Business Environment of British Airways

Business Environment

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
1.1Purpose of different types of organization and mission, vision & objectives of BA.............1
1.2 Objectives of different stakeholders and its challenging impacts........................................2
1.3 Responsibilities & strategies of British Airways to meet the stakeholders responsibilities. 3
2.1 Economic system to allocate the resources effectively ........................................................3
2.2 Challenges due to fiscal & monetary policies on business environment of BA...................4
2.3 Impact of regulations, competition policies and legal changes on British Airways.............5
TASK 2............................................................................................................................................5
3.1 Market structure and its impact on price and demand..........................................................5
3.2 Interpretation of the market forces to shape organizational response...................................6
3.3 Impact of working practices and culture of different countries on British airways ............6
4.1 Impact of the global changes in the trade regime.................................................................7
4.2 Impact of other global factors on British Airways................................................................7
4.3 Impact of EU policies on British Airways............................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment has different key entities in which the business operates. The
major and key function is to compile all the aspects and attain the goals and the objectives in an
effective and efficient manner. The environment strictly compile of the various policies which
determine the overall functioning of the organizations which are present in the business
environment. This report dictates the various objectives and which are essential to meet the
responsibilities towards the stakeholders. Various methods are adopted to understand the market
structure and logically develop the principles and concepts which depict the behaviour of the
organizations in the business environment. British airways have been chosen to design the report
and critically examine in order to conclude the various measures which led to attain the
competitive advantage.
TASK 1
1.1Purpose of different types of organization and mission, vision & objectives of BA
Different organizations are present in the business environment which operates in order
to attain the various purposes for which they have been framed in order to carry out the business
(Mitchell, 2008.). The different types of the organization are as follows:
Sole trader: They are the single entity which runs the business in the environment for the
purpose to earn profits and earn effective goodwill in the business environment. They are
operated and controlled by the single owner there is no other entity involved in to carry out the
business and has the unlimited liability. They have less rules and regulations as the power is
handled by the single person only.
Partnership: These are the firms which are operated by the group of the people which
include 2 and more persons to carry out the business. The purpose of the partnership firm is to
earn maximum profits out of the investment made by the different partners in order to carry out
the functioning.
Franchisee: They are the firms which are entitled under the name of the particular brand.
The main purpose is to expand the business area in order to attain the maximum profit out of
their investment under the brand name.
Cooperative: It is the private business organization which is established by the mutual
concern of its members in order to carry out the various operations. The main purpose of this
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organization is to adapt the changes and meet the needs of the members and generate the profit
by meeting the specific objectives which are related to the members.
Non-profit Organization: These are the organization which operates in the business
environment for the purpose to serve the people of the community who are not able to acquire
and attain their needs. The main purpose of this organization is to provide the service without
any profit generation.
British airways are the public limited company which operates in the business
environment to serve the customers who fly with them. They define the various mission and
vision statement in order to ascertain the planning to attain the goals (Tennis, 2006). Their vision
is to become the most responsible airline whose objective is to perform all the corporate
responsibilities together to ascertain the long term sustainability objectives of the British
Airways. They try to enhance the customer experience by upgrading the facilities which led to
effectively attainment of the mission objectives of British airways.
1.2 Objectives of different stakeholders and its challenging impacts
Stakeholders are the key aspects who function to accomplish the objectives of the
organization and can affect the accomplishment of the objectives (Gossy, 2008). Various
stakeholders are discussed below:
Customers: They are the essential entity which uses the services which are provided by
British Airways. The major challenge which is faced by British Airways is the customer needs
more facilities as they are not satisfied with the offerings which are made before them. British
Airways adopt the strategy to upgrade the experience of the customer in order to accomplish the
motto for which they operate in the business environment.
Employees: These personnel use their skills and knowledge to carry out the functioning
of the British Airways. As per the frequent changes in the airline industry there is high
termination and the switching cost among the employees which is impacting the performance
standards of British Airways. British Airways adopt the appraisal and reward techniques to meet
their standard value to retain them.
Government: They are the major elements who design the framework of the rules and
regulations to carry out the various operations. The major challenge which is faced by British
Airways is the formulation of the new policies by them. British Airways properly design their
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