Influences of Macroeconomic Activity on Virgin Atlantic Airlines

4003 Project 2
Influences of
Macroeconomic
Activity

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
1. Analyse macroeconomic conditions and their impact on business outputs.............................3
2. How does the UK economic growth rate affect the chosen firm in terms of the economic life
cycle.............................................................................................................................................4
3.The effects of present government involvement techniques on the business organisation......5
4.The present worldwide issues confronting the business, as well as ideas on how to solve
them at this moment are as follows:............................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Macroeconomics is the discipline of economics that investigates how an economy as a
whole behaves and performs. It concentrates on the economy's aggregate changes, such as
unemployment, growth rate, GDP, and inflation. Virgin Atlantic Airlines was founded in 1984 in
Crawlwy, England, as a British airline. It has 32 destinations throughout the world where it
operates flights (Alexander and Eberly, 2018). COVID-19 has a significant influence on how the
firm operates as a whole. This study will examine macroeconomic issues and their impact on the
overall performance of the company, as well as the pace of economic growth in the United
Kingdom. The report examines the initiatives of current government that have an impact on the
company' overall operation. Finally, it addresses some of the company's issues and offers sound
advice on how to solve them in the short term.
TASK
1. Analyse macroeconomic conditions and their impact on business outputs.
Macroeconomic factors are described as important fiscal and geopolitical events that
have a significant impact on the regional and national economies of the United Kingdom. These
issues tend to affect the economy as a whole, rather than simply a few individuals. The two
macroeconomic elements that are most commonly discussed are unemployment and inflation,
which are described as follows:
Inflation:
Inflation occurs when the value of a currency falls and, as a result, the overall level of prices for
goods and services rises. Inflation is a term used to describe the overall impact of price changes
across a wide range of goods and services, and it provides for a single value description of the
rise in the price level of goods and services in an economy over time. Inflation, according to
Virgin Atlantic's CEO, will drive up expenses significantly (Cantele and Zardini, 2018). Due to
supply constraints and rising labour costs, the airline will bear the brunt of the costs of flying
more sustainably this year, with passengers footing the charge. However, the CEO warned that
increasing the total quantity of sustainable aviation fuel, which is now 3 to 5 times more
expensive than conventional gasoline, would directly hurt the CEO's (Virgin Atlantic CEO