Business Environment and Microenterprises

This assignment delves into the crucial relationship between the business environment and the socio-economic performance of informal microenterprises. It examines how various factors within the business landscape, such as legal regulations, access to finance, and technological advancements, impact the growth and sustainability of these small ventures. The assignment utilizes content analysis and partial least square approaches to analyze relevant research and provide a comprehensive understanding of this important topic.

BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Different purposes of different types of organisations..........................................................1
P2 The size and scope of a range of different type of organisation............................................2
LO 2.................................................................................................................................................3
P3 The relationship between different organisational functions and their link to organisational
objectives and structure...............................................................................................................3
LO 3.................................................................................................................................................5
P4 PESTLE Analysis of British Airways (BA)..........................................................................5
LO 4.................................................................................................................................................7
P5 Swot analysis of BRITISH AIRWAYS.................................................................................7
P6 Interrelation of strengths and weaknesses with external macro factors.................................8
CONCLUSION ............................................................................................................................9

INTRODUCTION
Business environment made up with many internal and external factors which impact on
operations of the entity. The organization and government both are responsible for protection and
development of environment. All these factors affect business environment directly and
indirectly. In the present report British airways is being chosen in order to understand the
concept of business environment. British airways is the largest airline in UK that works for
carrying second highest passengers(Belás and et.al.,2015). The interrelationship of various
functions of firms with structure of enterpriseorganization will be discussed in this report. The
factors that impact positively or negatively on the business unit will be explained in this
framework. This report will describe various purposes of different corporations. This assignment
will discuss effectiveness of global market.
LO 1
P1 Different purposes of different types of organisations
Different type of corporations have different purposes. All the entities run their business
in different ways, there is huge difference in their operations. Organization can be categorised on
the basis of their objectives. These are shown below:
Non- governmental: Non- governmental firms work to get profit as much as they can.
The main objectives of these corporation is sare to increase number of sales so that it can
enhance its profitability. Virgin group limited is a private company which operates in UK.
Another objective of this organisation is to increase customer loyalty which will support the
entity for in making an effective brand image in the market(Niemann-Struweg, 2014). The
government is notdo not get involved in any activity of these private enterprises. The non
governmental organizations are formed for making profitable business only and they are not get
involved in any kind of charity or cooperative acts in which they will not get do not make any
profit.
Public limited firm: These firms are established to enhance economic conditions of the
country. Their main focus is on providingproving quality products to consumers to make themso
that they feel good.. Earning profit is one of the aims of this organisation. Purpose of public
firms is to understand needs and requirement of people and serve them what they want(Khan
and Quaddus, 2015). Nestle is a public entity which continuously provides quality good and
services to its service users. Apart from making profit the main purpose of this firm is to provide
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food that willdo not harm the people. Public firms also have objective to expand their business
so the economy of country can be improved(Gillanders and Whelan, 2014).
Co-operatives: These firms work as being united in order to achieveacheive common
goal of organisation. To fulfilfulfill requirements and needs of all the team members is the main
purpose or co-operative firms. For example CBH and Wesfasmers are two cooperative
enterprises that are operating in UK since longer period. These firms have no higher authority,
all members work together so that they can work better for the society. People who are involved
in the cooperative organisation do not have full liberty to work as per their comfort. Each
member have to contribute in each operations.
Voluntary organisations: These organisations formed to work for welfare of people.
Charitable trusts are the common example of it. The society has so many issues, voluntary
entities work to resolve such problems(Rubtsova and et.al., 2014). This helps the helpless people
and also provide every possible solution to them so that they can live healthy and happy life. It is
They are not set to make profit that is why they are knownknow as non profit organisations.
Blind Veteran is one of the most popular charitable trust in UK. This trust gives free services to
needy persons.
P2 Size and scope of different type of organizations
The organizations are categorised on the basis of their main purpose.The purpose of
various organisations is the base for their categorisation. Each organisation has a different
structure and the scope of each type of firm as per their structure is also different from others.
Private firms have huge scope in market as they can diversify their business in different
sectors. The diversification can be done either in the same fragment or in different fragments.
The market has been highly occupied by private enterprises because they can set their business
at anywhere. The scope of this kind of firms is so high because they are independent and works
with a wide range of products(Apăvăloaie, 2014). The organisation that comes under the non-
governmental side can enhance their business in different areas. These firms have simple
structure in which operations are divided into different departments. Higher authority is involved
into decision making process, in some entities employees have also right to put their review for
making the decisions.
Private firms have good financial resources so they have better option to expand their
business in the future. The organisation can use their stuff to be in the market. They know how to
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utilise their resources to make sure about production. Good utilization of resources will minimise
the wastage and ultimately cost of production will be low(Leih and et.al., 2014). Private firms
are so smarts to access all forms of marketing for the promotion of their products. For example
Virgin group limited is a non governmental organisation that have wealthy financial background
and skilled employees to use all those resources for betterment of firmorganization. The
management of independent firms is focused to manage all the operations in a effective manner
that will be beneficial for the firm. They have broad exposure to expand their business due to
better approach and large number of employees. Because their purpose is to make profit only so
they can use every possible approach to increase their sales and profit. These firms have more
option for the marketing of their stuffs like social media marketing, banner advertising etc.
Governmental activities can not make impact the working of private entities because they are
quite flexible to make changes in their existing system so quickly and the system is so adaptable
so they can do modification in any department as per the need and requirements of
market(Dragoi and et.al., 2013).
On the other hand public organisation are not that much independent so they do work
only to distribute the good products to people. These kinds of enterprises can not compete with
the other private firms in the market because they must work being in a particular criterion.
Governmental operations and activities are involved in these firms so they have to run their
business being under the terms and conditions(Klapper and et.al., 2015.). Political,
environmental and social factors have affected the operations of public organisations.
LO 2
P3 The relationship between different organisational functions and their link to organisational
objectives and structure
Every department of organisation is interred linked with each other, the structure is
formed in a manner that information flows in one line. Structure is as follows:
Human Resource Department: The main function of this department is recruiting the
staff for organisation. In this manager advertise the job vacancy, interviewing, and appointing
candidates as per job requirements. Manager keeps a record of payrolls and benefits which are to
be given to employees, health benefits are also taken care by HR. of British Airways.
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Finance Department: This department of the organisation maintains the financial
records and maximize profitability of the BA. Also, keeps a record of employees salary who
were hired by HR Manager.
Marketing Department: Promotion strategies and need for campaigns are evaluated and
executed by marketing department, marketing manager make sure that consumers should be
aware about all the schemes and prices BA is offering them. The manager discovered that
people use emails the most so BA started contacting and offering schemes on emails(Gold,
2014).
Production Department: This is operational department, where the company make sure
that the services are produced as per the consumer requirements. The production manager
ensures complete utilization of resources without the wastage of time.
Sales Department: It gives a reality check about the growth of the company, customers
loyalty, brand name and other competitions in market.
Customer Services: Since the customers demands keeps on fluctuating the company
make sure that the services are delivered according to the needs and wants of buyers. Interacting
with customers gives the review whether the services are satisfactory or not(Carneiro and et.al.,
2015).
Analyse the advantages and disadvantages of the interrelationships
Between organisational functions and the impact that they can have upon organisational
structure.
Organizing business functions into department ensures operations are completed in
effective and efficient manner, also improves decision making. Inter link of company has
backward integration(vertical), forward integration(vertical), and lateral integration(horizontal).
Backward increases control of suppliers and supply chain activities, forward increases control of
distribution channel, lateral increases control of competitors through mergers or acquisitions.
Every department in the coperationorganisation has one head with qualities and skills related to
that particular department(Kolk, 2016). The full department is managed by only one person and
only that person can communicate to other departments HR manager recruit staff for every other
department so if the HR won't hire good people according to job requirement every other
department will suffer. Connectivity and communication among all departments is a must so that
in case of market fluctuation and market competition, everything is easily available and
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coordinated co ordinated among departments but also if the functions of every department are
not organised than it can lead to confusion and miscommunication. Improving functionality of
departments avoid skipping of any step and leaving loopholes(Arasti and et.al., 2014). Every
department is interlinked by plan schedules, rules and regulations, timing, product availability,
procedures, and distribution. Interlink of departments lacks discipline and unity of command.
LO 3
P4 PESTLE Analysis of British Airways (BA)
BA is global airlines from UK expanded over 80 countries and more than 400
destinations. Being the part of International Airline Group (IAG) it is the largest airline firm in
United Kingdoms. So external and internal factors are required to be understoodunderstand for
identifying the company orientation and business structure(Lee and et.al., 2014).
POLITICAL ANALYSIS
As business is expanded in more than 80 countries so firm need to focus on the political
factors regarding all the countries. They need to adopt the rules and regulation in order to
maintain their quality of services. Moreover, their were also issues regarding the payment of the
staff members. Different countries follows different rules and regulation set by government
which must be followed by the airline services. Violence and illegal migration must be prevented
in order to retain positive image in customers eyes. There were many cases where company has
to pay more than millions of money in order to refund the passengers which can affected the
company reputation and finance(Corcoran and Gillanders, 2015). But as the firm is having the
low cost so they are more preferred by customers. Now as taxation and competition have
increased, company needs to focus on those areas and make proper changes.and make their
movements. Due to less payment of staff, services are affected and brand image gets damaged.
ECONOMIC FACTORS
This was the main factors due to which company reputation got affected. Due to reduce
in passengers at off period and overseas holidays, company has to cancel flight take-off.
Sometimes company needs to refund their customers pay the customer refund which makes huge
loss to company. Another issues which hampers the company is increasing the prices of fueloil
and services. Along with this financial crises faced by company due to Brixit. Due to reductionce
in price of British pound profitability has been decreased(Rubtsova and et.al., 2014). Heathrow
new runway will also increase the price and operational costs for the company. BA, fueloil
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prices has been d reduced up to 484 million pound as compared to previous years which helps
the company to raise it values.
SOCIAL ANALYSIS.
BA is considered to be the trusted airlines as when chances are their company has to pay
refund theto customers which makes their belief and trust on the company. Company has been
focused on the ethical and moral values or people which helps them to increase their
productivity. Low quality price and high standards is helpful to maintainhave maintained the
dignity and brand image of company in the market. Further, BA provides the offers on the
internet and other web-sites which helps to maintain their services. BA also adopted various
methods such as offers so many attractive offers onat festivals and new years which helps the
customer to stay their belief on the company. Firm has supported many social groups in every
country which helps to maintain their ethical values(Apăvăloaie, 2014).
TECHNOLOGICAL ANALYSIS
Recent back there was chaos due to technological error in the BA system due to the
power failure. Being such a large firms company needs to see all this technical aspects. This
affected the position and affected the clients of BA. If company focus on the investment in
factors like warehouse service and customer-service they can improve and can earn profit. BA
have maintained their system in order to keep their customer comfortable and safe. More then 5
passengers can not be in a queue of not hours in order to get their boarding passes and check into
flight. The technological changes make checking in an easy fast process and all the passengers
had to do is drop off their bags(Apăvăloaie, 2014).
LEGAL ANALYSIS
Company has to face the issues regarding the payment of the staff. Modern security from
the terrorist groups and others such activities should be adopted by the company. Airline have
controlled their each operations legally and made progress in each department. Also, airline have
to manage plenty of operations so much organization so they can have better options to capitalise
their system being under the terms and conditions of government. The problems related to
infrastructure can impact the control system. The route of flights and slot capacity should be
controlled by the organisation(Apăvăloaie, 2014).
ENVIRONMENTAL ANALYSIS
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Due to environmental pollution and other impacts on the birds company is facing some
biggreat issues from the social groups. BA has to reduce such concerns and have to make the
develop new system and operational strategiespment in positive aspects. Further, each and every
country are having different government policies regarding the radiations and emissions emitted
by the industry. Company needs to prevent from such aspects and should focus on sustainability
development(Apăvăloaie, 2014).
LO 4
P5 Swot analysis of BRITISH AIRWAYS
SWOT analysis of a company denotes the strength, weakness, opportunities and threat
which are faced by a firm in a new competitive market. The SWOT analysis of British Airways
isare as follows:
Illustration 1: SWOT analysis
Source: (Apăvăloaie, 2014)
Strength: Strength presents the power of a company by which they can give a best
competition to others. British airways have 90+ year experience in the industry. It is the world's
largest global premium airlines. It operates their business in 170 locations. By making worldwide
presence, company make strong brand image. Another strength of is company that it is
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nationalised by the government. BA owns engineering branch so that company have maintained
its aircraft fleet. Company also has fleet size over 260 aircraft. By using excellent marketing and
advertising airlines make their presence across the world(Apăvăloaie, 2014).
Weakness: The weaknesses of British company showns the negative aspect which make
great impact in organisational operations. British airways face the weakness that industry is
highly dependeddepend onin UK market. Company also face the intense competition which
shows the limited market shares of British airways. Approximate more than 50% of revenues are
generated from UK market(Leih and et.al., 2014). Company also hire large number of employees
so that firm need to invest more money for the employees. Another weakness is that under-
penetration in the globalization market like India, China etc.
Opportunities: As per the strengths and weaknesses of a company refers that industry
have various kinds of opportunities so that they can beat the competitive market. With
emergence of developing countries and economy British Airways have opportunities to expand
their market. Due to the support of Government, British Airways make pressure on small
players. Company also have opportunities for expanding its global operations to newer territories
and regions. The Heathrow terminal is a major hub across the world and British Airways make
main presence there. Company also have opportunities to expand their business by using
innovative techniques so that they give enough competition in the a global market(Arasti and
et.al., 2014).
Threats: British Airways also face various kinds of threats so that company can estimate
their risk and take effective step top overcomer all the fear. There are various airlines' in industry
which give enough competition in the market. The cost structure, pricing strategies of
competitors will affect the British airways pricing strategies. Hence,,. Company manage the
competitor's position so that they can expand their business. As per nationalised by the
government, rules and regulations of government make great impact in organisation's activity.
Company also face the competition in European market which highly effect the market share of
the industry(Leih and et.al., 2014). British Airways have to face the threats of government
regulations which are not remained constant in every year. Taxation policy, pay, safety and
security of the people must be depend upon the government's rules. Company also face the threat
of infrastructure and transportation issues. Company need to improve their infrastructure and
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transportation channels so that industry provide more flexibility, facility and security to their
customers. By overcoming all these threats company overcome all the problems and expand their
business in global level(Apăvăloaie, 2014).
P6 Interrelation of strengths and weaknesses with external macro factors
BA have better brand image in the market but the economic conditions of UK is not that
good. If the government increases the tax rates and exchange rates then it will impact the brand
image of airline because when exchanges rates will be increased then company have to minimise
their expansion so more people will not have the services. At the same time if any other airline
can make makes better strategy to expand their business which will increase their number of
customers. External factors are interrelateds with the strengths of the corporation because outer
conditions are not compatible with the system of organisation(Leih and et.al., 2014). On the
other hand organisation have a weakness that it is completely depended on th UK market. Due to
recession if market collapse then it will impact the whole business of British airways and its
system will be crashed out.
CONCLUSION
This report have concluded that business environment can have impact offrom internal
and external factors. British Airways can use the various analysis methods to make better
marketing strategies. On the other PESTEL analysis can be used to identifymake user about both
the internal and external factors which can affect the organization from out side. The report have
concluded that company have better brand image but on the same way it can impact the
economic factor. Also, organisation have some weaknesses which could be the reason behind the
economic crisis of enterprises.
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