Contemporary Developments in Business and Management Assessment

This project report focuses on the contemporary developments in business and management, specifically in the context of International Airline Group. It discusses the influence of external environment factors and the importance of CSR in sustaining the organization. The report also evaluates the effectiveness of the organization's response and suggests areas of improvement. The subject is Contemporary Developments in Business and Management Assessment.

CONTEMPORARY
DEVELOPMENTS IN
BUSINESS AND
MANAGEMENT
ASSESSMENT

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................4
Influence of external environment factors and their importance to organisation ......................4
TASK 2............................................................................................................................................7
CSR and sustainability of International Airline Group...............................................................7
Relevance to organisation and how policies and decision making influence decisions.............7
Critically evaluate effectiveness of organisation response ........................................................9
Demonstrate areas of improvement in response to organisation .............................................10
CONCLUSION .............................................................................................................................11
REFERENCES .............................................................................................................................12

EXECUTIVE SUMMARY
The project report is based on the contemporary developments in business and
management which is very useful term for every organisation. To make the study on this topic
Aviation company like International airlines group that is based on the UK is taken. This report
is assessed the influence of external and internal factors that helps in smooth functioning of the
operations within business. For this PESTLE and Porters analysis is the best way to earn higher
profits and gain more market share also assist in competitive advantage within marketplace.
Further Corporate social responsibility concept is taken to attain the goals and objectives so that
it will sustain for a long period of time. It also helps in taken effective decisions by improving
the issues that was faced by the companies in adopting the CSR concepts.
INTRODUCTION
Contemporary business development refers to an effective term that helps in managing
the organisation in a wonderful way and could assist in enhancing the profits of the business. In
dynamic business environment, globalisation is increasing and also helpful to expand and
develops the market of the business and their operations in an effective way. In this business
environment it is very significant to analyse the internal and external factors by using the various
factor so that business will sustain in the market for a longer period of time. For eliminating the
negative impact on the operations and profitability of the business, it is very essential to gain the
competitive advantage for this Porters five forces would be needed(Renwick and et. al., 2016).
Further it include the concept i.e. Corporate social responsibility that helps in attracting the
customers so that large number of profits can be earned by the company and due to this they will
sustain for a longer period of time and to prove their effective position in the marketplace. This
report is based on the International airline Group that is one of the largest aviation company in
UK since 2011. This organisation is working with their subsidiaries companies like Aer Lingus,
IAG group, British Airways and many more where they offers the varieties of services to their
customers like Air frieght services, passenger air transport services, airline services etc.
Company annual revenue is based on the € 12.506 billion where 64,734 total employees are
working in all around the globe.

TASK 1
Influence of external environment factors and their importance to organisation
In the structure of operating the organisation, contemporary business environment is an
effective approach because it indulge the external and internal factors. These factors impacted in
various ways in the functions and operations of the firm. Extrinsic factors plays a dynamic role
within the business world by organising and managing the various policies and rules so that
business can overcome the negative aspects and retained for a longer period of time. In this
PESTLE analysis is very attractive and intense because it helps in providing the opportunities
and threats that was present in the external market for the company. For gaining the competitive
advantage International Airline Group can adopts the Porters five forces model so that they can
sustain for a longer period of time. These terms are adopted by the firm as a strategic tool that
helps in evaluating the all factors that are place outside the business organisation(Nixon and
Burns, 2015).
PESTLE ANALYSIS
PESTLE analysis refers to an strategic framework that is used to analyse and monitor the
external environment that will impacted the performance and operations of the business firm. It
is based on the six basic factors such as Political, economical, social, legal, environmental and
technological. This tool helps in gaining the effective and essential knowledge regarding the
outside market so that negative aspects can be overcome without facing any issues. This factors
affects performance and profitably of the business enterprises. Pestle analysis related to
International Airline Group in the UK market can be shown below(Moritz and et. al., 2020).
 Political factor- This aspect can mainly focuses on the regulations and policies that is
imposed by the government in the past years. It effectively shows the role, rules and
policies of the government on the businesses in particular global market. In the aviation
industry, political factor highly in favour to the passengers over the airlines. In this
International Airline Group is operates in the environment where passenger safety is
more important then any other functions within the airline company. As International
Airline Group is the largest airline brand in the UK as well as in world. But recent
political forces are basically not in the favour of the organisation because of
BREXIT(Grefen and Turetken, 2020). This create a great deviation in the UK economy
by resulting as creating uncertainty and instability of the government. In the response of

recent political condition that is effectively not in the favour of the company due to this
firm may suffer incapability and complexities.
 Economical factor- It is associated with the economic conditions that are mainly
depends on the GDP, Purchasing power, inflation rate, interest rate and many more. The
recent condition of the UK is not much stable due to BREXIT and COVID- 19 that will
place an drastic impact on the organisations mainly aviation companies growth and
developments. Because of Locked down occur in all over the world due to pandemic
attack people cannot travel to country to another that this majorly effect the operations
and profits of the International Airline Group. It also negatively impact the economy
because of unemployment created within the UK. From this discussion it showcasing that
the this factor directly and indirectly affect the profits and growth of the business and also
the purchasing power of the customers that will affected by the BREXIT and COVID-19.
To overcome this issues company can reduce their charges and follow all the safety
measures that was imposed by government for the safety of customers(Hammer, 2015).
 Social factor- This factor is associated with the changes that was occur in the
demographic region placing an major impact on the airline industry. As International
Airline group, is mainly focus on the customers safety and their convenience and also
their operations are depend on maintaining the social image. Because of Covid 19
pandemic occurs in all over the world people are resist to travel from country to another
and this will impact the profitability of the company. This will majorly impact the
operation and profits of the flight operators such as International Airline Group.
 Technological factor- In UK technology place an greater impact on the Airline
company. Because in UK company can adopts the advanced technology to attracts the
customers. In this they can use scanning the document, shipping of products, booking
tickets all done by using effective technology. This shows an attractive core factor for
the aviation industry apart from the other like safer aircraft, efficient-fuel etc. that reflects
the prominent sales and service technologies that majorly helps the International Airline
Group to grow the market and sustainability in the marketplace. Due to this, International
Airline Group can mainly invest in the technology for higher efficiency and profitability.
This factor is the key aspects of the customer satisfaction by serving the technologies in
process automation, cargo handling, on boarding etc. and Due to Covid19 pandemic IAG

can focus on using technology in scanning the people passport and many more so that
there is no interaction is placed between the human being.
 Legal factor- It is an effective factor in concern of the aviation industry in UK market.
Apart from safety and security of customer and passengers, laws related to the employees
are also essential for smooth functioning within the International Airline Group. The
major role of this factor is to retain the employees so that organisation operating cost
would be managed in an appropriate way. As this factor impacted positive in the
concerned company because they follow the proper rules and regulations related to
employees safety also such as their insurance, proper laws for their salary and the health
and safety law etc. so that functions can be done properly and efficiently(Leonidou and
Hultman, 2019).
 Environmental factor- In airline industry, environmental factor place an essential role in
the operations and functions of the organisation. For safety measure for the environment
International Airline Group can take some steps that reduce the negative environmental
impact on the business sustainability. In this, firm is committed to eliminates the carbon
footprints that shows the Flight Path Net Zero and business enterprise plan to achieves
this target by 2050. for recent terms they attain the goal related to reduction in 20% in
CO2. For this firm continuously focus on the advanced technology for controlling the
carbon emission. This also helps in attracting large base of customers and make a loyal
customers for a longer period of time.
Porters five forces model
Using this model helps the company to gain the competitive advantage in the
marketplace. It is essential for enhancing the profits and longer sustainability in the industry. Due
to this manager of IAG can explain five forces below.
 Bargaining power of customers- On regional level bargaining power of customers are
high because customers attracts towards the cheap options when they travel on the
regional level. In this internet helps the more because at there customers easily compare
the prices. Due to this International Airline Group can lowers their cost so that they can
beat the competition(Okpaluba and Nwafor, 2019).
 Bargaining power of suppliers- In the aviation industry bargaining power of the
suppliers are moderate in nature because in this International Airline Group is purchasing

the raw material and resources from the limited number of suppliers due to which they
can charge the price as per the set guidelines mentioned in the deal. This helps in
arranging the resources on the appropriate time and in suitable price.
 Threats of new substitutes- On international level travelling threats of substitute is
containing mow degree. But at the regional level this threat is high because customer
prefer cheap solutions for travelling. In IAG, travel on international basis helps in gaining
high profits as compare to local basis.
 Threats of new entrant- This term contains low degree in International Airline Group
because they operate on a huge level and to beat the firm with such a high capital and
resources is very difficult. Due to this company can gain high profits and sustainability.
 Rivalry of the firm- There are major competition present for the International Airline
Group as they deal in international level due to their they can compete with more rival
firm. To gain the high competition they can focus on providing the high quality services
to their customers(Alzyoud, Ogalo and ACDMHR, 2020).
TASK 2
CSR and sustainability of International Airline Group
It refers to an approach which is regulated as a business model that is mainly accountable
for helping the people of society and stakeholders of the company in an prominent manner. To
being socially responsible, organisation can develops their reputation by following CSR. Due to
this brand image of the business enterprise would be enhanced. In this societal factors have
providing the high leverage in the usage of the society and environment resources. This term also
helps in motivating the employees and investors to stay up with the company so that it will gain
more and more profits. In case of International Airline Group, this term is very helpful for
gaining high market share and profitability on a long term basis(vom Brocke, Zelt and
Schmiedel, 2016)(Alvarez, 2016).
Relevance to organisation and how policies and decision making influence decisions
International Airline Group is a largest aviation company in UK that is related with the
airlines industry headquartered in London, UK. The company was established in 2011 that serve
the various services related to air mode on a global nature.
Relevance of CSR and sustainability with the International Airline Group

International Airline Group is a big organisation in the aviation business world that is
operating on the international level. They also have number of customers and suppliers by whom
they make their effective relations with the people and stakeholders for increasing their brand
image. For maintaining the high sustainability company need to follow the CSR policies so that
they can highly focus on the customer satisfaction and environment safety. In this they can
adopts the various aspects like fuel efficient technique, customer safety, employee benefits etc.
all this terms helps the business enterprise to sustain for a longer period of time. This term helps
in making loyal base of customers and high market growth for a longer period of time.
Influence of CSR on International airline Group policies and decisions
It involves several elements that are presented under the managerial policies that impacts
the decision making of the International Airline Group. In this organisation can make follow the
strategy related to the CSR concepts activities and this terms helps in gaining the longer
sustainability within market. In this firm are required to follow the various strategies that are
present under the CSR approach so that it helps in developing the growth and market share.
Various requirements of CSR in context of International Airline Group can be shown
below(Renwick, 2018).
 Customer influence- They are the king of every company and in this organisation can
take decisions according to the customers and their purchasing power so that reputation
of the business firm will be enhanced. The decisions are majorly based on the brand
preferences, nature friendly and discount price etc. In this International Airline Group
having high base of customers in which their CSR activities are helpful i.e. their safety
and convenience that shows the company is socially responsible. This will enhnace the
brand image in marketplace.
 Investors influence- In this aspect CSR helps in assisting the International Airline Group
in making the decisions that is based on the investment. In this company can focus on
investing the business in such a manner that helps in optimally utilising the resources and
helps in attaining the goal within an intense manner. This term helps in longer
sustainability because of getting huge investments from the shareholders so that
operations can be done smoothly. In this organisation can plan those strategies which can
help investors to fell free in investing their monetary value. \

 Employees influences- Manpower of the aviation companies are play an Important role
in order to attaining the goals in a successful manner. In case of International Airline
Group, they place their employees on top heights and treat them as an valuable resources.
This helps the firm to sustain for a longer period of time within the marketplace because
workforce are working with their full efforts. Due to this objectives can be achieved on
the basis of set decisions because of employees are fully satisfied with the company
environments(Raddats and et. al., 2019).
 Public influences- For influencing public, Media is playing a significant role making the
company a top brand or a low brand in the international market. This will affect
organisation in both positive and negative way. IN case of International Airline Group,
for influencing the public towards the brand company adopts the CSR policies in an
effective way.
 Competitors influences- In this companies can follow various policies and rules that
helps in examine the rival firms strategies. As competitors are seen as a major threat for
the business but adopting the CSR policies by International Airline Group, helps in
gaining the competitive benefits so that they will survive in the business industry for a
long period of time.
Critically evaluate effectiveness of organisation response
CSR is critically evaluated the effectiveness of the business response by making them
accountable in-front of the society. In this International Airline Group can mainly focus on
securing the rights of their stakeholders by adopting several responses. It involves various ways
from which company can ensured their sustainability by the CSR that can be shown below.
 Focus on Retaining customers- This is very essential for every organisation to make a
loyal customers for a long period of time. For International Airline Group, the core
requirement is to gain the loyal customers by providing the good services to their
customers. As This company will focus on safety and securing the customers that they do
not face any issue when they travel. And company also focus on ensuring the privacy of
the customers. But due to social media it become a challenge because other competitors
are also focus the same thing. So it is important for firm to secured the company data. It
is the major duty of business enterprise to fulfilling the needs of customers by saving the

customers personal data etc. for this IAG working continuously(Hamilton and Webster,
2018).
 Going Greener- By focusing on the CSR, International Airline Company can gain the
high market share by protecting the environment to eliminating the carbon footprints for
safeguarding the environment that does not pollute the society atmosphere. The company
plan to 20% reduction in the CO2 emission and also set net zero carbon by 2020. for this
IAG regularly focus on the technologies so that they will sustain for a long period of
time. This will helps in attracting the large base of customers for improving the
operational efficiency and getting more and more revenues. All This involves the huge
cost and time and due to this operations of the company may affected.
 Reducing unemployment- As International Airline Group, is offering employment to
the unemployment people according to their skills and experience. For reducing
unemployment issues company acts a socially responsible in front of society. Due to this
there existing employees job are not safe and they place negative reviews in the society
due to this image of the organisation impacted.
 Ethical and compliances- International Airline company is one of the prominent
company and to maintain this, company need to follow all the ethical norms that are
imposed within the industry and country. In this firm need to ensures that there
employees follows the ethics and maintains the discipline so that they can gain the
competitive advantage within the marketplace. In this there is major chances for
manipulating the employees for not following the ethical values to gain more monetary
value. If this will be done by the side of employees than it would affect the brand image
of the business enterprise(Lange, Lenglet and Seyfert, 2016).
 Solve complaints of customers- International Airline Group is always working for
solving the problems and issues of customers in an effective way. But because of more
work pressure they cannot effectively focus on every customers issues and this will
reducing the loyalty and trust of the people on the business enterprise.
Demonstrate areas of improvement in response to organisation
 International Airline Group are majorly focus on the Corporate social responsibility and
focus on protecting the interest of the different stakeholders according to their
requirements. This helps in gaining the high customer base and employment satisfaction

within their job. The major objective of CSR in IAG to expand their presence around the
globe by offering varieties of services to their customers and facilities to their employees.
In this they offers the varieties of employment opportunities within the UK this helps in
gaining the economy of the country as well as spending power of them. This helps in
developing the society due to this they get full support from the government side. This
helps in growth and development of the IAG. In this aviation company need to improve
some areas like being accountable towards the stakeholders and make a trustworthy
nature with the customers(Gunasekaran, Subramanian and Ngai, 2019).
 Due to unrest in the economy of the UK due to recent past years International Airline
Group can frame some policies internally that will reduced the effect of agitation in the
economy so that losses can be minimised.
 Ethics and discipline are the core elements that make a brand a good brand. To overcome
the issue of misunderstanding of the employees they focus on the employees safety, pay
and benefits within the principles of ethics. And in this if any employees could not follow
the code of conduct than they can punish them.
 It is very essential to keep focus on the needs and satisfaction level of the employees so
that they work productively to gain the high profits and revenues and beating the
competition within the marketplace. This is to be examined by the relations between the
employees and employers because if it is good work can be done effectively that give
proficient results.
 As this fact is concerned with the International Airline Group with the purpose of
minimising the environmental impact on the business profits and sustainability. As there
high consumption in the fuel with majorly affect the health of the people. To overcome
this issue company can make some strategies in which they eliminates the CO2 in the
environment by properly implementing the CSR policies(Gunasekaran, Subramanian and
Ngai, 2019).
CONCLUSION
From the above report it is to be concluded that an impact of the extrinsic environmental
factors on the organisation can be examined by using the PESTLE analysis that is an effective
term. It helps in analysing the positive implications that will grow the business operations and
profits and negative determinants that can be reduced by following the essential policies. This

research report also includes some themes that ensures that the organisations will sustain in the
market for a longer period of time. That will also affects in gaining the competitive advantage.
To follow the corporate social responsibility business firm may follow some policies that will
involves the legal and ethical compliances. This helps in getting the high support from the
stakeholders that is very significant for the success and growth of the organisation.

APPENDIX
COMPANY OVERVIEW
International Airline Group is one the largest Anglo- Spanish multinational company that
headquartered in London, UK. It was established in 2011 that serve their services worldwide.
The company tool a merger with British Airways, Iberia, Flag Carrier of UK and Spain etc. In
this there are 64,734 employees are working within all over the globe. They earn a total revenues
of €25.506 billion. IAG having 598 aircraft flying for 279 destinations.

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