Internal and External Business Environment of TransGlobal Airlines
Module Four Business Environment Analysis Report Guidelines and Rubric
Overview
In your role as controller of a division of TransGlobal Airlines, you are responsible for assessing the possible acquisition of the two identified small airlines in the Caribbean specializing in chartered flights for luxury vacations using light aircraft (60 passengers or less).
One of the important steps in this acquisition process is analyzing, understanding, and identifying all the external and internal elements that can affect the organization’s performance, and, as businesses are greatly influenced by their environment, all the situational factors that determine how day-to-day circumstances impact firms. You can assess situational factors by performing a business environment analysis. The analysis entails assessing the level of threat or opportunity these situational factors might present. These evaluations are later translated into the decision-making process. The analysis helps align strategies with the firm’s environment. You will use the PESTEL method to perform this analysis.
Prompt
Use the information provided to you in the TransGlobal Airlines Information document to perform a business environment analysis using the PESTEL method. Your task is to analyze the internal and external business environment of TransGlobal Airlines by identifying the impact of each PESTEL factor on the business environment.
Specifically, you must address the following rubric criteria:
Identify one political factor that can affect the company’s business environment and explain any potential impact on acquisition strategy.
Identify one economic factor that can affect the company’s business environment and explain any potential impact on acquisition strategy.
Identify one sociological factor that can affect the company’s business environment and explain any potential impact on acquisition strategy.
Identify one technological factor that can affect the company’s business environment and explain any potential impact on acquisition strategy.
Identify one environmental factor that can affect the company’s business environment and explain any potential impact on acquisition strategy.
Identify one legal factor that can affect the company’s business environment and explain any potential impact on acquisition strategy.
What to Submit
Submit a 1- to 2-page Word document using double spacing, 12-point Times New Roman font, and one-inch margins. Sources should be cited according to APA style. Consult the Shapiro Library APA Style Guide for more information on citations.
Business Environment Analysis
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Business Environment Analysis
As a controller for one of TransGlobal Airlines' departments, I must compile an analysis of the business environment report that will help assess and determine internal and external factors that may impact the airline's efficiency. The macro-environmental factors that affect a business or industry are analyzed and tracked by managers using the PESTEL model or tool. The PESTLE technique, a structure for evaluating political, economic, social, technological, environmental, and legal variables, will be the tool for analysis I will employ.
As wars and internal disputes become increasingly frequent in many nations worldwide, it is crucial to know where these conflicts occur and whether they will impact the locations offered. As we would be unable to provide travel alternatives to certain regions and would lose out on potential income, it can impact our bottom line if open conflict is a prevalent or repeating pattern in the destinations provided. It might substantially complicate our business because we offer services to various foreign countries. Because of its huge financial pressure, it would reduce our earnings and limit our ability to buy another company.
The pandemic was another recent occurrence that economically impacted the entire world. Because of the pandemic's prolonged global shutdown, every organization experienced financial difficulty. In some regions, the global economic slowdown and eventual recession will result in a loss of disposable income for businesses and people, resulting in canceled trips and a reduction in income.
Our company's reputation is a social aspect we must be conscious of. Fortunately, our company's current CEO has prioritized maintaining and enhancing our brand's reputation. We cannot attract new clients or keep our ...