Write a paper that analyses how the international business environment impacts MNEs in the airlines

industry (as a whole or on a sub­sector of the industry). This will involve:

• Identifying and researching political/legal, economic/financial, socio­cultural, and technological

changes and trends relevant to the airline industry that have occurred recently, with a focus on

developments over the past two to three years;

• Presenting an analysis of the identified environmental changes that incorporates relevant course

concepts and theoretical frameworks;

• Predicting future environmental developments and/or consequences of the identified changes; and

• Highlighting managerial implications for MNEs in the airline industry.

• In the paper, show that you have read the relevant literature and are aware of the major views

documented on your chosen topic. You will then apply this knowledge to the analysis of your

identified environmental changes and the discussion of implications for MNEs.

• Clear references in Harvard style (both in­text citations and the reference list) should be included in

the paper.

• A one­page abstract

• It is expected that students will consult firstly newspapers, trade/industry reports and periodicals,

and the popular press such as Business Review Weekly, The Economist, Financial Times, etc. to

identify international business trends, forecasts and changes, and industry responses. Students should

also use academic journals and commentary as sources for their analysis. Students should not solely

rely upon internet sources.

• Focus on recent and future changes in the PEST environment. Show the linkage of the changes to

the airline environment, using evidence such as statistics, firm­level responses, etc.

• Distinguish between firm­level responses and PEST environmental forces, e.g. FDI strategy (i.e. firmlevel

response) to respond to increasing income level in emerging markets (i.e., environmental


• Sources of data (methodology):

o Academic journals suitable for theoretical/conceptual aspects

o Given the research question, professional magazines, newspapers, etc. are very useful sources of


• Managerial implications: What do you suggest MNEs should do to respond to the environmental

changes, e.g. in terms of internationalisation strategy (country selection, entry mode) and other

strategic and operational dimensions?

• Identifying and researching recent changes in the PEST (macro­ external) environment and how

they have affected the airline industry;

o Changes and developments in the macro­external environment over the past two to three years

• Presenting an analysis of the identified environmental changes that incorporates relevant course

concepts and theoretical frameworks;

• Predicting future changes in the PEST environment (and/or consequences of the identified

changes); and

• Highlighting managerial implications of those changes for MNEs in the airline industry.

• The environmental scanning project is not about a particular company or country, but about how

recent/future changes in the global macro­external environment have affected/will affect the airline

industry and the implications of those changes for MNEs in the industry.

• When using national macro­external forces, always consider if they have some global significance

for the chosen industry.

Recent changes in the global macro external environment

• Supranational forces

o Globalization

o Trade (e.g., recent rulings at WTO)

o Regional integration (e.g., regulatory changes, financial crisis (FX) in EU/Eurozone, etc.)

• National forces

o Economic & financial changes

o Political, regulatory & legal changes

o Societal & cultural changes

o Changes in technology & innovation systems

o Take a holistic view of these environmental forces. Interrelated effects on the airline industry


• Factiva

• ABI­Inform Global

• The Economist

• Business Review Weekly

• Financial Times

• Wall Street Journal

• BBC news

• Newspapers

• Academic journals

Suggested paper structure:

Your paper needs to contain the following sections:

• 1) Table of contents: list the main sections of the paper as well as any subheadings

• 2) Executive summary: a short explanation summarising the paper’s purpose, findings, conclusions

and managerial implications

• 3) Introduction: outline the purpose and scope of the paper clearly. The introduction should also

provide a brief outline of the rest of the paper. The introduction should also define key terms and

provide a brief background to the topic.

• 4) Methodology: a brief description of how you researched the topic, particularly sources used

• 5) Body: this should be split into sections, each headed by a subheading. The precise breakdown of

subheadings is a decision for the individual student and will depend on your key arguments and

findings. A typical (but not necessarily optimal) breakdown of sections would be as follows:

theoretical framework, political/legal environment, economic/financial environment, socio­cultural

environment, technological environment, future developments, and managerial implications for MNEs.

• 6) Conclusion

• 7) Reference: both in­text citations and a reference list.

• 8) Appendices (if any)


• Originality

• Quality of analysis

• Application of theories

• Structure and organisation

• Literature support

• Writing style

• Grammar and spelling

• References


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