BIZ202 Presentation: Analyzing Virgin Australia's Business Environment

This presentation delves into the business environment of Virgin Australia, examining the events that led to significant losses for the organization. It begins by outlining the grounding of flights in March 2020 due to the COVID-19 pandemic and the airline's pre-existing financial struggles, including seven years of annual losses. The analysis explores both micro factors such as competition, customers, and suppliers, and macro factors including legal, economic and environmental considerations that contributed to Virgin Australia's difficulties. The presentation also discusses the company's response to these challenges, including a request for government financial assistance, which was ultimately denied. Furthermore, it offers recommendations for counter strategies, such as building a strong supply chain and customer base, and fostering innovation to mitigate the bargaining power of both suppliers and buyers. The presentation concludes by emphasizing the importance of understanding and monitoring the business environment to avoid losses and improve performance. Desklib provides many resources for students to excel in their academic performance, including past papers and solved assignments.

The business Environment

Table of Content
 INTRODUCTION
 Events that led to loss of organization
 Analysis of events in context of micro and macro factors
 Response of the business
 Recommendations of counter strategies for potential growth of
business
 Conclusion
 References

INTRODUCTION
The business environment is basically referred to the surroundings of the business. A business
environment comprises of internal as well as external factors. The primary organization
considered for analyzing the business environment is Virgin Australia. Virgin Australia is an
Australian based airline. The organization started its operations since 31 August 2000 by the
name of Virgin Blue. The report consists of a study that highlights the impact of various
factors that led to losses of Virgin Australia.

Events that led to loss of organization
It is reported that in March 2020, The CEO of Virgin Australia had announced
grounding of 53 flights during the pandemic of COVID-19. The announcement
resulted in withholding of the business as a domestic airline. Virgin Australia had
been facing the annual loss for approximately 7 years. The organization was facing
financial difficulties due to the losses that were being incurred by it. The
organization had asked for financial assistance of approximately AUD 1.5 billion as
an emergency loan during the COVID-19 break out. The government of Australia
denied the bail out in April 2020 that resulted in the collapse of Virgin Australia.
Another constraint that affected the business was travel restrictions during the
pandemic that left the whole industry affected

Analysis of Events in context to micro factors
Micro Environmental Factors
The micro factors that have affected the business functioning of Virgin Australia are
discussed below-
 Competition
 Customers
 Suppliers

Recommendations of counter strategies for potential
growth of the business
 Virgin Australia can look upon various ways to build an
effective supply chain in order to cope with the bargaining
power of the suppliers.
 The organisation can establish third party vendors whose
business is solely dependent upon the business of Virgin
Australia. This way, the bargaining power of the supplier is
more likely to decrease.
 Virgin Australia can focus upon building a large customer
base which will further reduce the bargaining power of the
buyer. This will helps the organisation to streamline its
production and sales procedure.
 The organisation can come up with innovation in order to
diminish the bargaining power of the buyer to decrease the
demands for discounts.

Conclusion
It can be concluded from the study that it is very important to have an understanding in
aspect of the business environment of an organization It is very important in order to monitor
the business operations while avoiding the losses for the business. The study has highlighted
two kinds of factors, namely micro and macro factors that have affected the business. The
various micro factors discussed in the study are customers, suppliers and the level of
communication whereas the macro factors discussed are legal, economical and environmental
factors. The study has highlighted the response of the organization in aspect of the situation
and also recommended few suggestions to uplift the position and performance of the business.

REFERENCES
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