BUSINESS ENVIRONMENTANALYSIS OF BRITISH AIRWAYS

BUSINESS ENVIRONMENT ANALYSIS OF BRITISH
AIRWAYS
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Table of Contents
Introduction:....................................................................................................................................3
LO1:.................................................................................................................................................3
1.1 Identifying the purpose of different institution:.........................................................................3
1.2 Factors in which the institution meets the need of stakeholders:..............................................4
1.3 The duties of the institution and strategies to meet the standards:............................................5
LO2:.................................................................................................................................................6
2.1 The procedure in which the economic system allocate the different resources:.......................6
2.2 The effect of the fiscal and monetary policies in the institution:..............................................6
2.3 The effect of the competition and regulatory mechanism in the British Airways:....................7
LO3:.................................................................................................................................................8
3.1 Describing the impact of market structures on finalising the business decisions of cost and
output...............................................................................................................................................8
3.2 Explaining the means by which the market forces gives a shape to the responses of the
organisation......................................................................................................................................9
3.3 Judging the ways of shaping up of the behavioural attitude of the chosen organisation by the
business environment and cultural environment.............................................................................9
LO4:...............................................................................................................................................11
4.1 Describe the importance of global trade to business firms of UK...........................................11
4.2 Evaluating the influence of international factors on the companies of UK.............................12
4.3 Analysing the influence of policies framed by the European Union on the companies of UK
market............................................................................................................................................12
Conclusion.....................................................................................................................................13
References:....................................................................................................................................14
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Introduction:
The British Airways is one of the largest and most profitable organisations not only in the United
Kingdom, however also in the world. The British Airways is conducting its business since 1972.
Thus, to maintain a sustainable position in the competitive market, they are able to apply many
successful methods. Maintaining the business environment is one of them, the business
environment is crucial for almost every organisation whether it is a profitable or unprofitable
company. Thus, The British Airways concentrated in this matter by maintaining both the internal
and external environment of the organisation. In this study the purpose of the organisation, the
nature of their business and the global factors that have assisted the company to shape the
business is evaluated.
LO1:
1.1 Identifying the purpose of different institution:
Mainly three types of organisations are there in the business market public, private and charitable
organisation. However, the objectives or the purposes of these three organisations are very
different from each other.
The main motto of all the public sector institution in the United Kingdom is to concentrate less
on the profit margin and serving more to the people of the country. For an example, the fire
service department in the UK focuses on the entire problem related to the fire and rescue service.
Mainly the head of the institution is the government and they think of the service first the profit
ratio for them does not matter that much (Balmer, 2012, p.1064). However, they have their own
rules and regulations and the third parties do not have any rights to interfere with the terms and
service of the organisation.
On the other hand, the private organisation’s objectives are to some extent opposite to the public
sector organisation. Earning as much profit as they can in a single financial year is their main
objective. In addition, they do not tend to forget to give quality service to their customers. The
head of the private sector institution is generally an individual or a particular group of people.
The British Airways is one of the leading private sector organisations in the world. In the year of
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2015, they made revenue of almost 11,000 pounds alone and this was made possible by only
providing a good business environment to their internal and external stakeholders
(Britishairways.co.uk, 2017). The British Airways has their own policies in the organisation;
however, they have certain limitation made by the government before implementing some new
policies in the organisation.
In addition, the charitable organisation in the United Kingdom entirely focuses on giving a
proper service to their customers. The British Airways is completely a non-profitable
organisation that does not focus on the profit ratio. For an example The National Kidney
Federation in The United Kingdom is a unique charitable institution, the company runs by the
kidney patients and they provide kidneys to the patients in need. However, these kinds of
organisations most of the time based on the funds provided by the third parties.
1.2 Factors in which the institution meets the need of stakeholders:
The stakeholders of The British Airways play a huge role in the development of the institution.
Generally, two types of stakeholders are there in the organisation one is internal and other is
external stakeholders. Conducting and maintaining the position of a successful business is not an
easy factor for The British Airways, in every step they needed to meet the standards of each
stakeholder to make their service effective (Markides, 2013, p.314). The stakeholders of The
British Airways do not only mean the employees or the investors of the institution. It also means
their valuable customers and their needs come among the top priorities of The British Airways.
The organisation applies different policies and strategies to satisfy the requirement of the
stakeholders. Managing the internal stakeholders that consist of the employees, different
managers, senior executives, the company allocated a skilful human resource team that one of
the major duties is to solve their major and minor issues. The company tries to organise many
monthly and weekly meetings, where they know about their expectation and even they do not
hesitate to take any suggestions that would benefit The British Airways (Cameron and Whetten,
2013, p11). The company tries to give a handsome monthly salary to all their employees and
schedule proper work timing so that the workers would be able to balance both their personal and
professional life. The British Airways knows applying these policies would benefit their
company in many ways.
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