Comprehensive PESTLE Analysis: British Airways and UK Market Dynamics

This report presents a PESTLE analysis of British Airways, examining the external factors impacting its operations within the United Kingdom market. The analysis covers political, economic, social, technological, environmental, and legal factors. The political section highlights the stability of the UK and the challenges posed by Brexit. The economic factors discuss the impact of economic growth and slowdown on the airline's revenue. Social factors emphasize the importance of demographics and consumer preferences. Technological factors showcase the availability of advanced resources and R&D. Environmental factors focus on sustainability efforts, and legal factors cover compliance with aviation laws and employment regulations. The report also includes illustrations and competitors analysis, concluding with a summary of the key findings, particularly the impact of Brexit and technological advancements.

PESTLE
ANALYSIS

Table of Contents
INTRODUCTION...........................................................................................................................1
Main Body.......................................................................................................................................1
Pestle Analysis........................................................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................1

INTRODUCTION
Pestle analysis is framework of external environment which utilise by company to
detailed measure about outside factor which can create impact on organisation. Eventually,
company usually assort this analysation when current business or individual organisation wanted
to established their venture outsider international market (Chen and Trifkovic, 2018).
Overview of Company
As in following, there is pestle assessment of British Airways, it is Flag carrier airline in
United kingdom as their headquarter from where they operates through London, England in main
hub. It was established in 1974 after British airways boards that regulates and managed through
British government. The product is services of transportation as well as hospitality towards
customers. The main pestle is commencing of British Airways in on United Kingdom
perspective.
Main Body
Pestle Analysis. Political: This factor is comprises about overall norms, polices and regulation which is
regulated within the governance of country perspective. As political condition of United
Kingdom is stable enough as well as many other factor is driven as per many benefits like
foreign trade policy, international trade practises, fiscal policy where British Airways
attain all these benefits in United Kingdom region (Abdin, Li and Zio 2017). But there is
huge challenges or implication of Brexit Market that derives companies are not allowed
to pursuing business in European Union. This impact can reduce the business expansion
of British Airways. Economical: It allows to define economic related growth or performance of particular
country as United Kingdom is having better and valuable base of condition of economic
background, the positive part of United kingdom GDP having positive growth in terms of
employment, supply and demand, productivity etc. But for airlines there is high impact
on their business growth as economic due to economic slowdown is reflected decreasing
revenue in airlines. And the implication of United Kingdom there is high term of negative
aspect of Brexit market that focuses on high investment strategic areas.
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 Social: In this factor all demographic and geological factor enhance where they both
plays important role to expand business for approaching customer in better way. In
United kingdom there is positive impact of social factor as many people who having
different range of taste and preferences (Gao and et. al., 2018). The main target of British
Airways moderate people who having middle range of income and they tries to focuses
millennials people who are travel enthusiastic. They can approach them with heavy
operational efficiency and reliability image. Technological: According to this factor it emphasis about availability of resource in
particular country. As in United kingdom there is wide scope of practise about
technological factor. British Airways would easily able to attain more resources in terms
of advanced technology that helps to maintain better advanced type of resources which
helps to driven growth of company. Research and development plays important role to
scrutinise majorly impact of new innovation of technology which setting benchmark
towards company. British Airways has made huge technological improvement in several
areas where it includes the demand which undertakes high profitability. Environmental: Through this factor is more concerned about society development
through environmental practise that operates the aviation base authorities of British
Airways. The activities of environmental is regulated through central government that
maintain the sustainability (Suglobov and Semenova., 2017). British Airways has taken
many steps in direction which minimize in environmental impact on business related
model that influence towards more sustainable. Sustainability is one of core areas of
strategic importance towards brand which is continuously investing to growing the fuel
efficiency which produce carbon footprint.
 Legal: the factor is one of most important factor that determines towards entire aviation
industry that includes towards United Kingdom Market. The compliance which design is
complicated to all aviation players. In United Kingdom, many essential laws follows that
are National Minimum Wages, Bonus Acts, Gratuity and employment laws process to
operation. These all laws of employment related need to implemented by British Airways
where it helps to bring systematic process of working as well as customer rights or safety
passenger of laws can disrupts the looses from large lines.
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In above Pestle analysation is describes in perspective of British Airways the positive
factor is Technological factor which derives about new resources which can assort by British
Airways in United Kingdom, but there two negative factor arises from Political and Economic as
huge impact of Brexit market is having presence that create barriers towards not dealing in
European Countries.
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I
llustration 1: Departing status of British Airways, 2018.
Source: Departing status of British Airways, 2018.

Competitors: The British Airways is commenced to be term as one of largest international
airline of United kingdom, British Airways is one of leading premium leading airline. Their
competitors are Easy Jet airlines which is low cost carrier with similar services, Virgin Atlantic
which is regarded as top British Airways competitors British airline company headquarter is
situated United Kingdom.
CONCLUSION
In above report of Pestle analysation is describes about external factor which can create
impact to Airlines industries such as Political, Economic, social, Technological, Environment
and legal factors that having their own positive and negative implication which reduce and
growth the business..The two factor has discussed in positive and negative terms technological
and Economic where resources are plays important role to increase expansion of airlines and
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Illustration 2: Ancillary Revenue of British Airways, 2019
Source: Ancillary Revenue of British Airways, 2019

Brexit Market is allows not trade in European market. At last there is overall British Airways
Competitors along with some of graphs which reflect about revenues and other realetd sources in
terms of competitors competing among between them. As British Airways is only one who
provide premium based carrier services and others airline companies are tend to be enhance lwo
prices of carrier.
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REFERENCES
Books and Journals
Abdin, I., Li, Y.F. and Zio, E., 2017. Risk assessment of power transmission network failures in
a uniform pricing electricity market environment. Energy. 138. pp.1042-1055.
Chen, Y. and Trifkovic, M., 2018. Optimal scheduling of a microgrid in a volatile electricity
market environment: Portfolio optimization approach. Applied energy. 226. pp.703-712.
Gao and et. al., 2018. A systematic model of stable multilateral automated negotiation in e-
market environment. Engineering Applications of Artificial Intelligence. 74. pp.134-145.
Suglobov, A.E. and Semenova, E.I., 2017. Development of methodical approaches to the
analysis of a market environment of the organization. Economics of Agriculture of
Russia.
Wang, Y., Liu, S., Wang, J. and Zeng, B., 2018. Capacity expansion of wind power in a market
environment with topology control. IEEE Transactions on Sustainable Energy. 10(4).
pp.1834-1843.
Online
British Airways Pestel Analysis. 2019. [online]. Available through
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