelings, attitudes, values, level of education, consumer's lifestyle etc.
The quality that has been controlled by the team of airline industry which has created the
travellers more inclined to the business. The creative culture introduced by travellers which has
attracted the consumers or travellers. The British airways must consider and respect social beliefs

and standards of the people from every background. The tourists travelling any place which have
important impact on community they are visiting. This effect involves crowd behaviour, criminal
actions and level of people communication (Zahari and Romli, 2018). These travellers utilise
price comparison sites on the internet to look for the appropriate travel before booking their trips.
Selected company requires to be wholly aware of level of well-being standards and significance
of environmental protection dominate in the industry. Company can be very careful not to lose
the connection with the target interests and priorities of the market.
Technological Factors
Innovation and new technologies are the basic factors that affect the growth of the
company. For example if British Airlines adopted new ways of doing work then it will make its
functioning of business easier and simpler like ERP is the integrated system which is adopted by
the companies that mange back office functions automatically, it requires fewer persons to
operate simultaneously it makes process of work easier (Szydlowska, 2018). In addition to this if
British Airline offer improved services then it can attract more customers and that will help it in
gaining competitive advantage. Furthermore, investment in technology and warehouse
management system will improve the experience of customers and will reduce the cost.
The Latest technology implemented by the company will provide good insight into what
customers are thinking. Technology will decrease the cost of service and increase the profit
margins of the company (Szydlowska, 2018).
Environmental Factors
There are various environmental factors that affects the business environment like
climate condition that may delay the flight which will be inconvenient for the passengers. In
addition to this it is essential for British Airline to purchase carbon pollution permit for
operating its services in EU region. Apart from this if British airline takes full care of power
consumption then it will contribute to sustainable development. Apart from this proper
management of waste disposal will decrease the pollution. In addition to this regular scrutiny by
environmental agencies are adding to the cost of British Airlines. In addition to this if operation
management of British Airline using any harmful equipment to carry out the operation material
like polythene(Mhlanga and Steyn, 2017).

Legal Factors
Legal factor includes various laws and regulation imposed by the government. It includes
employment law, legal protection law, business laws, data protection laws, health and safety
norms etc. Here legal protection laws include laws related to protection of intellectual property
that exclude other people to use piece of work or invention of the owner. Furthermore, it also
includes other firms to copy name, symbols and design of the British Airline. In addition to this
employment law provide rules of remuneration and fair treatment to the employees and workers
of the organisation (Aithal, 2017). If British Airline will provide fair remuneration to its
employees, then they will be satisfied with the organisation culture and make maximum
contribution in completing a task. Furthermore, compliance of rules and regulation will improve
legal relation of the organisation with government, as a result of which it will provide subsidies
without imposing any restriction on the company.
Apart from this data protection laws helps company in maintaining the confidentiality of
the information and data within the organisation. The breach of which will be punishable and
leads to payment of fines and penalties imposed in the law (Aithal, 2017).

TASK 2
(i) Corporate Social Responsibility and Sustainability
Corporate Social Responsibility refers to the initiatives of business which benefits the
society at large. These business initiatives fall into sub-categories such as social, economical and
environmental. Business organisation adopts and implements to corporate social responsibilities
as because consumers are becoming more educated and aware for various social issues such as
unethical labour practices and global warming. CSR strategy aims to provide a guideline to the
company to operate with the ethical code (Crowther and Seifi, eds., 2018). British airways is a
social responsible company. But there are some ethical and environmental guidelines that limits
the operation of the industry and affect their decision making. The strategy mainly focuses on the
protection of environment and society that need to consider by the company in their decision
making process.
British Airways has many various Corporate Social Responsibilities (CSR) for its
stakeholders, customers, local community and for the environment as well. British Airways
needs to focus on following the ethical and legal considerations so that it can meet
responsibilities which are implemented on its operations.
In order to meet the various responsibilities, British Airways aims at developing various
strategies which are considered during decision making process of the company in every
business process. In order to ensure that British Airways is meeting the ethical responsibilities,
company has also developed a careful and thorough code of conduct which needs to be followed
by all the company's employees and management personnel (Unit, 2015). The organisation also
believes in achieving the responsibilities above general regulations and thus, British Airways has
effectively participated in various self-regulation practices of airline industry.
CSR impacts ability of business for attracting top talents and also affects employees’ job
satisfaction levels and retention rate. The employees focus on entering the workforce that seeks
out business that have effective and clear CSR strategy. Corporate social responsibility impacts
on the ability of attract top talent and affects job satisfaction level and retention rates of British
responsibility strategy risk losing top talent to firms which are doing so. Social responsibility of
the business ways raise their profits. Social media also acts as technique to present firms like
British Airways applying the CSR or those with ethical business activities that can lead to raise
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sales and large audience reach and free positive publicity. Businesses that do not prioritise
corporate social responsibility strategy risk losing top talent to firms which are doing so. Social
responsibility of the business ways raise their profits. Social media also acts as technique to
present firms like British Airways applying the CSR or those with ethical business activities that
can lead to raise sales and large audience reach and free positive publicity.
(ii) Critical evaluation of the effectiveness of the organization's response
British Airways has seen to be an organization which tends to serve its clients according
to their set needs and requirements. It is important for the organization to reach new standards
and achieve set growth and development. Fulfilling the needs of its customers and understanding
their core requirements make the organization reach set goals and objectives appropriately.
The organization in its corporate social responsibility fulfills these needs very well. In
order to do this, the organization makes use of a variety of steps and ensures that required
development is taking place. Firstly, its main role and responsibility includes creating better
situation where its people can thrive. In order to do this, the organization understands and
evaluates the importance the needs of its stakeholders. It identifies, the needs and requirements
of the stakeholders, what makes them satisfied, what are the main developments they need to
avail in order to fulfill themselves and develop motivation for the organization to help in its
achievement of set goals and objectives.
A team is set up by the British Airways which evaluates the needs and requirements of its
stakeholders. Often these needs and requirements are the same as the employees mostly seeks a
raise in their salaries, along with the fulfillment of desires of safety and security. In order to do
this, the organization makes use of effective leadership strategies at first. Leadership strategies
such as motivating the employees, providing them with better growth and development
opportunities, their training and development are adopted by the leaders of the organization.
These adoptions help the organization to reach new development and ensure that desired growth
and development is taking place. This helps the organization ensuring that its employees are safe
and now they can move forward with achievement of other goals and objectives.
This showcases that the organization is effective in ensuring that its employees are safe
and are able to work with the complete potential to achieve organizational growth and success.
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Also, the organization is capable enough in ensuring that corporate social responsibility is being
achieved.
The another effective function of Corporate Social Responsibility is responsible souring
of materials and supplies. It has been seen as one of the most important aspect for British
Airways to ensure that it is sourcing its raw materials effectively and from the right places in
order to maintain the set standards of the organization. In order to do this, and ensure this
fulfillment under the corporate social responsibility the organization tends source its products
and services from the supplier which can provide the highest quality of products to it. In order to
source its raw materials from the right place, British Airways tends to understand in what manner
its competitors are sourcing their raw materials (Hopkins, 2016). Using this strategy helps British
Airways to ensure effective sourcing from the best of the suppliers. This provides the
organization with right directions to ensure better growth and development and source its raw
materials from the best places in the world.
It explains that the organization is effective in making use of the optimum raw materials
and sourcing raw materials from the right places. This helps the organization to reach new
standards and ensure that set growth and development is taking place under the Corporate Social
Responsibility. This explains that the organization is capable and effective in terms of achieving
new growth and ensuring that the right raw materials are being sourced.
The next important aspect of the Corporate Social Responsibility in British Airways is
Environmental Protection and Management. Under this aspect, it is important for the British
Airways to ensure that it is taking care of the environment and fulfilling the environment's needs
and responsibilities. Today, it has become important for the environment to ensure organizations
to ensure that effective sustainability is taking place. Sustainability provides the organization
with the direction in which it is achieving a better environmental growth by ensuring a clean and
green environment.
It is important for British Airways to ensure that, it is ensuring better sustainability and
following effective sustainable practices in order to put constant efforts in ensuring a better
environmental growth and development. In order to do this, the organization tends to make use
of effective strategies such as setting up a team to identify the needs and requirements of the
environment and perform accordingly. The set team determines in what direction the
organization needs to move and put constant efforts into in order to ensure better sustainability
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and growth. The recent actions taken by the organization includes making its surrounding clean
and green and reducing the wastage. The efforts are also made by the organization by following
up the practices of recycling. It helps the organization to reach new growth and taking effective
strategies in order to ensure better and suitable sustainable practices. This also helps the
environment to be clean and green. It ensures that the organization is effective in achieving set
goals and objectives under the practices of sustainability and a green environment.
Anti-corruption measures are one of the most important requirements of an organization
under the Corporate Social Responsibility. For an organization such as British Airways, it has
become important to ensure that it is taking effective measures in managing the issues of
corruption. To ensure this, the organization makes use of a variety of strategies such as
evaluating its monetary policies, understanding the employees' taxation routines etc. This helps
the organization to ensure that its functions and operations are smooth, and it is not involved in
any of those activities which can ensure that practices of corruption. It explains that the
organization is capable enough in achieving set goals and objectives and the practices which are
being followed under the corporate social responsibility are safe and secure. It also helps the
organization in reaching new growth and making use of effective development to take the
organization further and achieving set goals and objectives appropriately.
(iii) Areas of Improvement
In order to ensure that effective growth and development takes place within the
organization and its set goals and objectives are being achieved under the corporate social
responsibility. It is important for the organization to evaluate what are its core requirements at
first. In order to improve its provision of services to the customers, it is important for the
organization to determine what are the needs and requirements of its people. Determination of
the needs and requirements will help the organization to evaluate the importance of its customers
and ensure that it is own needs are same as the needs of its customers. For Example, British
Airways often does the surveys in which it identifies the needs and requirements of it customers
and often these needs and requirements are ensuring better satisfaction and provision of better
quality products and services.
The needs and requirements of British Airways are exactly as per the needs and
requirements of the customers, the organizations objectives are to provide the customers with the
best quality services and ensure their satisfaction (Flammer, 2015). Understanding their needs
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and developments on a regular basis tends to help the organization in improving its products and
services and ensure that effective development of its services is taking place.
It is important for the organization evaluate these needs because without evaluating such
needs, it is not possible for the organization to ensure better growth and development and
providing effective services to its customers. As being an Airline, the customers of the
organization are its major assets. Understanding these needs are going to help the organization in
reaching new growth and ensuring that effective growth is taking place.
The other areas of improvement for the organization is improving its activities of Human
Resource Management. HRM is one of the most important aspect of an organization as it helps
the organization in reaching new growth and development and ensuring that effective
development is taking place. The activities of Human Resource ensure that the organization is
having appropriate employees in place and it is providing right opportunities for these employees
in order to achieve set growth and development. It is recommended for the organization to
develop its human resources in such ways that is activities are organization are in order to
achieve set growth and development. It is important for the organization to ensure that its
activities are ensuring its employees safety and security. It is important for the organization to
have effective employee security in place in order to achieve set growth and development.
The employees of the organization are when provided with better resources in order to
work as per their complete potential. It makes the organization work as per its complete potential
and achieve its goals and objectives. It is recommended for British Airways to provide its
employees with benefits such as salary gains, incentives etc. which in turn can help the
organization to achieve better goals and objectives and ensure that effective growth is taking
place. Along with it, it is important that the employees working in the organization are safe and
are not facing any issues related to growth and development of their own and the organization as
well.
The other important requirements of the organization is to provide its customers with
services which are best in the industry. In order to ensure this, it is recommended for the
organization to evaluate what are its competitors are doing in order to provide effective services
to their customers. Evaluating this is going to provide the organization with directions to set its
own strategies as per the current needs and requirements of its customers and its own. This will
directly impact the sales of the organization and would help it to achieve new growth and
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development. It is one of the most essential aspects of the organization to ensure that its services
are better than its competitors and they are attracting the required customers.
It is recommended that the organization makes use of effective strategies in order to
become better from its competitors in terms of provision of services and growth aspects. The
strategies which are used here includes understanding of the competitor's knowledge and the
tools and techniques which they make use of (Schrempf-Stirling, Palazzo, and Phillips, 2016).
This is going to help in ensuring that the organization is providing better services than its
competitors to its customers. Making this aspect better will automatically help the organization
to achieve required growth and ensure that it is performing better in the market and is allowing
itself to become better than its competitors and achieve required growth in the airline industry.
This is going to improve the capability of the organization and would allow it to reach new
growth and development.
The other aspect on which the organization needs to work upon includes the practices of
sustainability and waste reduction. It is because sustainability is one of the biggest challenge
which our world is facing. It is important for the organization to make use of and ensure
sustainable practices. This will help the organization in reaching new growth and setting up
developments in order to achieve better sustainable practices within the working environment of
the organization.
In order to make use of effective sustainable practices, it is important that the
organization understands and evaluates the needs and requirements of its own and then adapts
into the role of sustainability. For example, British Airways first needs to identify the needs and
requirements of the organization and then it requires identifying the roles which can help it in
ensuring better sustainability. Along with it, it is important for the organization to ensure that it is
working and acting according to the set environmental standards and regulations. Under the
corporate social responsibilities it has become important for the organization to follow the
appropriate environmental standards and ensure that set growth and development is taking place.
Along with it, this will ensure that the organization is maintaining environmental safety and its
customers are not going to complaint about the environmental safety and situations that are
taking place within the environment (Crane, Matten and Spence, eds., 2019). Along with it, this
is going to reduce the impact of problems such as global warming.
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