Business Environment of British Airways Company
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Added on 2019-12-03
Business Environment of British Airways Company
Added on 2019-12-03
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BUSINESS ENVIRONMENT1
TABLE OF CONTENTSINTRODUCTION.....................................................................................................................................3TASK 1.......................................................................................................................................................31.1 Identifying the purpose of different organizations.....................................................................31.2 Mission, vision, objectives and stakeholders of BA along with identifying the impact of challenges on various stakeholders...................................................................................................41.3 BA’s response to fulfil its responsibilities to stakeholders.........................................................51.3 Economic systems that attempt to allocate the resources effectively.........................................62.2 Challenges due to fiscal and monetary policies on business environment of BA......................72.3 Impact of regulatory, competition policies and legal changes in the airline industry................8TASK 2.......................................................................................................................................................93.1 Market structures that determine the pricing and output decisions of business.........................93.2 Strategies of British Airways to overcome competition.............................................................93.3 Working practices and culture of countries that affects the functioning of British airways.....104.1 Impact of global changes in the trade regime of British airways.............................................114.2 Global factors that are affecting British airways......................................................................114.3 European polices of travel, competition and aviation impact on British airways....................12Conclusion...............................................................................................................................................13References................................................................................................................................................142
INTRODUCTIONBusiness environment is a space in which an organization exists and it consists of all externaland internal constituents that affects the functioning of a business enterprise. Present report focuses onillustrating different elements associated with an organization. For this purpose, British Airways (BA)has been selected which is a flag carrier airline of UK and it is the biggest airline in terms of its fleetnumbers, abroad flights and destinations (British Airways Home, 2015). In the first part, reporthighlights corporate goals and objectives of the firm as well as the approaches and methods that BAentails to fulfil their responsibilities towards associated stakeholders.Main purpose of conducting this assignment is to develop understanding regarding business,cultural, economic and regulatory environment within which business entity operates. Along with this,researcher focuses on the market structure of airway industry and its affects the price and demand oftickets. In addition to it, report highlights the effects of trade regime stated by WTO and other authorityon functioning of BA in foreign market. At last, investigator concludes with evaluating the strategiesthat cited firm undertakes in maintaining its competitive edge.TASK 11.1 Identifying the purpose of different organizationsThere are different types of organizations which operate in the corporate world and can beidentified on the basis of their purpose and objectives. In general, business entities are categorised inthree segments which are Private, Public and Voluntary. It can be explained with the help of belowgiven examples:National Health Service: It is a public funded organization which aims at providing bettermedical services (Kollias and Paleologou, 2006). Being a public limited company of UK, itprovides free medication camp and services to unhealthy people around the country. Tesco plc: It is a retail giant that provides wide range of products and services to its customersand satisfies their different needs. Main purpose of existence of Tesco is to make society healthyand to keep the people safe with its quality of products and services. Virgin Group Ltd: It is one of the leading airline companies which operate with an aim ofproviding leisure of services to its customers through three different segments which are travel,lifestyle and entertainment (Palmer and Hartley, 2009). Being a private limited company, itconsists of more than 400 employees that are working in the business. 3
Sole proprietor: It is the business which is owned and managed by an individual as the entirepower regarding decision making is with the person and he or she is responsible for all theprofits and losses of company (Shaikh, 2010).Mission in general helps BA to create its positive image by delivering quality of services to itstarget audience. However, it is not only considered as the statement but it helps company to developgood image in the minds of people so that they can understand the purpose of existence for the citedcompany (Wallace, 2002). Mission Statement of BA is to make sure that they offer prominent servicesto its target audience so that they can fly with confidence and safety. The main focus of senior authorityunder mission statement is regarding enhancing the trust and loyalty of customers so that they canundoubtedly select British Airways as the means of transport (BA Strategy, 2014).While, on the other hand, Vision statement of company is to be at the top of airline industry andfor this, workforce and associates are putting tons of efforts. However, for operating in such acompetitive market, company focuses on developing its brand image by providing premium services tocustomers so that they can enjoy the journey (Sobhan, 2003). Following are the five significantstrategic goals of BA:First preference of customersOffering quality of servicesPromoting global city growth Enhancing the market share in UKSatisfying customer’s needs and wants (Our strategy and objectives, 2010)1.2 Mission, vision, objectives and stakeholders of BA along with identifying the impact of challengeson various stakeholdersThere are several stakeholders that are associated with BA and contribute effectively in thesuccessful run of business enterprise. In case of customers, quality related issues are the major concernfor the top level management (Doyle, 2005). On the other hand, suppliers expect to get their money ontime. But due to recession and increasing competition, it is tough for BA to satisfy the needs of supplierevery time. However, employees having issues in their personal growth; both monetary and non-monetary, may affect the entire functioning of business adversely. There are two types of stakeholdersassociated with the functioning of BA which are as follows:External stakeholders: There are several external stakeholders associated with BA which consistof suppliers, government and customers. Suppliers are the important stakeholders as they4
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