Macro-Environment of British Airways (BA)

Macro-Environment of British Airways (BA) One of the biggest airlines in the UK is British Airways (BA) which is domination domestic and international flights in the UK. Its international flights go up to 150 destinations around the world which does not include its partners and franchise. But, from the last ten years BA is going through neck to neck competition as well as a lot of management problems which is creating a lot of problems for the company and at the same time it is also taking the business away. The assignment will let us know how is BA performing, what strategies plans are to be used for the development of the company and have a good hold in the market. Things or Models like PESTEL, SWOT and Value Chain would help BA to come up with strategies that it would have good competition with it competitors. Strategies like bringing down the prices as well as cost, at the same time promoting its brand and also taking interest in mergers and alliances which would bring the economy of the company up. INTRODUCTION: BAs main aim and focus is on providing high quality but at high prices but it is not like other flights who have low prices just to increase their profit but at the same time they dont have any quality service taking place at all. BAs main targeted customers are the high class or in other words the Executive Class customers. This is because they earn their revenue from these customers only. But from the last ten years BA is going through a very challenging phase because its market rate and revenue both have dropped drastically and the reason for this is because of the increasing and new competition coming in the industry(Milmo, 2008); which is as explained through Porters 5 Forces. The main competitors for BA are Royal Dutch Airlines, Virgin Atlantic, EasyJet and Ryanair. To get through these competition, BA had come up with many strategies and also took advantage of its opportunities and strengths. This has been explained in SWOT analysis and also in TOWS and Porters Generic Strategies. COMPANY HISTORY OVERVIEW: British Airways Plc was once upon a time a subsidiary of Imperial Airways, which was created by merging four British airlines, this was taking place in somewhere in 1924. But, later on by 1939 for some period of time the brand had disappeared, but by 1974 when idea for nationalisation came for British Airlines .This was the time when two main airlines joined their hands and merged together i.e. British European Airways (BEA) and British Overseas Airways Corporation (BOAC) and formed into British Airways. In 1987 because of some financial problems the airline got privatised in 1987. BA, at the moment does not only caters service of carrying customers but also at the same time gives service of air cargo and mail service also(Bourne, 2007). To make its position in the market better BA is continuously coming up with new strategies, like giving to its customers advanced service, bringing in new aircrafts and having full corporation with its customers and at the same time taking responsibilities of theirs. To evaluate the external factors that critically affect the strategic decisions of the airline Macro Environment of BA is explained below: MACRO ENVIRONMENT OF BRITISH AIRWAYS: Before coming up with any strategy for British Airways it is very important to analyse the Macro Environment of British Airways. Because of this reason PESTEL analysis is been done and the external factors are being highlighted that are effecting the business of the company and what opportunities should it take in and what can cause a big treat also at the same time. PESTEL Analysis: (P)olitical Factors: To make sure that the security of the passengers are good BA has to enhance its safety ways as per the needs of Department for Transport (DFT) (Memorandum from BA Plc, 2005). To work properly it is very important for to go according to the rules and regulations set up by the Association of European Airlines (Buyck, 2010). (E)conomical Factors: As per the economical factor in the year 2008 the spending of the consumers of UK declined drastically, this had taken place after thirteen years because of which the competition in the market became more severe (The Telegraph, 2008). BAs full business totally depend on the executive class customers ,but right now the this has also decreased because of the cost cutting programs that are taking place in every industry. Even the daily changing oil prices effects a lot to the company as taking financial decisions get very hard. And off lately because of the global economic meltdown that had taken place recently there has been a drastic drop in the Airline Industry. (S)ocial Factors: Bargaining power of an employer has increased because there is an increasing rate of unemployment which is a big advantage to BA.As time is passing the demands of customers are increasing because of which facilities and services are also changing because of which threats are also increasing. Ageing is also a problem that UK is facing a there are more old people than young , which means that the number of flyers will keep decreasing in the future. (Office for National Statistics, 2010). (T)echnological Factors: As technology is increasing customers service at the same time is also improving. Comparing ticket prices online and knowing about the flight is very much possible online, so customers find the best prices online. Because of which they tend to go more for low cost airlines. Not only cost can be found out online but E-ticket reservations and online check in can also be done which is having a lot of popularity. BA needs to keep up with the growing IT and also make sure that everything is user friendly. (E)nvironmental/Ethical Factors: Environment also plays a very important role in this. As time is passing customers are becoming more environment friendly and they want less pollution. This is the only reason that expansion of Heathrow is having a lot of barriers as there is a lot of carbon gasses emission taking place(DFT, 2009). In the past BA had gone through noise pollution issue because of its Concorde flight. Ethical issues like misplacing of bags and cancellation of flights should be looked into or else the reputation of the brand will get lost. (L)egal Factors: Mergers have to be kept to a very restricted (Ownership rules in America) which would show certain limitations in respect to the union on American Airlines with BA (Knibb, 2010). Waiting for trade union to take any action, it is better to keep good relationship with the unions so that there are no unions taking place. VALUE CHAIN: SUPPORT ACTIVITIES: Firm Infrastructure: Structural Organisation gives BA the facility to come up with better strategies as well as have better communication within the organisation. But, this can sometime effect the operations taking place in the company. Human Resource Management: Off lately BA has spent quite a lot in training programs so that they can recruit the best, so that these best can provide the best customer service (British Airways Annual Report, 2007-08).BA has gone through many problems like Cabin Crew strike, granting of sick absence and demand for increasing of wages(Gray, 2007). Technology Development: By introducing services online in the flight and communication facilities BA has got a chance to gain competitive advantage by creating value for its customers Procurement: Since BA is a very old organisation it has got good relations because of which it can take advantage of and increase its economy by dealing with suppliers very well. PRIMARY ACTIVITIES Inbound Logistics: The important features how to control stocks, better training facilities (BA Press Office, 2008) and past good relationship with suppliers (e.g. Gate Gourmet Catering Services). Operations: Features like online check-in and e-booking attracts customers more. Outbound Logistics: Customers are allowed to choose which ever flight they want to and where ever they want to go and which every airport they want to land on, because of there are slots available at different airports. Marketing Sales: When the financial background is strong there are many investments taking place and because of which more promotion takes place because of which the revenue gets improved. But, if the marketing strategies are not right and not that innovative then there are chances of loosing out of customers to another competitive flights. Post Sales Services: Giving customers the chance to give their feedbacks and asking them to give their views which in turn helps BA to connect to its customers very well and improve themselves. Because of which the business and the company can incur profit.

Causes of increasing alimentation prices

The divertive utilization of rice alignments to biofuels production is considered a result of the soaring food prices of our recent age. The resultant utilization of alimentations, more so rice hulls in many countries is highly preferred for use in biofuels production. Bio-extraction of ethanol from plants is considered as environmentally friendly as some analysts say it contributes to curbing the issue of global warming by reducing the concentrations of green house gases in the atmosphere. Because the waste product of rice becomes commercialized, it makes rice of any type or species to be valuable and consequently makes its price increase.(Saha et al, 2004) Unfair trade agreements imposed by rich nations that try to undermine poor nations making them unable to determine their policies of food production have also contributed to a higher localized supply in rice. A good example can be cited by Shah (2008) where she reveals that the Doha World Trade Organization meeting intended to as certain poor nations’ profitability in global trade did not materialize due to the developed nations view that the undeveloped nations would not ensure the end part of their bargain in the talks.The technology of genetic modification has also fuelled the high prices in foods in comparison of organic foods and genetically modified ones due to the cheap prices of the later in terms of competition. However, research by environmentalists has shown that the genetically modified (GM) foods have negative attributes to the ecological set up and consequently the human health system.The prevalence of the GM foods in the developed nations has seen demand of the higher priced organic foods increase in time due to the health effects associated with the former. The increasing population has seen the demand of food increase causing its consequential higher production. Rice being a staple meal in Asia has seen its exports being restricted to ensure that people specifically in the Asian natio ns of India and Chain can sustain their people with enough food. China with a population of about 1.3 billion people is the highest populated nation in the world followed by India. The government’s priority to feed the people comes first and thus has seen the exportation control of agricultural produce to other nations causing a shortage of food in the global market which by laws of economics dictates increase in commodity prices when supply is low. The exorbitant costs of inorganic fertilizer and other farm inputs for agricultural practices have also contributed to the increasing food prices.This is because the costs of production are also reflected in the end price of the agricultural produce, therefore if the price of one input increases, it will inevitable cause a rise in the end product as the farmer can not take up that cost for the benefit of the consumers since it will be tantamount to losses in business. In the UK, farmers are facing a 15% hike in fertilizer prices t hat is hurting the agricultural sector. This surge in prices is cited to have arisen from anti dumping taxes on nitrogenous fertilizers in the UK from some nations since 2000 that has seen a monopoly in the supply of fertilizer.(Walker, 2007) From the beginning of 2003 when the Iranian invasion began, oil prices have been going up exponentially that indirectly instituted high price of food. This was and is being attributed to low production levels of crude oil, thus diminishing supply due to the increasing preference of biofuels. The link between the soaring food prices and the high energy prices is that food needs to be transported to one part of land to another more specifically in relation to our globalized world that increases distances of destination.The modes of transportation used are mostly powered by by-products of fossil fuels that are expensive as could be seen by the highest recorded price of over a hundred dollars per barrel at the beginning of 2008. (Shenk 2008) As a c onsequence, the cost of energy is passed down to the end user making the commodity price higher than usual. This is a global problem since the crude oil prices are the same all over because of their sole control by the Oil Producing and Exporting Countries (OPEC) arrangements.The new problem of climate change is also predicted to cause further increases in food prices. The variations in climate across nations that solely depend of agriculture for their growth is expected to fall drastically as unpredictable weather patterns take charge causing situations of extreme drought and floods in different places. These alterations in climate will reduce agricultural productivity and food shortage will become imminent across the affected nations. It is now being observed that Australia, one of the largest wheat producing countries is in its third year of drought.Its respect as the world producer of wheat is now in jeopardy as its silos are becoming empty will the wheat prices are increasing. (Stancich, 2009) The problem of attacks from crop pests and weeds is also associated in the ever increasing food prices. In Central as well as the Southern parts of the Vietnam nation, according to a recent study Zeigler (2009), rice crops have been attacked by the tungro crop virus originating from the brown plant hopper insect. And furthermore, its spread is being predicted into China together with Thailand and Columbia.Pricing of rice is obviously expected to increase as the supply would have been greatly diminished while demand keeps growing. The continuing undervaluation of the US dollar which is used as a bench mark for trading in many nations is also attributed to the increasing food prices. Globalized nations are feeling the pinch of the current economic crisis of the US and business has gone down meaning that many sectors of the economy are being hurt more specifically in the agricultural sector.Farmers in the developed nations have cope better with the high prices of this global recession compared to their counterparts in the developing nations where production has reduced. A low supply with a high demand implies that food prices would increase in the developing nations unlike in developed nations where it would remain relatively stable. In India -one of the major rice producers- the effect of the global financial crunch in many sectors of the economy such as the agricultural industry has seen its 2008 GDP drop to 7% while further reduction is expected for 2009 at 5%. (World Bank Group, 2009: 2)Sporadic economic growth in different nations all over the world has been identified as a contributor to the increase in commodity prices. As the economy of a nation increases so as the living standards of the citizens. This makes purchasing power go a notch higher due to demand for better goods and services. This causes incompatibilities between demand and supply arising that sees the increase in prices. This is exhibited in the case with China that has been marked by speedy economic development that has exacerbated this global crisis that is catalyzed by its enormous population.(Zu H. & Khan, 1997) Effects of alimentation price increases As an effect, the high food prices could be succeeded by civil unrest especially among the poor nations which can be exemplified by the riots emanating from exorbitantly high food prices in Burkina Faso as well as Cameroon where its was compounded by the expensive fuel costs. The country of Indonesia has also been characterized by such frustrations when there was recent scarcity in Soya beans. Rise in inflation is a notable effect of increased food prices more especially in developing nations.Most developing nations operate on deficits and a down turn from increased food prices puts strains on the government’s functionality due to limited financial resources. This sees the issue of relief coming in from developed nations to help the affected. Increase in poverty becomes evident due to high food prices as people reduce their consumption so as to sustain themselves in future days. On an optimistic view, the soaring food prices have also the effect of causing governments to intervene by pushing for increased production of food in their countries to cushion the poor from hunger.(FAO, 2009) Conclusion Though there has been tremendous growth in food production all over the world, the predictions of the future are still pessimistic as demand continues growing high. This is in reference to the stagnated supply that can not reach equilibrium with the demand; hence the future is determined by new sources of supply to cope with the vacuum in supply that would ensure price stability. Therefore, foreign alimentations such as bananas, mangoes, pineapples, and exotic fish among others will not fetch the same price as today due to these imbalances in supply and demand.To mitigate this, an in depth intervention through social protection for the short and long period requirements in conjunc tion with initiatives on alimentations for the poor should be implemented. Research into new agricultural opportunities should be intensified so as to achieve equilibrium in supply and demand of alimentations. This will go far in guarantying steady prices of food in the global market. And resultantly, agricultural trade regulations that burr efficient production in the developing nations should be renegotiated with rich nations that discourage them so that a healthy and productive world can be achieved.(OECD, 2007) References: FAO, (2009). Bumper rice harvest could bring down consumer prices. Planete Urgence. Retrieved on April 20th 2009. From http://www. infosdelaplanete. org/5123/bumper-rice-harvest-could-bring-down-consumer-prices. html? L=EN Hu Z. & Mohsin S. Khan (1997). Why Is China Growing So Fast? ECONOMIC ISSUES NO. 8 International Monitoring Fund (IMF). Washington D. C. Yan Z. (2008). China seeks a balance between food security and the urbanization. Retrieved on April 20th 2009. From http://www. china-embassy. org/eng/zt/t516240. htm Walker D. (2007).Fuel and Fertilizer Situation. John Wiley and Sons, Inc Stancich R. (2009). Climate change and food prices. Climatechangecorp. Retrieved on April 20th 2009. From http://www. climatechangecorp. com/content. asp? ContentID=5252 OECD (Organization for Economic Co-operation and Development) (2007). Agricultural Policies in OECD Countries: Monitoring and Evaluation. Paris: OECD. Saha, B. C. , Iten, L. B. , Cotta, M. A. , Wu, Y. (2004). Fuel ethanol production from rice hull [abstract]. American Chemical Society. Paper No. BI0T 101. Retrieved on 20th April 2009. Fromhttp://www. ars. usda. gov/research/publications/Publications. htm? seq_no_115=156041 Shenk M. (2008) . Oil Climbs Above $126 to Record as Dollar Weakens Against Euro. EU News, Havensworks. com http://www. havenworks. com/world/eu/ World Bank Group, (2009). Impact of Global Financial Crisis on South Asia. Retrieved on April 20th 2009. From http://7 4. 125. 47. 132/search? q=cache:y57oApfcEXgJ:siteresources. worldbank. org/SOUTHASIAEXT/Resources/223546-1171488994713/3455847-1232124140958/gfcsouthasiafeb172009. pdf+global+financial+crisis%2Bfood+prices&cd=2&hl=en&ct=clnk

The Pitfall of Research Paper Proposal

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Safety Of The Hpv Vaccine Essay - 2123 Words

Safety of the HPV Vaccine There have been concerns about the safety of the HPV vaccines. In Basu’s (2013) article they reviewed the evidence from the phase III trials and national programs for the HPV vaccine. After reviewing the data though the article showed that all the randomized control trials reported both their serious and non-serious adverse events that took place during the phase III trials. â€Å"There were 20,000 participants in the trial† (p.4). Pain at the injection site, headache, and fatigue were the most frequently reported issues. The serious adverse effects were very rare so the vaccine was considered safe. When reviewing the safety data from the national programs in Australia there were millions of doses given out and the most adverse side effects there were anaphylactic and allergic reactions, and these were not seen as any more dangerous than it is for other vaccines. â€Å"In the US about 40 million doses were given out and among the reports that were received by the Vaccine Adverse Event Reporting System which totaled 20,096 only 8% of these reports were actually were considered serious†(p.5). All the reports were reviewed and could not find any adverse events that occurred that could be ascribed to the vaccine. In the UK they reviewed the vaccine two years after it came out and concluded it to be safe. Reviewing the data from all three counties in the national programs showed that none of the deaths that occurred could be linked to the vaccine. 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