Introduction To Business Environment
Business environment refers to those internal and external factorswhich affects business function. It means that what all factors any business possess to work efficiently in order to achieve goals (Dave, 2012). The environment of business which includes both internal and external factors which determines business to run efficiently. In this report, British Airways analysis has been done to know the mission, vision, goals and objectives of company. The organization fulfils all needs and responsibilities to meet the objectives of different stakeholders. The impact of fiscal, monetary and competition policies on British Airways. The importance of international trade to the business organisations and which market forces helps in shaping the business.
LO 1 Organizational purposes of businesses
1.1 Purposes of different types of organisation
The purposes of different types of organization which includes public organisation, private organisation and non- government organisations. These all organisations serve the public for different purposes and help in different ways to maximise the needs and wants (Miller and Cross, 2009). Public organisations play an important function in serving the people and not earning profits. They serve general public to make them feel and utilise all the necessities and don’t want to make profit out of it. In order to this private organisations serve public for the main reason of making profits. Their main purpose is that to satisfy the people and through that earn revenues and become leader in that segment by defeating all competitors. The last type of organisation is non- government organisation whose main aim or purpose is to do welfare of public and not with the motive of earning profit.
They serve people to do welfare and make them feel better. British Airways is an organisation which is private organisation which serves people to make them satisfied and earn profit. While satisfying the customers they earn profits so to have maximum revenues and make people feel better (Johnson, 2010). The business environment of British Airways should be best both internally and externally so that it makes their customers feel pleased. The main purpose of private businesses is to make profits to sustain in such a competitive environment and to become leader.
1.2 To meet the objectives of different stakeholders
The business helps in meeting the objectives of the stakeholders to make a good relationship between both of them. If the company involves itself in understanding their stakeholders which ultimately make the business to raise their profits. Various types of stakeholders include customers, shareholders, employees and competitors.
Customers- In any company customers play an important role in earning profits and have their impact to manage the company properly. Customers are the main source of existence of any company (Lee, 2005). British Airways should make such strategies to keep their existing stakeholders loyal to them and try to make such policies which helps in attracting new customers as well.
Employees- They has the best power to run any business successfully and make it a growing and developing organisation. Any business can become successful only when its employees are loyal towards the growth of business (Armstrong, 2005). British Airways should satisfy their employees which will result in achieving overall goals of company. All the set goals should be attained effectively by employees and earn maximum returns. The staff of British Airways should be given proper remuneration time to time for easy access of work.
Competitors- British airways are the leader in UK airlines industry with the highest turnover. But it should continuously adopt new and better strategies to compete with competitors and become a market leader. It should make good decisions to remain at top and do not get affected from low cost airlines which tries to capture their market.
Shareholders- British Airways should have a strong bond with their shareholders who help them in earning success of company (Charles and Smith, 2008). They should be given good dividends when business is making profits. They should be asked to give their opinion in making changes in company and deciding new strategies.
1.3 The responsibilities of an organisation and strategies to meet them
The organisation has the responsibility to meet different needs of stakeholders and try to satisfy them by adopting various strategies. Customers of British Airways should be given such facilities that they remain loyal to use their services which satisfy their needs. The customers should be given better quality services to make them feel luxurious and comfortable. Airways should try to fulfil all the requirements of their clients which will help them in sustaining and remain the leader in the industry (Conner, 2010). They should be given different schemes and offers so that customers get attracted and instantly use the services of Airlines. They should be remained cost effective so that it helps in increase in customers and defeat competitors. Through all such facilities customers should feel satisfied and accordingly business will also expand.
The employees of British Airways should remain satisfied to better serve the organisation. They should be given proper rewards and benefits which satisfy them and helps in increasing their morale. They should be given good working environment so that it helps in low retrenchment and strike rate which will help in achieving objectives of British Airways. They should be given flexibility in their working culture so that it will help in easy access of targets and make them feel better (Wales, 2009). They should be given fair treatment and good relationship with their management to understand their wants. Shareholders should be given proper dividends whenever there is increase in profitability of company. They should be informed about the financial success of company so to have more interest in company which will help in growing Airlines