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Pest Analysis On British Airways.

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Introduction

PEST ANALYSIS ON BRITISH AIRWAYS The four different environments are often referred to as PEST and allow a PEST analysis to be conducted this allows the organisation to review and consider the environment in which it operates. The PEST factor that has contributed to the airlines industry for many years, but has brought a drastic change was from the disaster on September 11th 2001. Political environment concerns the role of the government and its affects in an organisation it also includes the extent to which the government intervenes in the economy. Due to the terrorist attack many airlines such as British Airways stopped flights to certain countries such as the middles east and the main countries involved with the fear of their planes being attacked. This is therefore caused up a political stir with the fact that Britain's fear them maybe the next victims of terrorist attacks. ...read more.

Middle

However this is not a long term worry, as things would eventually start getting back to normal, share value would increase. The British economy has lost put, as many people are scared to fly into America, and therefore the demand is low to travel, however the supply is high, this could be a dangerous factor for the small airline companies that do not have enough funding in the first place, now they are literally on the verge of bankruptcy. Social environment is of great importance when being applied to different organisations, in case the airline industry. The short term affect that the social factor has on the airline industry is that, people have cut down on using flying as a mean of travel after the September 11th incident. Many of the flights have been cancelled from America, this resulting to financial difficulties for British Airways. ...read more.

Conclusion

Technology has rapidly advanced over the past few years and is continuing to do so. Organisations whether large or small have been affected and are unable to operate within the latest technology. Airports have taken out the time and the costing of increasing technology, so that security in airports is at the tightest. This has proved to be a success as recently a man was caught at the airport with weapons at Heathrow Airport in his luggage. There also have been reports that security has been upped in all major London airports if there is going to be a war against terrorism with Iraq. This is seen as a long term effect, as no matter how quickly things go back to "normal" airports are not going to be taking the chance to see a repeat of the incident in New York. This is a positive affect, as due to the security tightening, it will make the public more aware that security is tight, therefore they should feel more comfortable and secure about travelling. ...read more.

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