Report: Analyzing the Global Business Environment for Virgin Atlantic

This report provides an analysis of the global business environment, specifically focusing on Virgin Atlantic. The analysis utilizes the PESTLE framework to examine the external factors impacting the airline's operations. The report details how political, economic, social, technological, legal, and environmental factors influence Virgin Atlantic's strategies and operational efficiency. It discusses the impact of government policies, customer preferences, and market trends on the company's structure and activities. The report also highlights how changes in the business environment necessitate adjustments to operational policies. The analysis is supported by references to relevant literature, providing a comprehensive overview of the challenges and opportunities within Virgin Atlantic's business context. The report emphasizes the importance of adapting to external forces to maintain competitive advantage.

Global Business Environment

Global business environment is the set of external and internal factors that may affect the
operational efficiency of a company. It is very important for the organisations to formulate
effective strategies so that all the factors may dealt effectively. Virgin Atlantic is an airline
company which is currently operating its business in UK. It is very important for the business
entity to analyse its external environment which is possible with the help of PESTLE analysis. It
is the set of five different factors that are political that are mainly related to government's rules
regulations and policies. It may affect organisational operations as it is not easy to implement
governmental strategies frequently. Economical factors are related to the purchasing power of
customers and inflation and deflation rates that affect the market rates and buying capacity of
customers. Social factors depends upon the taste, preferences, age, paying capacity and education
level of customers that are continuously affecting business of Virgin Atlantic as their taste and
preferences changes with time. Technological forces like emerging market trends and
introduction of new technologies in the market also affect the business activities because all the
customers are becoming technology friendly and they are willing to be the part of such
companies who are adopting new and innovative techniques in their business operations (Ferraro
and Briody, 2013). Legal factors are related to the interference of government or legal authorities
in the business operations as Virgin Atlantic is an airline company hence it is very important for
the organisation to keep idea of such type of forces so that business can be operated smoothly.
Environmental factors are the part of environment related laws in which Virgin Atlantic is
directed to follow all of them as it is essential to execute the business. All these factors are
affecting business of Virgin Atlantic directly and indirectly.
Government policies, rules and regulations affect the organisational structure and
operations as if the government impose any new rule related to the employee size in which
government have decided a specific employee limit than organisation have to change the
structure according to the policy. For example if organisation is having 100 employees and
following line structure and government implement a policy in which organisations have to keep
at least 200 employees than it will affect organisational structure as now organisation will use
another structure. The changes in the number of employees will affect the organisational
operations and cost for the training will also get increased.
Changes in Business environment of Virgin Atlantic have also affected the operations
and its activities because all the external and internal factors affect the operations. Changes in the
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environment has impacted the operational efficiency of Virgin Atlantic because now the
organisation have to change the policies according to the environment and the forces that are
affecting business from outside as well as inside. Operational activities of the company also get
affected due to the changes because external factors like customers preferences, inflation rate and
purchasing power will also get affected due to the changes (Popescu, 2013).
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REFERENCES
Books and Journals:
Ferraro, G. P. and Briody, E. K., 2013. The cultural dimension of global business. Upper Saddle
River: Pearson.
Popescu, G. H., 2013. Macroeconomics, effective leadership, and the global business
environment. Contemporary Readings in Law and Social Justice. 5(2). p.170.
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