ASSIGNMENT INSTRUCTIONS
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AcademicYear
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2019/20
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Semester
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1/2
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ModuleTitle
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Hospitality,Tourism&EventsEnvironment
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ModuleCode(MOD00…)
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MOD004056
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Level
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4
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Assessment
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Coursework
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AssessmentNo.
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011
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ASSIGNMENT QUESTION
CaseStudy
London Heathrow –Third Runway
TheUKaviationsectorplaysanimportantroleinthemoderneconomy,contributingaround
£20billionperyearanddirectlysupportingapproximately230,000jobs.Thepositiveimpactsoftheaviationsectorextendbeyonditsdirectcontributiontotheeconomybyalsoenablingactivityinotherimportantsectorslikebusinessservices,financialservices,andthecreativeindustries. TheUKhasthethirdlargestaviationnetworkintheworld,andLondon’sairportsservemoreroutesthantheairportsofanyotherEuropeancity.However,LondonandtheSouthEastarenowfacinglongertermcapacityproblems.HeathrowAirportisoperatingatcapacitytoday,GatwickAirportisoperatingatcapacityatpeaktimes,andthewholeLondonairportssystemisforecasttobefullbythemid-2030s.WithverylimitedcapabilityatLondon’smajorairports,LondonisbeginningtofindthatnewroutestoimportantlonghauldestinationsarebeingsetupelsewhereinEurope.ThisishavinganadverseimpactontheUKeconomy,andaffectingthecountry’s global competitiveness.(DFT, 2018)
On5thJune2018 the cabinet signed offtheplansfor a3rd runwayatLondon Heathrowaftertheywereapprovedbythegovernment`seconomicsub-committee,whichischairedbyPrimeMinisterTheresaMay.TransportSecretaryChrisGraylinginsistedthedecisionwasbeingtakeninthenationalinterestandwouldbenefitthewholeoftheUK-with15%ofnewlandingslotsattheairport"facilitating" regionalconnectivity.Hesaidthe£14bnrunway, whichcouldbecompletedby2026,wouldbefundedentirelyprivately-butMPswarnedthattaxpayerswouldendupfootingthebillforbillionsinroadimprovementsandotherupgradesandwarnedthattheUK`scarbonemissiontargetswouldbethreatenedbytheincreaseintrafficaroundtheenlargedairport(BBC, 2018).
Task:
You are required to produceaPESTanalysisforHeathrowAirport Holdings with theaim of identifying and assessing the various external factorsthatwillimpact the UKwith the plan of the 3rd runwayat London HeathrowAirport. (2500Words) (80 marks)
Points to consider inanswering the set question:
Provideabrief overviewofthePlanfor the 3rd runwayat London’sHeathrowAirport.
Interms of the PESTa good understanding of thefunctionofthis strategic toolshouldbedemonstrated:
o PoliticalImpacts,Heregovernmentregulationsandlegalfactorsareassessedintermsoftheirabilitytoaffectthebusinessenvironmentandtrademarkets.Themainissuesarepoliticalstability,taxguidelines,traderegulations,safetyregulations,andemployment laws.
o Economicfactors,Throughthisfactor,businessesexaminetheeconomicissuesthatareboundtohaveanimpactonthecompany.Thiswouldincludefactorslikeinflation,interestrates,economicgrowth,theunemploymentrateandpolicies,andthe business cyclefollowedin thecountry.
o Socialfactors,Withthesocialfactor,abusinesscananalysethesocio-economicenvironmentof itsmarketviaelementslikecustomerdemographics,culturallimitations,lifestyleattitude,andeducation.Withthese,abusiness canunderstandhowconsumerneedsareshapedandwhatbringsthemtothemarketfor apurchase.
o Technologicalfactors,Howtechnologycaneitherpositivelyornegativelyimpacttheintroductionofaproductorserviceintoamarketplaceisassessedhere.Thesefactorsincludetechnologicaladvancements,lifecycleoftechnologies,theroleoftheInternet,andthespendingontechnologyresearchbythe government.
Allfactorsofthe PEST should beassessed with aninsightful assessment of theimpactthefactors have ontheUK, includinganykeychallenges, risks andlimitationstotheorganisation.
Brief Evaluation / Conclusion
