Impact of Macro-Economy Factors on Virgin Atlantic Airways and Government Intervention Methods

BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Two macro-economy factors that organization should be consider and influence business
outputs..........................................................................................................................................3
The UK current growth rate impact on the Virgin Atlantic Airways-.........................................5
The government current intervention methods affect the organization-.....................................6
Current global challenges facing by virgin Atlantic Airlines and recommendations on how to
overcome them in this current time.............................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Business environment includes all factors which affects a business operation and
collection of external and internal factors like customer needs, supply, demand, employees,
government activities, social trends, economic change, suppliers, market trends etc.
(Cherunilam., 2021). These factors affect operation or function of organization directly or
indirectly. There are mainly three types of business environment that is micro, macro and market
and its includes various factors like economic, social, legal, political and technological
environment. Virgin Atlantic airlines is long haul carried flying, they also operate seasonal
flights and located in Crawley, England, parent company is Virgin Atlantic Limited. This report
includes two macro factors that influences this business outcomes such as unemployment rates,
economic output and influence and overview of UK economic structures and their current
growth that could be analysis by economic life cycle, inflation, Gross domestic products etc. and
also elaborate about United Kingdom economy by their foreign direct investment, GDP per
capita income, purchasing power parity etc. Moreover, it also includes government policies like
fiscal policies and monetary policies which have great impact on business and global issue faces
(such as passenger comfortably, price of flue and global congestion) by organization with some
recommendation which help organization to overcome this issue in current time.
MAIN BODY
Two macro-economy factors that organization should be consider and influence business outputs
Macro economy is a study of efforts of regional economy or national economy as a
whole, in simple words macro is study of whole economy (Molavi., 2019). UK having a highly
develop market and social market economy, it’s the rank as fifth national economy in the world,
measure by Gross domestic products and eight largest economies by PPP (Purchasing power
parity) moreover twenty-fifth largest by Gross domestic products per capita. United Kingdom
has highly or third largest in inward foreign direct economy and firth in outward FDI. UK have
developed and advance economy their services are dominates that is approx. 80% contributed in
Gross domestic products. United Kingdom has developed, international trading and independent
economy. Good or strong economy helps organization to grow in their area. There are many
factors which affect economy such as interest rate, fiscal policy, economy growth rate,
employment, industrial production, gross domestic products, inflation, national income etc. for