Understanding the Business Environment

UNDERSTANDING THE
BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
Competitive Analysis.............................................................................................................4
TASK 2............................................................................................................................................6
Stakeholder Analysis:.............................................................................................................6
TASK 3............................................................................................................................................8
National economic system under which company operates...................................................8
Effect of economic system on company.................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Corporate History: Virgin Atlantic came into existence on 22nd June 1984, with its first flight
from London to US. It was from Gatwick to Newark. The company was founded by Sir Richard
Branson. It has flights connecting a number of destinations at world including North America,
South America, Africa and Asia (Kasemsap, 2018). This airline always keeps innovating for its
customers. They were the first to introduce Economy as well as Premium class tickets. They also
came up with Upper class cabins, fully flatbed seats and setback TVs.
Purpose- The major purpose of Virgin Atlantic is “changing business for good”. Changing
business for good for Virgin Atlantic means:
 Analyzing the long-term effects of all the business decisions that virgin Atlantic basin
present.
 They want to have a clearly calculated, embedded and a measurable purpose in all the
businesses of Virgin which drives all their decisions and also enables their success which will
result in positive impact for its employees, customers, communities and people.
 Virgin Atlantic wants to embed its purpose, values and principles in all the existing as well as
new business it invests in.
 They want to pioneer a systematic change which will go beyond the virgin group through the
help of Sir Richard Branson ‘s profile and his advocacy as global business leader through
rising to a number of challenges.
Vision Statement- Vision of Virgin Atlantic is to create a world in which every child has the
right to attain protection, development, survival and protection.
Mission Statement- Virgin Atlantic wants to make its brand well-known internationally for a
number of criteria like quality, innovation and sense of fun. This is what inspires virgin Atlantic.
Objective- Major objective of Virgin Atlantic is to become the most popular and unique airlines
throughout the globe. It aims at increasing its reach and airports in the maximum possible
locations throughout the world. For this they are using a number of long-term strategies with
many different approaches they concentrate on innovation of their products and service
development for new flights. They are also making joint venture with a number of other airlines
to increase their web globally.

TASK 1
Competitive Analysis
Company is focusing on differentiation strategy through providing a number of features in
their flight. This includes music, games and ice cream, child featuring as well as movie content
in their flights. Companies also using a number of low-cost generic strategies which is
remarkable for Virgin Atlantic as they are following other airlines in order to compete with them
and give them better offer for their customers (Chasdi, 2017). In order to remain in profits
company is focusing on core competencies. Company also focuses on sustaining strategy
through great quality service and maintaining their relationship with upper class customers
particularly.
Porters five force model for Virgin Atlantic:
Porters five forces model is an influential tool which is used to realise whether the control
of company is on a business or not. It helps in analysing both distance of company in the present
competitive market as well as its reach two global market. It also helps in analysing the company
it’s a porch unity for a particular situation as Willis trends. The progress of company in the
situations where it is weak in order to avoid any wrong steps can be drawn out through this.
Below mentioned is five major factors of Porter five force model:
Bargaining power of suppliers: There are a number of different manufacturers who are the
prime suppliers to the aviation company. The major suppliers for Virgin Atlantic are Boeing and
Airbus. Virgin Atlantic is well stab list company. Requirement for aviation fuel is another major
need for aviation companies including virgin Atlantic. The major key supplier of aviation fuel is
the basic necessity for operating an aircraft. Other than this there is need for engineering help as
well as IT solutions for virgin Atlantic. These many suppliers make the bargaining power of
suppliers in aviation market very high. Therefore, the bargaining power of suppliers for Virgin
Atlantic is high.
Threat of new entrants: The airline industry has five airlines which are mainly established for
providing the similar kind of services to the customers. They are not so interested in competing
with each other in the marketplace. When taking virgin Atlantic into consideration the company
have a good background within the air industry and is seen to be backed up with Singapore
airlines. Company have invested a very high fixed cost in its business. Other than this company
provides product differentiation which helps in entrant of new competition in the market place.