4-2 Report: Business Environment Analysis
Samnang Sam
Southern New Hampshire University
MBA-620-Q3790 Measuring Success in an Org
Instructor: James Walters
March 05, 2023
4-2 Report: Business Environment Analysis
As part of our decision-making process on the potential acquisitions of two small
airliners in the Florida and Caribbean market sector, I have conducted a business environment
analysis. This analysis will identify the threats and opportunities our company may face with
these transactions. This report will target critical factors in political, economic, sociological,
technological, environmental, and legal (PESTEL) and provide valuable insight for our
leadership.
Political
There are over 700 Caribbean Islands, some of which are not independent and are
governed by foreign countries. The airline industries in this region are not privately owned but
operated by the government. Heavy regulations from the government have made public-owned
airlines report losses in revenue. The Caribbean Community (CARICOM) air transport
committee has been criticized for its failed attempts at adapting to the changes in the market.
However, efforts by CARICOM toward aviation liberalization could significantly impact the
Caribbean airline market. Aviation liberalization will allow private airline companies to establish
and can increase competition. Nevertheless, the threat of new entrants in the airline industry is
low because of the high entry barriers (The Caribbean, 2014).
Economic
< The Caribbean region's economic growth heavily depends on the travel and tourism
