Jun 16, 2016 british airways report contains the full discussion of british airways pestel analysis. Bp is an oil and gas company whose headquarters are located in london, uk. Now that the economic recession is past, the industry must grow. British airways analysis essay example graduateway. The british airways swipe card debacle case study the introduction of change in todays workplace environment is constant and needed in order to improve delivery to its customers and overall function of the workplace environment. This blog report looks in detail at brexit, analyses its potential consequences using the pestle framework, defines issues related to brexit and provides possible solutions to these issues. National health services densely populated with 64. British airways have had to rely on the political and environment effects on the feedback that they get to. Brexit, which refers to the vote of the united kingdom uk to leave the european union eu, is one of the most important events of 2016. The pest factor that has contributed to the airlines industry for many years, but has brought a drastic change was from the disaster on september. The world travel and tourism council estimates that in 2004. Impacts of the macro environment on airline operations in southern.
British airways flies to more than 400 destinations worldwide and its parent company international airline group iag also owns iberia, vueling and aer lingus airlines. Pest analysis on british airways essay 817 words 4 pages. Pestel analysis is essential for evaluating airline industrys environment and how it can. Earn up to 100,000 avios apply for the british airways signature card. Pestel political, economic, social, technological, environmental. Pestel analysis highlights sources outside the industry that can affect. It is a multinational company and is a supermajor amongst the worlds gas and oil companies. British airways ba or the group is the uks largest international scheduled airline and one of the worlds leading global premium airlines.
A concise pest analysis for airline industry pestle analysis. Frequent strikes from employee unions in uk affect the airline services and brand image. The company operates in various parts of the world and has vertically integrated all operations which allow it to cater to a wide range of customers, which gives it a competitive advantage. To understand bas business model in detail, first a swot analysis with a pestle analysis is conducted and then. Pest analysis on british airways 810 words 4 pages. It has built a reliable distribution network that can reach the majority of its potential. Established in 1974, it is headquartered at waterside, uk and operates. Free essays on swot and pest analysis on british airways. The airline industry operates in a highly regulated political environment where passengers are favored over the airlines. The pest analysis is a tool to evaluate external factors. Impacts of the macro environment on airline operations in. Bas extensive network, including that of affiliate airline partners sunair and comair south africa, includes services to europe, the americas, africa, asia and australia. Although exact details are unknown of those future regulations governing air traffic between the uk and other eu countries, in case agreements fail to ensure restrictionfree flights between the uk and eu, this political outcome could reduce eu airlines access to the uk market and vice versa, uk airlines would also lose their unrestricted access to the eu aviation voice, 2017. Thanks to the extensive scope of its operations, the business benefits from the economies of scale to a great extent.
K and europe including the middle east, africa, south and north america, asia and the pacific. However, the legal component is often contained within the political element and the. Jul, 2017 brexit, which refers to the vote of the united kingdom uk to leave the european union eu, is one of the most important events of 2016. It is a global airline well known for its low year round fares and.
Apr 22, 2020 learn how the pestle analysis model can help you assess your business place in a variety of environments. British airways plc ba founded in 1974, was in the control of government for thirteen years and went into privatization in 1987. British airways came into existence in 1935, when smaller sized private uk airway companies fused. Pestle analysis of airline industry marketing tutor. In order to assess the impact pest analysis is being carried out. You can view samples of our professional work here. The crisis changed the companies style of business. Strategic planning is the process that an organization undertakes to ascertain its mission and way forward. Swot analysis of british airways british airways swot. Ranked number 2 in europe, british airways is one of the largest airlines in the globe.
Most of plans are stay in heathrow airport which is the highest of main international airport. Political factors are how and to what degree does thai airways intervenes in the economy. Nov 16, 2012 writepass essay writing dissertation topics tocintroduction. There are several reasons behind the growing importance of political factors including the role of political stability in driving growth, the role of government policies in terms of market attractiveness and creating a businessfriendly environment as well. Product range of british airways main competitors values and measure of british airways objective of british airways environment scanning british airways strategic choice performance and longterm. Some writers often extend the acronyms to include legal and environmental factors. Swot analysis is a vital strategic planning tool that can be used by british airways managers to do a situational analysis of the firm. Thus, enabling the company to overcome any supply chain bottlenecks.
The pest factor that has contributed to the airlines industry for many years, but has brought a drastic change was from the disaster on september 11th 2001. Aside from scheduled passenger services, british airways also operates a worldwide cargo business british airways 2009. By analyzing the value chain of the company, it has been identified that company has achieved competitive advantages in many aspect. The internal environment analysis of the company sheds light on the fact that british airways is in an advantageous position.
In summary, interest coverage ratio for the british airways company was established to be 547. British airways ba is the flag carrier in the united kingdom and the largest airline by fleet size. The report also illustrates the application of the major analytical strategic frameworks in business studies such as swot, porters five forces, value chain analysis and mckinsey 7s model on british airways. At the same time, the analysis will enable british airways to make strategic. Political factors are playing an increasingly central role in the aviation industry. Not only it has a long history but also a very progressive outlook and healthy bottomline. Pestle analysis is a strategic method through which airline industry can weigh all external factors that are affecting business. Specifically, political factors include areas such as tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability by thai airways recently thai airways stated that the growing economy will boost travel and passengers if thailand has no political problems. British airways strategic analysis by kenza janed on prezi. Pestel analysis thai airways essay example graduateway. Detailed pestel analysis of british airways political. Mar 20, 2020 the economic recession left behind a few positive effects also.
This is done by british airways by replacing plastic bag with that of paper bag. British airways has employee unions unlike other aviation players as it was a state owned airline in the past. The acronym pestel stands for political, economic, social, technological, environmental and legal factors affecting businesses. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Airline industry peste analysis linkedin slideshare. Branson had one of the most successful recording firms in america, called virgin records. Contents political factors economic factors social factors technological factors legal factors environmental factors. Another modification happened when government nationalised british airways save paper. Bas extensive network, including that of affiliate airline partners sunair and comair south africa, includes services to. British airways has an established identity in the field of civil aviation. Subject matter brief about assignment introduction about british airways the organization. British airways is uks largest international scheduled airline in terms of fleet size es with an.
Biman is operating in london dhakalondon route with emirates, british airways, qatar airways, singapore airlines, air india, jet airways. The market change has forced the traditional airline carriers to rethink their business model and become more cost effective in order to compete with the new market actors. Essay about british airways case study swot and pest. Competitive advantage, swot analysis, pest analysis, porters five forces. British airways strategic analysis conclusion swot analysis strengths flights cancellations problems premium cost of flights harder to compete with lower cost airlines strong market position and brand recognition have formed new partnerships good human resources. It is essential for british airways to constantly perform. An analysis of the macro environment is considered critical in decision making, an. Social factors are a deceptively important factor in any pest analysis. Swot analysis swot analysis is a management tool that aids in the identification of organizational strengths, weaknesses, environmental opportunities, and threats jones and george, 2003. It was established in 1971 in order to take over control of two. Peste analysis economical factor industry companyincrease in demand as world contribution to the indianeconomy grows economyrising cost of fuel investment in the sector of aviationhigh operation costs due to low growth of the middle incomedemand group family affects the aviation sector factor direction time level of probability impact economic.
Jet airways offer passenger and cargo services and also leases aircraft. Airlines group iag, the parent organization qatar airways, british airways, aer. Economics of the airline industry dspace home ca foscari. The macro environment will be described by the pestel analysis, which helps to analyze general, longterm market influences. The company was founded in 1919, and has continued to grow and expand since privatisation in 1987, until the global recession hit in 2008. A competitive analysis of airline industry iosr journal. This ratio shows the number of times the charged interest is covered with the ordinarily available cash that could be. The economic recession left behind a few positive effects also.
British airways global premium airline prepared by kunal solanki 2. Writepass essay writing dissertation topics tocintroduction. Strategic planning helps an organization provide a direction to implement and achieve its objectives both in the short and the. An analysis of the macro environment is considered critical in. Swot analysis and pestle analysis of british airways. A swot analysis can be completed by an individual within the organization. Internal and external environment of british airways. Product range of british airways main competitors values and measure of british airways objective of british airways environment scanning british airways strategic choice performance and longterm goals conclusion. May 09, 2016 social factors are a deceptively important factor in any pest analysis. Doc british airways strategic management ana thesus. May 05, 2018 recent crashes and attacks have affected the profitability and viability of the aviation industry quite badly. The boom in low cost carriers has made air travel cheaper for the masses. Business environment analysis of british airways essay 1.
On 23rd january 2009 the uk was officially declared to be in recession. This ratio shows the number of times the charged interest is covered with the ordinarily available cash that could be used for their payment. First factor is related to change in the policy of government relating to the safety of environment. There is no exception to this in the case of the uk, whose high social standards lead to better allround circumstances. Thus it has been frequently plagued by employee strikes over issues like low pay, pensions. Essay about british airways case study introduction british airways is the one of the largest airline companies, and the passengers carry overall in the fifth largest in the world. Accordingly, british airways pestel analysis involves an analysis of the impact of these external factors on the airline. The acronym refers to political, economic, social and technological factors. In this case a swotpest analysis of british airways, an airline company is going to be carried out. Strategic and swot analysis of british airways the. In british airways swot analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. The swot analysis of british airways makes some critical points with regards to its placement as well as the threat of government regulations on ba.
Pest analysis for a company in the tourism industry free. Swot analysis swot analysis is a management tool that aids in the identification of organizational strengths, weaknesses, environmental opportunities, and. Competitive advantage, swot analysis, pest analysis, porters five forces, biman bangladesh. The tourism industry is one of the fastest growing industries in theworld. Analysis of british airways 3318 words 123 help me. Swot analysis is a proven management framework which enables a brand like british. Prices include flight taxes, fees and carrier charges.
Swot analysis british airways is one of the largest service industries that well managed the operation with an interesting collaboration with the technological innovations. British airways airline profile capa centre for aviation. The company currently operates in 72 countries worldwide and has an employee count of around 74,500 as per 2016 records. Strategic planning helps an organization provide a direction to implement and achieve its objectives both in the short and. British airways is a major international airline that flies to more than 400 destinations worldwide. The airline was established in 1984 as british atlantic airways by mr. Such type of policies influences organization in a way to comply changes in their services. British airways ba is the national carrier of the united kingdom, a subsidiary of publiclylisted international consolidated airlines group iag. British airways british airways is the largest international scheduled airline in the uk. It is a global airline well known for its low year round fares and extensive global route network. Analysis of the macro and micro environment at british. The industry operates about 240 aircrafts, serving about 120 destinations throughout the u. Assessing both the internal and external environment analysis of british airways via swot and pestle analysis it can be strategically evaluated that it is important for the management of british airways to emphasize on key factors and strategies for overcoming the distinctive drawbacks. It is often helpful to complete a pest analysis prior to a swot analysis, although it may be more useful to complete a pest analysis as part of, or after, a swot analysis.
Our website is a unique platform where students can share their papers in a matter of giving an example of the work to be done. Virgin atlantic is a british airline with its head office in crawley, united kingdom. British airways is the uks largest airline in relation to the number of destinations it covers worldwide and also the large number of aeroplanes that are owed by the company. Financial analysis of british airways 4252 words bartleby. In 2003, ba launched a global customer relations initiative aimed at overhauling its technology infrastructure and service processes baggage, compensation, etc. Its engagement with its stakeholders is reliable and longstanding. The aim of the organization is to increase the number of customers through delivering the quality of service and. Pest analysis is a powerful and widely used tool for understanding strategic risk. A pestel analysis of british airways learn of the leading challenges and opportunities created by various forces in the uk aviation. Dec 02, 2014 pestel or pestle analysis, also known as pest analysis, is a tool for business analysis of political, economic, social, and technological factors. British airways pestel analysis researchmethodology.
As a premier global airline, british airways ba travels to 200 destinations across 145 airports, serving over 40 million people a year. Introduction stakeholder is a person having direct or indirect interest in the firms objective, which include customer, board of directors, employees, shareholders, suppliers etc. British airways a swot and pestle analysis the impact of. British airways book flights, holidays, city breaks.
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