NSAB515B1 - British Airways: Macro & Micro Environment Impact Analysis

This report provides a comprehensive analysis of the macro and micro environmental factors impacting British Airways. It utilizes the PESTLE framework to assess the influence of political, economic, social, technological, legal, and environmental factors, highlighting aspects such as government policies, economic conditions, technological advancements, and environmental regulations. Additionally, the report employs a SWOT analysis to evaluate British Airways' internal strengths and weaknesses, as well as external opportunities and threats, including its strong brand reputation, dependence on the UK market, expansion opportunities, and competitive pressures. The analysis offers insights into the strategic challenges and prospects facing British Airways in the dynamic airline industry. Desklib provides a platform for students to access this and other solved assignments.

BUSINESS
ENVIRONMENT

Impact of Macro Environment on British Airways
PESTLE ANALYSIS
Political Factors:
• Changes in government policies
•Company demanded third runway at Heathrow airport from UK government
• Level of bureaucracy, corruption, availability of trade union
• Faced terrorist attacks at Brussels airport lead to decrease in share price.

Contd..
Economic Factors:
• Inflation, recession, currency rates,
interest rates
•Overall economic condition of the
country
•Cost of fuel
• Financial crisis faced by UK in recent
years
• Increase in social status and global shift
in economic.

Contd..
Technological Factors:
• Constant Upgradation of technology is
required
• Use of internet for check in
• Arrival management system
• Departure management system
• Digital revolution worldwide.

Contd..
Legal Factors:
•Slot capacity
•Different security guidelines of every country
•Infrastructure to route flights
• Problems in entering to new market due to their
rigid rules

Contd..
Environmental Factors:
•Take care of waste management, air, noise
and water pollution
•Appropriate measure to reduce the effect
• Government has set rules for limited
radiation and emission
• Company follows national, international and
local environmental regulations for different
destinations

Impact of Internal factors on British Airways
STRENGTHS:
•Serving since more than 90 years.
• Associated with IAGC International airlines which is 3rd in terms of revenues.
• Developed a strong brand by conducting influential campaign
• Enjoys high level of trust and recognition.
• Supported by UK government
• Have its own engineering branch
• Tech savvy

Contd...
WEAKNESS:
• Major dependence on UK market for revenues.
• Creation of employee union have affected the revenues.
• The company has global presence but there are destinations which are left
untouched such as India China.

Impact of External factors on British Airways
OPPORTUNITIES:
•Expansion in the market due to growing demand of investment in tourism
• Small competitive companies have forced to exit from the market hence,
created market for British Airways.

Contd..
THREATS:
• Large discounts provided by
competitors.
• Airlines industry is highly regulated by
the government
• Alternative mode of transport are
available in several countries.