Business Environment Analysis of Virgin Atlantic Company

This report provides a comprehensive analysis of Virgin Atlantic's business environment, focusing on both internal and external factors that influence the company's operations. It examines different types of organizational structures, including public, private, and voluntary organizations, and their respective functions. The report delves into the interrelation between various departments within Virgin Atlantic, highlighting the merits and demerits of these relationships. Furthermore, it assesses the positive and negative impacts of the macro environment, including political and economic factors, on Virgin Atlantic's performance, using a PESTLE model to illustrate these influences. The analysis covers the impact of Brexit, government policies, labor costs, and environmental concerns, providing a holistic view of the challenges and opportunities facing Virgin Atlantic in the current business landscape.

Business and the Business Environment

Contents
INTRODUCTION................................................................................................................................2
LO1...................................................................................................................................................3
P1, P2 and M1..............................................................................................................................3
LO2.................................................................................................................................................17
P3...............................................................................................................................................17
M2..............................................................................................................................................19
LO3.................................................................................................................................................20
P4...............................................................................................................................................20
M3..............................................................................................................................................22
LO4.................................................................................................................................................25
P5...............................................................................................................................................25
M4..............................................................................................................................................27
P6...............................................................................................................................................29
CONCLUSION.................................................................................................................................30
REFERENCE.....................................................................................................................................31
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INTRODUCTION
Study of business environment helps companies to make policy and strategy best supported by
the internal and the external factors that influence the company (Fernando, 2011). This
assignment based upon the study of different types of organisation that function in a business
environment. It also focuses on the different organisation function and their interrelation.
Pestle and SWOT analysis used in this assignment to identify the impact of external and internal
factors on the company. This assignment also focuses on interrelationship between the macro
and the micro environmental factors that affect the company.
The company that studied in this assignment is Virgin Atlantic. Virgin Atlantic is an UK base
aviation company, which is the part of Virgin Group. The airline revenue of more than two
thousand pounds, and has been operating in more than forty counties (Virgin Atlantic, 2018).
The company has been successful in reducing the carbon emission by a well-planned suitable
development policy. Virgin Atlantic started thirty-four years ago and has a fleet of forty-nine
airplanes which includes both cargo and passenger aircrafts (Virgin Atlantic, 2018). As a
Business Analyst of Virgin Atlantic, to study of business environment with regard to the recent
changes in UK, this assignment written.
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LO1
P1, P2 and M1
1
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2
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3
The business environment is the space in which the operations of business activity that related
to the business happen. The business environment comprises of internal and external factors.
The internal factors are organisation structure, leadership, culture and staff of the business. The
external environment comprises of political, environmental, economic, legal and social factors
that influence the business.
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4
Public organisation are owned by government of states, they are focused on public service and
do not aim to earn profits from their operations. The investments and operation cost in this
sectors is given by the government and some of it is shared with the public. The public sector
deal with large size investment and operations.
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5
The board of directors of the company heads the structure of the British airways. The board of
directors of the company reports to the Department of Civil aviation of the county. The board is
than lead by four independent communities and the CEO of the company. The CEO is the head
of operation and marketing of British Airways.
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British airways is one of top ten airlines in the world, it has more than thirty eight thousand
employee and hold a good position as a profit making government airline. The company also
has sufficient capacity to expand its operation internationally in both domestic and international
travel. The company can also expand its cargo capacity.
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Private organisation owned by group of individuals or a single individual. Their basic motive is to
earn profits through their operations. They raise money through initial public offerings or
through investors.
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The legal structure of Virgin Atlantic is the line and the board of directors of the Group heads
the staff type, the airline. The head of Board of directors of the group is the CEO of Virgin
Group. The CEO of Virgin Airline reports of the board of directors. He followed by the operation
and the development heads of the company.
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Virgin Atlantic have more a good turnover as a private company, it is also a part if the Virgin
group that provides the company support and stability to grow. The company has shown
sufficient growth in the past years, but it was in loss in this financial year. The company own
reputation of good brand name and has a scope for growth in international travel and cargo.
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