Accordingly, british airways pestel analysis involves an analysis of the impact of these external factors on the airline. Introduction stakeholder is a person having direct or indirect interest in the firms objective, which include customer, board of directors, employees, shareholders, suppliers etc. Several business models are used in the analysis of sias environment. The industry operates about 240 aircrafts, serving about 120 destinations throughout the u. Swot analysis and pestle analysis of british airways. The tool was originated by albert s humprey in 1960. Throughout this we have remained focused on our strategy to become the worlds leading global premium airline. British airways swot analysis matrix fern fort university. Pestle analysis of airline industry free pestel analysis.
Swot analysis of british airways british airways swot. Strategic and swot analysis of british airways the. The pest factor that has contributed to the airlines industry for many years, but has brought a drastic change was from. However, there are several other factors of importance as well. Pestel is an acronym for the following factors political, economic, social and cultural, technological, environment and legal the core elements of the analysis are. I am going doing this to look at the external factors affecting a business and what advantagesdisadvantages there may be and if. British airways earliest predecessor was an aircraft travel pvt. Jun 16, 2016 the acronym pestel stands for political, economic, social, technological, environmental and legal factors affecting businesses. British airways global premium airline prepared by kunal solanki 2. These factors can be social, technological, political and even legal in nature. Pestel or pestle analysis, also known as pest analysis, is a tool for business analysis of political, economic, social, and technological factors. Pest analysis for airline industry highlights 4 important factors that have affected the viability and profitability of the global airline industry badly.
Aside from scheduled passenger services, british airways also operates a worldwide cargo business british airways 2009. Pestle analysis is a strategic method through which airline industry can weigh all external factors that are affecting business. The swot tows analysis of qatar airways is a structure to evaluate the internal and external factors that influence the companys micro and macro environment. This is not an example of the work produced by our essay writing service. Pestel analysis of the airline industry best essay services. British airways can take advantage of its economies of scale to develop a cost advantage and sell at low prices to the lowincome buyers of the industry.
British airways is a major international airline that flies to more than 400 destinations worldwide. Pdf environmental analysis of lufthansa ashika mendis. With the help of the pestel analysis the important conclusions and. 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. 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. The alliance that british airways has made is a strategic approach and the need of the moment. Thus, enabling the company to overcome any supply chain bottlenecks. British airways report contains the application of the major analytical strategic frameworks in business studies such as swot, pestel, porters five forces, value chain analysis and mckinsey 7s model on british airways. Sep 14, 2015 the pestel analysis of the airline industry above is among the many you will find online at best essay writing services. 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. Mar 17, 2018 in international markets, air canada competes with some of the biggest names in the aviation industry e. With the help of the pestel analysis the important conclusions and recommendations can be made about the future pathways of the. Severe competition from middle eastern airlines opportunities threats 1. 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.
Free essays on pestel analysis of british telecom uk. We hope this article on the swot analysis of air canada has been useful. This is a detailed swot analysis of british airways ba. May 05, 2018 recent crashes and attacks have affected the profitability and viability of the aviation industry quite badly. A pestel analysis of british airways learn of the leading challenges and opportunities created by various forces in the uk aviation. You can view samples of our professional work here. Pest analysis on british airways 810 words 123 help me. The acronym pestel stands for political, economic, social, technological, environmental and legal factors affecting businesses. Its engagement with its stakeholders is reliable and longstanding. British airways is a major international airline that flies to more than 400 destinations. If you need assistance in writing a more advanced academic papers at college or university level get in touch with us and we will help you. The macro environment will be described by the pestel analysis, which helps to analyze general, longterm market influences. Pestle analysis of airline industry marketing tutor.
British airways has an established identity in the field of civil aviation. Strong backing of uk govt makes british airways a strong player 2. This is the best tool to analyse the external environment. Costs and revenue drivers 32 chapter three market analysis and business strategy 34 1. The swot analysis for british airways is given below.
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. It also aims to examine the opportunities and the threats facing the airline. The economic recession in the last decade shook the entire industry. By analyzing the value chain of the company, it has been identified that company has achieved competitive advantages in many aspect. Competitive advantage, swot analysis, pest analysis, porters five forces. It serves as a basic analytical tool for knowing market decline or growth. Qatar airways established in 1993 is the state owned carrier of qatar and a leading aviation player globally. British airways ba or the group is the uks largest international scheduled airline and one of the worlds leading global premium airlines.
Sample marketing assignment on british airways executive summary. Being born as a result of a strategic merge, the company has continued to strengthen its position through many strategic alliances and technological integrations. British airways plc ba founded in 1974, was in the control of government for thirteen years and went into privatization in 1987. In november 1936 british overseas airways corporation was found. Airlines are developing corporate social responsibility programs to address this. The analysis of these factors affecting the decision is detailed as follows. 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. Pestle political political the rise of isis has stopped flights to many countries like syria, iran and any other countries that are sticken by wars. British airways analysis essay example graduateway. Conduct a detailed swot and pestle analysis of british airways to identify the factors from internal and external environment influencing the future strategic planning of the organization. A casebased analytical study on the strategic evaluation.
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. Political factors are how and to what degree does thai airways intervenes in the economy. The professional development opportunities allow the employees to develop more skills which will enable them to grow their careers in future. K and europe including the middle east, africa, south and north america, asia and the pacific.
Moreover, the report contains analyses of british airways business strategy, leadership and organizational structure and. Founded in the year 1972 by the uk government as the. The acronym stands for strength, weaknesses opportunities and threats. So theyve had to fly around those countries, this would waste more fuel suggested course of action suggested course of action for. With the help of the information available on british airways the pestel analysis of the organization is done. The internal environment analysis of the company sheds light on the fact that british airways is in an advantageous position. It has built a reliable distribution network that can reach the majority of its potential. Doc british airways strategic management ana thesus. Pestel analysis examples the pestel analysis examples below were written by our expert writers, as a learning aid to help you with your studies. Swot analysis of south african airways by sayed arif in. The long term service was started by british european airways in 1946.
It is essential for british airways to constantly perform. Thus i would like to know how the ba can earn profit in marco environment and how it affect ba, which using pestle analysis. You may also like reading swot analysis of british airways. Jan 03, 2016 customers are becoming increasingly aware and concerned of environmental issues. It is a global airline well known for its low year round fares and. It provides as a basic analytical tool for knowing market drop or progress. 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. Marketing management section of our research repository.
I am going doing this to look at the external factors affecting a business and what advantagesdisadvantages there may be and if it affects the company in the long term. Pestle analysis pestel analysis for merger of the ba and. It can do this through marketing efforts aimed at building brand loyalty. Essay on pestle analysis of british airways 1921 words. Frequent strikes from employee unions in uk affect the airline services and brand image. Task in the context of eventually deciding on whether to recommend big mines inc goes ahead with the acquisition, you should research the diamond industry. At the same time, the analysis will enable british airways to make strategic. Lufthansa is a centuryold german airline company with a prestigious legacy.
This paper presents the solved british airways case analysis and case solution. Thus it has been frequently plagued by employee strikes over issues like low pay, pensions. British airways ba is the flag carrier in the united kingdom and the largest airline by fleet size. The actions we are taking now to make our cost base more. British airways has employee unions unlike other aviation players as it was a state owned airline in the past. Swot analysis is a vital strategic planning tool that can be used by british airways managers to do a situational analysis of the firm. British airways is uks largest international scheduled airline in terms of fleet size es with an operating profit of. British airways a swot and pestle analysis the impact of. British airways has shown that their planning for the future is tactical and the marketing and management disciplines are intact accordingly. Various political factors such as government policies, political stability, foreign policies, environment laws, trade restrictions, etc political factors affecting business, 2019. This article uses the pestle methodology to analyze the global aviation industry or the airline industry. British airways is one of the leading airline companies in the uk. Strategic planning helps an organization provide a direction to implement and achieve its objectives both in the short and. Strategic planning is the process that an organization undertakes to ascertain its mission and way forward.
Apr 22, 2020 learn how the pestle analysis model can help you assess your business place in a variety of environments. The method through which the analysis is done is mentioned, followed by the relevant tools. British airways is the flag carrier airline of the uk, headquartered in london. British airways has a substantial brand presence and excellent global presence. Although uk registered, it operates mines in africa. The macro environment will be identified by the pestel analysis, which really helps to analyze standard, longterm market influences. British airways pestel analysis researchmethodology. Pestel analysis is a strategic tool to analyze the macro environment of the organization. Essay on pestle analysis of british airways 1921 words 8 pages.
There were very few sectors that could perform well in the face of economic turbulence. 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. Internal and external environment of british airways. A swot analysis is a tool which is used for auditing the organisation ba and its environment and enables decision making for all sorts of situations in a business or organisation. Pestle analysis as airline is one of the largest external economic activities, it is important to developing countries. Political factors refer to interventions imposed by the government on business firms. British airways swot analysis british airways strengths below are the strengths in the swot analysis of british airways. Cathay pacific airways cp was being chosen as a benchmark by its historic accounting records. One of the preconditions for the merger deal is getting appropriate confirmations from the uk and spanish civil aviation authorities as to the suitability of the uk and spanish bodies and as to the implementation of the structure. A pestel analysis of the aviation industry will show how deeply they influence it. 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. This is actually the best tool to analyse the exterior environment. Pestle or the external environmental analysis of industries and companies that operate globally is a useful methodology to analyze the external environmental factors. Pestle analysis on ba by ellis ismail on prezi next.
Subject matter brief about assignment introduction about british airways the organization. Introduction british airways also known as ba is one of the largest airline carrier in the world. British airways is one of the top airlines in the world. Not only it has a long history but also a very progressive outlook and healthy bottomline. Executive summary i am going to undergo a pestle analysis on my chosen company british airways. A concise pest analysis for airline industry pestle analysis. A casebased analytical study on the strategic evaluation of. A competitive analysis of airline industry iosr journal. Pestel model, porters five forces model, and management strategies are put into perspective. Pestel analysis thai airways essay example graduateway. The british airways case consisted of a central issue to the organization, which had to be identified, analysed and creative solutions had to be drawn to tackle the issue. Pestel analysis highlights sources outside the industry that can affect.
British airways needs to build a large customer base, as the bargaining power of buyers is weak. Market segmentation and demographics analysis 43 1. Sample marketing assignment on british airways homework help. Nov 16, 2012 the planned stride of british airways demonstrates a thriving position for the airline. Ba had to face many threats from competition besides the security threats like after the incidence of 911 terrorist attack, as its been considered as amongst the world most profit making airlines so for them to lead the industry the competition becomes more stiff for that they not only have to face. The airline and its subsidiaries have more than 43,000 employees globally as of 2017. Economics of the airline industry dspace home ca foscari. If you are looking for help with your pestel analysis then we offer a comprehensive writing service provided by fully qualified academics in your field of study. Mar 20, 2020 economic factors are a major influence on the airline industry. Writepass essay writing dissertation topics tocintroduction. Detailed pestel analysis of british airways political.
Political factors are playing an increasingly central role in the aviation industry. On august 25, 1919 the company inaugurated the worlds first scheduled international airways service. 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. The swot analysis is a convenient technique to interpret the strength, weakness, opportunity, and threats and their repercussions on the current business model of qatar airways group.
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