Understanding Business Organizations: Organizational Structure, Business Environment Analysis, SWOT and PESTLE Analysis of Virgin Atlantic

This report focuses on the implications of external influences on business organizations, using Virgin Atlantic as a case study. It covers organizational structure, business environment analysis, SWOT and PESTLE analysis.

Understanding
Business Organizations

Table of Contents
INTRODUCTION.........................................................................................................................3
Organizational structure...............................................................................................................3
Business environment analysis.....................................................................................................4
SWOT analysis...................................................................................................................4
PESTLE analysis...............................................................................................................5
CONCLUSION..............................................................................................................................7
REFERENCES..............................................................................................................................8

INTRODUCTION
The significance of an impeccable organizational structure is very must prudent for a
commercial space to achieve a determined level of performance standards. The dependable level
of arrangement in a firm explicates the level of profits an institution is capable to earn. The risks
associated with the firm need to be elucidated in advance through a detailed comprehension of
the external business environment. The technological upgrades prevalent in this dynamic era
needs to be recognized beforehand to take the required number of actions prior. These
considerations must be taken into account for profitable achievements regarding the functioning
of commercial businesses. The analysis of such factors needs to be comprehended to prevent the
scope of any sought-of mishaps. This particular report will focus on the implications in
association with the external influences on the venture. The company that will assist the research
is Virgin Atlantic, which is a reputed British airline with its H.Q. located in Crawley, England.
The factors that can hamper or impact the functioning and operations of the airline will be
investigated through the utilization of SWOT and PESTLE analysis. Also, the relative
organizational structure of the company will be discussed.
MAIN BODY
Organizational structure
The suitable structure for the company is the optimization and incorporation of the hierarchal
form of construction. This type of build is generally seen in large companies. This serves as a
foundation for the accomplishment of an organization's established goals and objectives.
A company's organizational structure determines how information is shared among the many
levels within it. organization. A company's ability to provide a large value chain, to which all
personnel connected to the establishment must adhere, is a crucial dimension (Arnav, Srivastava,
and Varsha, 2022). The explanation of this hierarchical development for such a business aid in
the development of a thorough framework for how a business operates. It is possible to further
explain the subject's immense significance.
 It helps to define the precise roles, powers, and boundaries of formal connections so that
important organizational policies are well understood. To define the key job positions

based on the qualifications of its employees, the company takes advantage of the
constructive structure of the business (Tsui and McKiernan, 2022).
 Identifying the channels of communication and the organizational factors that must be
adhered to is beneficial for the smooth operation of the business's management. The staff
members are fully aware of how and with whom to express concerns about their current
situation.
 As the institution's layout gets more straightforward and attractive, the execution of the
strategic policies correspondingly becomes simpler. By implementing
a hierarchical organizational structure, Virgin Atlantic is capable of successfully
implementing its strategies in line with its business action plan (Benavides, 2022).
 Because of the established hierarchical chain of command, Virgin Atlantic personnel will
be able to identify the various levels of responsibilities and permissions. As a result, this
organization is well-organized, clearly defines superiority, and increases corporate
efficiency by using promotion as a form of employee engagement.
Business environment analysis
To avoid the potential for significant losses, elements that affect the flow of commerce
and regulate the business climate must be carefully examined beforehand. The directors of the
company must be wise enough to identify, scrutinize and research both external and internal
factors that influence a company's operations (de la Torre and Berbegal-Mirabent, 2022). Virgin
Atlantic can accomplish this by utilizing different factorial screening-related models.
SWOT analysis
It is specifically created to explain the relative strengths, the range of prospects and
vulnerabilities, and the risks that could be encountered when competing in the market. This
section of the study will thereby explain these factors in detail regarding the operations of Virgin
Atlantic.
 Strengths – The essential elements of Virgin Atlantic's operations that provide it with a
competitive edge in the market are considered the airline's strengths. The strength of a
brand can be attributed to a variety of things, such as its financial standing, skilled
personnel, the distinctiveness of its products, and intangible assets like brand value. The
business has a satisfied clientele and is selected by wealthy clients as a carrier.

 Weaknesses – A brand's shortcomings are specific areas of its operations that can be
strengthened to strengthen its position. Some flaws can be described as qualities that the
business lacks or in which the competition excels. One of the company's shortcomings is
its low global footprint, especially in developing countries (Imbrogiano, 2022).
 Opportunities – Any brand has the potential to improve in certain areas to grow its
customer base. Prospects for a business can include geographic expansion, product
enhancements, enhanced efficiency, etc. By utilizing its great brand recognition, Virgin
Atlantic can broaden its foreign routes and locations in order to expand internationally
(Zhang and Liang, 2022).
 Threats – Threats against a business might have a detrimental effect on that organization.
Significant challenges to Virgin Atlantic can come from things like increased rival
activity, shifting governmental regulations, alternative goods or services, etc. Virgin
Atlantic's profit margins may be impacted by rising labor and fuel prices. Another factor
that the corporation must take into account is the escalation of competitiveness within
the European market (Kurup and Gupta, 2022).
PESTLE analysis
Gaining knowledge about the effects that are significant in the business environment requires
thorough research of the external macro conditions. The study will attempt to elaborate on the
key factors that may affect Virgin Atlantic's operation throughout this segment of the study.
 Political – Any organization's operations are significantly impacted by the political
aspects of a country or the rules that are prevalent there. Because of the restrictions
placed on the hotel industry, Virgin Atlantic may be impacted by the new immigration
laws proposed by the authorities. Additionally, any alteration in the political landscape's
dynamics may affect the company’s market placement (Mandal, 2022).
 Economical – The effects of a recession may significantly affect how well airlines
perform overall since they will not only make limited money but also find it more
difficult to afford to hire qualified employees. The capital reserves would also be
impacted.

 Social – The corporation may find it advantageous to efficiently market its services in the
marketplace, among potential customers, by making careful and extensive use of
platforms for social media. That would also assist in drawing in clients. Virgin Atlantic
has been using the channels to promote the brand, and it should continue to do so to hold
onto its leadership.
 Technological – Today, only online methods are used for making travel reservations.
Regarding its website, Virgin Atlantic has established a very straightforward and
understandable system of booking. The extras, such as including the conveniences
provided to the customers throughout their travel, assist in drawing in prospective
customers (Merlo, 2022).
 Legal – Virgin Atlantic must perform the obligations and steadfast duties that the
corporation is required to understand to protect itself from any legal framework. The
wage rate should be facilitated following the rates indicated, and no concessions should
be given in this area. The airline's staff members are entitled to several perks, which must
be granted to them in accordance with the established policies and guidelines.
 Environmental – The chain of airlines should examine its ecological impact and refrain
from doing any actions that can cause environmental harm. This specific component of
the evaluation is particularly important because it can reflect Virgin Atlantic's image and
reputation. The business must be run and portrayed in such a way that clients are not
made to perceive it as less enticing in any way (Roy and Pradhan, 2022).

CONCLUSION
Thus, it can be concluded that it is essential to recognize and list the effects of the
surrounding factors on the economy because the company may be significantly impacted by the
above-mentioned factors. An assessment of the complete picture of the marketplace is provided
by the explanation of both the microeconomic and macroeconomic components. This can assist
in the auditing of precautionary measures for the business to deal with the consequences that
may be experienced because of the negative impacts of the operations and maintenance external
factors, including the volatility in taxation could indeed prove to be a barrier for Virgin Atlantic,
so preventative measures must always be embraced by the business in ahead of time for the
same. To make the required modifications beforehand, the business must be carefully aware of
the kind of circumstances that can be faced in the economy. Additionally, the repercussions that
can be offered to Virgin Atlantic can be in terms of the problems identified, for example, the
integration of eco-friendly sustenance programs and the preparation of expansionary plans for
increasing revenue are a few of the points that can assist the marketing strategy of the company
hold firm in the market. This would thereby aid in maintaining the company's global commercial
positioning.

REFERENCES
Books and Journals
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Organizations. Organizational Innovation in the Digital Age, pp.177-198.
de la Torre, R. and Berbegal-Mirabent, J., 2022. Knowledge-Intensive Organizations and Their
Role in Promoting Sustainable Development. Administrative Sciences 12: 100.
Imbrogiano, J.P., 2022. Understanding Sustainability Performance in Business Organizations:
Implications for the Sustainability Service Industry.
Kurup, S. and Gupta, V., 2022. Factors Influencing the AI Adoption in Organizations.
Metamorphosis, p.09726225221124035.
Mandal, P.C., 2022. Understanding Innovation in Organizations and Its Implications.
International Journal of Innovation in the Digital Economy (IJIDE), 13(1), pp.1-13.
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Roy, P. and Pradhan, R.K., 2022. Positive Leadership and Organizational Effectiveness:
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