Report on British Airways Business Environment

BUSINESS
ENVIRONEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Business type and its mission, vision and objectives.......................................................1
1.2 Key stakeholders of BA....................................................................................................2
1.3 BA respond to fulfill its responsibilities to stakeholders..................................................3
2.1 the impact of economic systems of UK on allocation of resources.................................4
2.2 Assessing the impact of fiscal and monetary policies on British airways........................5
2.3 Analyzing the impact of competition policies on BA......................................................6
TASK 2............................................................................................................................................7
3.1 Analyzing the market structures and its impact on pricing and demand of BA for airline
seats........................................................................................................................................7
3.2 Impact of market forces on the decision of British airways............................................8
3.3 Analyzing the impact of cultural factors on working of BA............................................8
4.1 Significance of international trade to BA.........................................................................9
4.2 Impact of international business policies on BA.............................................................9
4.3 Impact of EU policies on working of BA.......................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment means combination of all internal and external elements that affect
the functions of organization. It includes elements like customers, clients, rivals, government
agencies, rivals, laws, etc. Both external and internal elements determine the organization's
operational actions (Malmi and Brown, 2008). These elements are not in the control of firm but
they can directly affect the functions of it. The nature of business environment is dynamic or
impulsive because it keeps on changing which are unpredictable. So, it is difficult to find the
exact nature of business environment and thus, firm needs to continuously analyze it.
In this report, business environment of British Airways has been discussed to understand
its purpose, mission, vision, objectives and the assessment of organization. This report contains
various concepts of firm's stakeholders and culture with including policies/regulations of
government players which impact BA.
TASK 1
1.1 Business type and its mission, vision and objectives
There are different types of firms like private, public, partnership, sole proprietorship, etc.
who have their own purposes for which they are running. They are explained as follows:
 Private Companies: Private firm is owned by the group of some private investors or by
the founder of it and the firm’s shares are not traded publicly (Freeman and Whish,
2007). Main aim of private company is to boost the sales so that overall profit margin can
be enhanced.
 Public Companies: It is owned by the government and also, it operates for the welfare of
society. Its key purpose is to boost economy and generate employment opportunity.
Further, it operates to earn profit so that development of society can be done.
 Partnership: In this, two or more number of individuals unites with a motive to run
business activities. They share profit and loss in pre-decided ratio and work to gain profit
from mutual resources.
 Sole Proprietorship: In this, there is only one entrepreneur that runs business to support
the livelihood of their family.
British Airways is a privatized company. Main purpose of privatization is to boost the
productivity and profits of organization. In public company, ownership is shared by the
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management, members of board and shareholders. In this, firm's shares are openly traded and
distributed. The purpose of public company is to enhance the employment opportunities for the
welfare of society.
Mission, Vision and Objectives of British Airways
 Vision- BA's vision is to become the most reliable and responsible airline of the world
and their long term vision is to be the world's first leading global premium airline.
 Mission- Mission of BA is to be the undisputed leader in the world for the next
millennium as well as to be the first choice airline for all customers.
 Objectives- Main objective of BA is to fulfill all requirements of travelers and to make
them feel homely and comfortable. Company focusses on both short and long term
objectives.
Short term objectives:-
 To increase the market share and to boost the value of shares.
 To build the leading position in world.
 To deliver the healthy return to shareholders.
 To develop guiding principles and rules to achieve the goals.
Long term objectives:-
 To expand the business to lead the position.
 To become the airline of first choice of customers.
 To upgrade the customer service and experience.
 To improve the margins and achieve customer satisfaction.
1.2 Key stakeholders of BA
Being a global business firm, BA has a broad variety of stakeholders and company's
actions, policies and goals directly affect these stakeholders. They are like creditors, directors,
employees, suppliers, shareholders, etc (Besley, Persson and Sturm, 2010). They are also
involved in managing, directing and development of company's operations. These stakeholders
are like:
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