Analysis of External and Internal Environment of Virgin Atlantic Airways

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.