Business environment

Topics: Airline, Economic system, Economics Pages: 13 (3854 words) Published: October 9, 2014

TABLE OF CONTENTS

INTRODUCTION
An organization which is surrounded by various people, resources, media, government, technology, economic conditions, rules and regulation of the government, culture and values of the society, domestic and global competitive scenario (Chaiprasit and Swierczek, 2011). A business enterprise and the above mentioned factors have interrelated relationship. Both have significant influence on each other. This report is made to give the comprehensive understanding about the type’s factors which are the part of a company’s business environment. The whole report is made in the context of business environment of British Airways. In this report, the purpose of different types of organization will be critically analyzed and simultaneously it also been discussed what activities are done by the management to fulfils the objective of different stakeholders. In the report, the impact of fiscal policy, monetary policy, and competition policy on the British Airways business activities is also analyzed. Moreover, the report also examined how market structure determines pricing and output decisions of business. TASK- 1

1.1 The purposes of different types of organization-
Every organization comes in the market with some objective or purpose which we call business enterprise mission or ultimate goals that it wanted to achieve from the concerned market. The purpose of organization depends on its type whether it is public sector (Government firm) or private sector. A public sector firm usually establish to give employment opportunities in the society and to protect the industry areas which are highly sensitive in respect of nation’s security (Capon, 2009). On the other hand private company’s purpose of establishment is to earn profit by adopting sustainable strategy to grow in the industry. The basic purpose of any firm is to make profit by serving its customers in the best manner so that the customer retention can be maintained. British Airways is one of the UK’s success stories of privatization. In 1980’s, British Airways become privatized due to increase in the accumulated losses. British Airways rejuvenate its strategy and made its mission to become “The world’s favorite airline” and company makes accomplish its mission in 1990’s by becoming the World’s most profitable airline (About British Airways, 2014). Now British Airways is more concerned about the continuous exponential growth as more airlines firms have come in the market. In the view of this scenario the company has made its mission to become the world’s leading global premium airline (Paul, 2006). The firm will accomplish this ultimate objective by offering the best qualitative and enjoyable flying experience to the customers of all over the world. So this was the British Airways mission. The vision of the organization refers to the desired end state of the business enterprise. The British Airways vision statement states that the firm wants to become the world’s most responsible airline (Kennerley and Neely, 2003). The company has set goals to reduce carbon emission, recycling of waste and minimization of air an noise pollution. 1.2 Key Stakeholders of the British Airways­-

Stakeholders of the organization are those who can influence the business activities or can be influence by the business enterprise activities. They have significant role in the functioning of the business enterprise (Allen and Raynor, 2004). The Stakeholders of British Airways can be categorized into internal and external stakeholders. Internal Stakeholder

Owner- He is the actual business owner of the business. He wants to have sufficient ownership control over the business and want to earn incremental profits from the business (Nimwegen and et al., 2008). Manager- Manager is the one who make important decision related to the growth of the business and makes organizational policies and strategies to fulfil the common objective of the business eneterprise. Employee-...

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Online
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