cOURSEHEROMBA62042ENVIRONMENTANALYSIS

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Business

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Jan 9, 2024

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Module 4-2 Business Environment Analysis MBA 620 Measuring Success July 30, 2023
The organization is looking to acquire two additional companies. Prior to the acquisition, there is an extensive amount of research that must be completed to ensure that we are making a logical investment. Currently, we are leading in many areas within the airline industry. Amongst all competitors, we rank 2 nd in Global market share and U.S. market share. We have maintained an 80% retention rate with our customers and offer domestic and international flights. We want to continue to lead in the industry, therefore we are going to conduct an environmental business analysis using the PESTEL framework. The PESTEL framework consists of political, economic, sociological, technological, environmental, and legal categories. The reason for utilizing this framework is that it’s adaptable, helps make a decision, and provides a proactive approach (Espinoza et. al, 2019) Political Factor Political factors have a high impact on the organization’s success. In early 2020 the transportation industry along with our organization took a big hit due to the COVID-19 outbreak. With the discontinuation of travel, the industry took a hit, where the cost per passage dropped by 65% (Pinar, 2023). I have to determine how the two companies we are seeking to acquire handled this situation, as one of the company's main travel routes includes the Caribbeans. Economic Factor Our current economic conditions have seen an increase in revenue. The most growth was seen in our domestic hubs due to leisure and holiday travel. The declines came in the Atlantic and Pacific, specifically due to the exchange rates. However, there are times when these regions are performing with the other regions. We must ensure that we continue to evaluate the different areas to ensure we are aware of the factors that can impact us. However, ensuring that the acquisition continues to provide opportunities for the local individuals.
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