MBA_620 Module 4_2 Report_Business Environment Analysis_CGC
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Module 4 4-2 Report: Business Environment Analysis
Southern New Hampshire University - MBA
Professor: Susan Dixon
MBA_620: Measuring Success in an Organization Carlos Gustavo Costa
January 2
nd
2023
1
Introduction: This study aims to conduct a comprehensive economic and social environment assessment of
TransGlobal Airlines by employing the PESTEL framework (political, economic, social,
technological, environmental, and legal factors). Miami, Florida, is the location of TransGlobal
Airlines. With a workforce of 40,000 individuals, TransGlobal Airlines commenced operations
in 1951. Serving 52 countries spanning six continents, the airline company visits 242 different
destinations. (TransGlobal Airlines Information, 2022) The airline company maintains a fleet of
1,062 aircraft. The impact of each PESTEL factor on the business environment will be
discernible upon completing this analysis.
Political Factors:
FAA regulations are a political factor that may affect the business environment, according to the data
acquired from TransGlobal Airlines Information. Guidelines governing the safety of employees and
customers are provided to the business. In terms of organization, the MAX 737 aircraft will be
reintroduced safely. Internationally, this aircraft, nevertheless, is the subject of an immense quantity of
apprehension and controversy. Each employee will receive fundamental FAA Safety Assurance System
(SAS) training per the organization's objectives. Refraining from addressing these concerns and
controversies constructively may hurt the business environment if these initiatives fail to achieve the
desired results.
2
Economic Factors:
According to TransGlobal Airlines Information (2022), the airline holds an 18.3% market share in the
United States and an 18% global market share, with a significant market presence in the United States.
Furthermore, the organization boasts a robust revenue stream that consistently expands globally in
addition to its domestic activities. The organization will have no trouble acquiring two
smaller Caribbean airlines because of its robust financials and industry-leading market share. As a
result, this has a favorable influence on the business environment.
Sociological Factors:
TransGlobal Airlines targets individuals traveling in first class, business class, luxury class, and
economy class. The organization has achieved a customer retention rate of 80% through marketing to all
business classes. The airline can attract new customers by targeting consumers with varying financial
capacities with its marketing efforts. Typically, there is a surge in demand during the holiday season;
therefore, the organization will gain greater insight into untapped markets by accommodating the
various classes and seasonal demands. This has a beneficial effect on the business environment.
Technological Factors:
The organization is developing numerous technological components that align with the SES Goals and
will set the standard for the industry by 2030. A few examples are the reintroduction of the MAX 737
aircraft, the expansion of the regional aircraft fleet, and the enhancement of ticket reservations via the
integration of smartphone applications. As a company renowned for its luxury, these technological
advancements guarantee TransGlobal’s continued client acquisition and retention. As a result, the
corporate environment is positively impacted.
3
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I
Activity
H
A
B
C
D
E
F
Description
Redesign the bar
Redesign the packaging
Build pilot production
line
Trial production run
Consumer panel tests
Main pilot production
Design promotional
material
Test market redesigned
product
Produce report for the
Board
Predecessor
Activity
A, B
C
D
E
E
F, G
H
Optimistic
estimate of
time
(weeks)
5
3
10
1
4
2
8
2
Most likely
estimate of
time
(weeks)
8
4
13
1
1
6
4
10
2
Pessimistic
estimate of
time
(weeks)
10
5
a.
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