Global Business Environment: A PESTLE Analysis of British Airways

This report provides a PESTLE analysis of British Airways within the global business environment, identifying key external factors impacting the airline's performance. It examines political influences like Brexit, economic factors such as inflation and unemployment, social trends including demographic changes and the impact of the coronavirus, technological advancements, legal regulations, and environmental concerns like carbon footprints. The analysis highlights the importance of understanding and adapting to these factors for sustained business success. Recommendations include conducting thorough research on government regulations and customer needs to ensure compliance and maintain competitiveness. Desklib is a valuable resource for students seeking similar solved assignments and study materials.

Global Business
Environment Pestle
Analysis British Airways

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Introduction of British airways...................................................................................................3
Pestle analysis of British Airways...............................................................................................3
Recommendation: ......................................................................................................................5
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
In business environment various factors are included that impacts business performance
and functionality in positive as well as negative manner. To analyse these external factors,
businesses use Pestle analysis which as the framework that analyses key factors that influence
organisation from its outsider environment. In this report Pestle analysis of British airways along
with key drivers of change mentioned in this project report.
TASK
Introduction of British airways
In this report chosen organisation is British Airways which is flag carrier airline organisation
situated in England, UK. It operates its operations at 183 destinations.
Pestle analysis of British Airways
Elements Factors Influences
Political factors Brexit and political
instability
Political factors plays important role in
aviation industry. It includes role of
government policies, role of political stability
for business growth enhances it's importance
for British airways (Katzenberg and Waters‐
Rist, 2018). Changes in government policies
and Brexit is the major key factor that
impacts organisational performance and
profitability through enhancing regulations
such as tariff rights, safety regulations,
personal licensing and various others.
Control of government and regular changes
in policies are the factor that impacts
business growth and development.
Economic factors Inflation and
unemployment
It is analysed that unemployment rate is
enhancing at fast rate that impacts overall

performance level of British airways.
Inflation rate impacts purchasing power as
well as buying pattern customers. It reduces
their spending level that impacts negatively
on sales of respective organisation.
Social factors Demographic changes Demographic changes impacts overall
performance of British airways. There are
regular changes are measured in customers
needs and demands. Fear of corona virus
reduce the demand of airlines because it is
restricted to travel from one place to another.
To cope up with these factors respected
organisation conduct research to analyse
customers behaviour and their preferences.
Technological factors Digital technology Advancement of technology and evaluation
of digital technology are the factors that
impacts overall efficiency and effectiveness
of British Airways organisation. It facilitates
organisation to enhance customer base as
well as capture wide market place (British
Airways Pestel Analysis, 2021). Through
using digital technology, organisation
provide superior experiences to its
passengers.
Legal factors Legislations There are various laws and regulations are
formulated by the government of UK such as
employment laws, safety and security and
various others that impacts British airways
performance and efficiency. Regular changes
are happened in these laws that create

challenge for organisation to implement than
in effective manner (Zorpas, 2020).
Environmental factors Carbon footprints Environmental factors are the major concern
of British Airways. There are various actions
are taken by the respected organisation to
minimise impacts on environment to sustain
in environment for longer period of time.
Respective organisation invents in enhancing
efficiency of fuel and reduce carbon
footprints (Symeonides, Loizia and Zorpas,
2019). It aim is to reduce carbon footprints to
zero level.
Recommendation:
 It is recommended to organisation to conduct proper research to analyse laws that are
formulated by the government as well as needs and demands of customers.
 Organisation should compile government laws in business operations to help it to sustain
in competitive environment for long period of time.
CONCLUSION
As per the above report, it can be concluded that external environment impacts business
performance and functionality in positive as well as negative manner. There are various key
factors that impact business. These factors are analysed by the organisation and decisions are
taken accordingly to lead business in right direction.

REFERENCES
Books and Journals
Katzenberg, M.A. and Waters‐Rist, A.L., 2018. Stable isotope analysis: a tool for studying past
diet, demography, and life history. Biological anthropology of the human skeleton,
pp.467-504.
Zorpas, A.A., 2020. Strategy development in the framework of waste management. Science of
the total environment, 716, p.137088.
Symeonides, D., Loizia, P. and Zorpas, A.A., 2019. Tire waste management system in Cyprus in
the framework of circular economy strategy. Environmental Science and Pollution
Research, 26(35), pp.35445-35460.
ONLINE:
British Airways Pestel Analysis.2021 [online] available through :<https://notesmatic.com/british-
airways-pestel-analysis/>