Swot Analysis Of British Airways

Introduction: Company Information:

Founded on 31st march 1974 after the merger of two nationalized airline companies and two regional airlines, British Airways is the largest airline in the world in terms of number of aircrafts, international destinations and flights. It ranks second in terms of passengers transported per annum. It operates from Heathrow Airport that prides itself in serving the largest number of international passengers in the world and the third busiest worldwide. The company ran as a state corporation in its first 13 years of existence before it was privatized in 1987. The company has expanded through mergers and acquisitions. Its merger with Iberia in 2011 formed the International Airlines Group that is among the top three airlines in the world in terms of revenue generated yearly. Its headquarters are in Waterside, Harmondsworth in England. The airline is one of the major players in the tourism industry since it flies to more than 150 cities in 75 countries around the world. Many tourists travel by air and the airline connects tourists to the various destinations they wish to visit in the world.

OPEC, Cartel and Price Fixing Theory: Political Tension in Middle East

Jet fuel forms the bulk of costs incurred by British airways and any volatility in the major oil producing countries in the world increasing the cost of operation. In the past one decade, oil prices has been on an upward trend in response to the unending political tension in the Middle East-the world top oil producing region. The instability in Iraq and of late Syria that also involves other countries in the region has kept oil prices unreasonably high. The region countries account for over 40 percent of oil produced in the world and they are memb...

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...ld be part of businesses’ corporate strategies. Any corporate that fails to respond to the demands of its customers risks losing business to its rivals. The intense competition in the airline industry may have compelled BA to embrace environmental protection to gain the trust of its loyal customers. In the long run, the increased number of passengers and flights will positively impact the airline’s financial books. The low carbon emission will assist in tackling the global warming menace.

Conclusion:

In conclusion, various inferences can be made from the above analysis of British Airways operations:

 Businesses depend on the external environment as much as they depend on the internal environment.

 Businesses must remain conscious of the events taking place in the external environment.

 Analysis of the external environment will assist in making sound decisions.