Analysis of External and Internal Environment of Virgin Atlantic Airways

This report analyzes the impact of external and internal environment on Virgin Atlantic Airways, including PESTEL and SWOT analysis. It also suggests possible changes for the organization to achieve competitive advantage.

Business

Table of Contents
INTRDUCTION..............................................................................................................................3
TASK...............................................................................................................................................3
Give a brief introduction of the Virgin business....................................................................3
Define and analyse external and internal environment of chosen organization.....................3
Valuable – It is considered with those elements which is highly essential for sustaining the
profit and value of Virgin Atlantic in long term. Those elements are patents, employees,
global presence, financial resource etc. .................................................................................6
Show how these tools can practically help Virgin to show their strategic position and develop
a strategy for improvement.....................................................................................................6
Suggest a possible change for the organization and give their importance of achieving
competitive advantage............................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRDUCTION
Business is defined as a particular enterprise or organisation which is engaged in various
activities such as professional, commercial and industrial activities. Due to effective engagement
of employees in various functions company are able to provide best quality product and services
to their customers in time. In this way the relation ship between company and customer are
effectively sustained in long term (Blom, Cadena and Keys, 2021). The chosen company is
Virgin Atlantic Airways for analysing the impact of external and internal environment. This
company was established in 1984 and it is the largest multinational airline company which is
headquartered in UK. This report will cover the brief introduction of the virgin business, define
and analyse the external and internal environment analysis of chosen company. It also cover how
these tools can practically help Virgin to show their strategic position and develop a strategy for
improvement, suggest a possible change for the organization and give their importance of
achieving competitive advantage.
TASK
Give a brief introduction of the Virgin business
As already above Virgin Atlantic is basically a international airline company which is
operated from United Kingdom. The company was established by Richard Branson in 1984 and
this company have the option for both long and short distance travelling. Virgin airline is one of
the company who used a mixed fleet of bowing and Airbus wide body aircraft and operates their
services in various countries. It includes Asia, Africa, North America, Middle east and others. In
today's time the overall strength of their employees in all over the country is 5000 and their staff
are highly skilled and talented which leads to increase the productivity of company effectively.
Define and analyse external and internal environment of chosen organization
External Analysis -
PESTEL Analysis is defined as a technique which is utilized by organization for
evaluating the macro external forces which are described below -
 Political – It refer to those factors which effects the performance of firm politically
which includes political relations, government rules and regulations and others. In
context to Virgin Atlantic, due to having services and offices in various location
management are facing lot of problems for run their operations successfully. The main

reason for facing this type of difficulty is that because in every country rules, regulations
and policies of government are totally are totally different.
 Economical – It is considered with those factors which impact the productivity of
company economically which includes wage of workers, inflation, interest rates and
others. In context to Virgin Atlantic management are faced lot of problems for run their
services effectively during the time of COVID pandemic. Because in COVID pandemic
customers are highly reduced for travelling (Chaniago, 2021). Due to decreasing
customers their revenue or profit margin also get decreased and in this situation higher
authorities take decision lay-off the unproductive employees.
 Social – It is concerned with those factors which are responsible influencing the
behaviour of customers effectively which includes social class, culture and subculture
etc. In context to Virgin Atlantic it is one of the organization who facilitates discounting
offers, beneficial schemes such as holidays package etc. Due to using these type of
strategy organization easily developed strong social interaction with customers for long
time.
 Technological – It means the use of updated technology for run the activities of
organization smoothly. In context to Virgin Atlantic, management always maintained
safety standards in their in their airlines with help of advanced technology or
equipments. Due to this the security of the passengers are highly increased during the
time of travelling. Due to providing these type of facility the goodwill of the
organization is easily sustained in long term.
 Environmental – It is concerned with those factors which impact the performance of
organization naturally which includes food, pollution etc. In context to Virgin Atlantic,
management are highly sophisticated towards the environment. Due to this organisation
started to reduce the usage of carbon footprint with help of advanced engine in their
flight. In this way the pollution are highly decreased in environment for long time.
 Legal – It is considered with legal norms and rules which are made by the government
and this legal norms directly impact the company performance. In context to Virgin
Atlantic, management must always protect their confidential or business data according
with help of various legal strategies. It includes copy rights patents, intellectual property
and data protection.

Internal Analysis -
SWOT Analysis is basically a method which is used by organization for evaluating the
four aspects of business which are described below -
Strength -
 In context to Virgin Atlantic, they already have highly talented and strong workforce in
their organization. With help of talented employees company are able to deliver best and
valuable service to customers according to their desires and wants.
 In context to Virgin Atlantic, due to their global presence their popularity of their
services and products are effectively sustained in minds of consumers for long time.
Weakness -
 In context to Virgin Atlantic, it is one of the organization who always keep premium or
high price in their services (Duvvury, Vara-Horna and Chadha, 2022). Due this customer
base is only limited for organisation which leads to decreasing their productivity at
maximum level.
 In context to Virgin Atlantic, satisfaction level of customers is very low. Because
sometimes due to low passenger higher authorities changing the time and flight of
consumers without their permission. It leads to develop bade impression on company
image.
Opportunity -
 Due to having strong brand image management of Virgin Atlantic have golden
opportunity for increasing their routes in various destination. In this way their profit is
easily increased and consumers are also attracted in large number for availing their
services.
 In context to Virgin Atlantic, with help of effective use of technologies management are
able to deliver their services quickly to customers without any delay.
Threat -
 Due to heavy competition in airline industry company are not able to increase the sale of
their product and services according to their own price

VRIO Model is basically a technique which is applied by organization for determining
the potential and competitive advantage in market. In this model basically four stages are
involved which are described below -
Ability and
Resources
Valuable Rare Imitable Organised
Workers Yes Yes No Yes
Financial
Resource
Yes Yes Yes Yes
Patents Yes No No Yes
Effective global
presence
Yes Yes Yes
No
Valuable – It is considered with those elements which is highly essential for sustaining the profit
and value of Virgin Atlantic in long term. Those elements are patents, employees, global
presence, financial resource etc.
 Rare - In context to Virgin Atlantic, management is focusing on those elements which is
important for achieving competitive advantage in this industry (Grefen, 2021). It includes
global presence, employees and financial resource.
 Imitable - In context to Virgin Atlantic, it is concerned with those elements which is
beneficial for engaging business activities. It includes workers and worldwide.
 Organized - In context to Virgin Atlantic, It means for running the whole company
smoothly management must consider some specific factors which includes patents and
workers.
Show how these tools can practically help Virgin to show their strategic position and develop a
strategy for improvement
After the analysis of above mentioned models or tools it is concluded that use of
technology, talented employees and global presence of company plays major role within
organization in various aspects. It includes good communication with users, enhancing

convenience and in other aspects also. These models also help to display the current position of
organization in airline industry between other competitors. According to these model it is also
concludes that Virgin Atlantic is one of the airline industry who facilitates best quality product
and services to their customers at valuable and premium price range. In this company are able to
maintain positive relationship with customers for long time.
Suggest a possible change for the organization and give their importance of achieving
competitive advantage
The Virgin Atlantic easily achieved competitive advantage in airline industry from
various ways which are described below -
Firstly, this airline is providing luxurious seats and premium service to their customers.
Due to providing these facilities users liked their new services very much such as holiday
scheme and other offers (Muchlinski, 2021). The other main advantage due to providing these
type of facilitating is that their services and flights are highly become popular in various
locations. It leads to increase their profit margin easily at maximum level.
Secondly, use of right leadership style it means that when the manager of Virgin
Atlantic maintained good behaviour with their employees then the services are delivered to
customers in excellent manner. Therefore, it is mandatory for the management that they must
facilitate effective training and use suitable leadership style for enhancing the productivity of
employees at higher rate. It is the very effective method for sustaining the competitive advantage
in airline industry for long duration.

CONCLUSION
From the analysis of above information it is concluded that business is the important
concept for fulfilling the basic requirements of customers in time. In business various types of
functions are involved for run the whole organization smoothly. In business talented employees
or workforce plays the major role for maintaining effective communication between organization
and customer for long time. Due to keeping good coordination with users their wants and desires
are easily identified by company within short duration.

REFERENCES
Books and Journals
Blom, E., Cadena, B. C. and Keys, B. J., 2021. Investment over the business cycle: Insights from
college major choice. Journal of Labor Economics, 39(4), pp.1043-1082.
Chaniago, H., 2021. The Effect of Small Business Innovation and the Role of Government on the
Environment: Evidence from Indonesia. International Journal of Energy Economics and
Policy, 11(6), p.198.
Dosi, G., Guarascio, D., Ricci, A. and Virgillito, M. E., 2021. Neodualism in the Italian business
firms: training, organizational capabilities, and productivity distributions. Small
Business Economics, 57(1), pp.167-189.
Duvvury, N., Vara-Horna, A. and Chadha, M., 2022. Development and validation of lost days of
labor productivity scale to evaluate the business cost of intimate partner
violence. Journal of interpersonal violence, 37(5-6), pp.NP2912-NP2943.
Grefen, P., 2021. Digital Literacy and Electronic Business. Encyclopedia, 1(3), pp.934-941.
Muchlinski, P., 2021. The impact of the UN Guiding Principles on business attitudes to
observing human rights. Business and Human Rights Journal, 6(2), pp.212-226.
Pulatov, A. and Ahmad, A. H., 2021. Political Business Cycles in Post‐Communist European
Countries. Politics & Policy, 49(5), pp.1248-1269.
Sánchez-Teba, E. M., Rodríguez-Fernández, M. and Gaspar-González, A.I., 2021. Social
Networks and Open Innovation: Business Academic Productivity. Journal of Open
Innovation: Technology, Market, and Complexity, 7(2), p.158.
Shamsuzzoha, A. and Raappana, H., 2021. Perspectives of business process ethics in data‐driven
marketing management. Security and Privacy, 4(6), p.e177.
Trollman, H. and Colwill, J., 2021. The imperative of embedding sustainability in business: A
model for transformational sustainable development. Sustainable development, 29(5),
pp.974-986.
Wong, Y. Z. and Hensher, D. A., 2021. Delivering mobility as a service (MaaS) through a
broker/aggregator business model. Transportation, 48(4), pp.1837-1863.