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Unit 1, Assingment 4 - M3, 1.4c (Impact of External Factors, BAA).doc

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Introduction

External factors that could affect BAA, which we are focusing on, are; * Introduction of Road charging for driving in congested areas. * The average age of the population increases so there are fewer young people and more elderly people. * Exceptionally hot summer. Introduction of road charging for driving in congested areas Positives: BAA has the opportunity input new facilities that enable alternative transport method to access its airports; whether it is similarly to K2, with the bus routes, or with trains. BAA, in my opinion, should ensure trains are able to stop as close as possible so to increase customer satisfaction, BAA has the possibility to introduce its own train services, or to employ the services of an already active train service. Negatives: Due the large size necessary for an airport but also its convenience to be travelled to, BAA's airports are all located just outside of large towns/cities and have major roads travelling to them (both of which are going to be highly charged to travel on under the agreements of the new road charges proposal). ...read more.

Middle

BAA may also want to ensure that its airports have a quite and comfortable environment, which may require the removal of some service i.e. an arcade, which may result in complaints from the younger generations whom make use of this service. Services such as electronic buggie taxing, to aid elderly people to access all areas of the airport and technology to ensure the partial sighted and hard of hearing are able to communicate, would be required. Subcontracted businesses to BAA's airport may have an increase in sales of certain products such as anti-DVT socks etc. This could result in a higher profit for BAA if it receives a percentage of the subcontracted businesses profits. Negatives: The new equipment for OAP's is an additional expense to BAA. Statistically the majority of flyers of members of the younger generations, however this could be seen as another reason to implement a train service if the UK population are more likely to holiday within the UK rather than abroad. ...read more.

Conclusion

Negatives: BAA are not optionally selling Gatwick, but being forced to by the government and in doing so BAA are loosing all revenue generated by Gatwick in the future. An increase in competition to BAA, from Virgin Atlantic and Easy jet could result in more customers making use of Virgin Atlantic and Easy jet service rather than BAA's. BAA is likely to lose custom from Virgin Atlantic and Easy jet at its other airport as they now have the option to use its own airports. Overall Assessment of Affect: I believe overall BAA being forced to sell Gatwick airport would have negative short term affect due to the loss of revenue and higher level of competition from purchaser of Gatwick. However I believe the long term affect to BAA will be positive due to the allowance to keep other BAA airports by the UK government. ?? ?? ?? ?? Unit 1 M3 Task 3 Assignment 4 1.4b (Impact of External Factors, BAA) L3 Business Studies Arran Laundon 05.11.08 ...read more.

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