BUS300: British Airways PESTLE Analysis and Business Environment

This report offers a PESTLE analysis of British Airways, examining the external factors affecting the airline's operations. The analysis covers political factors, including terrorism and Brexit; economic factors, such as global economic slowdown and consumer spending; social factors, like changing consumer lifestyles and travel demands; technological factors, emphasizing advancements in engineering and service; environmental factors, highlighting British Airways' commitment to sustainability; and legal factors, addressing international regulations and compliance. The conclusion emphasizes the need for British Airways to capitalize on technological and environmental opportunities. The report also includes references to academic sources used in the analysis.

Global business environment

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
PESTLE analysis for British Airways:........................................................................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
The PESTLE analysis is a tool which is used by the management to determine the impact of
various external factors on the operations of business. The following PESTLE analysis of British
Airways provides valuable insights on the challenges and opportunities that lies ahead for the
company.
MAIN BODY
PESTLE analysis for British Airways:
Political Factors affecting British Airways:
Over the last few years, British airways has been operating in a challenging political
environment characterised by terrorist attacks in countries such as Paris and Brussels and on top
of that, Brexit. With the recent Coronavirus epidemic, restrictions on airline industry has ever
increased. Business Airways needs to consider the influence of such events and lay more
emphasis on such regulations and decide on what course of action to take during such difficult
times.
Economic Factors affecting British Airways:
The global economy has experienced a dramatic decrease in growth during the last
decade which has affected the airline industry severely. With Brexit, disposable income of the
people has decreased and the consumers are not willing to pay the former prices of the airlines
(Gupta, Gupta and Gupta, 2019). As a result, many of the competitors of British Airways have
already decreased their prices significantly. Management of the British Airways needs to plan
strategically to deal with this economic slowdown and come up with cost-effective and attractive
pricing for the consumers to fight the competition.
Social Factors affecting British Airways:
Changing demands and lifestyle of consumers urges them to spend more on leisure and
travelling. A new class of customers has emerged due to the same. This a great opportunity for
British Airways to increase the market share and earn more revenue. The management of the
airlines needs to come up with a marketing module that attracts this class of consumer and offers
them the best worth for their money.
Technological Factors affecting British Airways:
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British Airways is making effective use of advance technology to increase engineering
and quality of service that it is providing to its customers. Airlines these days are investing huge
amounts in R&D projects in the field of security and alternative sources of energy. Services such
as web check-ins are being provided by every airline company. Thus, it gets imperative for
British Airways to invest considerable amount of resources in technological advancements and
take full leverage of early lead that it has already taken in the field.
Environmental Factors affecting British Airways:
Considering the high media coverage, ecological influences have become extremely
important. This factor presents a huge opportunity for British Airways since it’s the only airlines
that has started reporting their environmental results 2 decades back. British Airways is already
making sure that they have the least impact on the nature by latest technology engines, alternate
sources of fuel and reducing the average noise per flight (Isson and Harriott, 2013). Management
needs to adopt policies to continue the same trend.
Legal Factors affecting British Airways:
British Airways operates internationally so it has to comply to a lot of rules and
regulations of each country. Various health and safety laws has been made after considering the
conditions that the employee and consumers are facing in this industry. British Airways has
faced legal problems quite regularly in the recent past. Thus, management needs to dedicate
some considerable sources for scanning the legal horizon and complying by all rules and
restrictions to protect itself from any lawsuits in the future.
CONCLUSION
It can be concluded that many challenges exist in business environment for the British
Airways but it needs to capitalise and focus on the opportunities in technological and
environmental aspect of its macro-environment.
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REFERENCES
Books and Journals
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.
Isson, J.P. and Harriott, J., 2013. Aligning Key Business Challenges across the Enterprise. Win
with Advanced Business Analytics. p.35.
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