Strategies to Enhance Profit Margins and Growth Rate in a Competitive Market
Added on 2019-12-03
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BUSINESS ENVIRONMENT
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1...........................................................................................................................................11.2...........................................................................................................................................21.3...........................................................................................................................................32.1...........................................................................................................................................42.2...........................................................................................................................................52.3...........................................................................................................................................5TASK 2............................................................................................................................................63.1...........................................................................................................................................63.2...........................................................................................................................................63.3...........................................................................................................................................74.1...........................................................................................................................................84.2...........................................................................................................................................84.3...........................................................................................................................................9CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10INDEX OF TABLESTable 1: Types of business and purpose of operations....................................................................1Table 2: Stakeholder analysis..........................................................................................................2ILLUSTRATION INDEXIllustration 1: Stakeholder analysis grid for British Airways..........................................................3
INTRODUCTIONBusiness units operate in a well-defined environment which is shaped by various factorssuch as government, competitors, suppliers and internal business factors. These helps ininfluencing various business activities and regulating scope of operations by governingprofitability and internal business policies (Ahmad and et.al., 2010). Present report focuses onunderstanding various purpose of business and its impact on overall business operations. It willanalyse the macro and micro factors of business and evaluate that how these factors regulatesorganizational activities and policies (What is Business Environment? Explain its types, 2013).Report will focus on analysing domestic as well as international policies and develop a deepunderstanding about how these factors effects functioning of business unit. TASK 11.1Various categories of organization help in analyzing different purpose for which theyoperate within economy. Following table provides a broad idea about the same:Table 1: Types of business and purpose of operations CATEGORYOWNERSHIPEXAMPLESPURPOSEPrivatecompaniesFamily businessclosed management of less than 50 membersBoard of directorsCambridge satchels,Harrods groupCapturing maximum market inorder to enhance sales revenue anddevelop high market share withindomestic or global market. Major aim to earn personal profit PublicCompaniesShared ownershipwith shareholdersBritish Airways,Tesco Plc, Mraks andSpencer, HiltonWorldwide To grow business profitability inorder to attain shareholder'sinterest while adoptinggovernment policies andregulations as these units involvepublic interest (Anonym. 2009). CooperativeorganizationsVoluntary members who Earthworm housing,The cooperativeTo analyze social benefits ofpeople and organization as well. 1
come togethergroupNon-GovernmentOrganizationFounders and promoters of the groupCHS, Danish refugeecouncil (DRC) Operates to serve specific purposeand meet social needs andrequirements of people (Quinn,2001). The table reflects the broad categorization of various types of business units on the basisof ownership and purposes for which they operates efficiently within economy. The tableefficiently shows that every business type has unique and effective meas of operations whichhelps in meeting organizational needs and requirements. 1.2 Stakeholders are the people who influence business operations and are influenced bybusiness activities as well. British Airways is an airline company which focuses acts in thishighly competitive market to attain high business profits. Major stakeholders of the company are:Table 2: Stakeholder analysis STAKEHOLDERSOBJECTIVES BRITISH AIRWAYS ATTEMPTConsumersSeeks fast and convenienttransportation at affordable fare Developed fleet size 296 and connectsmore than 188 destinations around theworld at highly competitive pricingSuppliers Provide effective businessopportunities and make timelypaymentHas maintained a well-managed team ofsuppliers and make effective and timelypayments to themGovernment Adopt regulatory framework andoperated as per domestic andinternational transportation policies Operates business as per IATA, ICAOregulatory policies to enhance businessand public interest (Record, 2009). EmployeesDevelop brand image of the firm andmake proper and timely payments.BA is second largest airline company inthe UK. Effective employment policieshelp to attain highly satisfied workingsystem for employees. InvestorsDevelop business operations toAdopted competitive strategies to attain2
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