Report on Business Environment of - British Airways

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types and purpose of organisations....................................................................1
P2 Different size and scope of range of business...................................................................2
P3 Interrelationship of various functions running in an entity and their link with hierarchical
objective structure..................................................................................................................8
TASK 2..........................................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

Illustration Index
Illustration 1: MSME sector in UK..................................................................................................4
Illustration 2: Porter's Five Forces Model........................................................................................6
Illustration 3: Demand and Supply .................................................................................................7
Illustration 4: Organizational Structure of British Airways ............................................................9

INTRODUCTION
Business environment is an important factor that is considered while taking internal and
external judgements for the company. It can affect decision making process of the company by
interrupting in demand, supply, customer management, etc. British is one of the largest airline
company in UK covering 183 destinations all over the world. The report discusses various type
of entities such as profit, not for profit and non-governmental organisations. Further the report
ponders on range of business available in profit entities such as sole trader, partnerships etc.
Moreover, it focuses on various function of British Airways and the operational structure
followed by the company. In the end, a presentation is attached elaborating PESTLE and SWOT
analysis of British Airways.
TASK 1
P1 Different types and purpose of organisations
An enterprise is a social unit which is formed and managed to achieve collective goals.
Different roles and responsibilities are divided among the members in order to carry out different
tasks. Since, the businesses are prone to external market, they affect and get troubled by the
environment factors. There are various types of entities such as profit, non-profit and
governmental.
 Profit organisations: These entities are meant to earn profits where all the members
collect together to achieve the goal of profit maximization. The main motive is to make
money (Belás and et.al, 2015). The associations, that are considered to be a business, are
profit making such as insurance companies, restaurants, real estate companies etc. British
Airways in one of the example of profit corporation which has been established to earn
profits.
 Not for profit organisations: These type of institutions are not meant to earn profit but
to serve the society. The members invest in the corporations without any expectation of
return. They do not share any loss of profit as they further reinvest it into the business.
Few of the approved NPOs are granted with tax exemptions and the contribution made to
these NPOs are tax deductible as well. NPOs include charitable trusts, cooperatives and
voluntary entities formed to serve cultural, professional, religious and educational rights
of the people.
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