Comprehensive Business Environment Analysis: BA and Tesco (Module ABC)

This report provides a detailed analysis of the business environments of British Airways (BA) and Tesco. It begins by defining the business environment and its influence on firms, then compares BA and Tesco across various dimensions, including their business activities, sectors, purposes, ownership, and key stakeholders. The report examines the impact of different stakeholders, such as employees, customers, and suppliers, on the objectives of both companies. It also delves into how the organizations are structured and the strategic planning processes they employ. Furthermore, the report explores the economic environment, including factors such as economic growth, recession, and the influence of GDP. It discusses how different economic systems, like command and free market economies, affect business operations. The report also addresses the impact of legal, political, and social factors on business activities, as well as future changes that could affect the strategies of BA. Finally, it concludes by summarizing the key findings and emphasizing the importance of strategic planning and stakeholder management for business success.

The Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
ASSIGNMENT 1.............................................................................................................................1
Task 1..........................................................................................................................................1
Task 2..........................................................................................................................................1
Task 3..........................................................................................................................................3
Task 4..........................................................................................................................................4
ASSIGNMENT 2.............................................................................................................................4
Task 1..........................................................................................................................................4
Task 2..........................................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business environment involves the combination of internal and external factors that
influences firm's operating situation. However, business environment undertakes different factors
such as customers, suppliers, competitors, owners etc (Beatty and Samuelson, 2012). The present
study focuses upon such aspect in order to identify the impact and influence of business
environment upon the different activities of firm.
ASSIGNMENT 1
Task 1
The two different businesses undertaken are British Airways (BA) and Tesco Plc that
operates in different segments in order to carry out the business goals and objectives.
 Business activity- British Airways is the second largest airline of UK in terms of
passengers and thus operates the business activities globally. While, Tesco Is a British
Multinational grocery and general merchandise retailer in UK and provide wide range of
products or services to consumers all around the globe (Brumfitt, 2001).
 Business sector- British Airways carries out its business in airline industry while Tesco
operates a multinational retail store in order to render different products or services to
consumers and attain satisfaction.
 Business purpose- The main purpose of BA is to become world's leading global
premium airline business and facilitates in rendering outstanding service to clients and
satisfy them (Capon, 2009). On the other hand, Tesco's purpose is to help customers to
enjoy a better quality of life and provide them easier way of living.
 Business Ownership- Both the businesses are public limited company which means that
they are owned by shareholders who possess limited liability. Here, the owners are not
being solely liable for the debts as it is a public company.
 Key stakeholders of business- Both the businesses possess different stakeholders such
as customers, employees, shareholders and competitors (Richards and Nwankwo, 2005).
Task 2
1.
Following are the different stakeholders who influences the purpose of British Airways
and Tesco-
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Stakeholders of British Airways Workers- British Airways employees possess the power to influence the customers and
enhance revenues of firm. Company possess strong relationship among their management
and employees in order to render effective workplace environment so that individual
needs can be fulfilled (Wielki, 2007). However, sometimes issues arise within firm
because of strikes carried out by cabin staff in order to fulfil their remuneration demand.
Hence, it results in affecting the customers as they face difficulty due to delaying of
flights. Customers- British Airways aims to provide best services to customers in order to retain
them for long term and attain satisfaction. However, if clients are satisfied then it helps
firm to improve their growth and success in market. Therefore, organization is required to
provide best services to their clients and influence them to utilize the services again in
future (Cross and Miller, 2011).
Stakeholders of Tesco Employees- Workers in Tesco are provide with different means of securing the
requirements within life. However, the employees interest within firm is being able to be
provided with security of employment (Shaikh, 2010).
 Suppliers- It involves the suppliers who supplies products to Tesco needs to assess its
orders and make quick payments. However, the suppliers influence decision making
within firm by providing high credibility and hence business needs to pay the amount
quickly (Wetherly and Otter, 2014).
2.
It assesses that there are different stakeholders that seeks to influence the aims and
objectives of British Airways and Tesco. There are different stakeholders such as customers,
employees, suppliers and competitors etc. which helps business to achieve desired aims and
objectives of British Airways such as rendering quality services to clients and improve business
performance (Eales-White, 2004). Thus, different stakeholders possess different objectives and
influences the firm in different ways. Furthermore, within Tesco employees seeks to provide
quality services to customers by providing them different products or services so that desired
goals can be attained. It seeks to influence businesses in order to attain desired aims and
objectives.
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3.
British Airways assesses that stakeholders influences the firm's aims and objectives in
order to attain success. It involves employees, customers, competitors etc. that influences
business decision making and affects the determined goals and objectives. For instance,
customers assess that firm needs to provide better quality services to them in order to improve
their travel experience and thus it helps firm to enhance the productivity of firm (Gaddefors,
2007). Further, employees aims that business should provide them better working environment
and thus it influences business to satisfy their needs and thus attain desired results. It assesses
that firm needs to satisfy the needs of different stakeholders that exerts that firm helps in
attaining desired goals and objectives so that set targets can be attained in regard to satisfy
individual needs.
Task 3
Following are the different ways through which businesses are organised in an effective
way- Purpose- British Airways main purpose is to deliver best customer service so that they
can satisfy their needs and thus attain satisfaction. It also assesses that company aims to
manage its activities in regard to obtain desired results (Grigorescu, 2006). On the other
hand, Tesco's main purpose is to identify the needs and wants of customers and thus
render them quality products or services so that satisfaction can be attained. It also helps
in improving the sales and profitability to attain success. Ownership organisational structure- It assesses that business adopts effective ownership
structure so that best results can be carried out. Also, it is essential for British Airways to
adopt effective business structure and thus attain desired results. While, Tesco adopts
effective business ownership structure and identifies the needs of customers to achieve
satisfaction. Both these organizations are public limited firm and thus offers shares to the
public in regard to raise funds from them (Onzoño and Carmona, 2007).
 Strategic planning- Further, it can be evaluated that both the organizations are required
to develop effective strategic planning in regard to overcome issues and attain desired
results. Developing effective strategic planning helps firm to improve the business
performance towards attaining success (Pimentel, Kuntz and Elenkov, 2010). BA design
its strategic planning in keeping the base to become global premium airline strategy.
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Firm's top level management develops strategic plan so that they can carry out effective
customer, performance and excellence in order to accomplish desired objectives.
Task 4
It can be assessed that organisational structure and strategic planning assists firms to
attain their aims and objectives. Therefore, it is essential for British Airways and Tesco to carry
out effective business structure and strategic planning so that businesses can attain their purpose
and aims. Both the business-e focuses upon improving their activities and thus enhance the
customer satisfaction and attain desired results. Both these firms needs to adopt effective
business structure so that firms operations can be executed effectively and thus fulfil the purpose
and aims in desired way (Conner, 2010). Also, it is crucial for enterprise to achieve their purpose
and objectives in regard to attain customer satisfaction and satisfy individual needs. BA follows
tall structure which helps firm to assign roles and responsibilities to individuals. Thus, it helps in
developing healthy working relationship that encourages employees to work hard and attain
strategic objectives.
ASSIGNMENT 2
Task 1
1.
Here, economic growth and recession are considered two most effective economic
environment that affects business activities. Thus, at the time of economic growth, business
requires to earn huge profits by satisfying the needs of customers. For instance, if business faces
a period of recession in the country, then firm might reduce its number of employees. Further,
Gross Domestic Product also influences business operations. For example, if GDP increases so it
increases the economy as well (Tokuoka, 2012). Hence, it helps cited firm to borrow loan from
financial institutions at low interest rate and satisfies their needs. It assesses that in regard to
carry out the allocation of resources effectively it undertakes different economic system so that
business activities can be accomplished-
 Command economy- It involves government as they take major decisions in order to
achieve desired objectives and maintain business activities accordingly. Here, both
pricing and output decisions are taken by the government and legislative bodies while
British Airways possess less or minimum level of control. While, government is mainly
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responsible for deciding different factors such as quality of products or services offered
to end users (Beatty and Samuelson, 2012). Hence, it is essential for firm to carry out
effective business activities so that best results can be attained.
 Free market economy- Furthermore, such type of economic environment focuses upon
developing highly responsible and managing best pricing and output decisions that are
prevailing in the country. Such economy also affects the demand and supply of goods in
market (Brumfitt, 2001).
2.
It can be assessed that at the time when business carries out its operations in diverse
country, then firm has to keep in mind all the factors that affects the business activities. For
instance, if British Airways plans to expand its operations in India then they need to consider
different factors which might affects its profit. India possess various resources that helps firm to
deliver best quality services to clients and thus attain satisfaction. On the other hand, if firms
aims to expand its operations in UK market then it might get better infrastructural and other
facilities that satisfies company's needs (Capon, 2009). Thus, it can be stated that British
Airways faces varied challenges in regard to carry out their activities in Indian market as
compared to UK.
Task 2
1.
It involves different factors that influence the environment of business such as-
 Legal factors- It assesses that increase in taxes leads to rise in prices that further shows
that decrease of customers. In the similar way, change in the export and import patterns
causes decline in the operations of firm in the international market (Richards and
Nwankwo, 2005).
 Political factors- Each and every country possess different rules and regulations that
needs to be followed by business enterprise. Further, government imposes certain
restrictions upon BA in regard to passenger safety (Cross and Miller, 2011). Also, change
in government practices such as introducing new laws and regulations may change the
business operations.
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 Social factors- Business is required to identify the needs and requirements of individuals.
BA focuses upon different traditional and cultural values of individual and then carries
out business activities so that it does not affect customers traditions.
2.
Following are the future changes that affects the strategies of BA-
 Economical factors- Through change in economic growth, it involves different changes
such as inflation and exchange rate that influences buying power of customers.
Therefore, it affects business in terms of decreasing the demand of passengers travelling
from air (Shaikh, 2010).
 Political factors- It assesses that the government of the country needs to identify the
effective strategies in relation to passenger safety and security so that they can ensure
customers to travel from the airlines. However, sometime if leads to increase in the tax
and thus which firm needs to pay and ultimately it increases the price of tickets for
customers (Grigorescu, 2006).
 Social factors- Consumers have become more conscious these days and thus they
identify every activities before making final purchase decision. It is essential for firm to
bring innovative products in market so that they can fulfil the needs of clients.
CONCLUSION
It can be concluded from the report that business carries out its own purpose in order to
fulfil desired aims and objectives. Further, carrying out effective strategic planning helps British
Airways and Tesco to identify its internal and external environment. It also involves different
stakeholder that influences the business decision making.
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REFERENCES
Books and Journals
Beatty, J. and Samuelson, S., 2012. Business Law and the Legal Environment, Standard Edition.
Cengage Learning.
Brumfitt, K., 2001. The Competitive Business Environment. Nelson Thornes.
Capon, C., 2009. Understanding the Business Environment. Financial Times Prentice Hall.
Cross, F. and Miller, R., 2011. The Legal Environment of Business: Text and Cases: Ethical,
Regulatory, Global, and Corporate Issues. Cengage Learning.
Eales-White, R., 2004. Eliminating perception gaps. Industrial and Commercial Training. 36(6).
pp.234 – 237.
Gaddefors, J., 2007. Metaphor use in the entrepreneurial process. International Journal of
Entrepreneurial Behaviour & Research. 13(3). pp.173 – 193.
Grigorescu, A., 2006. Marketing of public and private affairs – a link. Kybernetes. 35(7/8).
pp.1179 – 1189.
Onzoño, D. I. S. and Carmona, S., 2007. The changing business model of B-schools. Journal of
Management Development. 26(1). pp.22 – 32.
Pimentel, J.R.C. Kuntz, R. J. and Elenkov, S. D., 2010. Ethical decision-making: an integrative
model for business practice. European Business Review. 22(4). pp.359 – 376.
Richards, C. D. and Nwankwo, S., 2005. Reforming the legal environment of business in Sub-
Saharan Africa: Moderating effects on foreign direct investment. Managerial Law. 47(5).
pp.154 – 163.
Shaikh, S., 2010. Business Environment, 2/E. Pearson Education India.
Wetherly, P. and Otter, D., 2014. The Business Environment: Themes and Issues in a Globalizing
World. Oxford University Press.
Wielki, J., 2007. The social and ethical aspects connected with e-space development. Journal of
Information, Communication and Ethics in Society. 5(4). pp.321 – 333.
Online
Conner, C., 2010. Challenges in business environment. [Online]. Accessed through <
http://www.forbes.com/sites/cherylsnappconner/2013/03/04/the-8-great-challenges-every-
business-faces-and-how-to-master-them-all>. [Accessed on 11th August 2016].
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Tokuoka, K., 2012. Does the Business Environment Affect Corporate Investment in India?
[Online]. Available through: <https://www.imf.org/external/pubs/ft/wp/2012/wp1270.pdf>.
[Accessed on 11th August 2016].
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