Business environment-3

Added on - 03 Dec 2019

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Business environment
CONTENTSIntroduction......................................................................................................................................3Task 1...............................................................................................................................................31.1 Purposes of various types of organization as well as mission, vision and objectives ofBritish Airways............................................................................................................................31.2 Practices adopted by organization to meet the objectives of their stakeholders....................41.3 Practices adopted by organization to fulfill its responsibilities towards its stakeholders......42.1 Different types of economic systems that supports in allocating resources effectively........52.2 Impact of fiscal and monitory policies in the business activities of organization.................52.3 Impact of competition policy, regulatory and legal changes on the business activities oforganization.................................................................................................................................6Task 2...............................................................................................................................................63.1 Impact of market structure on the pricing and demand of air services..................................63.2 Role of various players and market forces in shaping organizational responses..................73.3 Impact of working practices and cultures of different countries on the business activities oforganization.................................................................................................................................84.1 Impact of changes in global trade on the business activities of organization........................84.2 Influence of global factors on the business activities of the organization.............................84.3 Impact of EU policies on the practices of British Airways...................................................9Conclusion.......................................................................................................................................9References......................................................................................................................................10
INTRODUCTIONBusiness environment consists different types of internal and external factors that affectthe business functions of an organization which are performed at the time of dealing withsuppliers, customers, human resources, government, investors and shareholders as well associety and environment (Palmer and Hartley, 2008). Main factor included in case of internalfactor of business environment is related to maintain relationship with customers, employees,government and suppliers. While, external factor involves the factors that re related to political,social, legal, environmental, economic and technological. Due to this aspect, this present reportis focused on describing the impact of these factors in the practices of British Airways which isone of the leading airline companies in UK. Along with this, it will include the description aboutthe impact on market forces and market structures on the business practices of British Airways.TASK 11.1 Purposes of various types of organization as well as mission, vision and objectives of BritishAirwaysPurposes of various types of organization are as follows:Partnership firmSole tradeCompanyFranchiseThis type of firm isformed throughmerging two or morecommercial entities.In this firm,profitability isdivided amongpartners as well asauthorities andresponsibilities(Brown, Earle andLup, 2005).This type of businessis established bysingle owner with theavailability of lesscapital. Here, onlybusiness manager isavailable who isresponsible formaking plans andretaining profit.It includes severalpurposes that arerelated to earn profit,increase sales, rendergood quality ofproducts and developbetter relationshipwith customers(Dong, Wu and Hou,2009).In this business, onecompany gives rightto another companyto establish businesswith the same nameof existing company.Main purpose of thisorganization toenhance itsprofitability as wellas its customers.Mission, vision and objectives of British AirwaysMissionMain mission of this company is to render secure and safe airline services to itscustomers in order to enhance its position in the market.VisionTo reduce the impact of its services on the environment as well as society.To adopt new and innovative technology for make its services more attractive andcomfortable.
To emerge itself as a source of inspiration for the other companies (Craig and Campbell,2012).ObjectivesShort term objectivesLong term objectivesTo provide healthy environment toemployees in order to enhance thelevel of its customer service.To increase the level of itsprofitability and sales revenue (Hill,2008).To maintain and enhance the growthof company in London.To expand its business at theinternational level.To enhance its brand image in bothnational and international market(Czinkota and et. al., 2009).To set standards for making servicesmore safe for customers.1.2 Practices adopted by organization to meet the objectives of their stakeholdersIn case of British Airways, major stakeholders are related to customers, employees,government, suppliers and shareholders. In order to maintain better relationship with all of them,management of company is focused on meeting the objectives of them. Practices adopted bycompany to meet the objectives of British Airways are as follows:Customers:Main aim of customer is to get high quality of products and services in a reasonableprice. Therefore, management of company always tries to understand the needs of customersrelated to price, quality and other characteristics of services (Solomon and et. al., 2014). Due tothis, compliant procedure and survey methods are used for identifying the issues of customers.Employees:Availability of healthy environment and better salary are considered as mostimportant objectives of human resources working in company. In order to meet these objectives,British Airways provides better salary and incentives to them as per the set standards of industry.Along with this, it is also focused on understanding their issues through using the method offeedback on the regular basis.Government:In case of government, objective is related to perform business practices in a legaland ethical manner (Cherbakov and et. al., 2005). To achieve this objective, organization alwaystries to follow the legislation and regulations of government so that good relationship betweenthem can be developed.Suppliers:For maintaining better relationship with suppliers, timely payment has been done bycompany. Availability of payment on time is beneficial for company to get goods and machineryon time from the suppliers.1.3 Practices adopted by organization to fulfill its responsibilities towards its stakeholdersIn case of British Airways, there are various responsibilities towards its stakeholders thatneed to be considered by the management of company at the time of performing their businesspractices. One of the major responsibilities of company is to enhance the level of customer