Business Environment of British Airways | Study

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Added on 2019-12-03

Business Environment of British Airways | Study

Added on 2019-12-03

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Table of ContentsINTRODUCTION................................................................................................................................3TASK 1.................................................................................................................................................31.1 Identify purposes of different organisation, and describe mission and vision of British Airways............................................................................................................................................31.2 Identify the key stakeholders and the challenges impacted on various stakeholders of BA ....41.3 Response of BA to fulfil its responsibilities to these stakeholders...........................................4TASK 2.................................................................................................................................................52.1Explain the economic systems attempt to allocate resources effectively...................................5The economic systems that attempt to allocate resources are are explained below. They are: ......5Planned Economy:...........................................................................................................................52.2 Assess the impact of fiscal and monetary policies on business organizations...........................62.3 As a PLC, impact of regulatory, competition policies and legal changes on BA ...................7TASK 3 ................................................................................................................................................73.1 Impact of the pricing and demand for airline seats on airline industry due to market structure.........................................................................................................................................................73.2 Responses organisations towards the interplay of different players and market forces ...........73.3 Impact of working practices and cultures of the countries on British Airways .......................8TASK 4.................................................................................................................................................94.1 Impact of global changes in trade regime caused by organisations on British airways............94.2 Impact of other global factors, including policies/regulations of government players on BA.94.3 Impact of EU policies on travel, competition or aviation on British Airways..........................9CONCLUSION..................................................................................................................................10References...........................................................................................................................................11

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INTRODUCTIONBusiness Environment is defined as the combination of both internal and external factorsthat affects the organisation's functioning. There are two types of environment i.e. Macroenvironment and Micro environment. Micro Environment consists of suppliers, competitors,customers, etc (Chow and et.al., 2012). And Macro environment consists of economic, political,social, legal factors.This report contain the proper discussion of business environment and for this, British Airways istaken as consideration. British Airways is public limited company and the largest airline in UK. Itconsists of Organisational purposes of BA, the nature of the national environment which affects theoperations of business, the behaviour of BA in market environment, the significance of the globalfactors affects the activities of organisationTASK 11.1 Identify purposes of different organisation, and describe mission and vision of British AirwaysDifferent types of organisations are available in market with their different purpose. Thesetypes of organisations are as follows: Sole trader: The business owned by single person then its called as sole trader. The purposeis to provide services to clients. Examples are book keeping, freelancing, etc (Björklund,2011). Partnership: The business which has two or more owners then it is called as partnership(Aterido, Hallward-Driemeier and Pagés, 2011). Example are John Lewis, Warner Bros, etc.Public Limited Company: Business owned by shareholders. Its shares can be bought bygeneral public. These are listed on stock exchange. British Airways is PLC.Private limited Company: It is also owned by shareholders but shares are not available forgeneral public. Example is John Laing, Greenhouse Group, etc (Fernando, 2011).Co-operatives: It is jointly owned enterprise which is operated by its members for mutualbenefits. Worker cooperatives, volunteer cooperatives, etc are examples.Franchises: In this business, one sells the right to another business to run a franchise.Examples are McDonald, Pizza Hut.Public Sector: It uses services provided by government. Example is UKAEA (UK AtomicEnergy Authority)British airways is PLC. One of the leading airlines in UK. The mission and vision along withobjectives of company are:Mission: The mission of British Airways is to become undisputed leader in world andwants to be the first choice airline for travellers. It is seeking to ensure that travellers fly

Business Environment of British Airways | Study_3

with confident (British Airways, 2015).Vision: The vision of BA is to achieve corporate responsibility and to become world's mostresponsible airlines. It wants to provide all facilities to its customers for making there flightmore comfortable.Objectives: BA's short term objectives are to provide all facilities and services to travellers.It tries to make comfortable journey for each type of passenger (British Airways, 2015).Along with this. Its long term goal is to provide top- quality services, to become first choiceairline and expanding the leader position.1.2 Identify the key stakeholders and the challenges impacted on various stakeholders of BA Stakeholders affects the growth and success of company and also get affected by thedecisions, actions, objectives of organisation. It is a challenge for BA to satisfy their stakeholders(Halbert and Ingulli, 2014). The key stakeholders of BA are:Customers: These are important stakeholders of BA. They expect proper management andmaintenance by the company (Jarvis, 2014). Travellers are belong to different country so, itsa big challenge for BA to satisfy every passenger. Employees: BA need to fulfil demands and needs of cabin crew staff as they are Front Faceof airlines. It is a big challenge to maintain increasing demands of customers and to satisfythem. The impact of this is that employees have to make efforts to give their best toorganisation.Competitors: British Airlines is the largest and leading airlines in UK. So, it has a strongcompetition in market like Easy jet and Virgin Atlantic. Company face challenge inattracting more customers (Kaynak, and Kucukemiroglu, 2015).Suppliers: The suppliers of BA are boing and Airbus. It has only one fuel supplier whichsomewhere affects the decision power of BA (Halbert and Ingulli, 2014). Government: Government of UK have strict regulations. These have high impact on thegrowth of company. Due to these laws, some carriers cannot be operated on some specificroutes.Shareholders: The financial success of company is crucial for shareholders (Lin, 2012).They play an important role, so it is essential for BA to maintain strong relationships withthem.1.3 Response of BA to fulfil its responsibilities to these stakeholdersEach company has some responsibilities towards stakeholders. BA always try to fulfil themby taking appropriate actions. Along with challenges, there comes a responsibility to face thosechallenges. BA takes to following actions for fulfilling its responsibilities towards stakeholders:To satisfy demands of customers, BA is offering them special offers. For example, there are

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