Business Environment Example

Business Environment Example Business Environment – Coursework Example PESTEL on the behavior of VAA or Virgin Atlantic Airlines Political factors Like other private airlines, Virgin Atlantic Airlines is subject to numerous government regulation for political, economic, and safety concerns. For instance, Air passenger tax by government results to increase in air travel prices and such price increments could discourage passengers from opting to travel. As a result, the airline is directly impacted. The impact is that airline industry functioning and the universal policies on environmental emissions are violated. Further, some nations offer unfair benefit and charge lower than market situation.Economic factorsFuel policies result to increased fuel prices that affect the airline industry including fuel supply thereby affecting airline sustainability (Halpern and Graham 55). Other factors economically affecting airline industry include terrorist attacks, and environmental restriction in terms of security and insurance costs. However, globalization is expect ed to continue boosting long term air traffic especially in growing markets like East Asia and China. For Virgin Atlantic Airlines, expanding into these markets will boost profitability.Technological factors Virgin Atlantic Airlines value technology in its airplanes and its engineers ensures that the best technology is used to improve security, entertain passengers waiting for arrival, including video entertainment through individual screens for every seat. According to Doyle and Bridgewater (64), innovation in marketing has played a key role in marketing the company’s launch of new products and system innovation especially through the company’s webpage and social media. Additionally, the company’s onboard entertainment offers numerous video and audio channels leaving the passenger to choose. The company also uses e-marketing, and internet marketing for online bookings and information.Social factors Since Virgin Atlantic Airline operates in numerous regions in t he world, the company is keen to keep in touch with different cultural aspects, customer attitudes, seasons and cuisines (Halpern and Graham 55-57). For each region, social factors represent variable attitudes which the company uses to price and shape its services. For instance, holidays seasons result to increased passenger traffic and VAA has to be aware of and ready to serve its customer base.Doyle, Peter and Susan Bridgewater. Innovation in Marketing. London: Routledge, 2012.Fleisher, Craig and Babette Bensoussan. Analysis without paralysis : 12 tools to make better strategic decisions. Upper Saddle River, NJ: FT Press, 2013.Halpern, Nigel and Anne Graham. Airport Marketing. London: Routledge, 2013.