SIM 337 Contemporary Developments in Business and Management (GC01643)
Table of Contents
Executive Summary.
Task 1.
Introduction.
External influences and their importance to British Airway.
Political
Economic Factors.
Social factors.
Technological factors.
Legal factors.
Environmental factors.
Conclusion.
Task 2: International Technology Transfer in British Airway.
Introduction.
Relevance of International Technology Transfer to British Airway.
Premium transfer service.
Transforming the international boarding experience.
Launch of onboard WiFi
How International Technology Transfer influences policies and decision-making within British Airway
IT department’s strategies.
Effectiveness of British Airway’s responses.
Giving competitive advantages.
Increase efficiency of the business.
Quality Up, Costs Down.
Recommendations for improvement
Self-service bag drops.
Mototok – A new generation of push-back tugs.
Emission-free airside operations.
Conclusion.
References.
Executive Summary
The finding of this paper shows several external forces that influence the business activities of British Airways. The key external influences are political, technological, social, legal, environmental factors that affect an organization to expand in a new area. The first airline service in the world is by introducing new technology and the name of the technology remote control of the vehicles induced under the operation of short-haul. the technology is not eco-friendly overall but they have the access to replace their dial tug with traditional use and they are planning to reduce more than 70% delay push back on the process. The vehicle that they are using is ready to serve on single haul aircraft on aircraft. the short hairs operation of British airline is now completed 8600 spacers or the Mototock which has to push back option more than 60000. The accountability of the pushback operation is very accurate Becca’s it operates by a single user. As it used and control by a single user the safety level of using this push back is very high. The company starts to use a new wireless headset for communicating with the ground and it is the most important activity for them. The operator of the headset can use direct communication with the pilot and it is possible on the board of aircraft. The pilot moves the planes. With safety optimal position or not that is clearly visual under this system so that managers can monitor every movement clearly.
1.0 Introduction
Organizational management is using PESTLE analysis to critically analyze the market view of an organization in terms of a country’s politics, economic and, social welfare, usage of new technology and environmental factors. British Airways use this analysis to find out whether there is any impact on the external factors of the airline or not.
1.1 External influences and their importance to British Airway
The PESTLE analysis will be assessed here to have a clear understanding of the macro-environment that helps to get an idea about market influence in terms of long-term market. It is one of the basic tools that have analytical abilities to know about declining or growing part of the market. This is the framework that is to understand the political, technological, social, legal, environmental etc effect on an organization to expand in a new area.
Political
The UK BREXIT has a great impact on British Airline. Because Brexit makes the political unrest situation within the UK which create a negative impact on the company. The Brexit will influence the European safety agency to work in an organization where government rules and regulations are not followed properly. The airline company has lots of work that need to be operated under strict restriction. The political effect has a great impact on the business because it hampers airline service by new political unrest situation that affects the availability of the organization. Government controls the price of the product recently and this is another restricted situation for a manager of the company like- British Airline. Because if not adopting the policy of open skies still there are people who become biased to it. British Airline needs to be reformed by assessing better opportunity of the politics of a country because different kinds of politics are lying under different area who will try to capture the market if they find any space.
The political factors must be considered by British airline which is connected with environmental issues and ecological factors of the country that lies under strict observation and supervision. The role of government has an impact on the politics and this is observed by the management of the organization and by observing this they make a plan to capture the current market using different updated policy. Due to this reason, they are making a plan to install a new system which is considered as new technological use is being thought. A terrorist attack is another main political reason that may affect the business environment highly and as per government supervision this problem is not about to over and new companies are willing to do their business on different areas as like British Airline decides to make improvement in London Heathrow terminal -5. The company has the reliability of the country’s political and environmental factors that have a great effect on the business to revise which course of action is needed to use in the airline.
Economic Factors
The inflation rate and the exchange of currency rate have an impact on UK business directly and British Airline also has to face these challenges. The company is facing a great challenge in terms of economic change because of fuel cost. It is known to all that near to 5.7 million tones well-known jet fuel is being used by British Airlines in the year 2015. Because of this reason, the price of the fuel considers as the great economic challenges for the company as it is one of the highest expenditure that the airline company incurs within their business (British Airway Annual Report, 2018).
Social factors
The passengers of the airline industry mostly looking for secure and flexible travel. Because a person in the brand new and brand image is such thing here management must have to maintain their brand value because they are selling brand by maintaining product or service quality. British Airline ensures smooth traveling for the customers but they found that people want low-cost service which linked up with quality service. Now people become socially responsible which means by using social media they can now compare the ticket price of different airlines along with facilities then choose the best one……………….
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