Macro-Economic Factors and Global Challenges Faced by Virgin Atlantic Airlines

This report discusses the macro-economic factors that Virgin Atlantic Airlines needs to consider, such as inflation and unemployment rates, and their impact on the business outputs. It also analyzes the current global challenges faced by the company, including unemployment and fuel costs, and provides recommendations on how to overcome them. The report also examines how the UK's current growth rate will affect the business and how government intervention methods, such as fiscal and monetary policies, can impact the company. Overall, the report provides insights into the business environment and the challenges faced by Virgin Atlantic Airlines.

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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Explain two macro- economic factors that your chosen business will need to consider and the
influences these could have on its business outputs (macro-economic factors e.g., economic
output, unemployment rates, inflation,). .........................................................................................3
What are the current global challenges facing by the chosen business and recommendations
on how to overcome them in this current time? .........................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The concept of business environment shows the different variables which contains the
internal and external factors which make an impact on the capability of the enterprise. The
factors were matching the need of customer and workers, demand and supply, interest of
individual, administration, changes in fiscal and the contractor of raw material. This will help in
researching for work and business on presentation, growth and development of a firm. The
activity of macro-economic is introduced to the changes which are compounded as pecuniary
actions, the rate of unemployment and many more this helps to gather the data related with
economy and controlled through nations government(Wronka, 2021). In this report the company
which is taken into consideration for discussion is virgin gathering ltd. This is a British
organisation which was developed in the year 1972 and the organisation gives some infinite
operation for bunches like virgin occasion, virgin aircraft, virgin media and many more. This
report also discuss about the factors which will cause the impact on functioning of virgin atlantic
airlines, which establishes and incorporates growth, enlargement and rate of unemployment.
MAIN BODY
Explain two macro- economic factors that your chosen business will need to
consider and the influences these could have on its business outputs
(macro-economic factors e.g., economic output, unemployment rates,
inflation,).
The full scale term determines a pecuniary field which will restrict the fiscal movement.
For an instance, the fiscal rate, growth and expansion, rate of GDP and many more. The big scale
of monetary term is being referred as three kinds such as positive, negative and non partisan. The
broader scale of money calculation assistance is approximation to what is the store expansion of
footstep, rate of unemployment and the other variables. This figure will rate the alternative which
will be taken through state and association. The virgin atlantic's business demonstration will be
affected through a great number of external factors, this will lean for collecting the designed
target and research of company's exhibition. The virgin atlantic is a british global carrier which
will lay down in the year 1984 for flying between London and Falkland islands. Normally this is
one of the portion of virgin gathering. The macro climate affects the Atlantic aircraft and

techniques. Some of the factors are influencing the whole virgin Atlantic's airlines. The outcome
is discussed below-
Inflation: this is to be suggested that the tax which grows the expenditure of labour and products
regularly in a economy within a given time span. Basically the enlargement is for measuring the
general purpose for increasing cost. Such as this is a footstep for expanding the expenditure of
these products in prescribed time frame. This is what occurs and begins when there is
involvement of labour and products is expand for lookout. The Virgin Atlantic Airline increasing
the price have impulsive results for having vast expenditure at the lookout. There is many infinite
trouble which have aspect for supply products and management, for spread out cost of products
and this will influence the economy of the company and the execution system in present year.
Because of the traveller at Virgin Airline, they were not changing the administration this is
danger for the CEO. This will measure the essential expenses of fuel which will influence all
purpose of organisation of fiscal plan, which adds the advantage of enterprise for fuel which will
help in fly and this will share the information for other partners in this business.
Unemployment Rates: this will point out the steps for unemployment which will investigate the
rate of workers who were not working at any place. The level of work is not working. The
present condition will increase when monitory condition will change the rate of economic system
is fallen and feeling of dread for work increases in the market. The current situation is bountiful
on the possibility of developing economical system in solid way, the rate of unemployment is
covered. The crises of Covid-19 have influenced the unemployment in United Kingdom because
of current condition which is infinite group of people which mislead the place and due to rate of
unemployment in economy is falling down. The Virgin Atlantic Airline is dynamic in the market
as this is the most unforgettable air travel endurance where this is organized and manages 45%
employees for imminent variation in the system of market. There is unknown expenditure of
more than $530 million. In this time period the series of methodology of market will helps the
economy for picking the places(Savina, and Barbashova, 2019). These were additionally raise
the force through recruitment of new workers which helps in decrease the rate of unemployment.
How will the UK current growth rate impact on the chosen business (give reference to
economic life cycle, GDP, inflation, unemployment rate)

As per this research, this is analysed that the economic system of United Kingdom's
economic rate system will increase to 7.2% in 2021 and the GDP will rise 1.5% in period of 3
months. United Kingdom have better outlook for conveniences of everyday as per the
individuals, this is an growing company. The happening of Covid-19 pandemic causes to many
organisation which terminates 9.4% decrease as per finishing in 2020 the similar measure for
individual's good causes an impact on lookout of the people of United Kingdom and have an
great impact by the pandemic and effectively on the economy of UK. There are very less sources
which were accessed through Virgin Atlantic Airline and tremendously affect the evolution of
pace.
Economic life cycle: The general economic system of country is examined in 4 phases of series
which will be made for improvement, construction, elevation and box. These factors help in
investigate the actual period of time of fiscal cycle which is incorporates the example, enterprise.
Client, enlargement, GDP and many more. The current system of United Kingdom will rate
impacts on the Virgin Atlantic Airline which will be calculated in four phases for pecuniary life
cycle, this helps to improve the understanding of the individual(Mehboob, 2020). These are the
phases which will help to determine the on-going evolution-
 Expansion: The level of economic experience will tends on low level of engagement
rate, the appraisal in this industry will re-build the inflation. The price rise of Virgin
Atlantic Airline will face because of increasing in demand of company and the price of
fuel is also increases.
 Peak: this is a period of time when the economic growth will exploit in rates of upper
limit. In this phase basically accuracy of instability in economic system of Virgin Atlantic
Airline will make a limited growth for the right of unstable operation which assists in
future growth of an business(McConalogue, 2021).
 Contraction: This is a period of time in which all the falls were operated slowly and
accurately from the period of time. There is ratification of fall in employment, changes in
value, growth and development is slow, etc. Virgin Atlantic Airlines will made so the
whole criteria is to be solved and correct by this phase for the future.

 Trough: In this phase the economical life will exploit low level which will develop the
low economy and retrieve this from the occurrence. The Virgin Atlantic Airlines will
synthesis the organization of business environment for recovering the business.
Gross Domestic Product: This is known as the GDP, this will measures worth of production for
goods and services in the country at a particular time period(Longhurst, 2021). The estimate of
GDP in United Kingdom will discharge on basis on month and this will also known as short run
term indicator. The GDP will grow by 1.5% in 2022 this is through the increment of travel
agencies.
Inflation: Price rise is referred as the increasing rate of the mediocre price for goods and
services in this economic system in given period of time. Basically the inflation is for
measurement of total increment in price and value. This is a charge for value increased for goods
in particular time period. This is a condition which will began with the goods demand and
services increase in market. The inflation rate of Virgin Atlantic Airline starts because of large
market value.
Unemployment rate: The unemployment rate is to be referred as the rate for worker who do not
work presently anywhere. This is the portion of the labour who are unemployed right now. The
condition is originates when the condition of economic changes and the economic rates will fall
and concern of jobs will arise in the market(Lampadarios, and Kyriakidou, 2020). The
unemployment rate in UK will increase due to pandemic crisis in which this will measure some
better company operations.
How can the government current intervention methods affect the selected busines? (e.g.,
fiscal and monetary policies, furlough scheme etc).
Some of the people play the leading role in market due to the ability for changing the
environment of work and policies, this also includes fiscal and monetary aspects. This also
operates the operational function in market. Assist in boost the currency and increase in profit
and rate of interest. For Virgin Atlantic Airlines, this have some different government policies
which affect business. The methods which were followed-
• Fiscal Policy: this is known as the policies which is used by the government and spends for
create the condition for economics, this includes jobs demand, inflation, growth, goods and

services. Currently the budget balance posts the rule is combination for two or three which
exceed the overall GDP forecast with 3%, the government meeting rules by 5% of GDP. The
Virgin Atlantic Airlines have huge loss in market as compare to the other fiscal policies when the
government will bear the GDP loss in the market. The policy will target national debt and also
assist in analysing current national budget. The government will call the primary fiscal rule, in
which the debt rule will be shared across in country three times in a year. The recent budget of
state will show the surplus in the forecasted period(Han, Song, and Yao, 2018).
• Monetary Policy: the set of policies will assist to control the amount of money which is
available in the economy and this is also control the channels which is supply through new
money. This is referred for the tools for control central banks for maintaining rate of interest,
which are interest rate, supply, demand, money, etc. this is supply for money which decline with
the changes in interest rate. This is to be set through central bank and change the rate of interest
and supply of money. Particularly, The Virgin Atlantic Airlines will focus on effective operating,
this will help company in a wide difference of monetary policy. The Virgin Atlantic Airlines will
measure the improving labour and predict people's rate of interest, this is to be analysed that the
cash flow is going in right direction or not.
• Vacation program: This is referred to vacation which is taken and temporary through the
worker for specific need or situation, or this is because of the economic condition of of the
worker. This can be short or long term. The program have to be set up for supporting the worker
and staff in the situation of Covid-19 in which the member of staff will take temporary leave
which depends on the situation. In connection to Virgin Atlantic Airline they provide the
program for senior staff and the workers in which they can take temporary leave. This assists the
enterprise through being the leader in this industry(Cooke, and, et, al., 2021). This will also aid
Virgin Atlantic Airline for getting good work from the workers, this is beneficial for the
company. In this approach the workers can also take leave and improve the work as according to
company's profitability.
What are the current global challenges facing by the chosen business and
recommendations on how to overcome them in this current time?
Recently, the modification in this planet is refer for the changes in the environment,
which is issued world wide. The issue is considered as the climate change, pollution, lack of

educational activity, etc. the issue will affect on the business and this also affect on the improved
work. At the time of pandemic, this is studied that the Virgin Atlantic Airline faces difficulties
and business need for getting good from it. There are many recommendations for business which
will assist The Virgin Atlantic Airlines to fight with this is as follows-
Unemployment: this is referred as the employee or labour who were not working recently any
where. The outcome of Covid-19 will impact on the individual who mislead the work because of
higher quantity of unemployment(Conlon, 2019). This is the investigation which is failure for
unemployment cut down in the whole income of the business. The are opportunities for demand,
but in recent time the business will amend the rules and regulations which helps the employer for
improvement operations which will deposit success of the business organisation.
Fuel: In this it observes the total value of fuel increasing in these days and the extra expenditure
for the business. This can also impact on the fiscal business activities of The Virgin Atlantic
Airline. This is one of the leading problem for business through increase in value of fuel. As per
the Virgin Atlantic Airline, this will reduce the profit and the income gain is higher. This is a
problem which is to be faced by airline or any other enterprise.
Passenger experience: For the other airline services. The experience of traveller and
comfortness plays a crucial role due to traveller's the company is operated. The Virgin Atlantic
Airline have better services for the guests which will help for traveller satisfaction and this will
also help for attract and give service to more travellers(Azmat, and, et, al., 2018). The work
which is done and provided through a business gives safety measure of customers. This industry
will help the customer to find according the requirement and give services as accordingly. This
will aid the business of the increasing the revenue in future development.
CONCLUSION
This report concludes the essentials of Macro-financial in the region for learning which
concerns with the production of economy, rates of unemployment, cost of debt and many more.
There are various kinds of effects which give impact on the unspecific enterprise of economy. In
this report the Virgin Atlantic Airline takes in consideration the generic economic system of
business which is to be measured through GDP, improvement of economy. The authorization of
public have method of mediation in economic action plan and integrate fiscal groups, monitor

approach. Additionally there are various planetary changes which will influence in organization
through natural issues, this is due to the changes in the surroundings, condition of environment,
contamination, etc. The advance pattern may affect the decision of the organization by
disseminating out the costs which is using the amount for organization actions. The reassessment
suggests that the decisions should be taken by the organization and for the for better working and
increment of labour and products. The future improvement of the organisation depends on
examination and analysis of organisation's capabilities and skills which it possess.

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