Impact of External Business Environment on Virgin Atlantic

Carry out some research to find current
information about a UK company of your
choice Use books newspaper business
reports
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Organisational background..........................................................................................................3
External environment analysis.....................................................................................................4
Adaptations to overcome challenges...........................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
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INTRODUCTION
Business environment is known as the integration of all factors which can affect the decision
making and operations of any organisation (Cui and Li, 2018). The analysis of these elements
have significant impact upon success of organisation and to overcome the associated business
challenges. For long term success it is vital for the business to identify changing business
environment and to act accordingly. The essay will evaluate the impact of external business
environment on strategies and actions of famous UK organisation. For this essay Virgin Atlantic
has been chosen which is one of the very famous British airline service provider. The essay
provides a critical evaluation of the organisational attempts to adapt the business environment
changes.
MAIN BODY
Organisational background
Virgin Atlantic has its head quarter in United Kingdom and was established in the year
1984. The airline group is regulated by its holding group, Virgin Atlantic Limited which has
51% ownership by Virgin Group and remaining 49% ownership by Delta Airlines. Currently the
organisation has expanded its product and services range to vast level such as from airline
services to Virgin Cola, financial services and wedding gowns. In 2019 the organisation returned
a £29.5m loss before its exceptional items and tax. The Covid 19 pandemic has created
significant impact upon the organisation. In the same year the organisation observed 5% up in
airline passenger revenue.
In sustainability aspects also the organisation successfully reduced its carbon emission by
20% since year 2007. The overall revenue of Virgin Atlantic enhanced by £147 m from the year
2018 to £2.9 b. With mergers and acquisitions with Flybe, Air France and Delta group
organisation also enhanced its network capacity which resulted in increased unit revenue by
4.3% (Virgin Atlantic Limited and subsidiary companies Annual report and consolidated
financial statements, 2019). In response to the changing situations organisation announced its
restructuring plan for next 5 years as Covid response strategy.
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