Report on Concept of Business Environment : British Airways

Added on - 06 Jun 2020

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BUSINESS ENVIRONMENT
Table of ContentsINTRODUCTION...........................................................................................................................1LO 1.................................................................................................................................................1P1 Different purposes of different types of organisations..........................................................1P2 The size and scope of a range of different type of organisation............................................2LO 2.................................................................................................................................................3P3 The relationship between different organisational functions and their link to organisationalobjectives and structure...............................................................................................................3LO 3.................................................................................................................................................5P4 PESTLE Analysis of British Airways (BA)..........................................................................5LO 4.................................................................................................................................................7P5 Swot analysis of BRITISH AIRWAYS.................................................................................7P6 Interrelation of strengths and weaknesses with external macro factors.................................8CONCLUSION............................................................................................................................9
INTRODUCTIONBusiness environment made up with many internal and external factors which impact onoperations of the entity. The organization and government both are responsible for protection anddevelopment of environment. All these factors affectbusinessenvironmentdirectly andindirectly. In the present report British airways is being chosen in order to understand theconcept of business environment. British airways is the largest airline in UK that works forcarrying second highest passengers(Belás and et.al.,2015).The interrelationship of variousfunctions of firms with structure ofenterpriseorganizationwill be discussed in this report. Thefactors thatimpact positively or negatively on the business unit will be explained in thisframework. This report will describe various purposes of different corporations. This assignmentwill discuss effectiveness of global market.LO 1P1 Different purposes of different types of organisationsDifferent type of corporations have different purposes. All the entities run their businessin different ways, there is huge difference in their operations. Organization can be categorised onthe basis of their objectives. These are shown below:Non- governmental: Non- governmental firms work to get profit as much as they can.The main objectivesof these corporationissareto increase number of sales so that it canenhanceitsprofitability. Virgin group limited is a private company which operates in UK.Another objective of this organisation is to increase customer loyalty which will support theentityforinmaking an effective brand image in the market(Niemann-Struweg, 2014). Thegovernmentis notdo not getinvolved in any activity oftheseprivate enterprises. The nongovernmental organizations are formed for makingprofitablebusiness only and they are not getinvolved in any kind of charity or cooperative acts in which theywill not getdo notmake anyprofit.Public limited firm: These firms are established to enhance economic conditions of thecountry. Their main focus is onprovidingprovingquality products to consumersto make themsothat theyfeel good..Earning profit is one oftheaimsof this organisation. Purpose of publicfirms isto understand needs and requirement of people and serve them what they want(Khanand Quaddus, 2015). Nestle is a public entity which continuously provides quality good andservices to its service users. Apart from making profit the main purpose of this firm is to provide1
food thatwilldonot harm the people. Public firms also have objective to expand their businessso the economy of country can be improved(Gillanders and Whelan, 2014).Co-operatives: These firms work as being united in order toachieveacheivecommongoal of organisation. Tofulfilfulfillrequirements and needs of all the team members isthemainpurpose or co-operative firms. For example CBH and Wesfasmers are two cooperativeenterprises 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 involvedin the cooperative organisation do not have full liberty to work as per their comfort. Eachmember 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, voluntaryentities work to resolve such problems(Rubtsova and et.al., 2014). This helps the helpless peopleand also provide every possible solution to them so that they can live healthy and happy life.It isThey arenot set to make profit that is why they areknownknowas non profit organisations.Blind Veteran is one of the most popular charitable trust in UK. This trust gives free services toneedy persons.P2 Size and scope of different type of organizationsThe organizations are categorised on the basis of their main purpose.The purpose ofvarious organisations is the base for their categorisation. Each organisation has a differentstructure andthescope of each typeoffirmas per their structureisalsodifferent from others.Private firms have huge scope in market as they can diversify their business in differentsectors. The diversification can be done either inthesame fragment or in different fragments.The market has been highly occupied by private enterprises because they can set their businessat anywhere. The scope of this kind of firms is so high because they are independent and workswith 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 simplestructure in which operations are divided into different departments. Higher authority is involvedinto decision making process, in some entities employees have also right to put their review formaking the decisions.Private firms have good financial resources so they have better option to expand theirbusiness in the future. The organisation can use their stuff to be in the market. They know how to2
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