BUSINESS ISSUE

Analysis Of A Business Issue (British Airways)

Analysis of a Business Issue (British Airways)

Selection of organization for decisive analysis of technological factor

To discuss and critically analyze the impact of technological external environment factor I have chosen British Airways. In the following paragraph I will analyze how British Airways has responded to technological changes and ways improve their different functions further Brendan, 2000.

Organization description

First British airline company was established in 1919. At that time, there were many small airline companies operating like Aircraft Transport, Travel, Handley Page Transport, In-stone Airlines and British Marine Air Navigation they all face immense competition from outside forces and to beat that immense competition all of these small airlines combined and form British Airways. Major Players Competes in following industries Scott, 2002:

Airlines

Transportation Services

Air Cargo Services

Their leading players are:

All Nippon Airways Co., Ltd.

Delta Air Lines, Inc.

Japan Airlines Co., Ltd.

Limiting factors

Political

Politically, there are operating restrictions, which British airways have to work within. The benefits in joining an alliance, is that it makes otherwise unreachable routes, a reality. This also ties in with slots, as each national carrier in their home cities, has the monopoly Hill, & Westbrook, 2007.

Economic

Capacity in US outstrips demand, which leads to rate wars, equaling lower yields for companies reducing competition and increasing yields. Alliances also reduce the near-term possibilities of airport expansion. This leads to huge aircraft at airports, thus, more space being required, and is another way in gaining access to main airports, which can expand no further. Environment

Environment

Local air quality issues are a significant concern for people living in urban environments. They are often cited as the limiting factor in any new development including the growth of airports. Unlike noise, which is mainly dominated by aircraft operations, there are a number of sources of emissions that can impact on local air quality Sustar, & Sustar, 2005.

British Airways and technology

It was a time when there was the lack of technological development, but as time passed and technology began to develop at a rapid pace British Airways also updates itself from time to time. Now, this is an organization that can be considered as an epitome of technological advancement. This is an organization that has embraced technology and responded well to the technological changes. Technological challenges to British Airways. Technological changes and advancement keeping the customers close to the organizations

Rivals of British Airways are keeping a much closer relationship with customers with the help of online feedback and frequent and quick flow of information through the Internet than British Airways. British Airway's reputation of having aging employees increases the chances of having people who are not technologically updated. As everyone in today's world is aware of the vital importance of technology, rivals of British Airways will try to copy adoption of new technologies or they will try to maintain closer relationship with the same suppliers Hill, & Westbrook, 2007.



Alternative to solve the problem

Airline industry and technological changes go hand in hand. Several technological changes are incurring in the industry, and British Airways is ...