ASSIGNMENT INSTRUCTIONS
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Academic Year
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2019/20
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Semester
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1/2
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Module Title
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Hospitality, Tourism &
Events Environment
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Module Code
(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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Assessment No.
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011
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ASSIGNMENT QUESTION
Case Study
London Heathrow – Third Runway
The UK aviation
sector plays an important
role in the modern economy,
contributing around
£20 billion
per year and directly supporting approximately 230,000 jobs. The positive impacts of the aviation
sector extend beyond its direct contribution to the economy
by also enabling activity in other important
sectors like business
services, financial
services, and the creative industries.
The UK has the third largest aviation network in the world, and London’s
airports serve more routes than the airports
of any other European
city. However, London and the South East are now facing longer term capacity problems.
Heathrow Airport is operating at capacity today, Gatwick Airport is operating
at capacity at peak times, and the whole London
airports system is forecast
to be full by the mid-2030s. With very limited capability at London’s
major airports,
London is beginning
to find that new routes to important
long haul destinations are being set up elsewhere
in Europe. This is having an adverse impact on the UK economy, and affecting the country’s global competitiveness. (DFT, 2018)
On 5th
June 2018
the cabinet signed off the plans for
a 3rd runway at London Heathrow after
they were approved
by the government`s economic sub-committee, which is chaired by Prime Minister Theresa May. Transport Secretary Chris Grayling insisted
the decision was being taken in the national interest and would benefit the whole of the UK - with 15% of new landing slots at the airport
"facilitating" regional connectivity. He said the £14bn runway, which could be completed by 2026, would be funded entirely privately
- but MPs warned that taxpayers would end up footing
the bill for billions
in road improvements and other upgrades
and warned that the UK`s carbon emission targets would be threatened by the increase in traffic around the enlarged
airport (BBC,
2018).
Task:
You are required to produce a PEST analysis
for Heathrow Airport Holdings
with the aim of
identifying and assessing the
various external factors that will impact
the UK with the plan of the
3rd runway at
London Heathrow Airport. (2500
Words) (80 marks)
Points to
consider in answering the set question:
·
Provide a brief overview of the Plan for
the 3rd runway at London’s
Heathrow Airport.
·
In terms of
the PEST a good understanding
of the function of this strategic
tool should be demonstrated:
o
Political
Impacts, Here government regulations and legal factors
are assessed in terms of their ability to affect the business
environment and trade markets. The main issues are political
stability, tax guidelines, trade regulations, safety regulations, and employment laws.
o
Economic factors, Through this factor, businesses examine the economic issues that are bound to have an impact on the company.
This would include
factors like inflation, interest rates, economic growth, the unemployment rate and policies,
and the business cycle followed in the country.
o
Social factors, With the social
factor, a business can analyse the socio- economic environment of
its market via elements
like customer demographics, cultural limitations, lifestyle attitude, and education. With these, a business can understand how consumer needs are shaped and what brings
them to the market for a purchase.
o
Technological factors, How
technology can either
positively or negatively impact
the introduction of a product
or service into a marketplace is assessed
here. These factors include technological advancements, lifecycle of technologies, the role of the Internet,
and the spending on technology research by the government.
·
All factors of the
PEST should be assessed with
an insightful
assessment of the impact
the factors have on the UK,
including any key challenges,
risks and limitations to the organisation.
·
Brief
Evaluation / Conclusion
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