Home > Business essays > What is the impact of this article on business using PEST as the analysis tool? (Boeing)

Essay: What is the impact of this article on business using PEST as the analysis tool? (Boeing)

Essay details and download:

  • Subject area(s): Business essays
  • Reading time: 7 minutes
  • Price: Free download
  • Published: 17 June 2021*
  • File format: Text
  • Words: 1,770 (approx)
  • Number of pages: 8 (approx)
  • Tags: Boeing essays

Text preview of this essay:

This page of the essay has 1,770 words. Download the full version above.

What is the impact of this article on business using PEST as the analysis tool?
Technological Impact:
Boeing Commercial Airplanes who develop and manufacture these planes have plans to readjust and revamp the existing softwares and systems being used on these planes. The updates that would be needed to fix and address the issues that were found faulty during the investigation of the crashes are said to take approximately 6 months (Lahiri, 2019). Prior to the crashes the company were installing the warning systems as a paid optional upgrade, but now the new updates would have this feature as a permanent extension in the system. The anti stall device also referred to as the Maneuvering Characteristics Augmentation System, was discovered to be one of the issues resulting the crash of Lion Air in October 2018 (Newkirk, & Bass, 2019). This will be a key step in lifting the worldwide grounding of the planes. Several airline companies who were once using these planes now need to concentrate how their software engineers,pilots and other technical people who work closely with the plane interact with the hardware and software of planes (Gunia, 2019). Specified training need to be made compulsory, so pilots and engineers know how to interact with different softwares of the plane. Often time automation changes in a manner where the human and machine are not able to work in a cohesive manner, this would change when proper training and guidance is provided to the technicals dealing with such planes.
Political Impact:
The Federal Aviation Administration (FAA) is a government institution that regulates any matters pertaining to the civil aviation in the United States. FAA used to use self regulation for the planes, which are now subject to change (Baker, 2019). This would include new evaluation systems and new oversight approach. Increased scrutiny by the FAA would mean that now the Boeing company needs to convince them that whatever new changes that are implemented are safe and capable of being used in the planes (Beene, & Levin, 2019). The increased scrutiny would also mean that airline companies would need to revise their training and manuals to reflect that changes that would be made by the Boeing in relation to flight critical automation systems.
Economic Impact:
The grounding has resulted in a drastic fall in shares almost 10% with a $23 billion value. This ban has also resulted in billions in compensation claims to airlines that grounded the 737 Max, legal settlements to families suffered by the crashes, delays in deliveries and costs of repairs on the existing planes. Companies like American Airlines, Southwest Airlines and Air Canada are among the main operators that have been affected the most as they had the highest number of Boeing 737 planes. Flight cancellations have affected both sellers and buyers. Airline companies incurred cost while accommodating their consumers and putting them on other flights or using alternative airplanes or in some cases bringing back some older planes into play (Costa, 2019).
Social Impact:
Following the tragic crash of the Ethiopian plane were 157 people died and the Indonesian plan were 189 people died, the increases the issue of public safety. Due to airlines cancelling their flights abruptly, decreases the confidence of the consumers. Now consumers are considering which type of carrier is being used by their preferred airlines (Denning, 2019). Statistically speaking travelling by planes is considered the safest way to travel (Munro, 2018). However now the consumers are questioning whether or not this still applies after airlines grounding so many flights.
Political Impact
Total and its partners will now have to pay 28% corporate tax regularly on all income which is taxable from the Brulpadda block (Mtshali, 2019). According to reports, this block is estimated to yield around $1 trillion for the company which would result in a massive tax bracket for the South African government. Royalty of around 5% would also have to be paid to the government (Bateman, 2019).The South African government is optimistic that these tax revenues would help the struggling country (Felix, 2019). The legislation would need to revamped and changed in accordance to the new findings. Energy sector legislation would to be changed in accordance to the significant change in this industry. This would need to be done to avoid exploitation of the country and its people.
Economic Impact
This finding could be a major boost for the economy. It is around three times the size of all South African gas findings to date. The government is keen to seize this opportunity and open up the country for more investment and exploration of the gas due to it becoming the hottest target of exploration of hydrocarbon in the world (Steyn, 2019). As oil equates to more than 15% of the imports of the country, if the country produces more of its own oil they would not have to import it. This would mean that they would not have to sell rands in order to buy dollars to pay to import oil (Naidoo, 2019). This would result in the local currency to appreciate. Increase in activity would result in a higher demand for labour force. These is because there would be more demand for welders, engineers, electricians, etc.
Technological Impact
Total aspires to get 3D data of the block, as this will help the company is deciding how many exploration areas they can drill and to evaluate the areas to production their rigs (Wasserman, 2019). This would influence the other companies that have plans to make investments in this block, as they would need to have the appropriate technology to be able to obtain data of the block.
Social Impact
The increase for demand of labour would mean that the employment levels of the country would increase and the unemployment levels would decrease. Higher levels of employment would result in overall betterment of the workforce in the country due to more availability of employment opportunities. This would also increase the buying habits of the people as they would now have more income, resulting in better quality of goods and services that they would be able to experience (Scholes, & Crompton, 2019).
Political Impact
President Trump has imposed oil sanctions on Venezuela as an action to punish Venezuelan president Maduro. Sanctions in the form of commercial and financial penalties are detrimental to the already deteriorating economy of Venezuela. This was done by sanctioning four companies with around 50,000 barrels of oil that is send to Cuba by Venezuela in exchange for support to Maduro from the capital city of Havana (Bronner, 2019). Maduro relies on Cuban armed and intelligence forces to retain power in the country. The U.S. has also planned to increase the levels of sanctions that affect almost half of the oil that is imported by Venezuela. These sanctions are more likely to result in higher crisis and might be the cause of a civil war or a major disruption in the oil operations of Venezuela.
Economic Impact
The loss of oil barrels as a result of the sanctions could drive up the prices of crude oil. Since President Trump announced the imposition of sanctions, the exports of oil for Venezuela decreased by 40% in just a month (Parraga, 2019). RBC Capital Markets stated that the sanctions to further decrease the barrel productions by near half in 2019. This deepen the economic chaos in the country, as they heavily rely on oil as a source of revenue due to it contributing to about 90% to the gross domestic product (Kumar, & Kelly, 2019).
Social Impact
Sanctions are predicted to have the most negative effect on the Venezuelans. This is due to the reason that 70 to 80 percent of food and medicine is imported in the country (Vidal, & Mazzali, 2019). With deteriorating crisis and worsening ties with other countries, the citizens of the country would have to struggle for the basic necessities such as food and medicine. This would worsen the level of poverty in the country. The sanctions would also affect the employment levels in the country. With lesser people being employed, income would be harder to obtain. This would have a negative impact as access to basic necessities would diminish for the general public.
Political Impact
The charges against the company came at a sensitive time in the US-China relationship. Charges included theft of technology and bank fraud. Meng’s extradition from Canada caused more dispute between the US and Canada and China. Meng being a high profile multinational executive, her arrest has said to have infuriated the Chinese. Despite Canada only obeying the formal request of extradition has not helped appeased the Chinese officers. Ottawa was accused by the Chinese officials to have been a part of a ‘witch-hunt’ which was US led (BBC, 2019). More countries are being influenced by these charges and Huawei has since then come under international pressures. For instance, the 5G mobile network is under consideration by Germany to be blocked. German government worries about the safety and relevancy of this network (Chazan, & Wright, 2019). Actions such as these between the governments by itself do very little damage but have the potential to have big unintended consequences that include huge drop in (stock) market. Due to the worsening conditions of U.S. and China, the U.S. stock markets have seen compelling unpredictability (Burt, 2018).
Economic Impact
Due to the increase pressures by US towards its allies to influence them to prevent using Huawei technology and ZTE. Countries like Australia and New Zealand have already banned the use of Huawei equipment and others like Germany and Japan have increased scrutiny in the company (Mullen, & Westcott, 2019). The company has argued that these moves to shut down networks is heavily influenced on baseless ideologies and geopolitical conditions rather than genuine technological concerns (Keenan, 2019). These pressures have hurt the business of Huawei. However, this does not really affect the survival of the company due to its reliable and cheap products. It still holds a position of high demands in some countries where the sales of the phones are still increasing.
Social Impact
Meng who is the daughter of the founder of Huawei and is seen as the apparent heir to the company, is considered to be very ethical and honorable businesswoman. Meng’s lawyers have argued that she is being used as a pawn and not a hostage between the trade disputes of the two countries. This raises the ethical concerns. Her lawyers have since argued that her case has turned from a legal matter to a political matter. Right after her arrest, President Trump made a claim saying that he was willing to cut out a trade deal with China in exchange for the release of Meng (The Guardian, 2019). The department of justice of U.S. has to stepped in and clarified that decisions and investigations are made without any influence from the government.

...(download the rest of the essay above)

Discover more:

About this essay:

If you use part of this page in your own work, you need to provide a citation, as follows:

Essay Sauce, What is the impact of this article on business using PEST as the analysis tool? (Boeing). Available from:<https://www.essaysauce.com/business-essays/what-is-the-impact-of-this-article-on-business-using-pest-as-the-analysis-tool-boeing/> [Accessed 10-06-24].

These Business essays have been submitted to us by students in order to help you with your studies.

* This essay may have been previously published on Essay.uk.com at an earlier date.