Strategic Management Essay Example | Topics and Well Written Essays - 1750 words - 2

Strategic Management - Essay Example The company’s fleet consisted of 245 aircraft and 40,627 employees at the end of 2009 (Datamonitor). The company earned approximately  £9 billion in revenue at the end of fiscal year 2009, 2.7% higher than the last year. 87% of this revenue came from passengers’ traffic while 7.5% and 5.4% came from cargo and other activities respectively (British Airways Annual Report, 2008/09, Data-monitor). The PEST analysis of British Airways highlights major influences on the airline industry. According to Sanderson and Luffman (2001), this environment analysis indicates â€Å"current strategies of competitors, the potential of new competition to enter the market, the behavior of suppliers and buyers, and the availability of substitute products† (2001, p.20). The competitive marketing environment continuously changes, therefore a well thought-out, composed, detailed and consistent analysis is necessary for best evaluation. The distressing incidents at the start of 21st century have turned out as the most difficult times for the airline industry. These incidents included the terrorist attacks in New York on September 11, 2001 and in London on July 7, 2005. Moreover, wars in Iraq and Afghanistan have caused an extraordinary political instability in different parts of the world. Due to such political instability and security situation, European Union and United States formulated new security regulations which came into effect in summer 2006. Although governments have taken essential safety and security measures and controlled the activities at the airports effectively along with pricing and planning policies but even then the new political strategy reduced the customer’s traveling confidence on airline. During last few years, substantial regulatory reforms have taken place which has given more opportunities to British Airways and such other airlines. As far as, UK political