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Micro and Macro Environment Examples: British Airways and Sony

Currently, business review applies innovative and analytical techniques to commercial problems that assist managers to make wise decisions.

Micro And Macro Environment ExamplesTechnology plays a central role in almost every business now. Organizations prefer business graduates with appropriate experiences in corporate technology. Significantly, business experts have outstanding general responsiveness of how businesses operate and that are competent in applying proper analytical techniques in dealing with specified management problems.

After the recent universal economic crisis, economics proves to be more crucial and pertinent than ever. Furthermore, decisions regarding banking, interest rates, money, taxation and government expenditure affect everyone, with international significances.

Therefore, economics focus on understanding the activities of the various agents in the economy: these include producers, consumers, the government and their relationship.

British Airways


The motive for minor operational charges and better productivity has enforced most international companies to turn to unions and acquisitions. Conversely, even after companies understand that rate cuts cannot raised out of unions. Instead, a fresh trend in tactical management joins to attain same purposes – creating alliances. Amongst the industries, coalitions and interactions are foremost in the airlines businesses with British Airways safeguarding the leadership position. Comprehensively, both the US and Canadian airlines industries venture into a market share nearly $4.5 billion and $5.5 billion correspondingly, presenting extensive chances for airlines to exploit and discover (ANDERSON 2011). However, one note most airlines filing for bankruptcy safety while others constrain for profit margins; and some are enjoying importantly the advantages of these huge markets.


Historically, British airways were established as airplane transport and travel in 1916, soon  after the World War I the initial universal planning air service were tossed between London and Paris. Moreover, in 1939, its main rival was Imperial Airways but the government publicized both companies to form (BOAC) British Overseas Airways. The BOAC were operating only Long-distance flight while for short haul, an additional new company was operating, (BEA) British European Airways (NEWBY 2010). Subsequently, in 1974 when the BOAC acquired abundant knowledge regarding long distance Flight to US, Japan, and so on. BEA solely had a better knowledge concerning short haul flight and soon both companies fused to form the British Airways (BLUFFIELD 2009).

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Micro and macro-economic factors

There are a many explanations as to why macro and micro issues are responsible for the varied working outcomes of the airline. This review provides a British airline overview through macro and micro environmental examination to ascertain the main strategic parts that the company can discover through utilizing opportunities without compromising investment and resources at hand.

  • Political Factors

Nearly every feature of operating an airline is administered or influenced through strict regulatory measures. This differs from the routes businesses ought to fly, partners they liaise with, airport spaces they operate from, tickets set and the infrastructure charges to be paid (DAVIES 2005). Hence, stringent rules similarly manage safety, security, and environmental impact management. Terrorism is an additional political difficulty affecting companies, in turn reducing their flight demand.

  • Economic Factors

British Airline was directly affected by economic recession of 2008, which was the worst experience ever encountered particularly in US and Europe. The universal stagnation has affected both passenger and business involved in air travel. Consequently, this intensified its income deficit and wedged its demand since most companies are attempting to decrease the charges with travelling; as an alternative, they are applying communication technology to teleconference. Though oil price has dropped from 2008 ($147 a barrel) (FUSARI 2011). Foreign exchange is another issue. For British Airways the pound deteriorates which impacts its expenses since most of them occur in dollar or euro.

  • Technological Factors

Technology has shaped many benefits for customers. In airline industry, nowadays they use link websites, which has subsidized customer bargaining power; whereas, online reservation besides enabling clients, firms are not required to pay agencies any longer (intermediaries). Moreover, the company has reduced the number of staffs since it is conceivable to utilize more machines compared to individuals and British Airway upgraded its competence, for instance the clocking-in system instigated by the company to regulate workers hours, and improve new means of connecting with customers (GREAT BRITAIN 2007).

Competitive Rivalry

The struggle is very powerful. Usually, the leading modest aspects in the airline business are issues such as, price, routes services, safety record and status in-flight entertainment systems and regular flyer programs, flight timetables, customer services, aircrafts types, capacity, code-sharing affiliation and so on.

Short distance market British Airways has many rivals, mostly Easy jet and Ryanair, and it is difficult to compare these types of flights. Product and service are simply imitated and making it difficult to attain consumer constancy as Long distance market with the Open Skies improved the modest landscape (MORRELL 2013). Five new corporations have slots in Heathrow airport flying to U.S.

Micro Environment Analysis

  • Strengths

British airways possess significant resources and proficiencies such as 250 airplanes fleet with at least 300 routes. Additionally, it has a global customer catalogue, and financial assets. The company has most slots within the leading airports; the firm has formed two subsidiaries: including Open Skies and British Airways City Flyer; In addition, it has established various significant alliances (One World alliances) and it has permitted several routes. These assets and competences are cherished and assist the firm to counter some threats and exploit opportunities. Nevertheless, they can be abundant and unique depending on the rivals’ existing resources.

  • Weakness

The company has a hug debt commitment in FY 2009, approximately £2,382 million from £1,072 million compared to FY 2008. The growth in total debt involved £554 million because of the foreign debt retranslation. Huge debt deters a firm to pay its principal and interest regarding its obligations. Moreover, the debt can decrease the airline ability to utilize cash flow to fund operational capital and the overall corporate necessities. Besides, huge debts slow planning and accomplishment to develop in business and industry (Hoboken, Wiley and Sons 2011).

  • Opportunities

The airline attempts to recover its revenues through focusing on commercial treaty with other airlines businesses. British airways, American Airlines and Iberia have signed a common commercial contract in 2008 regarding flights between North America and Europe, partly the plan is to increase their universal cooperation. This association was formed to assist customer to upsurge flight program.

  • Threats

The universal recession created a great impact against the Airline industry, conferring to GDP development rate it has dropped from 5.1 percent in 2007 to 3.1precent in 2008. Owing to the crises, most Airline businesses had fiscal loss and the main affected classes were the premium passenger since corporations opted to reduce commercial travel to save money, latest study advocate that 47 percent of commercial travel will limit travel in the coming years. Therefore, global economic is distressing British airways as the firm focuses mainly on business travel (NEWBY 2010).


In conclusion, British Airways is becoming the world’s foremost universal premium airline. In addition, to attain its goals it emphasize on making the fee more effective while ensuring customer service a significant portion of this lasting vision. There are import aspects that create a justifiable and lucrative business future, profiting its customer, coworkers and shareholders. International bid destiny a across the world influence persons and business travelers to pick British airways to travel their desired destinations.

Ultimately, Premium, confirm that its entire customer enjoy using inimitable premium service, and their customers are willing and able to pay.  Airline, constantly develop innovative products and services to serve its customer well (PARKER 2006).

Micro and Macro Economic Analysis of Sony Entertainment


Sony is an example of the world’s most extensively known technology companies. Established in Japan, the firm has developed from modest roots to a cosmopolitan giant. In a milestone from tape player to the Walkman and LED TV, Sony’s innovation custom has considered it a lucrative business for approximately 60 years. Notably, Kazuo Hirai, who first joined the company in 1984, worked his course through the company’s media and punter electronics category turned out to be its president and CEO in 2012 (KOEI CORPORATION, TECMO, INC, & SONY COMPUTER ENTERTAINMENT 2014).


Masaru Ibuka and Akio Morita founded Sony after World War II in 1946 in Tokyo under the name Tokyo Telecommunications Engineering Corp. The firm began with at least 200,000 yen ($1,500) and started researching. Approximately a year, the firm released its first merchandise, a power loudspeaker and in 1950, it released its first tape recorder.

Historically Sony considered going universal with its merchandises around mid-1950s, it searched for a brand new name since the initials TTK were booked. Creatively, the firm formed its name by merging the, “sonus,”(Latin term for sound) and “sonny.”(The American term). The company needed a unique name absent in any language for commercial motives. Most people in the company probed the modification due to the time spent on forming its creative term available in the business world, however, in 1958; the name was formally transformed to Sony Corp and in 1960, and Sony tossed its U.S. branch. After Eight years, Sony established an outlet in the United Kingdom. Since then, the firm sustained its growth in the 1970s, when it extended to France and Spain in 1973. Finnaly, German operations commenced in 1986.

Micro and Macro Economic Factors

Macro Environmental factors

  • Political Factors

These factors might have a direct effect on the how Sony operates. Hence, government frequently implements new resolutions involving course of action or legislation and it influence day-to-day business

In businesses directive, these aspects have a massive influence. Minimum wage law is an example of political aspects affecting Sony. This might distress the company as the minimum wage law changes yearly. In addition, time product charge keeps changing. In effect, this will make Sony encounter losses.

  • Social Factors

Demographic and cultural features take account of the social issues of the outward environment. Social issues have also affected Sony from time to time. This is mostly because Sony has extensively extended into various cultures and several markets making hard to manage all the diversity. The social aspects influencing Sony differs in every country. These demonstrate the client’s requests and the dimension of the latent markets in every country (SULLIVAN 2010).

  • Ecological Environment

Climate change is irregular and consistent. It might pose as a danger to Sony corporate undertakings and the society. Largely, it offers Sony a prospect to deliver solutions.

Sony confronts climate change as a significant obligation for them. This ensures their business endurance since Sony powerfully considers a need to protect the environment. Furthermore, reactions and eco sentient activities ought to be taken before it affect Sony Company.

  • Environment Technology

Sony is improving on their merchandises to reduce environment effects. It is anticipating the reduction of the whole energy used and reduces the reserve in their product, including BRAVIA and VAIO. Additionally, the firm has a real supply chain management to control, reduce, and eliminate the chemical substances application on their goods. For instance, salvaged plastic in product and vegetables based development product. These measures are to preserve the polluted environment polluted (FRISCH 2004).

Micro Environment

  1. Suppliers

Sony has a decent association with its dealers; there it gives an advantage in getting good quality and reliable material.

  1. Marketing Intermediaries

There are businesses to assist businesses to sell their merchandises to customers. Sony has any dealers, delivery centers and advertising agency to aid them in reaching to customers.

  1. Competitors

Businesses must offer client value and contentment compared to its rivals. Sony as a global organization has most rivals in several expertise areas. Various rivals are fresh while some are selling Sony’s own.

  1. Internal public

Public is any set with actual or possible advantage or effect on an organization’s capability to attain its objective. Government, Financial, citizen, media, internal and indigenous is a public concern to Sony.

  1. The company

The mixture of the company inside group as research, financial, development management, and so on. As a business, Sony skilled technical worker, financial consultants and directors from research team in maintaining the company (SONY CORPORATION OF AMERICA 2010)..


Finally, Idei was appointed as the chairperson and CEO of Sony in June 2000, whereas Kunitake Ando, the former head of VAIO department, was appointed the president and COO. Completing the new management team was Teruhisa Tokunaka, was named deputy president and CFO. Nevertheless, the fresh team encountered countless challenges in the fast transforming Tech world of the 21st century. An example was experienced in Sony’s music industry, which was faced by extensive menace in the industry of the widespread and unlawful downloading of online music files. Consequently, Sony has merged with other music companies in charging Napster, the apparent danger to their supremacy. Moreover, the firm signed a undertaking with Vivendi Universal S.A. in developing a virtual payment service to permit music transfers through a ‘virtual jukebox.’ (Sony Corporation 2006).

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  • ANDERSON, T. (2011). Gorilla marketing: birth of a low-cost airline. Surrey [England], Grosvenor House Publishing Limited.
  • BLUFFIELD, R. (2009). Imperial Airways: the birth of the British airline industry 1914-1940. Hersham [England], Ian Allan.
  • DAVIES, R. E. G. (2005). British Airways: an airline and its aircraft. McLean, Va, Paladwr Press.
  • FRISCH, A. (2004). The story of Sony. North Mankato, Minn, Smart Apple Media.
  • FUSARI, S. (2011). Flying into uncharted territory: Alitalia’s crisis and privatization in the Italian, British and American press. Trento, Università degli studi di Trento, Dipartimento di studi letterari, linguistici e filologici.
  • GREAT BRITAIN. (2007). Industrial Courts Act, 1919. Report of a Court of Inquiry into the causes and circumstances of a dispute between the British Overseas Airways Corporation and the Merchant Navy and Airline Officers’ Association. Cambridge [England], Proquest LLC.
  • KOEI CORPORATION, TECMO, INC, & SONY COMPUTER ENTERTAINMENT. (2014). Dynasty warriors 8: Xtreme legends.
  • MORRELL, P. S. (2013). Airline finance. Farnham, Surrey, England, Ashgate.
  • NEWBY, J. W. E. (2010). Skyways byways: reflections on a British independent airline of the 1940s, 50s, and 60s.
  • PARKER, P. M., & PARKER, P. M. (2006). 2007 report on airline transportation, the: world market segmentation by city. ICON Group.
  • SHORTCUTS, F. (2011). The British Virgin Islands: Frommer’s ShortCuts. Hoboken, John Wiley & Sons.
  • SONY CORPORATION OF AMERICA. (2010). Library equipment: voice recorders. [Dallas, Tex.], Sony.
  • SONY CORPORATION. (2004). The Basics of camera technology. London?, Sony Corporation.
  • SULLIVAN, L. (2010). Virgin Gorda, Jost Van Dyke, Anegada: the British Virgin Islands. West Palm Beach, Hunter Pub.


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