Understanding Business Organisations - Desklib

This report on Understanding Business Organisations covers the organizational structure and business environment analysis of Virgin Atlantic. It includes insights on the advantages and drawbacks of tall organizational structure, SWOT and PESTEL analysis, and more. The report does not mention any course code or college/university.

Understanding Business
Organization

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Organizational structure..............................................................................................................3
Business environment analysis...................................................................................................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The business organization is defined as an entity or enterprise which is formed for the
aim of carrying on commercial company. Such kind of company is predicted on systems of law
governing contract and exchange, incorporation and property rights. Here the main motive of
business organization is facilitated best quality product and services to customers as per their real
needs and wants. Due to providing best class services to users, the popularity and market share of
organization are easily increased at higher rate within low time. The selected company is Virgin
Atlantic and it is the multinational airline company. The company was established in 1984 and
the head office of this firm is located in UK (Alzoubi and Ahmed, 2019). The Virgin Atlantic
Airline is a British company and they are facilitating high class facility to clients according to
their needs. The report will cover organizational structure, business environment analysis such as
SWOT and PESTEL Analysis. Due to keeping effective infrastructure organization is able to
maintain strong coordination with their employees regarding job roles and responsibilities. It also
assists them to maintain strong communication with their potential customers for long time.
Without proper and positive communication with employees and customers firm is not able to
sustain their reputation in market for long time.
MAIN BODY
Organizational structure
The organizational structure is basically defined as the combination of various activities
which includes coordination, allocation and supervision. Due to the effective use of these
activities organization easily sustained their vision, mission and objectives for long time. The tall
organizational structure is basically defined as involvement of many layers and leaders of
management. In this type of structure manager will have narrow span of control. In context to
Virgin Atlantic Airline, they are utilized the tall organizational structure for run their functions
smoothly. This type of structure is also beneficial for keeping strong connection with employees.
In this structure departments are effectively distributed as per the roles and responsibility of
employee.
Advantages and drawbacks of tall organizational structure -
Advantages Drawbacks

 The first benefit is that in this structure
organization specified a description of
job for every position and due to this
employee are able to understand their
work effectively.
 In this structure growth and motivation
of employees are very high which leads
to enhance the revenue of company at
higher rate.
 Due to having high layer of managerial
functions performance of employees
are easily supervised or monitored on
regular basis which leads to decrease
their common mistakes effectively.
 The major drawback is that here
decisions are made in very slow manner
from top level management and due
this lower-level workers are not able to
accomplish their task in time.
 Due to high interference of managers in
each department employees are not able
to share their real problems quickly
with high authority.
 Due to direct supervision of managers
employees feel very stress in their job
roles and responsibility (Atan and
Mahmood, 2022). Therefore, with
keeping stress in mind employees are
not able to carry their task
systematically and properly.
 In this structure employees are not
allowed to use their own creativity and
idea in their work.
Business environment analysis
The business environment analysis is basically defined as a tool or method which consist
of various factors and those factors are responsible for putting impact on company performance.
Due to the effective analysis of business environment management of Virgin Atlantic is able to
enhance their growth in market effectively.
SWOT Analysis
The SWOT Analysis is basically referring to strategic planning tool or method which is
utilized by Virgin Atlantic for evaluating their own strength, weakness, threat and opportunities.
Due to this firm is able to sustain their competitive advantage in market for long time.
Strength -

 The major strength of this firm is following the rules and regulations of government in
effective manner. Due to this company easily run their activities in COVID pandemic
also.
 Due to keeping focus quality in their product firm is able to sustain the satisfaction level
of customers in long term. In this way the profit of firm is easily stabled in COVID also.
 Virgin Atlantic has been able to propagate a cool image, primarily because of the image
that Richard Branson has.
Weakness -
 In COVID organization faced shortage of skilled employees (Baiyere, Salmela and
Tapanainen, 2020). For solving this issue company provided advanced training to their
workers which leads to enhance their efficiency effectively.
 Due to keeping high price in their services and goods customers are get limited in market.
It leads to decrease the overall productivity and performance of company effectively.
Opportunities -
 When organization run their services and functions as per the rules and regulations of
government then management is able to diversify their services at wide range quickly.
 Due to providing always focus on quality organization is able to attract the customers in
large number in low time.
Threat -
 The incident of Brexit is the major threat. Due to the impact of Brexit, the condition of
the company has become a critical issue. The decision saw a sudden dip in the number of
passengers who were traveling abroad and this, in turn, affected the business of Virgin
Atlantic.
 Due to changes in the policy of government also this airline lost their potential clients at
high rate.
PESTEL Analysis
It is basically one type of framework or method which is used by Virgin Atlantic for
analysing the effect of macro external factors in effective manner. With help of utilizing this
framework firm is able to maintain competitive advantage in market effectively. The factors
which are considered by this firm in this analysis are described below -

 Political – In respect of Virgin Atlantic Airline, they have strong presence regarding their
service in different countries. Due to this the political stability of this firm is very strong
in market. But in negative aspect due to occurring modification in the regulations and
rules of government in different countries company did not able to run their activities in
smooth manner. It leads to decrease their profit margin and market share effectively.
 Economic – In context to Virgin Atlantic Airlines, due to offering best class services and
facilities to users’ growth and opportunities are highly increased for them. But in other
side when inflation is highly increased in the rate currency and others purchasing power
and loyalty of consumers are highly reduced. It leads to decrease sales and popularity of
company in effective manner (Biloslavo, Bagnoli and Edgar, 2018).
 Social – This will have the strong influence on organization regarding trends and values,
demographic trends and societal norms. Therefore, it is necessary for the management
that they must made effective change in demographic pattern which is beneficial for
company to target the right customer in COVID pandemic also. Due to this the reputation
of company easily sustained in market.
 Technological – It is basically defined as the use of advanced equipment’s within
company and airline. With help of utilizing advanced equipment’s management of Virgin
Atlantic Airline is able to provide standard and best quality of services to users in long
term. Due to this the real needs and desires of are easily fulfilled in time.
 Environmental – In respect of Virgin Atlantic Airlines, it is a very important factor for
them. That means now people are becoming sophisticated very much towards
environment. They easily understand the effect of high carbon on environment. Due to
this it is necessary for airline industry that they must use advanced fuel-efficient engine in
their flights. In this way pollution are highly decreased within low time.
 Legal – The elements which are comes under this factor are legal measures, laws and
strategies. In context to Virgin Atlantic Airline that they must run their activities with full
fairness and according to government rules and regulations. Due to this the goodwill of
firm are easily sustained in market for long time.

CONCLUSION
After the analysis of above data, it concludes that are various business organization
structure which are considered by company but out of that only tall organization structure is
beneficial for them. Due to the effective utilization of tall organization structure firm is able to
run their activities smoothly and also able to deliver best quality goods and services to users in
time. After the analysis of SWOT and PESTEL it is understood that this company used various
strategies for sustaining their goodwill and competitive advantage in market. This analysis is also
essential for understand the real needs and desires of customers in quick manner. The report will
cover organizational structure, business environment analysis such as SWOT and PESTEL
Analysis. The selected company is a international airline and their operational functions are
mainly controlled from UK. When company use effective organizational structure the
communication between employee and employer or employee and customer are strongly
sustained. It also assist the firm for sustaining their vision, mission and objectives in market for
long duration. Culture of company formed the positive atmosphere in workplace area which
effects the behaviour and performance of employees effectively.

REFERENCES
Books and Journals
Alzoubi, H.M. and Ahmed, G., 2019. Do TQM Practices Improve Organizational Success? A
Case Study of Electronics Industry in the UAE”. International Journal of Economics
and Business Research, 17(4), pp.459-472.
Atan, M. and Mahmood, R., 2022. The Influence of Organisation Dimension in Business
Analytics Adoption by Malaysian SMEs. Journal of Advanced Computing Technology
and Application (JACTA), 4(1), pp.1-17.
Baiyere, A., Salmela, H. and Tapanainen, T., 2020. Digital transformation and the new logics of
business process management. European Journal of Information Systems, 29(3),
pp.238-259.
Biloslavo, R., Bagnoli, C. and Edgar, D., 2018. An eco-critical perspective on business models:
The value triangle as an approach to closing the sustainability gap. Journal of Cleaner
Production, 174, pp.746-762.
Bushe, B., 2019. The causes and impact of business failure among small to micro and medium
enterprises in South Africa. Africa’s Public Service Delivery and Performance
Review, 7(1), pp.1-26.
Nair, S. and Blomquist, T., 2019. Failure prevention and management in business incubation:
practices towards a scalable business model. Technology Analysis & Strategic
Management, 31(3), pp.266-278.
Sukhari, A. and de Villiers, C., 2019. The influence of integrated reporting on business model
and strategy disclosures. Australian Accounting Review, 29(4), pp.708-725.
Zaki, M., 2019. Digital transformation: harnessing digital technologies for the next generation of
services. Journal of Services Marketing.