BM461: Global Business Environment Analysis Portfolio Paper

This report provides an analysis of the global business environment, focusing on the airline industry. It explores how globalization, economic factors, and political risks impact airline organizations, particularly within the UK. The report identifies key drivers of change, such as strategic partnerships ...Read More

Running head: GLOBAL BUSINESS ENVIRONMENT ANALYSIS
GLOBAL BUSINESS ENVIRONMENT ANALYSIS
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1GLOBAL BUSINESS ENVIRONMENT ANALYSIS
Introduction
Global business environment can be defined as the environment that has been formed in
different countries with the help of factors that are related to home environment of organizations.
The decision making of organizations is influenced by the use of capabilities and resources that
have been gained in the operations (Eaton 2017). The analysis will be based on the discussion of
the airlines industry and the impact of different environmental changes on the organizations that
are a part of the industry.
Changes in global environment and their impact on the organizations in airlines industry
The airlines industry is considered to be a major contributor to the total GDP of the United
Kingdom. The aviation industry promotes tourism in the country and also influences the
economic growth levels and global trade as well. The airlines organizations have started
exploring the new market with the help of strategic partnerships and alliances. Majority of
different leading airlines have developed presence on a global basis and the service offerings are
being improved on a continuous basis. Airlines industry is able to produce highest revenues and
the external factors have a major impact on the organizations in this sector as well (Gov.uk
2020).
The social, economic and political risks have been able to influence the organizations and
have enhanced volatility of the industry as well. However, the risk factors have a negative
influence on the organizations in airlines industry and this is able to reduce the profitability
levels of firms as well. The aviation organizations thereby need to implement different
innovative activities in order to overcome the impact of external factors. According to data
provided by IATA or International Air Transport Association which is considered to be a trading

2GLOBAL BUSINESS ENVIRONMENT ANALYSIS
entity promoting the collaboration among different airlines organizations of the world the
number of passengers have started increasing from the year 2017 to 2019 (Statista.com 2020).
Identification of underlying driver of the changes based on real life examples
The different airlines organizations in the UK including British Airways, Easy Jet UK,
Eastern Airways, Ryanair UK, BA City Flyer, Virgin Atlantic Airways, Virgin Atlantic
International and Wizz Air UK have been able to provide major levels of contribution to the
improvement of revenues of airlines industry. The airlines industry has been influenced in a
positive manner by the revenues and profitability gained by these organizations. The
globalization based factors have been able to provide major contribution to the changes that have
taken place in the industry. The external business environment has been influenced by
globalization and the expansion of organizations in various countries (Song, Li and Cao 2018).
Conclusion
The analysis can be concluded by stating that the airlines industry has faced many
different changes due to globalization and the expansion of firms in different countries as well.
The organizations in the UK airlines industry have also faced different changes in the last decade
due to changes in external environment and changes in organizational structure as well.

3GLOBAL BUSINESS ENVIRONMENT ANALYSIS
References
Eaton, J., 2017. Globalization and human resource management in the airline industry.
Routledge.
Gov.uk 2020. UK aviation forecasts 2017. [online] GOV.UK. Available at:
https://www.gov.uk/government/publications/uk-aviation-forecasts-2017 [Accessed 9 Mar.
2020].
Song, H., Li, G. and Cao, Z., 2018. Tourism and Economic Globalization: an emerging research
agenda. Journal of Travel Research, 57(8), pp.999-1011.
Statista.com 2020. Topic: Aviation industry in the UK. [online] www.statista.com. Available at:
https://www.statista.com/topics/5194/aviation-industry-in-the-united-kingdom/ [Accessed 9 Mar.
2020].