The environment is basically thought of as being at two levels. One is the generic environment and the other is the task environment (Kew Stredwick, 2005).There are both internal and external factors that affect the success of a firm. It is to be noted that the firm exercises direct control on its internal factors whereas the external factors are beyond the control of the firm. These factors are economic environment, technological environment, socio-cultural environment, political environment and international environment. Competition is also one of the external factors that affect the operation of the firm. The internal environment constitutes the internal factors like objectives of the business, various departments of the organization, managerial policies, labor-management relation, brand image and corporate image and so on. The external environment is of two types namely the microenvironment and the macro environment (Jain Et. Al., 2010).The head of the British political system is a monarch. There are three main political parties present in the UK and they are The Labour Party, The Conservative Party and The Liberal Democratic Party. In the UK political scenario, there is general consensus on certain factors like UK membership of the European Union and also NATO, the free market-based economy, and the rule of law, along with the National Health Service (RogerDarlington, 2010).There has been heavy regulation from the government. Therefore, it is important for British Airways to comply with such regulations if it wants to operate successfully. It has also been found that during the time of the economic slowdown the company has received support from the UK government in order to tackle the financial crisis (Scribd, 2009).The country has an aging population. Therefore, it is implied that there seems to be high potential for growth because the senior population has more time to spend on the leisure activities.