Emirates Airlines: A Macro and Microenvironmental Analysis

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Macro and Microenvironment of a
Service Business- Script
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Hello, here I will explain the effect of micro as well as macro environmental factors on the
operation of an organisation. In the presentation we will look at the affect that external and
internal forces have on an organisation, taking into consideration Emirates Airlines. Let us move
ahead with the investigation of the factors affecting Emirates Airlines.
(0.5 sec to 2 sec)
Let us first know about the background of Emirates.
Emirates Airlines is a renowned organisation in the airline industry that is situated in Dubai,
United Arab Emirates. Emirates Airline is a subunit of the Emirates Group that is owned by
Dubai government’s Investment Corporation of Dubai. Emirates Airlines is one of the largest
airlines in the world and the largest one in Middle East. The organisation operates more than
35000 flights or aeroplanes every week, with respect to its hub, that is Dubai International
Airport. In the UK, Emirates Airlines offers its services from Heathrow-London, Gatwick-
London, Birmingham, Manchester, Newcastle, and Glasgow. The revenue generated by the
organisation in 2018 was about 13.3 billion US dollars.
(40 sec- 60 min)
Now, let us know what the MACRO issue are.
Macro factors are the external environmental factors that affect the functioning of an
organisation. The challenges that an organisation faces dues to external forces are termed as
macro factors. In order to analyse the factors that affect the operation, as well as administration
of Emirates Airlines in the UK PESTEL tool, can be used where PESTEL stands for political,
economic, social, technological, environmental, and legal factors.
(0.10 to 0.20 sec)
Let us move ahead with the explanation of PESTEL pertaining to the UK.
Political forces: Although, the UK is stable politically Brexit has adversely affected its stability.
As a result of Brexit, the organisations in the country are affected due to changes in laws that
administer the operation or functioning of the organisations in the country.
Economic factors: The UK is economical of the strongest countries in the world however as a
result of Brexit the financial system of the country has been hampered. The rate of growth of
GDP of the UK has slowed down.
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Social factors: As per reports, most of the population of the country is in the old age group. In
another word, the population of the UK is ageing because approximately more than 15% of
people in the country are over 65 years old.
Technological factors: The UK has always emphasised on innovation as well as technological
growth.
Environmental factors: The degradation of the environment has become a major concern all
over the world; as a result, the government of every nation on the earth has formulated policies to
protect the environment from deterioration.
Legal factors: It is required the companies in the UK adhere to consumer law, laws of
employment, as well as other laws in order to operate efficiently.
(60 sec to 90 sec)
Let us move ahead with MICRO issues
Micro issues refer to the internal factors that affect the operations of a business. The internal
factors of an organisation that affects its operation are termed as micro factors. In order to
identify the micro issues that affect the operation of Emirates Airlines, the tool of SWOT can be
used.
(0.10 to 0.20 sec)
The strengths, weaknesses, opportunities, and threats of Emirates Airlines has been identified
below:
Strength
 The organisation has its branches in several countries thus the organisation has a very strong
position in the airline industry.
 The organisation’s financial position is very strong.
 The organisation is customer-centric so that the customers can be satisfied and their needs
can be met effectively.
 The organisation has a large base of loyal customers.
Weaknesses
 The organisation’s management system is not so strong because the organisation has a large
number of branches.
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 The organisation is lagging behind other organisations in the airline industry in terms of IT
infrastructure or technological advancements.
Opportunities
 The cost of transportation is decreasing in the airline industry that has aided the organisation
to increase its customer base.
 The organisation embraces changes positively that aids the organisation to retain customers
by satisfying their needs effectively.
 The brand name of the organisation attracts a large base of customers.
Threats
 The demand in the airline industry is based on seasons.
 The organisation faces tough competition from Etihad Airways, Qatar Airways, Fly Dubai,
Lufthansa, Malaysia Airlines, etc.
 The security breach that took place in 2018, has affected the reputation of the hotel in terms
of safety and confidentiality thereby reducing the number of customers that opted for the
organisation.
(60 sec to 90 sec)
Let us move ahead with the recommendations that can be provided with respect to micro
as well as macro issues that Emirates Airlines faces
The measures that the organisation can take to address the MACRO issues are as follows:
 The organisation must take measures in order to make sure that the cost of operation of the
organisation does not increase so that its profitability can be maintained.
 The organisation must use apt methods of advertisements or marketing so that the number of
its customers in the UK can be increased thus making sure that the organisation would not
face loss because of Brexit.
 The organisation needs to operate as per the environmental laws and other laws of the UK
government to operate smoothly in the country.
The measures that the organisation can take to address the MICRO issues are as follows:
 The organisation must concentrate on enhancing its management system to enhance its
operation.
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 The organisation must emphasise on enhancing its IT infrastructure to improve its
performance.
 The organisation needs to focus on security factors as well as the uniqueness of its services in
order to increase its customer base
According to me, if the organisation operates as per the recommendations provided above
then the issues it is facing from internal and external forces can be tackled effectively.
(60 sec to 90 sec)
Thank you so much!
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