Flying High in a Turbulent Environment

Flying high in a Turbulent Environment

The Airline industry has experienced the most turbulent period for the last few years particularly Aer Arann due to the environmental factors. This article will critically evaluate the Macro-economic challenges that Aer Arann currently faces in the long term, starting by identifying key environmental factors in relative to their influences on Aer Arann such as, PESTEL framework. Furthermore, this study will also evaluate company structure by applying porters' five forces; in addition, marketing recommendation will be highlighted in order to sustain profitability. Then conclusion will be drawn.

The external environment comprises actors and forces which can pose a threat or opportunity to organisation's ability to carry out its duties effectively. These external forces not only influences a particular company but the other actors in the entire industry and can be classified as Political, Economy, Socio-cultural, Technological, Environment and Legal factors (PESTEL framework). (Jobber, 2007) However, political factors are those decision that affect organisations activities through Government regulations and legal frameworks such as competition laws, local, National, and Super-national regulations and laws, Trading Blocks (Wilson and Gilligan, 2005). The Airline industry is one of the most regulated industry.

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