Business Environment: Macro-Economic Factors and Global Challenges Faced by Virgin Atlantic Airlines

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Explain two macro- economic factors that your chosen business will need to consider and the
influences these could have on its business outputs....................................................................1
How will the UK current growth rate impact on your chosen business......................................2
How can the government current intervention methods affect your chosen business?..............3
Current global challenges face by Virgin Atlantic Airlines along with recommendations to
overcome from them...................................................................................................................4
CONCLUSION..........................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment refers to the subtotal of all the external things that has been
considered by the firm or company which have the power to influence or affects the organization
as well as their operations (Cepel, 2019). This encompasses the set of conditions that are
economic, social, political and institutional in nature within which business operations have been
conducted. There are certain significant characteristics of the business environment according to
which it is dynamic, complex, uncertain, relatable, and multi-faceted and provides far-reaching
impacts.
This report will elaborate the concepts in detail by choosing Virgin Atlantic Airlines
which is headquartered in England. This study will elaborate two macro-economic factors, UK
current growth rate impacts over the chosen business along with government the latest
interventions. In addition to this the report will also highlight the latest global challenges facing
by the Virgin Atlantic Airlines along with certain recommendations in order to overcome from
them.
MAIN BODY
Explain two macro- economic factors that your chosen business will need to consider and the
influences these could have on its business outputs.
Macroeconomic factors within the Virgin Atlantic Airlines is a phenomenon or a type that
relates to the larger aspect of the economy rather than to a particular population. These are the
broad indicators of the financial growth or decline that affect the economy of the Virgin Atlantic
Airlines. Examples of macro-economic factors in a business organization are inflation, gross
domestic product (GDP), economic output, unemployment rates etc. Macro-economic issues
within the business organization are the terms or aspects that are influenced by the performance
of the nation’s overall economy (Krajnakova, Navickas, and Kontautienė, 2018). The two
macro-economic factors to be considered in the business that can influence the output of the
business in various aspects are inflation and unemployment rates.
Inflation-Inflation is an economic term in which the price of the products and services rise for a
period of time and this has many effects on the customer as well as on the business organization.
Inflation erodes the purchasing power because it decrease the value of the cash and encourages
the customers to spend on the products which are slower to lose value.it also lower the cost of
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