Unit 1 P6 BTEC Business Level 3

Topics: Economics, British Airways, Population growth Pages: 13 (3162 words) Published: June 4, 2015
P6, M3
In this assignment I will be writing about how stakeholders in two selected organizations of my choice are affected by P.E.S.T.L.E this will show how each one is affected by P.E.S.T.L.E; Political

Economic
Social
Technological
Legal
Environment
Definitions:
Political Factor- An activity related to government policy and its administrative practices that can have an effect on something. Most business operators will keep a watchful eye on any political factor, such as new legislation or regulatory shifts, which could have a substantial impact on how their business operates and its bottom line. Economic Factors- The set of important information that affects a business or an investment's value. Various economic factors need to be taken into account when determining the current and expected future value of a business. For a business, key economic factors include labour costs, interest rates, government policy, taxes and management. Social Factor- The facts and experiences that influence individuals' personality, attitudes and lifestyle. The marketing department of a business needs to take into account the various social factors such as the characteristic of the consumer groups it is targeting to help increase a product's appeal to those potential buyers. Technological Factors- Influences that have an impact on how an organization operates that are related to the equipment used within the organization's environment. Legal- Allowable or enforceable by being in conformity with the law of the land and the public policy; not condemned as illegal. Environmental Factors- An identifiable element in the physical, cultural, economic, political, regulatory, or technological environment that affects the survival, operations, and growth of an organization. Examples of P.E.S.T.L.E

Political-
New State Tax Policies For Accounting
New Employment Laws For Employee Handbook Maintenance
Political Instability In A Foreign Partner Country
Economic-
International Economic Growth
Changes In Interest Rates
Social-
Shift In Educational Requirements And Changing Career Attitudes Population Growth Rate
Technical-
Automated Processes In The Industry
Rate Of Innovation
Changes In Technology Incentives
Legal-
Discrimination Laws
Health And Safety Laws
Consumer Protection Laws
Copyright and Patent Laws

Environment-
Changes In Weather And Climate
Laws Regarding Pollution And Recycling
Waste Management
Use Of Green Or Eco-Friendly Products And Practices
These things can affect British Airways and Martindale’s LTD in many different ways;

British Airways
Background Information-
British Airways is a PLC (Public Limited Business) with a workforce of over 57,000, a fleet of 266 Aircraft and occupies over 416 airports. British Airways have an annual Turnover Profit of over £10.8 Billion. This makes British Airways one of the largest airlines in the world as they are the second biggest business in the aviation industry. This makes British Airways a Large Sized Business on an international scale. British Airways was formed on 31st March 1974 and it was created by two airlines merging: British Overseas Airline Corporation (BOAC) and British European Airways (BEA). These two businesses formed British Airways later, being merged with another business in 2011, Iberia Airways, making the business larger and making the business worth more in revenue. The Stakeholders of British Airways that are affected by these factors are; Customers

Airports
Shareholders
Suppliers

Customers-
Customers are affected by political factors because as the political factors may change the regulations for people flying so this means a policy can be made that will stop them from being able to fly. Political factors that also may affect customers is new state tax policies that may mean an increase of prices meaning less people could fly with British Airways. This will affect British Airways as it will come with a loss...

Bibliography: [1] General Knowledge
[2] http://www.britishairways.com/travel/globalgateway.jsp/global/public/en_
[3] http://www.martindales.ltd.uk/1_about_martindales/overview.html
[4] http://www.businessdictionary.com/
[5] http://pestleanalysis.com/
[6] British Airways 2012 annual report (See sources section in folder)
[7] http://www.caa.co.uk/homepage.aspx?catid=752
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