Swot And Infestation Analysis Of English Airways Travel and leisure Essay

PEST means Political Economic Friendly cultural and Technical factors that are impacting or influencing the business environment. The SWOT fifty percent of the analysis deals with the company's inner workings including its advantages and weaknesses. In the ultimate level of the SWOT/Infestation Analysis, the two analyses are merged in order to get an overall picture of the risks the company encounters and how to deal with them and also in order to bring into concentrate the possible opportunities for the business so that they may be taken advantage of. Quite simply SWOT talks about the business enterprise itself while Infestations looks at the environment/market.

In this case a SWOT/Infestation analysis of English Airways, an air travel company is likely to be carried out.

British Airways is the UK's greatest airline in relation to the amount of destinations it protects worldwide and also the large numbers of aeroplanes that are owed by the company. It was proven in 1971 to be able to take over control of two state-owned airlines, English Overseas Airways Corporation (BOAC) and British European Airways Company (BEA). The airline is mainly founded at Heathrow air-port in London but also offers a base at London's Gatwick airport terminal. The airliner holds mostly individuals within Europe and also abroad (flies to over 150 locations covering all 6 continents) but also holds cargo and mail. It also provides the most significant fleet of long term carriers in the world with around around 60 Boeing 747-400 aircrafts.

In this article we will first take a look at the PEST examination of British airway in order to determine what kind of environment or market BA has been employed in and how it includes managed to stay ahead of the majority of its competition.

PEST Evaluation

Political factors

This refers to the result of laws, fees and political decisions along the way a small business is run. Around this year the politics environment in the UK was unstable due to coalition federal and the major spending cuts that should be manufactured in order to make cost savings and reduce on the countrywide debt. This might affect BA in a way that the planned extension of Heathrow air port which could have brought in more revenue with increased number of plane tickets might not try because of the budget reductions.

European laws and regulations have hit BA hard recently. In April this season the Iceland volcano problems caused plane tickets into/around and out of European countries to be grounded therefore of the volcano ash impacting the plane's engines. Because of this many passengers were stuck on holiday while looking to get back and had to spend more money on accommodation. Western laws determine that the air travel companies have to refund the amount of money spent by the travellers. It was estimated that BA lost 20million daily during this time period.

A recent increase in flight taxes means that passengers will have to pay higher fees when leaving Britain depending on your vacation spot but most passenger duty is likely to increase by up to 50% this affects the business enterprise in the sense that less people can afford family vacations consequently of the increased air travel.

Further more on 9th November this season (a couple weeks ago) BA along with 10 other airlines were fined by the Western european commission for mending air cargo prices between 1999 and 2006. The 11 airlines colluded in keeping the purchase price per kg for everyone cargo at a flat rate for this whole period of time. Due to an investigation into this by the Western european commission BA were fined 104 million Euros (BBC information 9th November, 2010)

Economic factors

The economy has had a major negative effect on the amounts of BA passengers lately. Due to the credit crunch less and less people have been taking overseas holidays meaning that airline passenger numbers are down.

Sociocultural factors

BA mainly focuses on people going away on holiday be it in Europe or anywhere else throughout the world. BA flies to all the 6inhabitted continents and gets the largest fleet of long haul Boeing planes to echo their commitment to the. Compared to many airlines that have only mainly local or long haul flights BA will both and has were able to set up a good reputation for itself and is often seen as a friendly safe air travel. For domestic flights within European countries BA has were able to stay in competition with budget airlines like easy-jet or Ryan air by charging much more for their flights but giving an improved quality experience to its customers seeing as budget flights don't usually serve foods and seating plans are uneasy.

Technological factors

BA has were able to increase its client satisfaction leaps and bounds with the aid of technology. Do it yourself service check-in machines at Heathrow airports terminal 5 signify passengers don't need to queue up for a few minutes if not hours in order to get their boarding goes by and to check into the flight. It makes checking in an easy fast process and everything the passenger has to do is fall off their luggage.

The airlines website BA. com offers people and clients a great deal of opportunities. People can check in online while potential clients can easily see the site for cheap tickets and deals. The website also offers the added good thing about cutting travel companies from the equation keeping the flight money and also this means passengers don't get a bogus image of the business where the agent is unprofessional.

British airways also offers a number of call centres which people can contact order to reserve, amend and buy seat tickets for travel. These call centres also assist people with any problems or complaints. This responses helps the company better its service in order to keep the clients happy and coming back.

Now that the Infestations analysis has viewed the external factors affecting the business, it's time to look within the business to be able to know what influences in from the within. This is actually the SWOT examination.

SWOT ANALYSIS

SWOT stands for Advantages, Weaknesses, Opportunities and Risks and they are the four areas of the business we will be analysing.

Strengths

BA has managed to establish itself as the third biggest airline on the planet with largest fleet of long term aircraft in the world. In the United Kingdom it has managed to dominate the marketplace for a number of years before easy-jet got over as the air travel with the most individuals in 2008. Not surprisingly, BA provides out a number of long term flights (which easy-jet will not do) to various parts of the world and a variety of capital towns like Abuja, Paris, Sydney and NY to say but a few just as flies to every single continent.

BA is well known worldwide because of its great hospitality and this is therefore of its friendly cabin crew. This reputation retains the customers happy and approaching back

Weaknesses

British airways have been having ongoing issues with its cabin staff as of recent. There have been several strikes that have led to journey cancellation and also have cost the business big money. The union which signifies the cabin crew, unite and BA have didn't come to understandings several times costing the flight and damaging its reputation credited to hits.

Opportunities

There is a huge chance for BA to create a series of cheap 'budget' plane tickets within the UK and Europe. With this introduction BA can compete against easy-jet because of this market as they give a far better service and have an improved reputation. The individuals they have got lost to easy aircraft due to raised fares would very easily return.

Threats

The major risks to BA are actually the poor overall economy, strikes from the cabin staff and competition from easy-jet. The indegent economy means that there are fewer passengers and therefore planes are under crammed leading to loss.

Competition in home flights has seen easy-jet dominate the business lead in UK when it comes to passenger amount consequently of the cheap flights and the cabin crew strikes are damaging the good reputation the business has always got.

In bottom line, although BA has been having difficulty using their cabin crew of late they have were able to operate an acceptable service during attacks and take care of the differences using their cabin crew. Despite easy-jet overtaking as it pertains to passenger quantity BA still handles to soar 34million people in the European countries every year ensuring it turns on the handsome revenue.

The economy though it influenced passenger numbers for some time is getting back again to normal and BA managed to turn over an acceptable profit throughout that time and continue. If it continues working this way English Airways will be operating for years to come.

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