Essay On Pestle Analysis Of British Airways

Economic The oil prices are being expensive but declined by 50% as ever since the peak retreating to 2007 levels. Therefore, the decline in fuel fact gave power to the dollar currency (IMF, 2008). It is possible that a there will be a reduction of a certain amount of travelling business as companies are cutting functions in order to decrease costs, they 're there are other alternatives means of communication like telecom fencing. British airways is a very weak company as the UK operating airline to a poor exchange to a rate.

As for external factors one of the external factors would be perhaps a new law that is given and affects directly or indirectly the business and that business needs to make some changes.

PESTEL analyses is a tool that many firms use to assess the factors that may affect the company and try to anticipate risk posed by those factors. PESTEL is an anagram for; Political, Economic, Social, Technical, Environmental and legal factors.

Therefore, in the short term, if the outlook of the economy stays gloomy, spending may reduce by the customers, and less travel for the purpose of pleasure and tourism. This will put a damp on the demand of air flights at Virgins Atlantic. Moreover, the suffering of the economy, individuals might move towards airline operators that are cheaper. (Tierney et. al., 2008). Also, when there is a time of recession, consumers tend to be very careful with how they spend, whereby Virgins Atlantic will see a drop with the volume of

341). It is aimed at identification of internal and external forces that may influence the company’s performance and choice of strategies in the future (Kotler et al., 1999, p. 111).

The terrorist attacks on September 11, 2001 shook the United States in a profound way, deeply upsetting the national perception of safety within U.S. borders. No industry or sector of the economy felt the impacts of these events more than the airline industry. Both the immediate reaction to the attacks and the long-term repercussions have negatively affected the industry. Today’s airline industry is much different than it was prior to September 11. There is a much smaller work force, more low-cost carriers, more security and more fees associated with flying.

This paper discusses the impacts of the September 11, 2001 terrorist attacks on the aviation industry. Specifically, how aviation industry members were forced to alter their marketing mix in response to the events. The four "P 's" of marketing were all modified. The airlines had to change their product (route structures) and their prices. They also had to change their promotion tactics to ease the customer 's "fear factor". Lastly they had to alter the means of delivering their product to the consumer due to enhance security measures (place).

The PESTLE Analysis identifies five main categories influencing any organisation and those are as follows:-

September 11, 2001, was a horrific event that rocked the world and the way people viewed the safety of airline travel. The airline industry was hit the hardest after that day and it was uncertain if they could regain their customer’s

Rising fuel prices has a huge impact on the airline industry. In an article published by the New York Times in 2007, oil prices were hovering ‘near $100 a barrel’ which caused the International Air Transport Association (IATA) to ‘slash’ their predicted profits for 2008 from ‘$7.8 billion to $5 billion’ (Clark, 2007). In 2008 high fuel prices were ‘dominant factor’ in the losses that faced the industry, and continued to same effect in 2009 (Dunn, 2009). Diagram 2 shows how fuel price has increased and fallen over the last 5 years.

A PESTLE analysis for Listo must consider all the important external factors impacting on the company. These factors

These factors influence the internal environment of an organisation and they help in identifying the past and the present of the company, It also provides a frame work for reviewing strategy position and direction of the company.

Since the airline industry is a direct product of market conditions, it is greatly affected by all externalities. Many people noticed a decline in travel after the September 11th tragedy occurred due to safety concerns. When there is a huge increase in fares that definitely interferes with the demand for travel; it causes the price of tickets to continue to rise since a clear correlation between supply and demand exists. When the economy is doing well in terms of the employment rate, and when the dollar is strong people have the tendency to travel more (Jerram,1998).

Economy airlines suffer during down economies and reduce their orders, and the industry has become dependent on the Middle East and Asia in recent years to offset this (Crooks & Weitzman, 2010).

To assure the success of a business over a long period of time the business must be able to conduct regular analysis of their success. They must be able to determine where they are today and have a goal of where they would like to see themselves 5-10 years down the road. In order to conduct a true analysis of the company, one must complete an environmental scan of their organization. Thus scanning for events, trends, issues and expectations that they may be faced with in the future. Furthermore, examining all internal and external environment challenges. Internal environmental challenges may be with employees, shareholders or board of directors or the overall culture of the organization. External environmental