Unit 1 Business Environment Organisation Types Assignment
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Added on 2020-02-05
Unit 1 Business Environment Organisation Types Assignment
Added on 2020-02-05
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TABLE OF CONTENTSINTRODUCTION................................................................................................................................3TASK 1.................................................................................................................................................31.1 Identification of the purposes of different types of organisation...............................................31.2 Identification of the key stakeholders of BA.............................................................................31.3 British Airways' various responsibilities as an organization and the strategies it employs to meet them.................................................................................................................................................42.1 Discussion of the economic systems that attempt to allocate resources effectively..................52.2 Analyse some challenges due to fiscal and monetary policies on business environment faced by British airways.................................................................................................................................62.3 The regulatory, competition policies and legal changes in British Airways..............................6TASK 2.................................................................................................................................................73.1 The market structure of the airline industry impacted the pricing and demand for airline seats73.2 The interplay of different players and market forces shape organisational responses...............73.3 Business and cultural environments shape the behaviour of British airways............................84.1 The impact of global changes in trade regime...........................................................................84.2 Impact of the global factors on the British airways...................................................................94.3 EU policies on travel, competition or aviation impact British Airways....................................9CONCLUSION AND RECOMMENDATIONS..................................................................................9REFERENCES...................................................................................................................................112
INTRODUCTION Business environment is the combination of all the internal and external factors that caninfluence the various operations of business as well as working conditions (Ekici and Onsel, 2013).External and internal factors of business environment put its impact on each other and work together tohave an effect on the organization. British Airways (BA) is a UK market leader in the airline industry(British Airways, 2016). It is also the largest airline based in the United Kingdom in terms of fleet size,international flights and international destinations. The current report is indicating various aspects ofbusiness environment such as organizational purpose of businesses, nature of the national environment,etc. Furthermore, it also discusses about organizational behaviour in the market and dealing with theglobal factors which form the national and international business activities. TASK 11.1 Identification of the purposes of different types of organisationA social unit of people which is structured and managed to meet a need or to pursue collectivegoals and objectives is known as organization. There are different types of organisations that arecategorized into three types. Classification can be as private sector, public sector and non-profitorganisation. Private Sector organizations are business firms which are owned and controlled by theprivate individuals, not by the government. It is usually formed to make profits for its shareholders andother stakeholders. For example, Virgin Atlantic is a private British airline company which covers theircustomers from across the world (Virgin Atlantic, 2016). The main purpose of this company is toexpand their business globally as well as to increase their profitability.Public Sector includes the organizations which are owned, controlled and monitored by thegovernment. The aim of this sector is to provide public services and benefits to the society. Forexample: British Airways Plc is a public limited company in airline industry which is the largest airlineof UK. Further, the main purpose of BA is to benefit the whole society rather than just individual whouses service (Miyake and Friedman, 2012). The last is non-profit organisations which deal in the social cause. For example, main purpose ofNGO, like British Academy of Management is to advance the academic discipline of management. Ituses its surplus revenues in achieving its purpose and mission rather than distributing profits asdividends. 1.2 Identification of the key stakeholders of BA British Airway’s long term vision is to be become the world's leading global premium airlinecompany. Whereas, the mission statement of British Airways is “To be the undisputed leader in worldtravel for the next millennium”. The airline focuses on a variety of goals and objectives both for short3
and long term survival in the competitive global market.Stakeholders are the persons who are interested in the organisation to see how business isperforming in the market. Stakeholders can be owners, employees, customers, government etc. whichcan influence the management by taking critical decisions related to business. There are differentstakeholders and they have various objectives and challenges in the organisation. They are classifiedas: Owners:They invest their working capital in the organisation and generate profits from thebusiness. In return of their investment, they want profits as well as need to increase the marketshare of business. By getting more profits, they will receive security from those earnings(Seuring and Gold, 2013). In context to this, British Airways owners also invest more capital togain more profitability which can sometimes acts as challenge for them.Workers: They work for the non-executive as well as executive level and help in runningbusiness effectively and efficiently. Employees work for the organisation to gain job securityand job satisfaction. They also want satisfactory level of income for their efforts which they aregiving to their jobs. Therefore, British Airways is also paying good salary and wages to theirworkforce. Consumers: These are an important part of management because consumers are those who buygoods and services of the organisation. Consumer’s main aim is to purchase products andservices which are safe and authentic in nature (Setting up a social enterprise, 2015). BritishAirways are giving their customers good services which will equivalent to their value ofmoney. Sometimes, giving better services to the customers becomes a major challenge for theorganization.Government: It also plays a crucial role in managing the economy through charging tax fromthe company and controlling the environment of business. Main aim of government is to createmore employment opportunities in the country. Therefore, government focuses on BritishAirways to give more taxes and should follow their rules and regulations which can be a majorchallenge for it.1.3 British Airways' various responsibilities as an organization and the strategies it employs to meetthemBritish airways has various responsibilities and strategies which are necessary to be employedto meet the desired objectives of the organisation. Some of the various responsibilities and strategiesinclude: Social responsibility: BA is committed to activities that provide great support to socialdevelopment such as following environmental standards, etc. BA communicates with their4
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