Contemporary Developments in Business and Management - British Airways

This report examines the contemporary developments within British Airways, a prominent airline in the hospitality sector. It begins by identifying the external factors influencing the company, including political (Brexit and regulatory controls), economic (interest rates, taxation), environmental (CSR, worker strikes), and technological factors (digitalization and competition). The report then analyzes how these factors impact British Airways' performance and decision-making processes. Task 2 focuses on the influence of corporate social responsibility (CSR) policies on decision-making, emphasizing initiatives like emissions offsetting, community support, and charity programs. The report highlights the importance of CSR in shaping the company's image, attracting investors, and adapting to societal expectations. The report concludes by evaluating areas for improvement and the overall impact of these developments on the airline's strategic goals and risk mitigation strategies.

Contemporary
Developments Business
Management
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Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Identification of influences of external factors on company along with importance of each to
the organization...........................................................................................................................3
TASK 2............................................................................................................................................5
1) Influence of polices and decision making within company....................................................5
2) Company’s respond’s evaluation............................................................................................7
3). Areas which need to be improved in the organization.........................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
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INTRODUCTION
Contemporary development can be defined as a growth of an organization which is associated
with technology, globalization and others (Brauner, 2016). This preset study is based on
hospitality sector and British Airways which is a flag carries airline of the UK. It was founded in
the year of 1974 with headquarter is in the London, UK. There are several external
environmental factors which can affect its performance in critical manner so it is important to
analyse all factors (Chaplin and O’Rourke., 2018). This study is going to show all important
factors of environmental like political, social, technological, economical and others. Further, it
will also discuss importance of marketing mix as how it can help company in accomplishing its
goals and promoting its products and services as well. It will also discuss some areas which thus
company needs to improve ad by doing so it can accomplish all its goals along with strategies of
eliminating risks and improving its effectiveness. Lastly, it will also show influences of this
company as how it affects decision making process.
TASK 1
Identification of influences of external factors on company along with importance of each to the
organization
There are several external environmental factors which can affect performance of the company
to the great extent. Hospitality sector is the one whose main aim is to meet all needs of
consumers with qualitative products and services. British Airways need to identify some external
environmental factors which can affect it in a both positive and negative manner. By identifying
factors which can have negative effects on it, company can make appropriate changes in its
policies and take advantages.
Political: There are several airlines which are subjective by fixed regulatory control and as like
other airlines, British Airways is one of them. This regulatory control depends and varies on
route as via companies can fly, airport slot which they can use along with fares and
transportation costs which they need to pay. One of the main examples of political factor is
Brexit according to which UK was a member of EU and it was getting several benefits but When
UK is being exited from EU it is not receiving any kind of benefit related to EU country. It has
directly affected relation between EU and UK which is also affecting British Airways (Coller,
Helms Mills and Mills, 2016). It has limited its services and some other factors which are
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associated with it include: safety regulations, operating license and others. On the other hand, in
positive aspect it can be said that it can make itself beneficial such as it operates in aviation
industry and the government support those who operate in this industry. So, it can be said that
this political factor of regulatory control can affect its performance.
Economic: There are some economic factors which are majorly related to cost and finance and it
can affect performance and sales of the company. Interest rate, taxation rate, unemployment rate,
income per capita are some economic factors. In the context of income per capita and GDP it is
stated that it is high and it is affecting its performance in a positive manner because when income
per capital is high then interest rates are comparatively low. On the other hand it is identified that
economic crisis has affected its performance in a negative manner as it is accounted that
economic slowdown affected its profitability and sales to the great extent. After Brexit and exit if
the UK from EU country it has affected its economic condition in a negative manner because
after exit of the UK from EU country it created economic uncertainties as they started placing
different and varied charges from UK businesses (Peter, 2020).
Environmental: It is one of the main factors which consist of several issues and there are
several companies who are focusing on this area. Hospitality is the one who is mainly
responsible for increasing waste and all other issues related to environment. Hospitality industry
makes use of natural resources to the great extent. So, it is important for British Airways to focus
on corporate social responsibility in order to gain its strategic. By engaging itself in CSR, British
Airways can identify risks related to health and safety as well as environment. People are
becoming more conscious about environmental safety and they prefer to use services of those
companies who are engaged in sustainability and corporate social responsibility.
So, it can be said that by focusing and engaging itself in CSR it can attract investors and
can expand its business. In the context of issues related to British Airways which has affected it
to the great extent and in a negative manner was workers’ strike. Due to workload and increasing
use of resources, lack of working environment, employees of this company went on strike which
affected its image and performance as well (Fedosova, 2016). For sometimes it had to face many
other problems like decrease sales, decrease revenue, poor productivity and increasing rate of
staff as well as customers turnover rate. So, overall it can be said that British Airways require
more focusing on this area.
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Technological: It is other main external factors which are increasing competition for this airline
company. In this context it is stated that by making use of advanced technologies, some airlines
are expanding their businesses and also becoming the market leader. It is putting pressure on it to
invest in technologies. Digitalization is one of the main factor of technology by which all
functions are being made digital. Now company requires making itself fuel effective in order to
provide superior experience to its customers. By doing so it can increase profitability if it focuses
on digital transformations. It can increase its cost but still after investment and by making use of
technologies it can attract customers and increase sales. So, in this regard, it is now focusing on
using contract website which is helping it out in bargaining control.
TASK 2
1) Influence of polices and decision making within company
Corporate social responsibility (CSR) can be defined as an effective business model
which is self regulating which makes an organization able to become socially responsible and by
knowing their needs satisfy them. A process of making an effective use of natural and other
resource and do not hurt needs of future generation is also known as CSR. It includes several
policies of company in which all stakeholders work together by following guidelines and make
they socially responsible. Social corporate activities are necessary activities for the every
organization and this is an responsibility of the every organization to give their contribution
toward the CSR activities, British Airways is one of the top leading Airways company on the
international level and having good reputation in this industry (Currás‐Pérez, Dolz‐Dolz,
Miquel‐Romero and Sánchez‐García., 2018). This is necessary for this company to make
polices related to the CSR being used by companies to accomplish goals of taking competitive
advantages in the market where they are operating their business.
Activities like Corporate social responsibility not only provide benefits to the
environment and the sociality but it also affect on the reputation of the company in the market
and create good image among the sociality and people also aware about the company and take
services from them.
Corporate social responsibility of the British Airways as great influence on the
companies polices and their decision-making process. It is necessary for the company because
starting any kind of social activities they have to make the polices which shows that British
Airways will run their activities for the people and look for the environment which also has
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impact on decision making which is make ad run by the superiors of the company. Superiors
of the British Airways have to understand the importance of the Corporate social responsibility
and how it will helps them take the competitive advantages (del Mar García‐De los Salmones
and Perez., 2018). They have to take decision and make strategies and polices related to the
Corporate social responsibility.
British Airways already having polices related to the socially welfare and addressing h
environmental issues which they are corporatizing properly and giving their contribution to the
both society and the environment. Leader's and managers of the British Airways take the
decision and make polices related to the those activities. As per this company they are
passionate about managing their business, and they understand their responsibility. This mean
that they are giving their support top the sociality and local community and their main focus is
to create equality and diversity in the society and counting the flight against human and
wildlife trafficking.
The British Airways from the staring of the 2020 they give their commitment to fifer
their offset emissions on their all the flights which are within the United Kingdom. Emission
are offset by the investing in the range of Global carbon Reduction projects where they will
spend high amount of money to decrease the pollution – they will create the program like
rainforest protection and their reformation to make the better environment and make this earth
more beautiful and pollution free (Devenin and Bianchi., 2018). The following unprecedented
and sustain impact of the global crises Coronavirus on the aviation industry and the
disputation it has caused to their flights schedules, they will be purchasing the credits to offset
all their domestic flying for the 2020 is the first quarter of the 2021. This provides them to
understand that total volume if the carbon they need to offer and the travelling further
Leafield British Airways can reduce their carbon footprints with the help of their carbon
offset calculate which can able to show the carbon footprints by calculating through the
technology so British Airways can reduce their carbon Footprints.
Another polices and commitment passed by the superiors of the British Airways related
to the Corporate social responsibility where they are committed to support the local people or
the community where they fly. This is also social activity in which they are giving their support
and making the living of the people better. The British Airways made one charity program and
their Flagship charity program which is for the sociality start , This was an partnership with
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the Comic Relief help disadvantage young people in the UK and all around the world have
the best possible start in life. They are supporting people who are looking for the help, and they
need support from some to become something in their life, and they can earn and spend their life
properly. They generate the money from the customers who used to take the services and flight
from the British Airways and their staff also contribute for the charity, and they were able to
collect the clarity amount which was around 24 million and this was enough for the help of
the 800,000 people and those people will able to start their career ad the can become something
their life. This support they get from both their customers and their staff so the companies
superiors also say thanks to the every person who helps them and this activity will help them
to create good image in their customers mind, and they will able to gain locality of the
customers which is necessary for the business grow (Graafland and Smid., 2019). The CSR
influence policies and regulations developed by company, and they take decision related this is
they can take competitive advantages in the Airline industry and show themselves as the top
leading company in this industry.
In future also British Airways can do more social and environmental activities which
can be beneficial for the society and the environment both. Company is also making new polices
related to their fuel in which they will price to save fuel to they can save resource for the next
generation . This will be useful for the environment, and they create opportunity for the future
generation . This effort will provide the competitive advantages Company policies that insist on
working with partners who follow ethical business practices. Social corporate activities are
necessary activities for the every organization and this is an responsibility of the every
organization to give their contribution toward the CSR activities, British Airways is one of the
top leading Airways company on the international level and having good reputation in this
industry.
2) Company’s respond’s evaluation
British Airways is engaging in the social programs to decrease ad compensate for the
negative impact they have in the longer community. The effort made by the British Airways
for the society and environment is known as Corporate Social Responsibility initiatives, and
they can range from the decreasing carbon emissions to connect with the fairer and more open
and better practices of the employment.
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Corporate social responsibility have benefits like – it helps to inspire other and their
own employees to understand their social responsibility and motivate them to do the same.
This also create good image in employees mind that their company is doing good for the
sociality, so they started giving their best in the task and help the company to achieve their
business goals and objectives. Corporation and their stakeholders , sociality as whole , and even
the future generation get the benefits of the Corporate social responsibility run by the British
Airways (Liao and et.al., 2018). The kindness are rarely the motivating factors behind the
Corporate social activities. Osem of the benefits like attention of the customers also benefit of
the social activities. When British Airways perform the social activities and customers know
that small amount their Air ticket will go for the welfare of the people then this creates
attraction in the customers, and they started supporting the company. This is beneficial for the
both society and company can also earn better revenue from this activities.
In the context of CSR it can be said that it is one of the best and effective strategy as it
makes companies able to make their effective position in the market and survive in changing
environmental market. Some of the markets where shift of the markets and the customers
performance preferences cannot be predicted and it can be beneficial for to make an effective
use of this effective strategy and surviving in this market conditions. This strategy also reefers
as the sustainable strategy is simply a form of the corporate self-regulation integrated into
the business model.
With need to tackle the sustainable development,. The CSR Offer by the British
Airways makes some claims, and they also receive coverage and win award can a grater
impact on their customers. For every company their good will in the market shows their
popularity and this can be made by the CSR where people will get the help from the British
Airways, and they will suggest the others to become their customers because they are doing
good work, and they should support rather the other airways companies in this industry.
British Airways is doing good work, and they are also getting the good response from their
customer. It has increase their reputation in the market like United kingdom and government
institutions are also supporting them in their work (Lu and et.al., 2019).
One of the best benefits from the Corporate social activities in their advertisement.
Companies like British Airways can get the benefits of the free advertisement from the News
channels and articles a where they show that how they are helping people . Which is like free
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advertisement and people aware about the company and create good image in their mind about
the company. They can also get the award for their work which is also a opportunity for them
so show their presence in the market. Award shows do live telecast were they give them award in
front of all the citizen of the country and people can e aware about British Airways company,
and they t]started taking interest to know about the British Airways.
British Airways is performing the social activities in which they are providing necessary
help to make their career supporting people looking for their welfare which is useful for them
to create their reputation in the market where they are operating their business, and they can able
o achieve their objectives and their goals in the market (Ramadhan and Novianti., 2019). In the
context of benefits of this strategy it can be said that it can allow company in increasing staff
retention rate and increasing a pool of skilled workforce. One of the main reason behind this is it
people tend to work with companies who are sustainable and make use of this strategy. People
make them engaged and take active participation in making company able to successful
implementation of CSR policy and developing community as well.
The stakeholders engagement and the understating the concern of the stakeholders is
necessary for the British Airways and the potential investors are increasingly including the CSR
issues when they take the decision for the investment company. They will invest in the
company by looking at the various factor and their CSR activities are on of them. Investors are
more interested to invest in the British Airways because they are running the CSR activities
where they are helping people by the charity among their target is to help people among
800000 people which is creating good opportunity for the British Airways to get the new
investors for their business (Nematollahi, Hosseini-Motlagh and Heydari., 2017). This is
advantages because it makes their financial resources more strong and company can take
competitive advantages I the market through expanding their business more and using the
financial resource effectively.
British Airways not only getting the support from the customers and their staff
members, but they are also getting g support from the government institutions because they are
giving their support to address the issues related to the environment. This s beneficial for them
because if any governmental polices are affecting their business then they can get the support
from the government owned institution, and they can help them, to overcome from the
problems which can be related to the polices or the political environment.
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3). Areas which need to be improved in the organization
British Airways know their social responsibilities, and they are also taking advantages
through the Corporate social activities but there are some areas where they need some
improvement in their CSR activities (Sukhonos, et.al., 2019). It is necessary for the British
Airways company to address this issues and improve those areas, so they can achieve
competitive advantages and show their presence in the industry where they are operating their
business, and they can also make their business more sustainable and effective which will
increase their reputation in the market.
Some of the areas like flexibility which is necessary for the business. British Airways
should be flexible in their CSR activities and show their charity record on the websites so
people can be sure that company is using the money for the charity. They have to be provide
updates to their customers about their CSR activities. This can be improved and British
Airways company can become more flexible for their customers and take competitive
advantages in the market. Flexibility in the busies helps to create trust between customers and
firm both so it is necessary for the British Airways to be flexible with their customers and
update information related to their CSR activities.
British Airways is support the people who are not able earn to want to make there
career but there are some people who are physically weak and having physical problems need
more support as compare to the people who are physically strong and do work. Superiors of
the company should look for those people who are not able to walk and do their work which
will be more better and there are many children who are not having family and home,. British
Airways should focus on those children's as well. This is the area where they can support and
take competitive advantages and make their sociality activities more better and support people
more effectively.
One more area where they can improve is the woman empowerment. Most of the staff
in the British Airways are female and there are very less female staffs as compare to the other
Airways company (Tang, Ma, Wong and Miao., 2018). This creates negative image in their
customers mind and society as well that they do not support females. British Airways can solve
its problems by recruiting new female employees at their workplace and maintain the numbers
of male and female at their workplace. Woman will also get chance to earn for themselves and
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it is also a social responsibly of the British Airways company, and they should address this
issues and make better place for the work.
Improvement areas related to the Corporate social responsibility is necessary for the
British Airways where they can also look for their polices related to the CSR activities. They
can make better strategies, and they should also aware their staff members about the changes
in the CSR polices and improvement in their polices to helps people (Zeng., 2020).
British Airways should more focus on the charity where they can provide facilities like
eduction t the poor people and help to the people who are not having the hoes to living. There
are many people who are suffering from the problems related to those, and they are looking for
help. They are one of the top airline company and if they will spend some amount on poor
people and their eduction then it will be support to that particular country as well because they
are educating the people and make them able to get employment, and they can make their
carer. Eduction is necessary for the development of the country if the company will provide
eduction to the poor people then it will also support to making their career. They do not need
to spend more money on the making carrier they can spend money by building the schools for
the poor people so they can take proper eduction. In the future they can complete their studies
and make their carrier as the professional One more area where they can improve is the
woman empowerment (Zhu, Zou and Zhang., 2019). Most of the staff in the British Airways are
female and there are very less female staffs as compare to the other Airways company. This
creates negative image in their customers mind and society as well that they do not support
females. British Airways can solve its problems by recruiting new female employees at their
workplace and maintain the numbers of male and female at their workplace. Woman will also
get chance to earn for themselves and it is also a social responsibly of the British Airways
company, and they should address this issues and make better place for the work.
CONCLUSION
As per the report has been cover case study of British Airways. This report has been
provided factors which affect It has been discussed importance of the Corporate social
responsibilities of the company . This report has been analysis the influences polices and
decision-making of the CSR activities . It has been critically evaluated the effectiveness of the
CSR activities and their impact on the company. In the end of this report has been explained
how British Airways can improve their social activates and helps people and environment.
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