BM461: Global Business Environment Report - British Airways Analysis

This report provides a comprehensive analysis of the global business environment, focusing on British Airways. It begins with an introduction outlining the scope of the study, which includes an examination of the company's operational environment and the key factors influencing its business. The main body of the report features a detailed SWOT analysis, identifying the airline's strengths, weaknesses, opportunities, and threats. The report also explores the impacts of key drivers, such as competition and technology, on British Airways' marketing and operations. It discusses how factors like digital promotion, technological advancements, and competitiveness affect the company's strategic decisions. The report concludes with a summary of the findings and a list of references.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY..............................................................................................................................................3
SWOT Analysis.......................................................................................................................................3
The impacts of key drivers on the organization’s functions such as marketing and operations...............4
CONCLUSION...........................................................................................................................................5
REFERENCES............................................................................................................................................6

INTRODUCTION
Global Environment highly affects the company’s business because it includes various
un-controllable international and, local interactions that affect companies operations. The Global
Business Environment includes many factors such as political, cultural, economical,
technological, environmental and legal. This report includes the PESTLE analysis, SWOT
analysis and key drivers that influence companies’ business. British Airways is the UK's 2nd
biggest airline company. This company has high quality standards and established customer
goodwill. This report will also highlights that how these key drivers can impact upon the
organization's functional areas such as marketing, operations.
MAIN BODY
SWOT Analysis
SWOT analysis includes strength, weaknesses, opportunities and threats.
Strength –
British airways has a strong brand image and the identify in the united kingdom at the
airline companies. Strong brand image of the British airway generate many advantages for them.
British airways also have a high capacity air planes. The company has powerful technological
capabilities. British airways always focusing on improving there technology to expand their
operational efficiency (Kasemsap ., 2018). Advance technology of the company plays a vital role
to improve customer’s experience.
British Airways covers a high international group networks. The British airways flight
serves more than forty million passengers every year. The company has a major focus on
improve the sustainability of their business. They also invest in decreasing its carbons footprint.
A British airway operates a fuel- efficient and large fleet of about 300 aircrafts.
Weaknesses –
the major weakness of British airways is the human resource issue. in the 2019,british
airways faced many consequences due to a pilots strike. The another weakness of the company is
the over- dependency of the domestics markets. The another issue faced by company is lack of
experience of the new employee. The law returns on invested capital also a major weakness
points for the British airways (Chasdi ., 2017).
During the recent year faced a major problems that was caused by the rolls Royce Trent
thousands engine British Airways. This issue of engine created several operational problems in
the company such as delayed flights.
Opportunities –

the main opportunity for the British Airways is the international expansion. Currently,
British Airways depends on the domestic markets for a maximum parts of it annual revenue
(Doh, Luthans and Slocum., 2016). The company can increase its revenue and grow its customers
by expanding their business internationally.
Increased focus on technological innovation and digitalization, British Airway can find
quick growth and enhance their market share. The advance technology improves the Airlines
services which can expand the customer base. Through expanding services Portfolio Company
can increase the revenue growth. By offering premium services to the customer company can
expand their market because a premium service attracts more customers.
Threats –
Competition is a major threat for the British Airways. The higher competition in the
airlines industry can create many diverse impacts on the British Airways (Shageeva and et.al, L.V.,
2017). The high competition can increase the operational expenses such as acquiring cost of new
aircrafts. The unstable political scenario of the United Kingdom is also a significant threat for the
British Airways because it can highly affect revenue margins of the business.
Changing economic situation, high rate of interest influence the customers choices. The
UK's regulations and rules for the Airline industry are quite complex. The government bodies of
UK have a major focus on compliances and regulations not on the security, safety, labor rights
and consumer rights.
The impacts of key drivers on the organization’s functions such as marketing and operations
Marketing
The high competition in the market can reduce the company's efficiency related to the
marketing. The high competitiveness of global brands and new companies in airways industry
create a major diverse impact on the marketing activities. Because of the high competition,
British Airways have to change their pricing strategy and marketing policies (Hamilton and
Webster., 2018). The effective technology plays a vital role in the company's marketing functions.
The strong technology in the British Airways create a powerful effects on the marketing strategy
in terms of communicate , collect, handle, analysis, interchange, personalized etc. the technology
improves the marketing function of the company like increased customer satisfaction, effective
marketing process, customized information and helping in cost reduction. In the digital world,
competitive business culture increasing day by day (Lee ., 2017). For that, British Airways should
have to improve their market strategy by following digital platforms. Various airlines company
also approaches digital promotion for their services, so that it is very necessary for the British
airline to transform their marketing strategy into powerful digital promotion.
Operations

The high competitiveness of the global brand and new companies can diversely affect the
operations of the British Airways. all the competitors in the market wants to gain high market
share by reducing cost, lowering price and improving efficiency by developing new services so
that, to defeat the competitors British Airways should have to modify and alter their operation
accordingly. Competition also has positive impacts on the business operations because it is a best
way to increase productivity and boost motivation (Keivanpour, Ait Kadi and Mascle., 2017).
The use of strong technology can create a large impact on the company's operation. It
inspires the workers and employees for the new and unique innovation in the services of British
Airlines. The effective technology has will increases productivity of employees and investment.
It helps to transform their old work system into automated work system. Technology can also
improve the communication process in the organization and the best communication process
expands the operational activity in British Airways Company. The digital promotion of the other
companies will diversely affect the operations and functions of British Airways. To compete
with these types of companies, British Airways have to take major and complex decision. It can
reduce the company’s work ability and also de-motivate their workforce.
CONCLUSION
From the above report, it is concluded that the various internal and external factors of the
business environment can positively and negatively affects the business operations. PESTEL and
SWOT analysis majorly assist the organization; by this company can identify their strength and
weaknesses in the business market. It also helps the British Airways to grab effective
opportunities from the market and expand their business globally.

REFERENCES
Kasemsap ., 2018. Mastering business process management and business intelligence in global business.
In Global Business Expansion: Concepts, Methodologies, Tools, and Applications (pp. 76-96). IGI Global.
Chasdi ., 2017. Corporate Security Crossroads: Responding to Terrorism, Cyberthreats, and Other
Hazards in the Global Business Environment. ABC-CLIO.
Shageeva and et.al, L.V., 2017, September. Training the Achievement-oriented Engineers for the Global
Business Environment. In International Conference on Interactive Collaborative Learning (pp. 343-348).
Springer, Cham.
Doh, Luthans and Slocum., 2016. The world of global business 1965–2015: Perspectives on the 50th
anniversary issue of the Journal of World Business: Introduction to the special issue.
Hamilton and Webster., 2018. The international business environment. Oxford University Press.
Lee ., 2017. The Internet of Things in the Modern Business Environment. IGI Global.
Keivanpour, Ait Kadi and Mascle., 2017. End-of-life aircraft treatment in the context of sustainable
development, lean management, and global business. International Journal of Sustainable
Transportation, 11(5), pp.357-380.