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The report is designed to give the idea of the internal and external environment analysis of British Airways or British Airways plc. The company is known for its innovative approach in the fast -growing markets of British airlines. The report has the company background of the British Airways and later it discusses the business environment through SWOT and PESTLE analysis. The case study also has a recommendation part that is derived from the effective analysis of the business environmental aspects.
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The British Airways is the flag carriers of the United Kingdom and it is the largest size fleet in the country. The route network of the British Airways is strong and it provides service to the wide range of customers. The company has the employee base of more than 45000. The British Airways was founded in the year 1974 as a merger of the four airways in Britain. As per the report of the company, the growth rate of the airways in the year 2019 was 2.5%. While the company has growth rate of about 5.7% in the year 2018. This shows that the company is going through some issues which is causing low income and growth rates.
Strength
· The strong fleet of the British Airways makes it one of the renowned brands in the world
· The customers loyalty is high for the company
· The British Airways is the market leader in its sector in the country
· The airways integrate modern technology and keeps itself updated for the modern technical trends
· Fortunately, the number of safety incidents or accidents in the British Airways are quite low. This helps in building the customers’ trust.
Weaknesses
· The aircrafts are facing issues because of the Rolls Royce engine problems.
· The employees of the company have time and again stated various issues. These issues are causing service disruptions for the company.
· The punctuality of the flights has impacted in several instances. This contributes in the negative reputation of the airline
· The revenue of the British Airways is heavily depended up on the local market
Opportunities
· The British Airways mostly attempts to attract the consumes of economic class. The airlines have the opportunity to expand their business to the premium quality services
· There is huge scope for the airways to expand their business in the international markets.
· The company is known for its digitisation of operations. There is still greater scope of technological implementation which will increase the efficiency and competence of the airlines
Threats
· Threats for alternative services like high speed trains
· The economic conditions can be a challenge for British Airways in coming years
· The market competition is growing with entry of many new companies in airlines industry
The British Airways has been able to maintain their bra reputation for a long time. The company has high customer loyalty and strength for serving the consumers. At this point, the company has to work with their new advances and strategies. In spite of that the company is facing technical and human resource issues that are creating disruptions in their performance. There is a high need for addressing the issues of the employees and increase their efficiency and motivation. The opportunities for the company are huge as the international markets are open for the company. The recent pandemic situation has affected the company revenues. In coming years, the British Airways should think of investing more in the countries that they have not explored yet. The threats of alternative services and competitive airlines can only be mitigated if the opportunities are explored.
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Political Factors
· Political scenarios like stability, regulations and government policies influences the business of the airways
· The context of Brexit will make the company lose their ventures in European countries.
Economic Factors
· The increased costs of the aircrafts can be problematic for the company operations
· The economic uncertainty is created by the Brexit decision. The Airlines also have to face the repercussion of it
· The worldwide economic recessions can cause in less profits and high costs
Socio- economic Factors
· The customers and their travelling practices are influenced by the socio-economic contexts
· The employment rate of the country is depended on the education and age groups of a society
· The airlines staffs have to be trained about the social aspects so that they can treat their consumers properly
Technological Factors
· British Airways has implemented modern technologies for their operational aspects
· There is scope for advanced technology implementation in customer services and customer relationship management
Legal Factors
· Customer privacy and safety laws are crucial for the British Airways
· Along with that the international aviation regulations are to be evaluated.
Environmental Factors
· The company has published in their annual reports that the corporate social responsibilities are one of their major concerns
· The waste management policies of the company are strict and they maintain their CO2 omission on check
· The recent controversies related to the employees are affecting the company reputation
The British Airways could earn more profits if they work for employee’s engagement and overall strategy development. The problems of the company are mostly internal. Along with that the competitive edge could be gained by implementation of technological interventions. The reward system of the company needs to be revised to get the employee issues sorted in long run.
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