Pestle Analysis Biman Bangladesh Airlines.Doc

Topics: Biman Bangladesh Airlines, Flag carrier, Shahjalal International Airport Pages: 6 (1592 words) Published: July 17, 2011
PESTEL Analysis on Biman Bangladesh Airlines


PESTLE an analysis is very important for case analysis political, economic, social, technological factor of any company. We have selected Biman Bangladesh airlines for doing Pestle analysis. So, this entire report will cover the importance of Pestle analysis and we will show how The pestle analysis of Bangladesh Airlines are flying. Biman Bangladesh airlines is the leading airlines Industry and oldest airlines industry in Bangladesh. We are selecting Biman Bangladesh Airlines because the flag carrier airline of Bangladesh. Its main hub is at Shahjalal International Airport in Dhaka, and also operates flights from Shah Amanat International Airport in Chittagong, earning revenue from the connecting service to Osmani International Airport in Sylhet. Biman provides international passenger and cargo service to Asia and Europe, as well as major domestic routes. It has air service agreements with 42 countries, but only flies to 16. The airline was wholly owned and managed by the Government of Bangladesh until 23 July 2007, when it was transformed into the country's largest public limited company by the Bangladesh. The airline's headquarters, Balaka Bhaban, is located in Kurmitola, Dhaka. It is the benchmark for the all other airlines organization in Bangladesh.

Background of the Industry

Biman Bangladesh Airlines Ltd the national flag carrier of Bangladesh has started its journey from scratch virtually with no aircraft, no ancillaries. It came into operation immediately after the war of independence. Despite many odds on its journey towards a long and challenging way to progress, Biman has been able to establish its reputation as an airline of welcome smile and an ocean of hospitality.

Biman now carries the nation’s flag to South Asia, South-East Asia and Far-East, Gulf and Middle-East region and European. A steady progress has been made with better services ensuring increased passengers. To make Biman passengers feel “once Biman always Biman” the airline has recently brought in some qualitative changes in its service concept. Biman has been aiming in achieving the goal of being truly international commercially viable airline of the region with its warmth and friendliness, care, safety record, traditional hospitality and comfort of the services it offered. Biman is now flying even higher with great pride around the globe with the bi-color, the nation’s flag.

A scan of the external macro-environment in which the firm operates can be expressed in terms of the following factors: • Political
• Economic
• Social
• Technological
✓ Political Factors
Political factors include government regulations and legal issues and define both formal and informal rules under which the firm must operate. Some examples include: • Tax policy
• Employment laws
• Environmental regulations
• Trade restrictions and tariffs
• Political stability

✓ Economic Factors
Economic factors affect the purchasing power of potential customers and the firm's cost of capital. The following are examples of factors in the macroeconomics: • Economic growth
• Interest rates
• Exchange rates
• Inflation rate
✓ Social Factors
Social factors include the demographic and cultural aspects of the external microenvironment. These factors affect customer needs and the size of potential markets. Some social factors include: • Health consciousness

• Population growth rate
• Age distribution
• Career attitudes
• Emphasis on safety
✓ Technological Factors
Technological factors can lower barriers to entry, reduce minimum efficient production levels, and influence outsourcing decisions. Some technological factors include: • R&D activity
• Automation
• Technology incentives
• Rate of technological change
✓ Environmental factors
Environmental factors include...
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