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British Airway

In: Business and Management

Submitted By Augustine81
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Research report on British airways

1a. Internal and external factors which influenced the strategic changes of BA.
The airline industry is highly competitive and regulations are heavily implemented. Aside from these, the airline industry also faces different challenges brought about by drastic changes in consumer behavior affected by different external factors such as economic condition.( Prosser, T. (n.d).)
Political
The airline industry is subjected and governed by stringent air regulatory controls. Regulations are applied in the courses that the airline chooses to travel, the partners that the airline chooses to works with, the airport schedule it uses, the fare it sets as well as the infrastructure costs. One more area which is heavily regarded is safety and security. British airways identified and introduced an array of security measures and protocol to curb the threat of terrorism and illegal immigration. The European Union, being a regulatory body in Europe published a list of airlines that failed to meet the safety standards set by ICAO. These airlines are banned in Europe (Department of Transport 2009).

Economic
The airline industry is highly sensitive to any economic recession. Economic downturn causes company to cut down business travel which contributes greatly to the sales of the airlines industry. The global recession that took place in 2008, has massive impacts on the airline industry. A couple of factors affected the business of British Airways such as prices increases in oil and commodities, the decline of sterling pounds, unparalleled financial crisis faced by UK. Instead of travelling, people turns to other modes of communication such as phone and email. British Airways provides excellent services to stay afloat in this industry.

Social
Business travelers and leisure passengers are shifting from trusted and premium airline brands

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