Report On British Airways - Business Environment Challenges
Added on 2020-02-05
13 Pages3923 Words39 Views
Political Science
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INTRODUCTIONBusiness environment is the most important aspect as it includes both internal andexternal factors which affect the development, performance and outcome of an organization.Present report is based on British Airways which is the second largest airline in United Kingdomin terms of passengers that it carries. Further, report covers the identification of different types oforganizations which are operating in a nation and contributing towards economic development ofthe same. Furthermore, challenges which occurred due to fiscal and monetary policy on businessenvironment have been analyzed effectively. In addition to this, impact of working practices andcultures of countries has been specified with respect to British Airways.TASK 11.1 Organization can be defined as group of people that collaborated for the attainment ofspecified goals and objectives. Some organizations have objective of profit while someorganizations work for welfare. There are different types of organizations that work in differentsectors. These are explained as follows-Public sector- The public sector corporation is governed by state or government of UK.Main motive behind public sector is to maintain the balance in economy. It facilitates tomeet the expectations of stakeholders and deliver good quality of services to them.Furthermore, the public sector organization generates employment in the nation.Furthermore, British Airways is working for providing services to customers and creatingbalance in economy of UK (Svenssonand Wagner, 2015).Private sector- Private sector is another imperative part and main purpose of the same isto make high profitability. It assists the corporation to work in the direction of growth andsuccess so as to meet the expectations of different stakeholders like shareholders,employees and customers. This in turn can increase the customer base and would enhancethe productivity in the same direction (Wantao andRamanathan, 2012). Sole trader- It is the single business entity where overall risk is taken by the sole trader.He/she can work for the growth and development of the corporation. However, the mainpurpose of sole trader is to increase profitability. Thus, main aim of all businesses is to2
increase the profitability and contributing towards the economy development. However,non-profit organization merely works for the growth of country.The mission, vision and objectives of British Airways has been specified as follows-Mission & VisionThe mission of organization is to become the leading airline in world. It assists themanagement to put efforts towards the upward direction of business. Furthermore, vision ofBritish Airways it to respond towards clients as well as customers (Kourteli, 2008). Vision andmission statement of corporation enables the management to work to achieve the specified visionand mission. In this way, company comes to know about the corporate strategies which need totake place.ObjectivesThe objectives of corporation are formulated in accordance with the vision and missionstatement. Here, company focuses on meeting rising demand of customers and bringingmodification in the services as per the feedback of buyers (Krasniqi, 2009). Further, to makeinvestment decisions to improve the service quality and other facilities are the firm’s short termobjectives. 1.2Impact of challenges on stakeholdersThe stakeholders play a major role in the completion of business activities becauseoperations of firm are directly or indirectly connected with them. Under this, shareholders are themain party who are directly engaged with the operations of company. For example, economiccrisis created barriers which had direct impact on the shareholders because their rate of returnwas decreased to a great extent (Didonet, 2012). On the other hand, debt crisis affects theperformance of firm in a negative manner because employees were not paid as per the setstandards. In this regard, employees get disappointed which ultimately has a negative impact ontheir performance. Impact of challenges on stakeholders is enumerated below:Customers: Customers of BA expects qualitative services at fair prices in order to makeincrease in their level of satisfaction. For this aspect, management of company provides3
various discounting offers to the customers. In addition to this, they aim to makecontinuous improvement in the operational activities in order to enhance the quality ofservices.Government: Regulatory authorities are interested in operations of business due to taxpurposes and corporate governance. For this aspect, companies discharge their taxliability in proper manner. Further, they are committed towards their social andenvironmental responsibilities.Suppliers- Due to the challenges company is not able to make timely payment to thesuppliers and sometimes they have to compromise with the quality to meet customerdemand. Management of BA believes in collaboration with the suppliers in order to attainwin win situation. For this aspect, they held regular meeting with the suppliers in order toinclude them in decision making process.1.3 British Airways is fully responsible towards its stakeholders and management formulatesdifferent strategies to meet their needs and demand. Here, company fulfill its responsibilitiestowards employees by providing them healthy working environment and appropriate salaries.Similarly, customers are provided with services as per their requirement. It helps to enhance theirlevel of motivation and satisfaction. On the other hand, shareholders are invited in the boardmeeting so as to incorporate their views in the decision making process. Furthermore, rules andregulations laid by government are also implemented by the firm which determines ethicalaspects of company. In the same way, corporate governance is considered on the top most factorsof British Airways by which its overall productivity and profitability can be enhanced. Forexample, company took strategic action in order to merge Iberia. This in turn has a direct impacton the prospectus of shareholders (Krasniqi, 2009). Also, it increased the customer base to a4
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