PESTL Analysis of British Airways:
A) POLITICAL * Deregulation as the size of the market increases, causing economics of scale to increase. * Heavy Regulations (AEA, 2009). The Association of European Airlines charged
British Airways (‘BA’ or ‘the Group’) is the UK’s largest international scheduled airline and one of the world’s leading global premium airlines. The Group’s principal place of business is London with significant presence at Heathrow, Gatwick and London City airports. BA also operates a worldwide air cargo business, largely in conjunction with its…
The mission statement of British Airways is “To be the undisputed leader in world travel for the next millennium”.…
British Airways came into existence since civil aviation began shortly after World War I. A lot has changed in the 90 years from the world's first schedule air service on 25 August 1919 to the present day civil air travel. Every 10 years since civil aviation began. The world has seen changes in the types of planes that have been in service to the speed of sound air travel as well as developments and changes to the business in all aspects of all areas. It is this that has paved the way that British Airways do business and will carry on perfecting and tweaking its service so passengers across the globe can see that British Airways is the world’s favourite airline.…
British Airways plc, widely recognised as the largest airline of the United Kingdom, has very recently signed an agreement with the Spanish airline, Iberia, for the merger of the two organisations. The merger agreement, when complete, will result in the formation of the world’s sixth largest airline, in terms of revenues. In Europe the merged airline will rank third in the pecking order, behind Air France-KLM and Lufthansa. The new company, valued at USD 7.5 billion, will be known as the International Airlines Group, even as both the Iberia and BA brands will continue to function as they have done till now.…
International Airlines Group like many businesses in the current economic climate has seen a dramatic change in the way they have to do business due to several social factors. The most prominent of the social factors is the alteration in consumer buying habits due to the recession, as many people have a lower amount of expendable income due to the rise in cost of living prices such as food and energy bills combined with lower wages and high level of unemployment. The reason that this makes this social factor the most severe for IAG is that while most businesses have to deal with this change a large part of the British Airways customer base is that of business clients. Therefore due to businesses looking to cut costs to help with lower revenues many are no longer willing to pay for employees to travel first class and turn to the budget airlines. For example BA released a statement to investors regarding the future of the business ‘What we have been living through in the last two years is the deepest downturn this industry has ever faced. The International Air Transport Association (IATA) is forecasting revenues for the industry as a whole will fall by 15 per cent’ (British airways, Q1, 2010).…
The position held by British Airways is situated in the range high-cost because they focus on Businessman who can afford a good service to pass their working trip. Also, that company is considerate as an international airline company to the extent that they provide around 170 destinations in the world in more than 80 countries...…
You will investigate the British Airways and provide a personal, but informed, view of the company. The assignment will give you the opportunity to apply your understanding of the Business Environment to the analysis of an international business from a range of different perspectives: considering how businesses set their objectives, influence their stakeholders, control their costs and fix their prices within the context of a particular national environment (the UK). The submission should be suitable for publishing in a specialist ‘business’ magazine.…
Hurt by poor profits and scarred from likely terrorist attacks against the US due to the US involvement in the Iraq war, the airline industry finds itself on a bumpy course. In an effort to head off a drop in the number of passengers and rising costs for security , companies laid off staff and trimmed services. In an already intensely competitive market, the ¡°inevitable¡± industry wide shakedown will have far-reaching effects on the industry's trend towards expanding domestic and international…
-The 9/11 attacks in New York, the SARS epidemic, Bird Flu and the wars in Afghanistan and Iraq have caused governments and airlines to re-think their strategies and responses to the slump in air travel which resulted from these events. Increased medical and security screening and frequent responses to terrorist warnings and events continue to place…
British Airways (‘BA’ or ‘the Group’) is the UK’s largest international scheduled airline and one of the world’s leading global premium airlines. The…
Strategic Management of TESCO supermarket: PESTEL analysis, Porter 's 5 Forces analysis, Critical success factors, SWOT Analysis, VALUE CHAIN analysis, TESCO 'S strategic options, Core Competences & Cultural Web.…
HSBC holding plc is a global banking and financial services company headquartered in London, United Kingdom. The business of HSBC includes personal financial services (retail banking), commercial banking, global banking and markets (investment banking), and private banking. HSBC holding was founded in 1991 by the Hongkong and Shanghai Banking Corporation. The bank’s first branches were original opened in Hong Kong and Shanghai in 1865.…
Originally known as PEST Analysis, this is a macro environmental framework used to understand the impact of the external factors on the organization and is used as strategic analytical technique. PEST stands for "Political, Economic, Social, and Technological” factors.…
Etihad Airways is the national airline of the United Arab Emirates, with its base and hub being in the nation’s capital city, Abu Dhabi. Established in 2003 by Royal (Emiri) Decree, Etihad Airways is owned and supported by the Government of Abu Dhabi. The Skytrax 5 – star certified airline ranks among one of the top airlines both regionally and globally, in just a short period of time. It is one of the five primary divisions that the esteemed Etihad Aviation Group (EAG) is comprised of, the other four being Etihad Airways Engineering, Etihad Airport Services, Hala Group and Airline Equity Partners.…
PEST analysis is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations. In analyzing the macro-environment, it is important to identify the factors that might in turn affect a number of vital variables that are likely to influence the organization’s supply and demand levels and its costs. The radical and ongoing changes occurring in society create an uncertain environment and have an impact on the function of the whole organization. A number of checklists have been developed as ways of cataloging the vast number of possible issues that might affect an industry. A PEST analysis is one of them that is merely a framework that categorizes environmental influences as political, economic, social and technological forces. The analysis examines the impact of each of these factors (and their interplay with each other) on the business. The results can then be used to take advantage of opportunities and to make contingency plans for threats when preparing business and strategic plans. PEST also ensures that company’s performance is aligned positively with the powerful forces of change that are affecting business environment. PEST is useful when a company decides to enter its business operations into new markets and new countries.…