Introduction to Business Environment
British airways are the largest flag carrier airline company in United Kingdom which is headquartered in Waterside, Harmondsworth, England. It was established in year 1972 by United Kingdom government in order to manage two nationalized airline corporations. This report analyses the vision, mission and objectives of British airways and describes the ways in which they meet objectives of the stakeholders. It also evaluates the challenges faced due to fiscal and monetary policies on the business environment of British airways. It also ascertains the impact of global changes on British airways.The main purpose of evaluating business environment of British airways is to identify various factors which determines the growth of the organization. They also determine the various global factors which determine the growth of the organization (Brumfitt, 2001).
Mission, vision and objectives of British airways
Increase Your Odds of Success With Our
- Scholastic academic documents
- Pocket friendly prices
- Assured reliability, authenticity & excellence
In today's scenario it is necessary to perform as per the various aspects to determine the purpose to attain the maximum growth of the organization(Kew and Stredwick 2005 .). Proper arrangement of the various aspects is determined to pursue the common goals for which they are working. Proper analysis of the internal and external environment help to ascertain their performance aspects to meet the objectives. There are three types of organization which functions to attain their objectives in accordance with their vision and mission. It has been discussed underneath:
It is the legal entity which is owned and operated by the single individual under his/ her name. The main purpose of this organization is to make maximum profits. It is easy to start up business individually as they are not obligated with legal restrictions. The entire control lies in the hand of the owner itself. The debt and expenses are handled by the individual. If they start up new business with the name of other then they have to follow certain legal obligations by getting the name registered by which they are starting the business.
It is the separate entity which operates as per the investment made by the shareholders. They are the essential elements assist in operation of business . They are entitled with large number of investors who contribute huge capital in various activities. The main purpose is to maximise profits to modify the strategies to compete with the other organizations.
They are the organization which does not work to generate profit. Their main purpose is to provide services to the individual to attain specific goals. They are provided by certain privileges from the government as they concentrate on people welfare rather than profit maximization.
British airways are the large airline company which helps in building good customer relation. They ascertain the mission and vision to determine the effective performance. British airways emphasizes on setting standard to accomplish the target and tap the maximum opportunities for growth in context of becoming the global premium airline. Their mission is to deliver best services and promise greater customer satisfaction (Capon, 2009). They closely monitor each aspect to ascertain their performance for accomplishment with the improvement as per mission and vision of the company.
The main objective of the British airways is to provide best services in order to be the first choice of the customer with which they wish to fly. They modify the strategies to deliver best to customer who are flying with them. British airways determine the short term and long term parameters to measure performance across the business and sets standards which are aspired by others.
Stakeholders and Impact of Challenges
British airways is the public limited company as it have certain legal framework in which they carry out their work to meet objectives of the different stakeholders. The key stakeholders are discussed below:
They are the important aspect for British airways. British airways operate on the set standards to meet requirement of them by delivering the best.The major challenge which is faced by the British airways is that the demand of the customers is increasing day to day and they are not satisfied with what they are getting. This has affected the image of the British airways. In order to retain the customer they have to modify their performance to attain satisfaction of customer.
As per the change in working environment the employees switch their jobs and there is a high termination rates due to recession they lack in funds to compensate them for the job as per the potential. British airways have ascertain the reward framework and performance related pay to meet objectives of the employees.
They are the key personnel which determine the growth and functioning of the organization as they invest and provide support to carry out various activities. The major challenge which is being faced is that they are not satisfied with the returns which they are getting on their investment. British Airways adopted various development strategies to ascertain the growth by increasing profits which contributed in fulfilling responsibilities towards the shareholders.
Economic system for resource allocation
British airways are the well versed airline which emphasizes on providing major facilities to the customers who are flying with them and ensure they provide best facilities(Shaikh, 2010). They keep all the things in a systematic manner to sustain in the economy and also contribute in rendering best service. They provide best to the customer to attain growth to a great extent . The economic system is quite effective as it helps to ascertain emerging economy of the British airways to allocate the resources in such manner to attain maximum customer satisfaction. they also ensure that they serve what they promise to customers in an effective and efficient manner. All the aspects are monitored and evaluated properly to ascertain growth of the British airways.
The fiscal and monetary policies are framed within country to control money supply. Demand within an economy tends to increase with increasing money supply and vice versa(). It is with increase in demand that the prices of products and services increases continuously. The fiscal policy is framed as per the requirement of the British airways . The concerned authorities tend to bring up changes in their revenue and expenditure so as to control money supply. It is through fiscal policy that the government tends to bring up changes in country’s expenditure, taxation policies and revenues. This in turn helps in increasing or decreasing money supply within an economy. It is with rise in demand that the British Airways is able to achieve high level of growth.
These policies tend to impact the demand of British Airways. It iinfluences the rise in the supply of money and its demands within airline sector and vice versa. Henceforth, the organization should bring up changes in its prices as per the policies. Moreover, effective strategic formulation will help the organization in achieving long term success.
Impact of Regulations, Competition and Legal Policies
British airways are the dominant airways of UK . Being the international public limited airline it is subjected to regulation in both commercial and operational sectors . They had the excellence in providing the best service to the customers. They cannot bring the major modification in their work policies as they are have to follow different regulation in order to carry out the various activities(Bracci and Maran, 13.). The airline industry is very intense in the competition perspective as they are many new entrants in the aviation industry. The intensity of the competition varies from route to route the fly depending upon the nature of the market trends. British airways have to follow the same pattern in order to flourish as they cannot entitle major diversification in their work culture as they have the legal obligations on them. They have to sustain in the long run with the same regulations and policies. The pricing policies also influence the sustainability of the organization as the cost structure determine the standard of the growth of British airways.
Market Structure of Airline Industry
The oligopoly market is very complex as it is dominated to few firms who operates in the given market structure . They are entry barriers for the other companies to enter in the market structure which has the limited firms which they operates. There is major control over the price in order to gain the competitive edge. British airways also operate in the same market as they are restricted with the government norms and rules and regulation. They have to strategically formulate the policies to sustain in long run. There is no proper cooperation between the work environment and the policies formulated by the government. British airways has to take in consideration each and every aspect as it is important for them to operate in an effective manner. With the increase in the fare prices they encountered huge loss as the provided less facilities. Which resulted in downfall in the market share which impacted its demand. British airways need to consider each and every aspect in such manner that it creates the barriers for the other competitors. They should ensure that they modify their work environment which leaves the significant impact on the work environment of other firms and influence the market structure.
Interpretation of the Market Forces
Market forces influence the work environment of the organization as there are many forces which operates and are constantly monitored to sustain in the long run. British airways are also influenced by the market forces. As per the changing conditions the performance of the British airways get affected. As the demand of the customer fluctuates as and now its difficult to determine their actual requirement and meet it. There is an intense competition in the aviation industry for which British airways has to adopt various technology to respond to the requirement of the organization.
British airways also emphasizes on customer satisfaction in respect to the services which they are rendering to them. They also monitor the changes which are influencing the overall performance of the organization. With the advancement in the technological forces they can implement it as per the requirement which help to respond as per the requirement of the customer needs. This also ensure the economic aspects which also determine the status in increasing the resources to effectively utilize it.
Impact of Working Practices and Culture
The work practices and culture differ from one country to other. The work culture of the countries diversify as per the boundaries of their nation in which they function with respect to the boundaries of the other nation in which they entering. They have the vast difference in their working which impact the organizations which are working in their boundaries. It is very difficult to meet the cultural dimensions of the different countries. British airways is the fast growing airways in the airline industry. British airways flourish in different countries which have the drastic differences in the work culture. They ascertain not to create changes in the work culture of the different countries as they have to ensure that they build up inspiring and rewarding workplace for them. They try to modify their business policies so that the does not impact the culture of different countries. British airways widely use the working practise of the different countries to enhance their performance on wider perspective.
Impact of global changes in trade regime
Globalization has the greater impact on the British airways by the various organizations which are the part of the industry in which it operates. Globalization has the grater influence on the various aspect of the business . The impact of the World trade organization which deals with the global issues related to trade. It integrates the national economy into the international economy with the change in the trade practises. The tourism industry of the aviation industry also have the grater impact as they generates the revenue through British airways . There are many aviation industries who are serving on large basis for the purpose of tourism. On the other perspective of the other international civil aviation they have to ascertain their performance and trade perspective in order to generate the revenues. British airways is monitored by the government body so it has different aspect regarding the regulations and policies regarding the trade with the different countries.
Other global factors impact on British airways
The other global factors which influences and impact the working environment of the British airways differ in various manner(Nissim, 2007). They include the various policies which are to be accomplished to attain the performance outcome. The economic policy help to determine the areas which has the maximum opportunities for the growth. British airways try to provide the best to the customer in respect to the motto for which they operates. They modifies the aspects as per the requirement of the customer as they fly to serve. They ensure that the strictly follow the regulations and adopts the policies to benefit the customer for the services which they are rendering. British airways also include those strategies in which they can make modification from time to time and serve the best to the customer and determine the responsibilities towards its stakeholders.
Impact of EU policies on British airways
British airways welcomes the opportunities of the European union to work as per the trade policies. As the European Union are continued as per the relevant development and growth of the British airways. These policies impact the overall performance and contribute to achieve the objectives of British airways. They also influences the work environment as the policies differ from country to country they can compete with the various airways as they are provided the specific common policies to ascertain their growth and meet the overall objectives of the organizations(Grimsley, 2015.). British airways can implement these policies as it support, complement and coordinate the various aspects to ascertain growth.
Business environment analysis helps to understand the various perspective for which they are functioning and help to determine the work environment and determine the behaviour of the British airways which get influenced by the various aspects. They also help to determine the various aspects which can be taken into account to meet the grater outcomes. It is very important to keep all the aspects in mind to ascertain the growth of British airways. They also help to determine the government policies as per the economic requirement to properly make the efficient use of the resource which are influenced by the various aspects of the organization. It is important to keep all the aspect which are influence by the various forces and the factors which determine the performance . They should follow the proper aspects to render the best services to the customer to met the core competencies of the British airways. With the proper assess to the business environment they can tap the market opportunities and enhance their competitiveness.
You may also like to read:
- Brumfitt, K., 2001. The Competitive Business Environment. Nelson Thornes.
- Kew, J. and Stredwick, J., 2005. Business Environment: Managing in a Strategic Context. V. CIPD Publishing
- Capon, C., 2009.Understanding the Business Environment.Illustrated. Pearson Education, Limited
- Fernando, C. A., 2011. Business Environment. Pearson Education India.
- Shaikh, S., 2010. Business Enviornment. 2nd Ed. Pearson Education.