Qatar Airways: Evaluating Business Environment and Org Structure

This report provides a comprehensive analysis of the business environment and organizational structure of Qatar Airways, along with comparative insights into the International Bank of Qatar (IBQ) and Qatar Charity. It begins with an overview of different types of organizations, including public, private, and voluntary sectors, and their objectives. The report then delves into the specific business functions within Qatar Airways, emphasizing their inter-relationships and impact on the organizational structure. A detailed examination of the macro environment's positive and negative impacts on Qatar Airways is presented, followed by an internal and external analysis using various tools and techniques. The study concludes with a critical reflection on key findings and their influence on the decision-making process, highlighting the interplay between strengths, weaknesses, and external macro factors. Desklib offers a wide range of similar solved assignments and past papers to aid students in their studies.

Business and the Business
Environment

CONTENTS
INTRODUCTION......................................................................................................................1
PART – 1....................................................................................................................................1
Overview of different types of organisations and the growth of the international business
environment............................................................................................................................1
An explanation of each of the chosen organisations..............................................................2
Different business functions for Qatar Airways and their inter-relationship.........................4
Advantages and disadvantages of interrelationships between organisational functions and
the impact that can have upon organisational structure..........................................................5
PART – 2....................................................................................................................................6
Positive and negative impact of macro environment on Qatar Airways................................6
Internal and external analysis of Qatar Airways....................................................................7
Explaining the ways in which the strengths and weaknesses interrelate with external macro
factors.....................................................................................................................................8
A critical reflection of key findings and their influence on the decision-making process.....9
CONCLUSION..........................................................................................................................9
REFERENCES.........................................................................................................................10

TABLE OF FIGURES
Figure 1: Organization chart showing how different functions are inter-related.......................4

INTRODUCTION
The business performance is majorly relied on the business environment where an
optimistic environment allows the companies to function profitably and helps them in
attaining an advantage. The business strategy of the company will be incomplete if it is does
not grasp the dynamics and trends of the industry. To begin, it is crucial that the firm must
learn about different sort of businesses already existing in the market (Weatherley and Otter,
2014). Based on this, the main aim of the current research report is to evaluate varied types,
size, scope and legal structure of the organization along with their purposes and objectives.
Further, the report will focus on the evaluation of interrelationships of varied organizational
functions and the manner they are linked with the organizational structure. Further, the
positive as well as negative impact of the macro-environment on the operations will be
demonstrated using different tools and techniques. Finally, the internal strengths along with
weaknesses of a particular business and their association with the external macro factors will
also be discussed for comprehending the factors impacting the business, its performance and
decisions.
PART – 1
Overview of different types of organisations and the growth of the international business
environment
There are generally three types of organizations in the market that is public, private
and no-profit or voluntary organizations. speaking about the private firms, they are mostly
operated by their owners for the sole aim of making profits. On the other hand, the public
sector firms tend to have small amount of people as compared to the private businesses and
their sole aim is offering a public service rather than earning more profits. Most of the public
sector firms are the outcome of the formation of new businesses or the privatisation of a
public sector. Private companies on contrary are owned by single person or a group of
individuals. Additionally, they are also required to comply the regulations and rules being
established by the government. As per the legal agenda, the money being generated by the
public sector firms are invested and disbursed between the investors of the firm (Onetti and
et.al., 2018).
On the other side, the main objective of the non-profit or voluntary organization is not
accomplish the requirements of the community. Most of the voluntary firms are not
established for profit however there are few that do earn a reasonable amount of profit. These
types of companies are dedicated for making improvement in the well-being of the
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community as a whole. As a safety net, most of the non-profit companies depend on
independent groups, companies or trusts. Municipal, state along with federal governments are
the examples of the third form of commercial firm that is government entities. Usually, public
sector firms are those that are owned and operated by the government and they are subject to
the regulation of the firm (Pandey, 2019). As a part of the evaluation, Qatar based firms have
been focussed in the present research work.
An explanation of each of the chosen organisations
Public organization – Qatar Airways
 Background details – The Qatar Airways is a state-owned company that flies to more
than 150 international nations spanning Asia, Europe and Africa. It has given
employment opportunity to more than 43000 employees.
 Products and services being supplied – It has a broad network of flight that now
encompasses 83 nations. With a five-star rating from Skytrax, the firm has been rated
as one of the greatest airlines across the globe year after years.
 Size and scope – Qatar Airways in a national airline and is one of the growing
companies as well. The fleet is among the youngest across the industry. They have
around 200 aircraft which are travelling to more than 150 destinations. This signifies
that it is medium scale enterprise (Hillary, 2017).
 Vision, mission and objective – The mission and objective of the company is to
become a world class airline and cargo service offeror of the world with an
international reach.
 Organizational and legal structure – The company follows the hierarchical structure
and it can be seen across the firm. In this type of structure, one of the units of the firm
directly reports to the other unit. Further, the power structure of the firm
characteristically involves a single or group of individuals at the top with different
tiers of expert plunging from there. It is a state-owned enterprise as of May 2014.
 Stakeholders – The people who works at the airport and customers are the main
stakeholders of the company (Storey, 2016).
Private organization – International Bank of Qatar (IBQ)
 Background details – It was established in the year 1956 and is one of the oldest and
most famous commercial institutions. Different financial services are being provided
by the bank such as private, corporate and retail. The are being positioned in the
prime locations of the nation.
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 Products and services being supplied – Personal loans, mortgages and many other
types of lending are being provided by the bank.
 Size and scope – International Bank of Qatar was renamed after the bank was taken
over by the National Bank of Kuwait (NBK). Consequent to the augmentation of the
stake in the bank, it was returned to Qatar. Now the company has around 500 workers
and thus it is a small enterprise (Al-Muharrami and Murthy, 2017).
 Vision, mission and objective – The main mission, vision and objective of the bank is
to make a banking more personal for each and everyone in the nation and working
hard for attaining the same.
 Organizational and legal structure – The bank as a top-level management who is
being supported by other high-ranking employees. in the retail bank, there are varied
activities like customer services, electronic services and management of specified
departments are most of the segregated. Thus, it follows the hierarchical structure.
Further, it is a limited liability corporation which signifies that the owners are being
protected from the personal liability.
 Stakeholders – Employees, customer, shareholders, board of director, financial market
and government are some of the stakeholders.
Voluntary organization – Qatar Charity
 Background details – It is popularly called as Qatar Charitable Society which is a
non-governmental firm that pays attention on development and humanitarian efforts.
It has around 150000 sponsored orphans which are working on different areas such as
financial empowerment, food aid, emergency medical response, social care, housing
and health and education (Lowi, 2017).
 Services being supplied – The organization is offering lifesaving help to those being
impacted by natural disasters, war and persecution and is also making efforts to
eliminate poverty by enduring evolution programme in relation with water,
sanitization, education and social welfare.
 Size and scope – It is operating in more than 30 nations of the world and execution
partners in an additional 20 nations. The scope of the firm is very large and thus it is a
large enterprise. Further, more than 29 million people are being served by this firm.
 Vision, mission and objective – The key mission and objective of Qatar Charity is to
serve the people and vulnerable societies though discoursing their development as
well as humanitarian requirements.
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 Organizational and legal structure – The amin three pillars of the leadership structure
of the company are the board of directors, executive director and general assembly
(Bendell, 2017). Further, it is a non-profit company and thus, the donations and
profits are reinvested in the operation of the firm.
 Stakeholders – Board of directors, employees, donors and foundations that provides
grants are their key stakeholders.
Different business functions for Qatar Airways and their inter-relationship
Because of the augmenting level of risk and competition in the market, there are
different departmental roles which have come up within the Qatar Airways for the purpose of
helping the firm in maintaining an appropriate position of their own. Further, the function of
the organocation is majorly depending on the other functions such as marketing, human
resource, research and development, operations and finance (Rostamkalaei and Freel, 2016).
Figure 1: Organization chart showing how different functions are inter-related
(Ranasoma, 2021).
Talking in relation with the marketing function of Qatar Airways, it is being measured
as a bridge of the firm with the market for fulfilling the requirements of the clients. it is the
heart of the business as the main role is comprehend the market share, taste and preferences
and working closely with the other functions such as production, finance and research and
development department. The marketing function provides information to the production
function which in turn moulds their products ands services as per the information received.
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This means that the marketing department also works closely with the operations or
production department for making sure that all the new or existing products will be on the
market on the accurate data that marketing department has announced in the market
(Ranasoma, 2021).
In addition to this, the finance function is also one of the most crucial functions of the
company because it is connected with the expense or practices of the resources. The finance
department of Qatar Airways is required to offer valued reports in relation with the financial
performance of the firm. Additionally, they also establish budget for all the other departments
of the company such as marketing, HRM, operations and R&D. Other than this, the human
resource department is also required to make sure that the right personal is being appointed
by them for the right place and at the right time. The HR department closely works with all
the departments for knowing the amount of workforce needed by each department. it
particularly works more closely with finance department as they require finance for
conducting recruitment, selection, job evaluation and training and development. In addition to
this, they are also concerned in regards with the policies and legislation and makes sure that
the workers and their rights are protected and all laws are appropriately applied (Lowi, 2017).
Advantages and disadvantages of interrelationships between organisational functions and the
impact that can have upon organisational structure
The shape of the business is being defined by its structure and is being created so that
the firm can meet its purpose in the best possible manner. There are different types of
organizational structures such as functional, hierarchical, geographical, matrix etc. All these
different types of structure might be impacted by the inter-relationship between the
organizational functions. It might result in effective functioning, good relationship or it might
lead to conflicts, ineffective management and disorganization of the functions within the
company. There are some advantages and disadvantages of inter-relationship amid the
functions of Qatar Airways (Banica and Hagiu, 2015). Talking about the advantages, one of
the most important benefits that the company will have through this inter-relationship is
accomplishment of the objectives of the business more effectively. further, the combined
efforts of all the functions of the firm can help in creating enhanced values and synergy
which supports in generation of additional values and competitive ground for the company.
Moving further, effective inter-connectedness of the organizational function can also help in
communicating essential information that fosters effective decision-making process. it also
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helps in enhancing the corporate culture by making sure inter-relation between the business
function.
However, many a times, this inter-relationship of organizational functions might
create some drawbacks for Qatar Airways. First of all, the company will be less effective if
there is a close interrelatedness amid the sales and production functions where the production
function is not effective. This will decrease the effectiveness of the sales function. Similarly,
there might be chances of conflicts between the employees and managers and the clients
might not get the correct status of their project (Charles, Schmidheiny and Watts, 2017).
Other than this, the functions of all the departments will be impacted as if any department
does not attain its function, the while business will have to suffer.
PART – 2
Positive and negative impact of macro environment on Qatar Airways
 Political – Because of the Covid-19 pandemic, there has been assortment of
restrictions being put up by the government of different nations such a travel bans
amid the nations, adherence of protocols of safety standards. All this has impacted the
business of Qatar Airways. The revenue of the firm has been impacted a lot. Further,
other decisions such as political blockade of Qatar by other GCC nations has also
influenced the company.
 Economic – When it is in context of the airline business, the Qatar Airways have a
very strong position. However, due to the recent pandemic, the profits and revenue of
the company sharply decreased in past two years. Other than this, the slow economic
growth of Qatar is also having a detrimental influence on the airline operations
(Kucsera, 2021).
 Social – Wide range of social issues impacts the business of the airlines such as
gender ratio, population, cultural diversity and customer perception. People in Qatar
spend lot of amounts on vacations as they are having high per capital income. Thus,
company have a high opportunity with large customer base. Nevertheless, due to
pandemic people now fear to travel due to the threat of infection and this might have a
devastating influence on the airline sector.
 Technological – The company has always offered innovative and creative services to
their clients like augmented experience, comfort and cost reduction by the application
of novel technological developments. There are different advancements taking place
in this area which needs to be adopted by the firm for enhancing their brand name
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such as mobile application, online booking of tickets from the website of the company
etc.
 Environmental – One of the most essential factors that might impact the working of
the company is related with the environment and sustainability (Weatherley and Otter,
2014). Because of the rising level of climate change and global warming, government
has imposed several restrictions on the airline industry for reducing the carbon
emission. The company needs to make use of efficient planes and aircrafts so that it
can protect the environment.
 Legal – The company has always paid high attention on the legal considerations and
because of which Qatar Airlines is also being referred as one of the best across the
globe. Different travel restrictions have been executed by governments of different
nations due to the outcome of covid-19 pandemic. The airline has to confront all the
safety regulations for making sure that all the stakeholders are contended with the
operations of the company (Besley, 2015).
Internal and external analysis of Qatar Airways
SWOT Analysis is being regarded as an important tool that might help in
investigating the core insights of the firm. Further, it might facilitate development of
successful method for the coming future of the firm. This is an important strategic tool which
evaluates the Qatar airways by its strengths, weaknesses, opportunities & threats and is being
explained below:
 Strengths – The main aim of the Qatar airlines is to offer excellent in-flight services to
all their customers. Further, there are different activities which are being considered
by the firm such offering relaxed lounge seating, negligible waiting time, security of
the baggage, customized meal, in-flight amusement, online check-in and so forth for
offering an elevated experience to the customers. Further, the leadership strategy of
the airline is also very good. The strategies along with the vision being encompasses
have resulted in the unexpected enlargement of the airline (Chiambaretto and
Wassmer, 2019).
 Weaknesses – One of the important weaknesses of Qatar Airways is lack of morale of
the workers because of the controversial human resource strategies. Further, the
maintenance cost is also very high due to sustenance of quality of different services
along with facilities. Further, it is also because of the fluctuations being found in the
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prices of fuel and wages concern from the unionization. The domestic flights in the
Qatar are very low due to which it is very much reliant on the external market.
 Opportunities – Certainly it is true that with the augmentation of requirement for time,
people are finally using additional air tours instead of rail and road. Thus, there has
been accumulation of assortment of emergent connectivity of airways to an
assortment of fractions of the world. further, in the Asia nations such as China and
India, there has been increase in the demand of luxury travel. Further, formulation of
strategic alliance with the other firms in the travel industry is the big prospect for the
airways ().
 Threats – one of the biggest threats to the company is rising level of competition in
the market. there has been rise in the level of low-cost airlines which in turn is
bringing consequences to the airline companies cutting their travel resources.
Furthermore, competitors of the company such as Emirates and Ethihad airlines are
impacting the business significantly (Banica and Hagiu, 2015).
Explaining the ways in which the strengths and weaknesses interrelate with external macro
factors
Both the internal along with the external factors of the strategic environment of the
business is very crucial and thus, it is needs to be discussed effectively. there is a strong
connection between the internal factors of the operations of the business such as strengths and
weaknesses and the external macro factors of Qatar Airways. Both these factors influence ach
and other and impacts the decision-making process of the operation of the business. talking in
relation with the strengths of the company, it has allowed the firm to use the prospects of the
company for attaining competitive advantage in the market. further, strengths of the airlines
also help in decreasing the negative influence of the macro factors. For example, the good
reputation of the airlines along with its enhanced level of quality services being offered to the
clients helps in reducing the political impact on the operations of the company. Moreover, it
has been observed that because of the excessive influence of the pandemic on the company
due to travel restrictions and other related services, the overall sales of the company decline
but was quite better than the other firms operating in the same market (Bryman and Bell,
2015). This is mainly because of one of the strengths of Qatar Airways that is good reputation
in the market.
On the other hand, speaking in the context of the weaknesses of the company like
high operational and maintenance cost, low domestic flights, lower employee morale etc.
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decreases the effectiveness of the business opportunity of the macro environment, for
instance growth prospects. Thus, it can be said that because of the presence of the weaknesses
within the company, the threats of the economic downturn along with the augmented level of
competition within the airline industry have been intensified. All this, decreases the ability of
Qatar Airways to endure the threats from the market that can be dangerous and detrimental
for the operations of the company.
A critical reflection of key findings and their influence on the decision-making process
According to the whole evaluation of the report, it has been observing or it can be
attributed that the political along with the social influence has been accountable for
development of key alteration or modifications in the business. consequently, the major
findings illustrated that the different regulations, legislations, rules and policies have been
answerable for Qatar airways to achieve success and growth in the international market.
Other than this, it has also been taken into account as the definitive strong point of the airline
company. Furthermore, the social as well as the environmental factors are being regarded as
the key factors for the financial recession of the company (Wang, 2021).
Focusing in relation with the social factors, the influence of the coronavirus pandemic
has been regarded as the main element accountable for developing different obstacles in the
path of reducing the rate of travel because of the threat of getting infected from the disease.
On the other side, the extreme or thrilling rate of carbon emission is contributing towards the
alteration in the climate. Due to this factor, the airline industries have to come across with
different types of restrictions for these major problems. It is indeed being regarded as the key
minus point for the Qatar Airways. It can be said that the company has acquired a higher and
leading position in the market in relation with the economy, which is one of the highest
growth prospects for the firm. Nevertheless, the legal and legislative factors have not
advantageous influence on the firm (Mullins, 2014). It can be a threat to the future of the
business organization for the execution of the further legal structure because of the influence
of the recent coronavirus pandemic.
CONCLUSION
Thus, from the analysis of the whole report, it can be concluded that the macro along
with the micro environmental factors have a massive influence on the efficiency as well as
profitability of the firms. thus, the investigation of the scope, vision, objectives, mission,
market and legal structures has been competent to analyse the key growth elements of the
firms. Furthermore, the background also demonstrates to be tremendously cooperative in
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