Contemporary Developments in Business Management

Contemporary
Developments Business
Management
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Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Identification of influences of external factors on company along with importance of each to
the organization...........................................................................................................................3
TASK 2............................................................................................................................................5
1) Influence of polices and decision making within company....................................................5
2) Company’s respond’s evaluation............................................................................................7
3). Areas which need to be improved in the organization.........................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
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INTRODUCTION
Contemporary development can be defined as a growth of an organization which is associated
with technology, globalization and others (Brauner, 2016). This preset study is based on
hospitality sector and British Airways which is a flag carries airline of the UK. It was founded in
the year of 1974 with headquarter is in the London, UK. There are several external
environmental factors which can affect its performance in critical manner so it is important to
analyse all factors (Chaplin and O’Rourke., 2018). This study is going to show all important
factors of environmental like political, social, technological, economical and others. Further, it
will also discuss importance of marketing mix as how it can help company in accomplishing its
goals and promoting its products and services as well. It will also discuss some areas which thus
company needs to improve ad by doing so it can accomplish all its goals along with strategies of
eliminating risks and improving its effectiveness. Lastly, it will also show influences of this
company as how it affects decision making process.
TASK 1
Identification of influences of external factors on company along with importance of each to the
organization
There are several external environmental factors which can affect performance of the company
to the great extent. Hospitality sector is the one whose main aim is to meet all needs of
consumers with qualitative products and services. British Airways need to identify some external
environmental factors which can affect it in a both positive and negative manner. By identifying
factors which can have negative effects on it, company can make appropriate changes in its
policies and take advantages.
Political: There are several airlines which are subjective by fixed regulatory control and as like
other airlines, British Airways is one of them. This regulatory control depends and varies on
route as via companies can fly, airport slot which they can use along with fares and
transportation costs which they need to pay. One of the main examples of political factor is
Brexit according to which UK was a member of EU and it was getting several benefits but When
UK is being exited from EU it is not receiving any kind of benefit related to EU country. It has
directly affected relation between EU and UK which is also affecting British Airways (Coller,
Helms Mills and Mills, 2016). It has limited its services and some other factors which are
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associated with it include: safety regulations, operating license and others. On the other hand, in
positive aspect it can be said that it can make itself beneficial such as it operates in aviation
industry and the government support those who operate in this industry. So, it can be said that
this political factor of regulatory control can affect its performance.
Economic: There are some economic factors which are majorly related to cost and finance and it
can affect performance and sales of the company. Interest rate, taxation rate, unemployment rate,
income per capita are some economic factors. In the context of income per capita and GDP it is
stated that it is high and it is affecting its performance in a positive manner because when income
per capital is high then interest rates are comparatively low. On the other hand it is identified that
economic crisis has affected its performance in a negative manner as it is accounted that
economic slowdown affected its profitability and sales to the great extent. After Brexit and exit if
the UK from EU country it has affected its economic condition in a negative manner because
after exit of the UK from EU country it created economic uncertainties as they started placing
different and varied charges from UK businesses (Peter, 2020).
Environmental: It is one of the main factors which consist of several issues and there are
several companies who are focusing on this area. Hospitality is the one who is mainly
responsible for increasing waste and all other issues related to environment. Hospitality industry
makes use of natural resources to the great extent. So, it is important for British Airways to focus
on corporate social responsibility in order to gain its strategic. By engaging itself in CSR, British
Airways can identify risks related to health and safety as well as environment. People are
becoming more conscious about environmental safety and they prefer to use services of those
companies who are engaged in sustainability and corporate social responsibility.
So, it can be said that by focusing and engaging itself in CSR it can attract investors and
can expand its business. In the context of issues related to British Airways which has affected it
to the great extent and in a negative manner was workers’ strike. Due to workload and increasing
use of resources, lack of working environment, employees of this company went on strike which
affected its image and performance as well (Fedosova, 2016). For sometimes it had to face many
other problems like decrease sales, decrease revenue, poor productivity and increasing rate of
staff as well as customers turnover rate. So, overall it can be said that British Airways require
more focusing on this area.
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