Business Environment Analysis of British Airways (Doc)

Business Environment
'Analysis of British Airways'

TABLE OF CONTENTS
Introduction .....................................................................................................................................3
TASK 1 ...........................................................................................................................................3
1.1 Purposes of different types of organizations..........................................................................3
1.2 Impact of challenges to various stakeholders of BA.............................................................4
1.3 Responsibilities of BA to stakeholders..................................................................................5
2.1 Economic Systems (ES) to allocate resources.......................................................................5
2.2: Impacts due to fiscal and monetary policies.........................................................................6
2.3: Impact of regulatory, competition and legal changes in the airline industry .......................7
TASK 2 ...........................................................................................................................................7
3.1 Impact of market structure of airline industry on pricing and demand..................................7
3.2 Interplay of different players and market forces shapes organizational responses................8
3.3 Impact of working practices and nation's culture on British Airways...................................8
4.1 Impact of global changes in trade regime on British Airways...............................................9
4.2 Impact of global factors on BA............................................................................................10
4.3: Impact of EU policies on BA..............................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCE.................................................................................................................................12
2

INTRODUCTION
Business Environment (BE) is a framework where organization carries out its
responsibilities. The ultimate objective of an enterprise is to earn profit. In this modern business
world, it has now gone beyond earning revenues. It is now about providing services and meeting
the demand of an individual so as to satisfy him. Business organizations survive only if they
meet all the external changes that may affect its business (Carrere, 2014). The current report
throws light on the business environment of British Airways (BA) (British Airways, 2015).
According to the provided case study, report analyses internal environment of organization and
ways in which this aviation firm meets its objectives. Along with this, market structure of whole
airline industry has been discussed. Furthermore, UK government policies and regulations that
have direct impact on the working of BA have also been presented.
TASK 1
1.1 Purposes of different types of organizations
Organization refers to the association of various individuals who come together for
gaining some objectives. Generally, there are four organizational types that are stated as follows:
1. Sole trading: Individuals own this type of entity with a motive of earning profit.
2. Partnership: When two or more than two firms work together with the objective of
earning profit, they form partners (Greenfield, 2014).
3. Company: Another type of organization where directors function on the behalf of
stakeholders is company. They have motive of sharing earned profit as dividends. These
are categorized into private and public firms.
4. Non-Profit Organization (NPO): Group of individuals who come together to work for
the need of society is NPO.
British Airways
BA is the largest airline organization of UK that is providing its services since last ten
years. Currently, it is carrying out its operations in 80 countries of the world with covering 170
destinations altogether (Smeritschnig, 2013). Therefore, the quality and service standards of BA
are highly standardized and effective with respect to other organizations in the same industry.
The vision of BA is 'to serve the needs of its customers at global level by maintaining cost and
3

quality together'. In the same vein, the vision of BA is to occupy the position of leader in
aviation industry in the whole world. Company has its short and long term objectives which are
stated as follows:
Short term goals:
 Delivering equal services to the passengers at every journey level.
 Ensuring comfortable and affordable services for customers.
 Influencing clients to use their airline services.
 Supporting passengers for using the highest quality of services.
Long term goals:
 Maintaining top position in the international flight market.
 Improving its online services to serve people for the long run (ZHAO, 2008).
 Expansion program of BA by becoming the part of top-tier locations.
1.2 Impact of challenges to various stakeholders of BA
Stakeholders are defined as the individuals who have interest in the working of
organization. Associated trade unions, customers, employees, society and vendors etc. are
different types of stakeholders of BA. They have their different roles and objectives with regard
to this airline organization. For example, owners are investors and profit sharers. They have an
objective of profit earning. Consumers are the stakeholders who purchase services of BA and
they contribute company to earn money with the sales made (Zischka, 2013). UK government is
the stakeholder who manages the country's economy. They have the objective of implementing
laws, creating taxes, developing employment, etc. Society has direct or indirect role in the
functions of BA. Company is socially responsible for the products and services of BA. The
impact of challenges to various stakeholders of BA is:
 Customers expect quality services from BA. They take this challenge in maintaining
quality aspect at consistent manner. Along with this, short and long term objectives are
defined to upgrade their services.
 With the manpower of 39000 employees, there has been rise in more employment
opportunities at BA. This is maintained by effective hiring process, organizational
structure and culture.
4