Business environment means the external forces influencing business management and decisions. It contains two forces, specific and general. Investors, competitors, customers, and suppliers affect directly in their day-to-day operations are the specific forces. Social, political, legal and technological conditions affect organisations indirectly are the general forces. Strategy management and innovation are vital for an organisation’s growth and development. Upon understanding the importance of strategy management and innovation, researchers have formulated theories related to organisational management. Theories have critically analysed with the case study of British Airways by comparing strategies with both external and internal environments. The case study explains the dimensions of business travel and tourism and its social, economic and environmental consequences.
Business Environment encloses all those factors effects an organisation’s operations including investors, customers, suppliers, distributors, competitors, regulations, government activities, economy, demographics, social and cultural factors, and technological developments. In addition to this, physical or natural environment and global environment influences the businesses. As the rate of technological change gets faster, the organisations need to innovate or renovate of the business practices, especially changes in the product, pricing and distribution. Organisational planning in modern times must be based on different technological developments, political developments, legal developments and cultural developments. Strategy, innovation, and change are the main key components that influence the business in growing and sustaining in the current competitive business environment. Organisational strategic planning process: Strategy is a careful long-term action plan towards the goal. According to the today’s high competition in business environment, the large corporations not only follow the budged-oriented and forecast-based planning techniques to survive and prosperity, but also employing in strategic planning. Mission & Objectives: The organisation focus and shared values expressed as Aspirations Statement that projects the organisation representation to the consumers. Organisational leaders can define measurable financial and strategic objectives directed by the business vision. Environmental Scan: Environmental scanning means examining of the internal and external environment of an organisation, which helps the organisation in robust strategic planning. Strategy formulation: Once the clear demonstration of an organisation has been achieved, specific strategy can be developed. Strategy Implementation: For successful implementation, high level intangible terms and priority of strategy needs to be translated into more detailed policies for clear understanding at the functional level of organisation. Evaluation & Control: After implementation, the results need to be measured and evaluated, and adjustments made as necessary in the strategic plan. (http://www.quickmba.com) SWOT Analysis: SWOT means strengths, weaknesses, opportunities and threats. SWOT analysis is a strategic planning method, and it helps the businesses in identifying and prioritising issues and then developing specific strategies to address the specific issues. Strengths: Organisational strengths are skills and capabilities which makes possible to conceive of and implement its strategies. Some examples are tie-ups with the suppliers, resources, marketing distribution and awareness, reputed brand name, etc. Weaknesses: Organisational weakness is deemed as an opposite of strength. Examples include weak tie-ups with the suppliers and distributors, poor reputation among customers, gaps in capabilities, lack of competitive strength, weak brand name, etc. Opportunities: Opportunities are favourable circumstances of organisation towards...
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