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Whitney Mechling
MBA 620
11/8/24
4-2 Report: Business Environment Analysis
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Political
One political factor that could affect the company’s business environment is if any new
government or international policies are imposed. For example, if new strict regulations or
political tensions create travel restrictions this would impact the acquisition and would need to be
reconsidered and only acquire those who do not have restrictions or strict regulations.
Economic Factor
One economic factor that can affect the company’s business environment is a recession which
would lead to consumers reducing their spending and cutting back on travel. This would impact
the acquisition strategy because the focus may need to shift to the purchase of an airline that is
used for essential travel which will still be necessary even in a recession.
Sociological
One/sociological/factor that can affect the company’s business environment would be a change
in how society views travel. If there are more sustainable trends in travel or the reduction of
travel due to more virtual meetings and events, then focusing on sustainability could become a
stronger focus.
Technological
One technological factor that can affect the company’s business environment would be
advancements in technology such as better fuel efficiency in other aircrafts or online user
advancements that could affect TransGlobal’s strategy and may push them to pursue airlines that
are already working with these technology advancements in order to remain in competition.
Environmental
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One environmental factor that can affect the company’s business environment is concern for the
environmental impacts that travel has. If sustainable travel becomes the new trend then
TransGlobal may want to acquire an airline that is already reducing their carbon footprint and
being more fuel efficient.
Legal
On legal factor that can affect the company’s business environment is changes in regulation for
aviation. For example if new laws are passed that require large investments such as new
technology or protocols TransGlobal will need to take that into consideration when acquiring an
airline because If they do not chose one already in compliance they will be spending additional
money to get the airline in compliance.
