Introduction: About the Company:Founded on 31 March 1974 after the merger of two nationalized airlines and two regional airlines, British Airways is the largest airline in the world in terms of number of planes, destinations and international flights. It ranks second in terms of passengers carried per year. It operates from Heathrow Airport which is proud to serve the largest number of international passengers in the world and the third busiest globally. The company functioned as a state-owned company in its first 13 years of existence before being privatized in 1987. The company expanded through mergers and acquisitions. Its merger with Iberia in 2011 formed International Airlines Group which is among the top three airlines in the world in terms of revenue generated annually. Its headquarters are in Waterside, Harmondsworth in England. The airline is a major player in the tourism industry as it flies to more than 150 cities in 75 countries around the world. Many tourists travel by air and the airline connects tourists to the various destinations they wish to visit around the world. OPEC, Cartel and Price Fixing Theory: Political Tension in the Middle East Jet fuel makes up the majority of costs incurred by British airlines and any volatility in the market the world's major oil producing countries increase operating costs. Over the past decade, oil prices have trended upward in response to endless political tensions in the Middle East, the world's top oil-producing region. Instability in Iraq and, recently, Syria, which also affects other countries in the region, has kept oil prices unreasonably high. Countries in the region account for more than 40% of the oil produced in the world and are part of companies' business strategies. Any company that fails to respond to its customers' demands risks losing business to its rivals. Intense competition in the airline industry may have forced BA to embrace environmental protection to gain the trust of its loyal customers. In the long run, the increase in the number of passengers and flights will have a positive impact on the airline's financial books. Low carbon emissions will help address the threat of global warming.Conclusion:In conclusion, various inferences can be made from the above analysis of British Airways operations: Businesses depend on the external environment as much as they depend on the environment internal. Companies must remain aware of events occurring in the external environment. Analyzing the external environment will help in making sound decisions.