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The role of external influences in business and management

   

Added on  2020-12-29

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CONTEMPORARYDEVELOPMENTS IN BUSINESSAND MANAGEMENT
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TABLE OF CONTENTSINTRODUCTION3TASK 1..........................................................................................................................................................3Primary external influence of British Airways ( PESTLE analysis).............................................................3TASK 2..........................................................................................................................................................6Relevance of corporate social responsibility and sustainability...............................................................6Critical evaluation of effectiveness of organization response.................................................................8Areas require improvement in British Airways ....................................................................................10CONCLUSION.............................................................................................................................................11REFERENCES..............................................................................................................................................13
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INTRODUCTIONContemporary development in business and management refers to the developmentwhich have assisted the companies in improving their operations. With the development in thefunctioning of the organization help in increasing firm’s profitability. In business, there arechanging in process and functioning with the emergence of new developments. This study willconsider British Airways which is the second largest airline in UK providing Travel services toits customers. It has earned total revenue of equal to £11,443Million in the year 2016. In thisassignment, it will contain information about primary external influence on the organization.Also, it will contain information about corporate social responsibility and sustainability and itsimportance to organization and their influence on organization decision making. Moreover, itwill provide evaluation of effectiveness of organization response towards Corporate socialresponsibility and sustainability. Furthermore, it will include information regarding areas in theorganization which requirement improvement.TASK 1Primary external influence of British Airways ( PESTLE analysis)It is important to identify the various external factors which affect the businessenvironment. British Airways requires to identify the factors present in the external environmentto reduce their negative impact to gain competitive advantage towards the rivalry existing in theorganization. The following are the factors of Pestle analysis of the British Airways :Political factors: These are the factors present in the external environment of the Britishairways but have greater influence on the operations performed by the firm. These factors consistof government policies, taxation policies and other factors which have their influence on thefunctioning of British Airways. Moreover, British airways will be affected due to influence ofBrexit which will reduce their customer base. There is high regulation on the operations of theBritish Airways. However, every business is required to be regulated as airline industry is highlysubjective to regulations and it is useful for routes which are selected by airline and used airportslots with set fare. Further, the business partners which it operates and pays for infrastructurecosts. The government of various countries throughout world it put forward various security
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measures to fight the risk of unlawful migration and violence. Although, airlines participate withmultiple government in context to guarantee safety and security. For example, taxation policy ofUK affects the operation of British Airways because it will hamper their profitability level andthe prices it charge for its travel packages (Gerasimov and Gerasimov, 2015). This politicalinterference of the government affects the profitability of the firm due to which the businessoperations of British Airways are hampered. Economic Factors: In the present scenario, economic decline is very common withcontext to business as business travel is highly reduced because of declines. On basis of globaldownturn, British Airways is highly affected in various methods such as increment in prices ofoil and services, collapse of sterling and extraordinary financial crisis faced through UnitedKingdom. It consists of those factors which are related to the economy. These factors have theirinfluence on the business environment because with the changes in these factors the organizationalso has to adopt those changes in order to reduce their negative impact on their business. Itconsists of factors such as inflation level, interest rates etc. With the changes in these factors thebusiness activities are also affected and in order to reduce the negative impact of this factors onbusiness operations. For example, rise in the inflation level in the UK will affect the pricescharges by British Airways on their travel packages. The economic factors need to be analyzedin order to identify this factors because by analyzing this factors firm is able to make changes intheir operation and can formulate various strategies to reduce the negative impact of this factorson business operations (Tukhvatulina and et.al., 2016). The economic factor such as low fuelprices have increased the profitability of airlines in short run.Social factors : In this context, It refers to the factor related to the society which havetheir great influence on the performance and activities of British airways. Individuals require totravel with those airline which are trusted. Also, they look for better quality services in order tohave the best experience during their travel. The social factors consist of income level ofindividual, affordability, lifestyle and taste and preferences which affect the business activities.For example, if the customer is from low income group it will require to have travel that thetravel packages which are affordable. By analyzing this factors , British Airways is able tounderstand the demand of customers and their taste and preference and could provide themservices as per their requirement to provide them better experience. The increasing perception of
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