BM461: Global Business Environment Portfolio Paper - Analysis of BA

This portfolio paper examines the global business environment of British Airways, a major UK airline. It begins with an introduction highlighting the importance of understanding the international business landscape and the factors that shape company performance. A PESTLE analysis is conducted to assess the political, economic, social, technological, legal, and environmental factors impacting British Airways. The analysis considers the effects of Brexit, economic fluctuations, changing customer preferences, technological advancements, legal compliance, and environmental concerns. The paper then identifies the key drivers of change within this environment, including increased competition, technological innovation, and evolving customer demands. The conclusion emphasizes the significance of adapting to the macro environment for sustained success. References from academic journals and books are provided to support the analysis.

Global Business Environment
Portfolio Paper.
Table of Content

INTRODCUTION...........................................................................................................................3
Pestle Analysis.................................................................................................................................3
Key Drivers of change.....................................................................................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODCUTION
Global business environment determines the platforms of business collaboration of
various brands and companies in international levels with detailed research of the latest trends in
customer preferences and industry outlooks (Merad and Trump,2020).British Airways is the
second largest airline company in UK with large established customer goodwill and high quality
standards in terms of performance delivery. This report analyses macro environment factor and
the competitive forces which are the key drivers to bring change in management of company
operations.
Pestle Analysis
Pestle analysis determines detailed analysis of macro environment factors of economy
where company operates or wish to expand its business operations for long-term success in
competitive industry (Bonsu,2019).
Political factors: The Brexit decisions of UK has largely affected revenue margins of British
Airways due to unstable political scenario of country. Trade and declining tourism factors by
people are major implications on business operations of company.
Economic Factors: Changing economic situation of country and the high rates of interest has
affected people disposable income largely, and their choices to choose airways as their travel
option (Duong,2019).
Social factors: The changing preferences of customers to have high quality experience and the
dynamic competitive environment, where new brands are coming in airways industry can impact
company performance levels extensively (Pan, Chen and Zhan, 2019).
Technological factors: The high technology usage and strong competitive business platforms
among new brands where there is high usage of strong innovative technology to maintain cost
efficiency and provide high satisfaction services to customers.
Legal factors: British Airways are facing high constraints to excel in legal factors efficiency
where it needs to focus on for maintaining long term success in industry. There is strong demand
to follow ethical standards and legal factors compliance by airways company in industry (Ogden
and Roy-Stanley,2020).
Environmental conditions:
Changing climate conditions also posses a threat to company performance as the brand is largely
affected due to unstable natural environment, sudden rains and high pollution standards. This

factory of macro environment can negatively impact long term success of company in travel and
airways industry (Boubaker,Sahin and Dallery,2019).
Key Drivers of change
The key driver of change from macro environment which posses large threat to
operational efficiency of British Airways can be analysed as follows:
 High competitiveness of new companies and global brands entrants in airways industry
 Strong technology usage of products and innovation in business services (Sroufe, 2017).
 High competitive demands of preferences which affect the capital funds largely.
 Competitive business culture in digital world.
 Strong digital promotion by other companies
CONCLUSION
This report can be concluded with explanation that Macro environment lays high impacts
on operational efficiency and competitive levels of company in global business environment.
The impact of new brands coming up and high technology usage and changing preferences of
customer are the key drivers affecting company performance levels. Global business
environment have various parameters where company needs to reach the set benchmarks with
string efficiency to reach high expectations of customers, with enlarged goodwill among new
segments of market share (Delgado,2018).

REFERENCES
Books and Journals
Bonsu, S., 2019. Integrating Community Involvement Programs into the Strategic Management
Process. Journal of Economic Development, Management, IT, Finance & Marketing.
11(1).
Boubaker, S., Jemai, Z., Sahin, E. and Dallery, Y., 2019, September. Supply chain agility drivers
and enablers. In 2019 International Conference on Industrial Engineering and Systems
Management (IESM) (pp. 1-5). IEEE.
Delgado, M., 2018. Firms in context: Internal and external drivers of success. The new Oxford
handbook of economic geography, pp.324-344.
Duong, A., 2019. The PESTEL Model.
Merad, M. and Trump, B. D., 2020. Ethics and Analytics as Key Drivers of Good Decisions. In
Expertise Under Scrutiny (pp. 89-108). Springer, Cham.
Ogden, J. and Roy-Stanley, C., 2020. How do children make food choices? Using a think-aloud
method to explore the role of internal and external factors on eating behaviour. Appetite.
147. p.104551.Roy, S., Modak, N. and Dan, P.K., 2020. Impact of Collaborative
Drivers of NPD on Quality Cost and Customer Satisfaction. In Advances in Materials
and Manufacturing Engineering (pp. 361-368). Springer, Singapore.
Pan, W., Chen, L. and Zhan, W., 2019. PESTEL analysis of construction productivity
enhancement strategies: A case study of three economies. Journal of Management in
Engineering. 35(1). p.05018013.
Sroufe, R., 2017. Integration and organizational change towards sustainability. Journal of
Cleaner Production. 162. pp.315-329.