Document on Business Environment
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Added on 2019-12-03
Document on Business Environment
Added on 2019-12-03
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BUSINESS ENVIRONMENT1
TABLE OF CONTENTSINTRODUCTION................................................................................................................................4TASK 1.................................................................................................................................................41.1 Purpose of different types of organizations................................................................................41.2 Key stakeholders of BA and impact of different challenges on them........................................51.3 Responsibilities of BA to meet the expectations of its stakeholders..........................................62.1 Economic system which helps in allocation of resources in an effective manner......................62.2 Challenges faced by BA from last one decade by changes in fiscal and monetary policies......72.3 Impact of regulatory and competition policies on BA................................................................7TASK 2.................................................................................................................................................83.1 Impact of market structure of the airline industry on pricing and demand for airline seats.......83.2 Interplay of different players and market forces shape organizational responses......................83.3 Impact of working practices and cultures of the countries where BA predominantly operate...94.1 Impact of global changes in trade regime on BA.......................................................................94.2 Impact of different global factors on BA..................................................................................104.3 Impact of EU policies of travel, competition or aviation on BA..............................................11CONCLUSION...................................................................................................................................11REFERENCES...................................................................................................................................122
INTRODUCTIONBusiness environment is a combination of internal and external factors which affect thedevelopment of organization, business operations, performance, etc. A business never operated in avacuum place or in other words, it can be said that for running a successful company, human beings,resources, places and other supportive things are required (Daft, 2010). The following research isbased on business environment and to explore its different roles in organization, British Airways(BA) is taken into the consideration. The outcomes which will be getting after completing the studyare organizational purpose of business, nature of national environment in business operates,response of company in the market environment and importance of global factors which gives theshapes of response of BA business. TASK 11.1 Purpose of different types of organizationsThe purpose of every organization is different according to their nature of business as well asavailable product lines or services. In UK, main types of business organizations are as follows: Sole trader: It is the most common form of business in UK and near about 40% people arehaving their own business. In such type of organization, there is no requirement of complicatedpaper work and all the decisions are being taken by the owner of company quickly and in favour ofcustomers. The example of this type of organization is electrical work, plumbing, small mobilerepairing shop, etc. (Ellsworth, 2002). Partnership: It can be done between two and more than two business partners. Under thiskind of organization, people are sharing their skills, knowledge and workload as well as learndifferent types of working practices to improve the quality and delivery time of services.Partnerships are commonly held in professional services such as accountants, doctors, solicitors,etc. Companies: Companies are owned by shareholders who have appointed company’s directorto run the business in right direction. There are two types of companies, that is, private and publiclimited. In private organization, it is run and owned by a single person with the purpose of makingprofit, business expansion, increase market share, etc. (Griffin and Moorhead, 2013). The exampleof private company is Virgin Atlantic. On the other hand, public limited company is run by localgovernment or group of people for the public. The share of such type of organizations is purchasedby a community to get some additional benefits. The purpose of this kind of business is providingprofits to community. The examples of PLC are Tesco, Next, Sainsbury, etc. Franchises: This type of organization is becoming popular in UK because a franchisor3
grants permission to sell a service or product to franchisee under the name of company. Thefranchisee that is trading under the name of company is getting benefits from local monopoly.McDonald is the perfect example of franchise because it has operated its business across the worldby giving franchises (Guy, 2009). BA’s mission, vision along with short and long term objectives:Mission: To provide safety and confidence to customers when they are travelling in air fromBA airlines. Vision: To become the most responsible airline in the world (British Airways 2008/09Annual report and Accounts, 2009). Short and long term objectives:To be the airline of choice for long-haul premium customers. Todeliver the best travelling services to service users at every destination. To increase the presence atinternational level by providing the best airline services. To build top position in London in thesector of airline industry. To meet the customer demand and needs as well as to improve the existingservices (British Airways 2008/09 Annual report and Accounts, 2009). 1.2 Key stakeholders of BA and impact of different challenges on themStakeholders are those groups of people who are investing their money in a company with theaim of getting some additional benefits or goods return on investment. The major key stakeholdersof BA are as follows: Customers: There are many customers who are travelling from BA on regular basis. In this context,they expected that company has provided theme good services and other benefit because they areloyal customers of firm. Consumers also gives some suggestions to improve the airline services ofBA. (Harrison, 2013). Shareholders: These are the people who own company’s shares for getting additional benefits inreturn of investment. They expect that BA should pay good dividends in the return and must meettheir expectations in a appropriate time. Suppliers: Boeing and Airbus are the major suppliers of aircraft of BA and they have theexpectation from the firm that it have transparency during paying money as well as in makingcontracts (Jennings and Hyde, 2012). Workers: There are more than 15000 employees that are working in different nations of the worldand its BA‘s responsibility to provide healthy working environment as well as to offer goodpackages to meet the required needs. Impact of different challenges on BA stakeholders: While performing the business operations indifferent areas of the world, BA has faced several challenges which directly affect the expectations4
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