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Diploma in Business
Unit Number and Title
Unit 1 Business Environment - British Airways
British Airways is a leading player in airline industry. The organisationoperates around 183 destinations in the year 2013. The Unit 1 Business Environment Assignment British Airways implicates the purpose of different organization and their objective for the different stake holders. The current study depicts the responsibilities of different type of organization. The report will throw the light on the allocation of resources through economic system. The study will assess the respond of competition, monetary and fiscal policy on the British Airways. The report describes the pricing and output decision and forces that shape the organizational responses. The study will implicate Different culture shapes the activities of British airways. The report indicates the significance of international trade in UK and impact of European polices in UK business Organization.
Every business has the responsibility to fulfil the demand and supply of the customer. Different organizations have different purpose in context of customer. Organizations are classified into two categories public and private organizations. Following are the purpose of different organizations:
Different stakeholders have different demands towards the organization. Customer, shareholders, managers, suppliers etc are the different stakeholders for the organization. Following are the objective of organization towards stake holders:
Organisation has many responsibilities in context of customer, government, shareholders, suppliers etc. British Airways has the responsibility to provide quality product to its customer by which organisation can avoid the consumer dissatisfaction. According to health and safety work act 1974 management should ensure healthy and safe working environment to the employees by which staff members can give their best towards the organizational goals. Management should check the working facilities in the organization and assure the employees to work safely. British Airways assure the equal opportunities to the applicant (Imran.et.al.2014). According to the Equality act 2010 every individual has the right to get equal opportunities in the organisation.
Another responsibility of the management is to provide the goods which are not harmful for the environment. Organisation has the social responsibility that is Corporate Social and the organization should perform activities for the welfare of the society and environment. For example British Airways should adopt the tree plantation concept in the areas where there is less rainfall, develop the gardens, less use of paper in the organization etc. This kind of initiative may create the positive brand image of the organisation in the market.Organisation has the responsibility to pay the dividend to the shareholders on time which maintains the trust on the organization (Biswas and Bhatnagar, 2013). Another duty of the organisation is to pay interest to the lenders that raise the goodwill in the market. Moreover, organization has responsibility towards the health and safety, consumer protection and ethical marketing and offering of goods and services. For example, British airways management is following the ethical rules and regulations for marketing planning and having concern over the health and safety of customers and staff members (Petrou.et.al.2016). This kind of approach is helping organization to meet the satisfaction level of existing customer.
Market structure helps in determining the prices of the goods and interacts with the companies. The market structure mainly consists of four kinds such as Monopoly, oligopoly, Monopolistic competition and Perfect competition. UK follows the oligopoly trend in the markets which helps the organisation to determine the prices. Oligopoly is a form of market where few sellers in the market (Ellison.et.al.2015). Under Oligopoly organisation is concerned with rivals because of high competition in the market. Following Factors organisation may consider while deciding the price:
Different aspect shape the activities of the organization like demand and supply of the product, Business environment etc. Competition in the market may also influence the price of the product. Requirement of the services in the market assists company to decide the price of the products.
Demand and Supply are crucial factors while deciding the price of the product. Supply and demand both are interrelated if supply is on peak then demand decreases and when demand is on peak then supply decreases. For instance raise in the price of petrol may directly affect the prices of air tickets and decrease in the price of petrol may decrease the price of air tickets (Fitzgerald and Haller, 2014).
Business and cultural circumstances has impact on the organizational behaviour. The environment is of two kind economic and non-economic environments. The economic environment includes Differentconditions of organization, procedures etc. Non-economic environment containsRules, Regulation, Policies of government etc. British Airways covers around 183 destinations across the globe. Organisation’s activities depend on the rules and regulations set by the government of the destinations (Scott, 2013). The environment of the every country is different which affect the operations of the organisation. Economic policies of every country are different from each other. For example, policy of UK is different from the policy of India and dependsupon the culture of the country as well. Policies like monetary policy, export import policy, fiscal policy are different of every country which directly affect the behaviour of the organization. In this situation organisation has to work according to the policy of the government.
Demographic environment also impact the behaviour of the organization like density, size, distribution and growth rate of population.These factors may shape the behaviour of the organization. These points might be considered by the companies while entering into the new market with the products. Political environment may also shape the behaviour of the organization like government policies, attitude towards the organization (Ting-Toomey, 2012). This kind of policies affects the decision power of the organization.
The transaction which takes place beyond the boundaries of the nation that is International trade. The trade involves importing and exporting products. Importing is essential because a nation cannot produce all kind of product and services locally, increasing products variety, utilization of resources, increase consumer’s choice and preferences (García-Pérez.et.al.2105). For UK economic development international trade also plays critical role as the interface of global trends and opportunities helps to implement the new technology and policies that improve the production and efficiency. On the other hand, international trade has another impact is that dependency on other nations, decrease in exports and increase in imports, less employment opportunity etc. International trade assists companies to raise the profits and expand their business at global level and create a strong customer base for the company.
It has been very important for the UK business economy to improve their market during the colonial period. The matter of globalization has produced apparent economic uncertainty and the clear understanding that the UK business economy is at risk to effects that are clearly exterior its empire of influence. For airline organization international trade has significant impact on the technical, legal and environmental activities that need to be considered by the British airways organisation to sustain the position in international market.The blooming economy of UK business economy during colonial rule was because of it is largest market (Van Bergeijk, 2014). UK producing raw material at the low rates and sale it in the form of finished goods with high prices. It is very important for the UK economy because that is maintained its economy forces, powers and improvement in more competitive global economy. This kind of process is more profitable for airline companies to encourage the business through offering the cargo services.
British airways are affected with various factors that involve in health and social care economic, political and technological factors. Particularly, business wants to admittance to international markets, the capability to obtain and combine with multinational corporations and the costs of trading in different regions and countries. Global business increases the strength of business in UK and allows the companies to do trade outside boundaries of the country. (Benn.et.al.2014).
Companies of UK have to follow the guidelines designed by the European Union. Nowadays it is rules are similar for all EU countries and it is required that all countries have to follow the European Union’s legislation. If countries of UK or European countries decided to establish new venture in this conditions countries have to take permission from European Union and have to perform all the transactions in Euro. European commission regulations are directly obligatory on all member nations and do not require national legislation to lay them in place. Rules and Strategies have big impact on UK business in the form of policies of European government, other expenses, subsidies etc (Glasson.et.al.2013). All UK companies have licenses for the export and import products and services from other countries and licenses issued by the European Union. National authorities can observe the performance of the business organizations locally.
As per the Unit 1 Business Environment Assignment British Airways it can be concluded that British Airways perform responsibilities in the effective way by which all the employees are satisfied. Organisation meets the objective of stakeholders in effective way by which organisation maintains the goodwill in the market. The study depicts that organisation effectively allocate the resources through economic system. The organization follows the oligopoly to decide the price of products. The study indicates the impact of competition policy on the organization. The study indicates the importance of international marketing trade in UK business organization and impact of European Union on British Airways.
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