Module Name: Strategic Business Environment
Module Number: MGT2530
Assignment: Analyse Of International Airlines Group.
Mehedi Hassan Fattah---M00343841
Module Leader: Bushra Daud Ahmad
Seminar Tutor: Waris Ali
Word Count: 1457
Date: 05 April, 2012
Background of the Company:
International airlines group, Officially International Consolidated Airlines Group, S.A. ; is a multinational airline holding company. The headquarter of the company is in London, United Kingdom. The company also has a registered office in Madrid, Spain.
Size and Sector:
International Airlines Group Operates in Aviation Sector. IAG is the parent company of British Airways and Iberia. Antonio Vazquez is the Chairman Of IAG Now and Willie Walsh is the CEO of IAG Now.
According to the Last Financial Statements of IAG which was published in December 31, 2011:-
* IAG’s Revenue: £13.63 billion
* IAG’s Operating Income: £404.45 million
* IAG’s Profit: £439.47 million
* IAG’s Total Assets: £16.47 billion
* IAG’s Total Equity: £4.74 billion
* IAG’s Employees: 56,782
Mission of IAG and Stated Value of IAG:
IAG’s mission is to be the leading international airline group.
The company’s stated value is to accomplish the mission by winning the customer through service and by maintaining value across their global network.
From their mission and stated value it is very clear that the company gives priority to their customers first to fulfill their mission.
By accomplishing their mission, IAG will help to shape the future of the Airline industry, set new standards of excellence and provide sustainability, security and growth.
Corporate Social Responsibility (CSR) of IAG
In the area of corporate social responsibility IAG proudly support the policies and vision of British Airways and Iberia.
The Main and Common CSR of British Airways and Iberia are:
Environment: BA and Iberia tries their best to limit the emission of CO2. BA is also trying to reduce the noise of airplanes engines. They are also funding in many projects with other companies to keep the environment green and beautiful.
Community: BA and Iberia both helps a lot in the local community and the communities all around the world. Especially BA offers many projects such as educational project in the rural areas Of Bangladesh. They also donate to poor and helpless people through charity partnerships.
Market Place: BA and Iberia always develop their products continuously. They perform their CSR through Innovation. They always remove and reuse their wastes carefully. They always supply the best quality food for the passengers.
Work Place: In Market place BA and Iberia have their own training teams for their employees to encourage the employees to perform their CSR. Such as: Attend passengers complaints carefully, corporate safety, colleague engagement. BA has British Airways health service which helps any sick employees and passengers.
The External Environment (PESTLE Framework):
The Political Environment:
High APD: APD (Air Passenger Duty) has increased again from 1st April, 2012. Because of the new increase, APD causes air tickets to rise by 8%. This new increase is discouraging travelers to fly.
Low Corporation Tax:
The main rate of corporation tax, applied to taxable over £1.5 million, remained at 30% until being reduced to 28 percent from 2008/2009. From 1st April it is being reduced to 27 percent and then it will be reduced to 24 percent by 2014/2015.
By 2014 Multinationals will pay only 8% as corporation tax.
.Weaker European Markets:
Though in 2011 IAG has doubled it’s operating profit compared to 2010 but, because of weaker...
References: Palmer, A ., Hartley, B (2009), The Business Environment, (6th edition), McGrawHill, UK
IAG’s Full year condensed consolidated financial statements December 31, 2011 accessible at:
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