Assignment on Business Environment of British Airways

BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION......................................................................................................................1
TASK 1......................................................................................................................................1
1.1 Identify the purposes of different types of organisation...................................................1
1.2 The extent to which an organisation meets the objectives of different stakeholders.......2
1.3 Responsibilities of an organisation and strategies employed to meet them.....................3
TASK 2......................................................................................................................................4
2.1 How economic system attempts to allocate resources effectively...................................4
2.2 Challenges due to fiscal and monetary policies on business environment faced by
British airways in the last one decade....................................................................................4
2.3 Evaluate the impact of competition policy and other regulatory mechanisms on the
activities of a selected organisation........................................................................................5
TASK 3......................................................................................................................................6
3.1 How has the market structure of the airline industry impacted the pricing and demand
for airline seats.......................................................................................................................6
3.2 Illustrate the way in which market forces shape organisational responses using a range
of examples.............................................................................................................................7
3.3 Judge how business and cultural environments shape the behaviour of a selected
organisation............................................................................................................................7
TASK 4......................................................................................................................................8
4.1 Discuss the significance of international trade to UK business organisations.................8
4.2 The impact of global factors on British Airways.............................................................8
4.3 The impact of policies of the European Union on British Airways.................................9
CONCLUSION........................................................................................................................10
REFERENCES.........................................................................................................................11

INTRODUCTION
Business environment is an integral part of efficient and effective business
management. Moreover, it include several forces that shape the product line and business
segment. Here, the report is inculcating about business environment of British Airways and
briefing varied purposes for which different organizations exists and specifically the scenario
of British Airways has been discussed to determine its purpose to operate in the market.
Moreover, all types of organizations have their stakeholders towards which they have varied
responsibilities. In this regards, the below discussion is about strategies used by British
Airways for fulfilling the requirements of its stakeholders. Also, the paper is explaining
national environment of UK to analyse its influences on company’s operations and functions.
Furthermore, global factors together with its impacts on business strategies of airlines is
being assessed and the content is summarizing by elaborating European Union’s regulations
effects on the activities of BA.
TASK 1
1.1 Identify the purposes of different types of organisation
Organizations includes individuals group who share sole purpose and engaged in some
business operations. Companies conduct their business in different manners with distinct
purposes. The following is the description of three main types of corporations:
Private sector companies are run and managed by individuals and their group with the
purpose of enhancing sales, business growth, increasing share in the market and to earn more
profits. Some common examples of private sector firms are franchise, partnership firms and
sole traders (Cavusgil and et.al., 2014).
Public sector firms are managed and run by government bodies or government. These
organizations stand with a purpose of using public money effectively for community’s
benefits and to offer important public services at affordable rates. Some common public
sector companies are Social security, heath service, universities, police, defence, etc
(Cederholm, 2014)
Voluntary groups or third sector companies are not run or managed by specific entity but
make responsible someone for its adequate operation. These type of organization purpose are
to support some particular type of individuals like physical handicap, orphans, etc (Clayton
and Hilz, 2015).
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Hence, organizations are established for different purpose and particularly British
Airways provides its services in the market for raising shareholders capital and to dominant
travel industry. The purpose of BA can be clearly understand through its mission, vision,
short and long term objectives as follows:
Mission – British Airways is dedicated for offering year round flights at low fare to
worldwide destinations along with quality cargo services and professional maintenance.
Vision – The Company is thriving to get dominancy in world travel for creating largest
network route in the globe and inspire its flight for all (Davies and Ormosi, 2013).
Objectives – British Airways performs its business operations with the following objectives:
To remain the premium customers first choice for international flights;
To offer quality services along with improve online services;
To continue expansion of top-tier cities list by airline partnerships;
To meet needs of customers.
1.2 The extent to which an organisation meets the objectives of different stakeholders
The following are four main internal and external stakeholders of British Airways and the
manner in which company meets their respective objectives:
Internal stakeholders
Employees – BA is a leader of airline industry and is therefore basically concerned with
active involvement of its every stakeholder. The company’s most significant internal
stakeholder are employees, as they support in meeting business objectives. Also, in this
relation, the airline has been following engagement strategy for improving relations with staff
members. The company has developed a forum in which workers can engage formerly with
the business to enhance their welfare. Moreover, the company has established the Trade
Union Council for creating a culture of active involvement and dialogue. The airline also
attempts to offer good place of work for its staffs by active engagement and consultation
(Edwards and Rees, 2006).
Investors – These are main stakeholders who add to the organization development. BA
applied an effective corporate governance as well as has developed an investor day where
they provided with opportunity to discuss their problems. Additionally, the organization for
its investors produces a comprehensive annual report for keeping them well informed. Also,
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