StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Business Environment of British Airways - Assignment Example

Cite this document
Summary
"Business Environment of British Airways" paper focuses on this company which is committed to becoming the leading airline in air travel services and offering differentiated services to all its customers. The airline is currently increasing its market presence in international cities.  …
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96.3% of users find it useful
Business Environment of British Airways
Read Text Preview

Extract of sample "Business Environment of British Airways"

? Business environment Report on business environment of British Airways Introduction There are different types of business organisations such as sole proprietorships, partnerships, private limited companies, limited liability companies (LLC), co-operatives, franchises, public sector organisations, non-profit making organisations and corporations. The size and nature of business organisation depends on the method of formation, the number of owners, revenues of the organisation, market value, number of countries in which the organisation operates and liability of owners towards the obligations of the business organisation (Punzel, 2011). For instance, one individual forms sole proprietorships and the owner incurs all the liabilities of the business. Two or more persons can form partnership while limited liability partnerships have a limited liability. Joint ventures are formed between two or more organisations for the purpose of undertaking a specific project or attaining benefits from sharing resources, management expertise and minimising competition between rivalry firms (Barnes, Norris and Jones, 2001). British Airways is the largest airline in the UK by fleet size and is based at London’s Heathrow Airport. The airline is part of Oneworld airline alliance that includes other members such as American airlines, Qantas and Cathay (Punzel, 2011). The airline has established codeshare agreements and partnerships with other airlines such as WestJet, LAN airlines, Bangkok Airways, Japan Airlines, Finnair, Iberia, Meridiana Fly, Royal Jordanian, Air Berlin and JetBlue (Punzel, 2011). British Airways main strategic objective is to become the leading global premium travel airline through attaining the status of airline of choice for the long haul premium clients. At the same time, the airline is committed to delivering high quality services to its customers and growing its market presence in the key international cities (Punzel, 2011). The airline is currently enhancing its leadership position in London in order to beat the competition from EasyJet and improve its revenue margins through creating additional revenue streams (Barnes, Norris and Jones, 2001). The airline meets the needs of various stakeholders such as employees, customers, business partners, suppliers and the community (Punzel, 2011). According to the company, the main objective towards employees is to develop customer-focused culture than offers rewards for individual employee performance and recognise the individual efforts of each employee through offering numerous opportunities of training and development (Barnes, Norris and Jones, 2001). British Airways aims at appealing to global customers in all markets and ensuring that individual and business travellers choose the airline as the preferred mode of air travel. The company offers premium and differentiated services that are worth for additional little payment. Accordingly, the airline is focused on its aviation segment through offering cargo movement services that complement its core business activities (Barnes, Norris and Jones, 2001). Impact of UK economic system on British Airways The current UK economic system is favourable for the business operations of British Airways. Despite the economic downturn of 2008-2009 that saw a decline in passenger volumes, the airline has implemented innovative services such as new longhaul from London to New York in order to attract more customers (Gabriele, Kuenzel and Springbett, 2012). Accordingly, the airline launched the award winning Club World product for the Boeing 747 and 777s in its brand development and positioning efforts in order to enhance its market position as the premium airline in the world. The airline adjusted its fleet in order to cut down on employment costs and save costs on shorthaul catering and attain additional revenues from baggage allowance (Punzel, 2011). The airline works closely with key suppliers and contractors in the One Destination programme in order to improve its efforts in energy conservation and recycling of waste products (Punzel, 2011). According to the airline strategic goals, the main aim is to minimise the carbon emissions as 25 percent in 2025. Accordingly, the airline is committed to its Joint business agreements with Iberia, American Airlines and members of the Oneworld Alliance in order to enhance its competitive position in the global aviation industry (Punzel, 2011). The monetary and fiscal policies of UK government and impact on British Airways The fiscal policies of the UK economy aim at enhancing economic growth, maintaining stable interest rates and attaining high employment levels through government taxation and government spending on infrastructural projects such as railways, airports and roads (Jeffs, 2008). The UK government has implemented both direct and indirect income taxes that aim at raising government revenues and indirect taxes that aim at controlling the viability of economic system and enhancing commerce in the country (Punzel, 2011). For instance, the value added tax is taxed at the rate of 17.5 percent thus increasing the costs of air travel to passengers. During the recent economic and financial crisis, the UK government implemented several monetary policy mechanisms that aim at enhancing the liquidity of the financial system and increasing consumer incomes in the country (Barnes, Norris and Jones, 2001). At the same time, the UK government has a welfare policy that aims at cushioning the poor citizens against poverty through provision of benefits such as unemployment benefits and education benefits (Geyer, Lehmann and Mackintosh, 2005). The government has provided special assistance through enterprise zones that aim at attracting investments in inner cities. The Bank of England is targeting at maintaining the inflation rate at below 2 percent through repurchase of assets worth more than 375 billion pounds (Langdana, 2009). The UK economy has a high population of more than 60 million people and receives more than 100 million visitors annually. At the same time, the UK enjoys a stable sterling pound currency that minimises currency exchange costs especially hedging costs in fuel purchase (Punzel, 2011). Competition policy and other regulatory mechanisms The UK government has implemented competition policies that ensure fair play to all firms in a particular industry. The competition policies aim at safeguarding the welfare of consumers, promoting market transparency and efficiency (Punzel, 2011). In this case, the Office of Fair Trading and Competition Commission monitor the business activities of all the business organisations in order to foster openness in business agreements and increase consumer variety in the market (Punzel, 2011). The fair trading practices aim at controlling the formation of cartels that fix prices and ending anti-trust business deals that affect competitiveness of a particular industry. Accordingly, the UK government regulatory bodies are committed at market liberalisation and compliance with EU regulations that promote competition across the member countries. In this case, the airline is not capable of receiving state aid or territorial exclusivity to the airline in order to minimise the degree of rivalry from foreign airlines (Barnes, Norris and Jones, 2001). However, British Airways is free to engage in business alliances and partnerships that will foster the development of the aviation industry and improve efficiency of its operations and that of the business partners. The regulatory mechanisms in the UK require the airlines to acquire license from the Civil Aviation Authority and comply with numerous environmental laws on air pollution and airspace security (Barnes, Norris and Jones, 2001). The airline must comply with the requirements of EU emissions trading scheme and pay the Air Passenger duty as required by the taxation laws of UK. Accordingly, the custom rules in UK require exemption of airport embarkation tax for the passengers arriving at the airports. In addition, the currency rules on import and export have no restrictions on passengers travelling to another EU member country, but passengers arriving directly from non-EU countries must declare any currency exceeding EUR 10,000. Conclusion British Airways is committed to becoming the leading airline in air travel services and offering differentiated services to all its customers. The airline is currently increasing its market presence in international cities and growing its leadership position in London. The airline has attained high brand recognition through its strategic mission of implementing customer-focused and innovative service standards. The airline has formed partnership agreements with several other airlines in order reduce operating costs and offer integrated services to global customers. The airline is currently increasing its revenue streams in the cargo transport business segment. Accordingly, the UK economic environment will enhance the operations of the airline due to increase in the population, economic recovery and stable interest rates that are prevailing in the country. However, the airline must comply with airspace safety regulatory mechanisms such as airplane manufacture specifications, and standards and environmental laws that aim at reducing air pollution and combating noise emissions from the airplanes. Reference List: Barnes, S., Norris, L and Jones, J. (2001). The competitive business environment. New York: Routledge. Gabriele, Giudice, Kuenzel, Robert and Springbett, Tom. (2012). The UK economy: the crisis in perspective. New York: Routledge. Geyer, Robert., Lehmann, Kai and Mackintosh, Andrew. (2005). Integrating UK and European social policy: the complexity of Europeanisastion. London: Sharpe. Jeffs, Chris. (2008). Strategic management. London: Sage. Langdana, Farrokh. (2009). Macroeconomic policy: demystifying monetary and fiscal policy. London: Springer. Punzel, T. (2011). Risks and decision making: using the examples of British Airways. London: Taylor & Francis. Sadler, Philip and Craig, James. (2003). Strategic management. London: Kogan Page. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Business Environment 1 Assignment Example | Topics and Well Written Essays - 1250 words”, n.d.)
Business Environment 1 Assignment Example | Topics and Well Written Essays - 1250 words. Retrieved from https://studentshare.org/business/1489282-business-environment
(Business Environment 1 Assignment Example | Topics and Well Written Essays - 1250 Words)
Business Environment 1 Assignment Example | Topics and Well Written Essays - 1250 Words. https://studentshare.org/business/1489282-business-environment.
“Business Environment 1 Assignment Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/business/1489282-business-environment.
  • Cited: 0 times

CHECK THESE SAMPLES OF Business Environment of British Airways

Global Airline Industry Issues

The study would analyze the airline industry by conducting a strategic analysis of british airways.... The study would also include a comparative analysis of the selected company with Emirates Airlines which is one of the most important competitors of british airways in the international sector.... It is calculated by multiplying the total number of seats offered by an airline and the total distance flown by the airline (british airways-a, 2010)....
12 Pages (3000 words) Dissertation

Business Environment 2

Business environment 2 Name: University: Course: Tutor: Date: Report on Business Environment of British Airways Introduction British Airways is a global airline headquartered at Heathrow airport, London.... Business and cultural environment of british airways British Airways operations must comply with the business and cultural environment prevailing in the external market.... Market forces affecting British Airways Several market forces affect the operations of british airways across the world....
4 Pages (1000 words) Assignment

Business Policy - British Airways

The business cycle of british airways includes several parameters.... ('An analysis of british airways Marketing Environment', 2008) Thus the rise in the fuel prices last year and recent economic turmoil has affected the airlines industry in huge way as the passengers are avoiding more expensive air travels.... 'An analysis of british airways Marketing Environment', 2008).... The paper "Business Policy - british airways" undertakes an external analysis of the environment as well as the analysis of the internal capability of the organization....
28 Pages (7000 words) Case Study

Stakeholder Analysis: British Airways

This paper focuses on the stakeholders of british airways.... The aim of the paper is to describe the network of stakeholders that are connected to british airways.... This is followed by an analysis of two different stakeholder groups and a critique of their ethical concerns to british airways.... Directors and managers of entities have the fiduciary duty of dealing in good faith with the owners of the business who appoint them and give them the legal power to use the resources of the entity (Carroll and Burkholtz, 2009)....
8 Pages (2000 words) Case Study

Business Environment: British Airways

The remarkable success of british airways could be mainly credited to its incessant addition of and latest technologies to its international flights, the world class services currently offered and the continuously rapid expansion and improvement of its fleet.... This paper compares the similarities between british airways and easyJet airlines in terms of their goals, missions and key objectives.... It explores how british airways, a prestigious luxury airlines company is affected by the various political and economical decisions taken by the UK government....
10 Pages (2500 words) Essay

Business Environment Analysis of British Airways

In relation to the current business performance, the key purpose of BA is to maintain continuous focus on its strategy of being renowned as the world's leading premium airline company (british airways Plc.... In relation to the recent competitive environment of.... mphasising on the unconventional trend in the recent global business environment, the (BA) using a brief description of its mission, vision along with its long and short-term business objectives....
11 Pages (2750 words) Assignment

Organizational Environment and Behavior of British Airways

BA CityFlyer is the subsidiary of british airways and it is the largest operator in London.... The company that is the subject of this research is british airways.... This paper illustrates that british airways follows a particular organizational structure which has a huge impact on its growth.... british airways is the largest airlines company in the United Kingdom.... Based on the Fleet size british airways is the largest airlines....
10 Pages (2500 words) Research Paper

British Airways' Business Environment

This case study "british airways' Business Environment" analyzes one of the world's leading international airlines The british airways network has been generating economic value by meeting the needs and demands of the customers.... Therefore, it is important for british airways to comply with such regulations if it wants to operate successfully.... he head of the british political system is a monarch.... The environment is basically thought of as being at two levels....
9 Pages (2250 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us