Political, Legal and Social factors impacting two businesses
Political, legal and social factors impacting LLC and IAG
The following report will consist of some of the social, political and legal factors that could potentially affect Leeds City College and International Airlines Group as a business. I will also go over which factors are having the most significant impact on the business and how the businesses are trying to adapt and change in order to try and negate the impact of these factors and how they may capitalize on some.
International Airlines Group like many businesses in the current economic climate has seen a dramatic change in the way they have to do business due to several social factors. The most prominent of the social factors is the alteration in consumer buying habits due to the recession, as many people have a lower amount of expendable income due to the rise in cost of living prices such as food and energy bills combined with lower wages and high level of unemployment. The reason that this makes this social factor the most severe for IAG is that while most businesses have to deal with this change a large part of the British Airways customer base is that of business clients. Therefore due to businesses looking to cut costs to help with lower revenues many are no longer willing to pay for employees to travel first class and turn to the budget airlines. For example BA released a statement to investors regarding the future of the business ‘What we have been living through in the last two years is the deepest downturn this industry has ever faced. The International Air Transport Association (IATA) is forecasting revenues for the industry as a whole will fall by 15 per cent’ (British airways, Q1, 2010).
In order to accommodate for the shift in the market due to the social factors IAG has taken to a ‘Cost driven recovery’ which refers to them relying on cutting costs in order to deal with the sharp decline in revenues that the airline industry has seen. While many were sceptical as to the success of this cost
The following report will consist of some of the social, political and legal factors that could potentially affect Leeds City College and International Airlines Group as a business. I will also go over which factors are having the most significant impact on the business and how the businesses are trying to adapt and change in order to try and negate the impact of these factors and how they may capitalize on some.
International Airlines Group like many businesses in the current economic climate has seen a dramatic change in the way they have to do business due to several social factors. The most prominent of the social factors is the alteration in consumer buying habits due to the recession, as many people have a lower amount of expendable income due to the rise in cost of living prices such as food and energy bills combined with lower wages and high level of unemployment. The reason that this makes this social factor the most severe for IAG is that while most businesses have to deal with this change a large part of the British Airways customer base is that of business clients. Therefore due to businesses looking to cut costs to help with lower revenues many are no longer willing to pay for employees to travel first class and turn to the budget airlines. For example BA released a statement to investors regarding the future of the business ‘What we have been living through in the last two years is the deepest downturn this industry has ever faced. The International Air Transport Association (IATA) is forecasting revenues for the industry as a whole will fall by 15 per cent’ (British airways, Q1, 2010).
In order to accommodate for the shift in the market due to the social factors IAG has taken to a ‘Cost driven recovery’ which refers to them relying on cutting costs in order to deal with the sharp decline in revenues that the airline industry has seen. While many were sceptical as to the success of this cost