MBA_620 Module 4_2 Report_Business Environment Analysis_CGC

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Southern New Hampshire University *

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Jan 9, 2024

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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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