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Concept Of Business Environment- Brief

   

Added on  2020-01-16

13 Pages4179 Words180 Views
BUSINESS ENVIRONMENT

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Purpose of different types of organization............................................................................11.2 Meeting stake holder's objective...........................................................................................21.3 Responsibilities of organisation and strategies adopted........................................................32.1 Economic system allocating resources..................................................................................32.2 Impact of fiscal and monitory policy....................................................................................42.3 Impact of competitive policy................................................................................................5TASK 2............................................................................................................................................53.1 Market structure....................................................................................................................53.2 Market forces shaping organizational behaviour..................................................................64.1 Significance of international trade........................................................................................64.2 Impact of global factors........................................................................................................74.3 Impact of policies of European Union..................................................................................8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10

INTRODUCTIONBusiness environment has a wider scope including intrinsic and extrinsic factors that canaffect various organizations that are operating internationally. Studying the business environmentof a specific firm helps in assessing the way in which various factors affect the functioning oforganisation like political, economic, social, technological, etc. (Boons and Lüdeke-Freund,2013). In the present report, the firm, British Airways has been chosen which is the secondlargest airline operating in UK. The study work presented below includes a brief explanation ofthe concept of business environment affecting overall performance of various businessorganizations. The report thereby includes determining the impact of international trade andseveral factors driving a change in international aviation industry. A discussion is made on fiscaland monitory policies introduced by the respective government. The organization's pricing andoutput decisions are undertaken according to the market structure prevailing within airlineindustry. Impact of policies of European Union upon organizational structure of British Airwayshave also been covered in the report.TASK 11.1 Purpose of different types of organizationsOrganization is an association or institution that is established to achieve a specific set ofgoals and objectives to accomplish or attain different purposes. An organization includes aspecific structure that might be simple or complex. Purpose for which an organization is existingin the market determines its own set of objectives and targets. Following mentioned is the list oforganizations having different purposes to be aligned with organization's objectives:Profit making organizations/private firms: An organisation that is operating in specificbusiness environment with the sole objective of making maximum possible profit byefficiently producing goods and services to satisfy maximum level of demand. Non Profit-making organization/public firms: These organizations are working speciallyto render social services to the society for providing financial or social assistance tomembers of the society. They provide such services for a social cause that does notinclude profit motive (Carroll and Buchholtz, 2014).Government Organizations: These organizations are regulated and governed bygovernment of respective region. The objective of these organizations mainly to focus on

protecting the interest of citizens of nation and ensure that none of the business activitieswould exploit customers with means of selfish policies. British Airways is an organization that was established by the government of UnitedKingdom to manage two nationalised agencies including British Overseas Airways and BritishEuropean Airways by merging both of them under single association of British Airways.Company has been working with the vision of providing increased air connectivity to customersacross the globe. Moreover, mission statement highlights the objective of providing better airtravelling services with reasonable fare (Gupta, 2013).1.2 Meeting stake holder's objectivesStakeholders are individuals or personnel having specific interest with respect tocompany. The activities performed by firm directly or indirectly affects each of them. Thesestakeholders are assumed to be associated with the organisation for their own interest.Company's overall performance can be accredited to contribution obtained on account ofparticipation or involvement of each of these shareholders. British Airways has attained apositive image in the society with respect to satisfaction rendered to various stakeholdersincluding creditors, investors, customers, government agencies, media, etc. Below mentioned isthe list of various stakeholders focusing upon determining the extent to which organization meetstheir objectives:Creditors: Creditors have been providing company with required financial assistance.British Airways has been successful in earning required percentage of net profit, therebyensuring returns with adequate interest to various creditors within specified time range. Investors: Investors are the individuals who have investing their hard earned money withan objective to safely invest for acquiring additional amount on taking a risk to invest thesame. British Airways has been extremely efficient in delivering adequate returns to itsinvestors. Government agencies: Government has been intervening in the aviation industry to agreater extent as the aviation industry is a rapidly developing sector. The contribution ofairline companies has been immense in current rate of GDP and GNP. British airways hasbeen providing required information and details to the government to analyse economicgrowth and undertake required decisions.

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