Business and the Business Environment

This report discusses the different types and purposes of private, public, and voluntary industries in the business environment. It also explores the size and scope of different types of organizations. The report further examines the relationship between various organizational functions and firm objectives. Additionally, it analyzes the positive and negative impacts of macro factors on Virgin Atlantic and conducts an internal and external analysis of the company.

Business and the Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types and purpose of private, public and voluntary industries...............................1
COVERED IN PPT.....................................................................................................................1
P2 Size and scope of different types of organisation...................................................................1
COVERED IN PPT.....................................................................................................................1
TASK 2............................................................................................................................................1
P3 Relationship between various organisational functions which link with firm objectives......1
TASK 3............................................................................................................................................3
P 4 Positive and negative impacts of macro factors on Virgin Atlantic......................................3
TASK 4............................................................................................................................................5
P 5 Internal & external analysis of Virgin Atlantic.....................................................................5
P 6. Interrelation of strengths and weaknesses with external macro factors...............................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment is nothing but a surrounding which comprises of external and internal
elements. These factors used to give impacts either positively or negatively on the working of
every organisation existing over there (Charter, 2017). Thus, it is vital to determine such effects
prior to establish business or before creating any type of commercial strategies. PESTLE analysis
is considered as a suitable tool for exploring these concepts since it aids in knowing about
conditions of different factors such as government, technology, society, economy, etc. of a
particular place or nation. Hence, company can easily understand existing situation of these
kinds of components before doing business at specific location. After that, they could make
schemes for minimising adverse such implications. The present report is fashioned on basis of
Virgin Atlantic. Herein, discussion is going on for knowing about its key strength, weakness,
threats and opportunities. SWOT analysis has been conducted for the same purpose. In addition
to this, various sectors of organisations like Private, public, voluntary along with their legal
structure is also being described in this assignment.
TASK 1
P1 Different types and purpose of private, public and voluntary industries
COVERED IN PPT
P2 Size and scope of different types of organisation
COVERED IN PPT
TASK 2
P3 Relationship between various organisational functions which link with firm objectives
Business organisation can develop and maintain their organisation structure which assist
in different operational factors of environment in effective manner. Within an organisation, a
person completes their work for reaching with desired goals and objectives in better way. It is
necessary for firm is to monitor and govern various department environment which help them in
developing and building strong relationship with their potential customers or buyers (Fernando,
2011). There are other various types of divisions which are need to be maintained
communication and effective relation within Virgin Group that are described as under:
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 Research and development department - It is one of the important department which
help in analysing and examining market situation and also assist in collecting data and
information related to market and its growth. Virgin also need to analyse all market
strategies and policies which are made by government and implement it within an
organisation. Rest of the department of business concern are doing effective work as per
their needs and demand of research report and it will help in increasing in profitability
and productivity level. This department manager helps in examining whole market area
where they need to do research and also analyse their customers’ needs or demand and
try to satisfy them.
 Marketing department – In current time period, this department help in promoting
company different type of goods and services which attracting large number of
customers towards their new making products in better manner. This will play an
essential role in maintaining and developing relation with their desired customers and
provide accurate data and information with the help of using different methods and
techniques (Hamilton and Webster, 2015). Along with this, an organisation adopts
various methods for marketing for promoting their effective goods and services among
large number of buyers in proper manner. They are using marketing methods and
techniques which help company for promoting their latest manufacture goods and
services in large market place for desired customers.
 Production department – This is one of the leading division which help in making and
developing creative product according to the need and demand of desired customers. If
customer return back the selling goods, then this will directly effect on their financial
growth and sales volume. Also it can effect on employee’s ability and capacity towards
achieving desired targets and goals in better manner. In addition to this, manufacturing
department mainly focus on waste material which reduces the revenue or income value
of the firm. It will also assist in reducing the cost of innovative products that effect on
company productivity and profitability and analyse growth level of the company
(Klapper, Lewin and Delgado, 2011).
 Human resource management – It is one of the most important department of every
company because this will play an essential role for managing and operating major
business functions in better manner. HRM main roles and responsibility is to motivate
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their employees for actively participated in their company activities and functions. This
will help in gaining maximum profitability and income in proper manner. The major aim
of the firm is to organise and conduct training and development programmes for doing
innovative work functions and activity. Company manager are liable for managing and
operating all functions which help them in gaining maximum profit and income in proper
manner.
 Finance department – This is another type of division which maintain and managed all
business statements and budgets which are related to business operations and activities.
It is also necessary for firm is to analyse and examine appropriate data or information
that are belong to business operations. Along with this, this department manage and
maintain all commercial functional activities which can assist them in set priority for
providing accurate finance income or cost. Accounting and finance department work is
to control and operate all cash transactions and also develop proper budget report and
summary. The main motive of this company is to operate and manage all budgets which
are related to finance in correct manner.
TASK 3
P 4 Positive and negative impacts of macro factors on Virgin Atlantic
Pestle analysis is a detailed terminology that is used for examining as well as inspecting the
effects of macro factors. Virgin Atlantic could use the same for detecting the conditions or
implications of various components like political, economic, social, technological,
environmental, etc. This is significant to understand about the implications of various macro
factors existing in business environment. For example, elements like society, technology, legal
bodies and their norms, economy of country, etc. are some of the external factors which are
giving impacts on working as well as whole performance of Virgin Atlantic. It is to be noted that
such effects can be positive or negative also. Therefore, it is important to know about these facts
and information. PESTLE analysis can be applied by them for revealing such data. This has been
explained below :
 Political factors : In sector of airways, political elements are involving fear of attacks
done by terrorist. This has been observed that activities of terrorism is at great level in
Islamic nations which is affecting entire framework of Virgin. This act as its adverse
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implications (Osterwalder and Pigneur, 2010). On the other hand, stability in political
situation also provides benefits to them. For example, laws and order do not get altered
randomly because of this.
 Technological factors : There are different influences of modern technological aspects
on the Virgin. With the help of contemporary tools, they can easily improver their
production level. This in turn provides them higher sum of benefits. On the contrary,
large number of companies are entering into industry of airline. This as a result
decreasing the overall quantity of clients in Virgin. Hence, impacting adversely on
refereed firm.
 Economical factor : It is that factor which directly effect on business economic
conditions and also impact on various other factors which occurs in the organisation. It is
something which has broad structure and it includes legal and trade forces for
maintaining business. The positive impact of this factor is to do proper planning and
strategy will assist in gaining revenue and also contribute more amount in the growth of
country economy. On the other hand, negative impact on inflation, tax rate which are
related to economic forces and this will directly impact on business process along with
growth or success (Shigang, 2010).
 Social factors : This is that factor which concerns with the customers’ needs and
demand. It has recognised that the requires of passengers keeps on changing thus, it is
very complex task to fulfil all the requirements of consumers. If Virgin would not design
their products as per the needs or desires of travellers, then they might not like the similar
and will move towards another corporation for getting things according to their wish.
This as a result harmfully influences their whole income. But it is to be noted that they
are the only one for which Virgin is creating products and services. Thus, social factor
also give positive implications as annual turnover is made because of such citizens and
therefore they are treated as the chief source of profits.
 Legal factor : Most of the regulations imposed by legal bodies like increment in taxation
rates, rules connecting with offering fundamental rights of customers, procedures allied
with health and safety, etc. These laws have to be obeyed by each and every members of
Virgin Atlantic. If they break any regulation, then punishment would be provided to
them by government bodies as it is wrong in the eyes of legal system. Hence, this is
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influencing adversely on the working of company (Scheer, 2012). In addition to that,
occurrence of such kinds of actions may also destroy he overall brand image of Virgin
and as a bad outcome its popularity get reduced. On the other hand, there are some
positive aspects of government since they use to sustain law as well as order in arena of
airline industry. For example, quick action is being taken by them in case of any terrorist
attack. In fact, they are attempting to minimise these types of unfair and hazardous
activities. Higher authorities of nation also support this venture in functioning or running
their businesses by offering them loans so that Virgin could operate their commercial
work without facing any kind of financial issues. Apart from this, legal body used to
create rules like providing equivalent salaries to each & every personnels, prohibition of
child labour, etc. and help them in running their venture smoothly and in legally correct
manner.
 Environmental factor : Environment also impacts Virgin Atlantic in different style. For
instance, various raw resources such as food, fruits, vegetables, threads, cotton, spices,
oils, fossil fuel and so on could be attained by denoted company which assist in
developing more & more services or goods and delivering the identical to large number
of consumers in very cheap prices. Thus, it can be said that nature is optimistically
impacting on entire working on Virgin. On the other hand, there are also some adverse
effects. For example, due to unexpected variations in the climate or weather, gross stocks
may be totally damaged. At the same time, passengers might come in danger from such
type of occurrence in climatic condition. Large number of people would die since
accident may occur from the same. Thus, it is also adversely influencing the lives of
workers as well as customers of referred firm.
TASK 4
P 5 Internal & external analysis of Virgin Atlantic
Before starting any business, it is important to get familiar by each and every organisation
about itself. For knowing own strength and weak factors, Virgin can take help of a suitable tool
known as Swot analysis. Through this, they come to know about themselves and it also aids them
in determining their weakest points. After that, they could design proper plan of actions for
dealing with the same. They can effectively convert their weak segments into its capabilities or
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strength. In addition to that, referred firm would also discover about facts associated with
upcoming chances in order to grow and develop their business. Along with this, different types
of threats could easily determine from carrying out such kind of activities. The swot analysis of
Virgin Atlantic are discussed as follows :
Strength :
 Popularity or fame : This has been recognised that almost all people in United Kingdom
are knowing this venture and are utilising their services of airline. One of the reason of
such kind of fame is its good quality services (Aterido, Hallward-Driemeier and Pagés,
2011). Travellers are expecting isolated business or economy class chambers and Virgin
are catering them same. Thus, they are trying their best in satisfying their expected
consumers. Along with they are giving ice – creams, music system, games, movies,
comfortable seats and many more to their passengers.
 Innovational technology : This has been observed that Virgin are applying modern
technologies in their organisation. This is the reason of their good quality merchandises
and services which is being offered by them. In addition to that, production level along
with profitability is also increased in drastic manner by the use of contemporary tools and
technology. For example, various application of social media is used for the purpose of
advertisement as well as communication.
 Skilled and trained workers : Virgin is recruiting talented and skilled employees for
running their business. If they hire new worker, then it is obvious that they would arrange
appropriate training and development sessions for their newly joined staffs so that quality
of work many not affected at any extent. It has founded that around more than eight
thousand people are working in this enterprise (Carroll and Shabana, 2010).
Weakness :
 Delay in flights : This is considered as one of the weak section of company as some of
the flights get delayed in regular basis. This needs to be improved effectively.
 Limited global presence : They are having less existence especially in context to
economy now a days internationally since they are not present in numerous of places.
Thus, their travelling routes are constricted.
Opportunities :
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 Merge with other ventures : Virgin Atlantic may enter into other market place by
merging with different another companies of that nation. This will help them in enlarging
their airway business.
 Online strategy : They could enforce online schemes for targeting branding and current
advertisement movements with the help of on - line media planning as well as
purchasing accounts.
Threats :
 Emergence of rivalries : Large number of firms are offering similar services and are
rising in drastic-al way. This is trimming down the overall consumer base of Virgin since
people are getting another option to move on to other organisations.
 Random changes in weather or climate : Sometimes due to sudden alteration in
climatic conditions, several accident may occur which leads to the death of larger number
of passengers as well as workers.
P 6. Interrelation of strengths and weaknesses with external macro factors
There is an interrelation between exterior macro factors and the strength & weakness of
Virgin Atlantic which could be understood better by following written points :
 Maximum amount of raw ingredients such as food items like oils, spices, vegetables,
fruits, threads, cotton, fuels like white petrol and different other fossil fuels are easily
obtainable with the assistance of natural environs. Thus, it is playing an imperative role in
establishment of its abilities. Hence it is the reason of strength of Virgin. Whereas
sometime due to advent of natural tragedies such as cyclone, heavy rainfall, snowfall,
flood, earthquake, accidental alteration in climatic circumstances, etc. are influencing
destructively to Virgin Atlantic as almost all assets either natural or non-natural get
ruined (Bryman and Bell, 2015). Moreover, death of large number of public happen due
to such types of disasters. Thus, this leads to the decrement in overall quantity of
workers, customers, etc. of company. This as a result making it weak financially as well
as physically.
 If economical conditions of country will be bad then, publics also obtains or earn low or
even no money from their personal jobs. That is why they would invest least amount of
money revenue on acquiring luxurious services or even try to avoid travelling in order to
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save money. This could drop the complete marketing range of Virgin. Henceforth, their
economic situations might become weak (Chesbrough, 2010).
 Insatiability in political circumstances, increase in tax policy, fluctuations in worth of
cash, imposition of numerous of standards related to trade, etc. are few activities which
occur due to lawful and governmental factors of country wherein enterprise used to
function. These things typically make Virgin weak in monetary terms.at the same time,
government also help denoted firm in conducting their moneymaking events by giving
them high sum of loan. Hence, they offer assistances to them in upgrading their
conditions thereby act as strength.
CONCLUSION
From the above based report, it can be concise that business environs including various
internal as well as external factors which effect on the complete enactment of every venture
that are operating in UK. For instance, strategies of administration, financial and communal
conditions of particular country, expansion of technological facets, etc. are few of the
components which is impacting on Virgin Atlantic in several ways.
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REFERENCES
Books and Journals
Aterido, R., Hallward-Driemeier, M. and Pagés, C., 2011. Big constraints to small firms’
growth? Business environment and employment growth across firms. Economic Development
and Cultural Change. 59(3). pp.609-647.
Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, USA.
Carroll, A.B. and Shabana, K.M., 2010. The business case for corporate social responsibility: A
review of concepts, research and practice. International journal of management reviews.12(1).
pp.85-105.
Osterwalder, A. and Pigneur, Y., 2010. Business model generation: a handbook for visionaries,
game changers, and challengers. John Wiley & Sons.
Scheer, A.W., 2012. Business process engineering: reference models for industrial enterprises.
Springer Science & Business Media.
Shigang, Y., 2010. Competitive strategy and business environment: The case of small enterprises
in China. Asian Social Science, 6(11), p.64.
Charter, M. ed., 2017. Greener marketing: A responsible approach to business. Routledge.
Chesbrough, H., 2010. Business model innovation: opportunities and barriers. Long range
planning. 43(2). pp.354-363.
Fernando, A.C., 2011. Business environment. Pearson Education India.
Hamilton, L. and Webster, P., 2015. The international business environment. Oxford University
Press, USA.
Klapper, L., Lewin, A. and Delgado, J.M.Q., 2011. The impact of the business environment on
the business creation process. In Entrepreneurship and Economic Development(pp. 108-123).
Palgrave Macmillan UK.
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