Assignment on Elements of Business Environment

BUSINESS ENVIRONMENT
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TABLE OF CONTENTS
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
1.1 Purpose of VAA....................................................................................................................3
1.2 Interest/objectives of VAA stakeholders and strategies to meet them..................................4
1.3 Responsibilities of VAA to its key stakeholders and strategies of the company to achieve
them.............................................................................................................................................4
TASK 2.................................................................................................................................................5
2.1 Ways in which economic systems attempts to allocate resources effectively.......................5
2.2 Impact of fiscal and monetary policy on VAA and its activities...........................................7
2.3 Ways in which EU/UK competition policies can or have impacted the activities of the VAA
.....................................................................................................................................................7
TASK 3.................................................................................................................................................8
3.1 Ways in which market structures helps in determining the pricing and output decisions of
VAA.............................................................................................................................................8
3.2 Impacts of change in demand/supply on VAA tickets...........................................................9
3.3 Ways in which business and cultural environment shape the behaviour of VAA...............10
TASK 4...............................................................................................................................................10
4.1 Benefits of international trade to UK business organisations, and to VAA & BA..............10
4.2 Factors in which global factors affect VAA and BA...........................................................11
CONCLUSION..................................................................................................................................12
REFERENCES...................................................................................................................................13
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INTRODUCTION
According to Ballard and et.al., (2012), business environment refers to all external and
internal factors which are not in the control of business and it also makes an impact on the business
functioning. It includes competitors, government, customers, suppliers, and the political,
technological, social and legal factors, etc.
With a motive to attain deep understanding of varied elements of business environment,
present report is prepared. It has been based on Virgin Atlantic Airways (VAA) which is one of the
prominent British airline that established in 1984. It is owned 49% by Delta airlines and 51% by
Virgin Group. Its fleet size is 41 and employs around 9,231 employees and earned revenue of £2.93
billion in 2014 (virgin-atlantic, 2015). In this report, business environment of Virgin Atlantic Airline
(VAA) has been discussed. Further, in this report factors like stakeholder analysis of the firm,
various strategies of VAA and the impact of fiscal and monetary policy on the company have also
been studied in this report.
TASK 1
1.1 Purpose of VAA
The prime purpose of VAA is to make profit in a socially standard manner by allowing the
people to travel various countries. However, another objective is to provide top-quality service and
to achieve a considerable growth by meeting the needs and demands of the customers. The prime
purpose of organisations like Red Cross Society is to render services to all the members of the given
population. Red Cross Society is a registered charity which provides help to the people in at the
time of crises in UK well as overseas. It is committed in helping people without any discrimination
and regardless of their nationality, religion, ethnic origin or political beliefs.
BASIS VIRGIN ATLANTIC AIRWAYS RED CROSS
Industry Airways Service
Services Airline services Humanitarian aid
Purpose Growing profitable airlines where
people wish to fly and where
people wish to work as well.
To relieve the suffering caused by disasters
through training, selecting and providing
committed and competent personnel by
organising humanitarian programmes
throughout the world (British Red Cross,
2015).
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Aim Earning profits Serving the people in crisis
1.2 Interest/objectives of VAA stakeholders and strategies to meet them
It is essential for various organisations to recognise the interest of various stakeholders.
Therefore, development of strategies and mission for Virgin Atlantic is a crucial task. On the
contrary, Búciová, (2010) inferred that it is required to highly emphasize on the needs and
requirements of the internal stakeholders like shareholders and employees; and the external
stakeholders like suppliers, unions, community, general public, customers, government, etc.
Stakeholders Objectives Strategies Employed
Employees  Satisfaction towards job
 Sound working environment
 Implementation of improved and unique
information technologies
 Enhancing the morale of employees by
practicing open communication and
sanctioning flexible working at workplace
Customers  Quality services and
competitive price
 Safety and security
 Quality hospitality services
 Use of updated IT software and applications
 Delivering services at economic price in
order to meet with the demand of customers
with respect to low cost airline
 Installing necessary equipment for ensuring
health and safety (Moraru and Rusei, 2012)
Government  Adhering with legal norms  Practicing the regulations that been
developed within the context of health and
safety of passengers.
General
Public
 Enhancing the quality of life
and standard of living
 VAA focuses on various CSR concern such
as Gold Standard Scheme, etc.
1.3 Responsibilities of VAA to its key stakeholders and strategies of the company to achieve
them
Responsibility Why it is a responsibility Strategies used by VAA to achieve it
Equal
Opportunity
According to the employment
equality law of UK, it is considered
illegal to differentiate a person on
Cited company aims to developing an
inclusive environment and hence it has been
focused as one of the key aspects of business
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