Business Environment Assignment – British Airways


Business environment of any organization is made of various different elements and is further impacted by numerous factors. Some of these factors are in control of the organization, while many others are not. The decision making process of any organization rely heavily on such factors and adequate strategies need to be made to gain maximum profit with the existing business environment to the business organization. As the business environment is rapidly changing across all industries, it is equally more important for the business organizations to develop adequate strategies and decisions in a rapid manner, and then implementing the strategies quickly.

In the presented paper, the business environment of British Airways is analysed for various factors that influence the organization (Endres, 1989). The paper also analyses the organizational structure of the organization as well as the resource allocation process influencing factors. Impact of various local and global factors on the organizational decision making process of British Airways is assessed in this paper. The paper also evaluates and sheds some lights on the organization’s Corporate Social Responsibility (CSR) factors.

Task 1

Identify the purposes of different types of organization

Organizations are created on basis of a social agreement that takes place between the various stakeholders in an organization who aim to make efforts in collective manner to achieve a single organizational goal (Worthington and Britton, 2006). In common business reference, the policies and decisions of a business organization are influenced by the environment, but the organization itself remains separate from the environment.

At present times, there are several types of organizations that exist. The organizations can be broadly categorized into the following five categories:

Commercial organization: such an organization remains functional in business environment with the aim of achieving financial success. The decision making process in such organization is centrally focused on higher revenues.

Non Profit organizations: in contrast with the commercial kind of business entities, the non-profit organization have no aim of earning profits from their practices, instead, they serve the purpose of helping others and community service.

Public sector organization: The organizations active in the public sector are generally owned and governed by local governments (state or federal). Such organizations generally have a self-supporting business model (Bove?e and Thill, 2000). In most situations, the aim of such organizations is to provide government services to the general public.

Non-government organizations: NGOs are separate from the functioning methods of a commercial organization as these organizations do not get involved in any kind of business activity. The services provided by such organizations rely primarily on volunteers and public funding. Aim of NGOs is to support a social cause in most cases.

Co-operative organizations: In a co-operative organization, the governing authority is distributed among its members in equal manner. Such an organization follow the concept of democracy in decision making process.

Describe the extent to which an organization meets the objectives of different stakeholders

The aim of British Airways is to make sure that by the business activities of it, it is meeting with the requirements of its stakeholders. In case of the British Airways, the company has different stakeholders as mentioned below:

Company employees:British Airways has the responsibility towards its employee to provide them safe workplace environment and a competitive and motivational business environment. The organization meets its responsibilities by following global standards of workplace safety, and also engages in activities of skill enhancement for its employees.

Company shareholders: The shareholders of the company have the aim of making profits from the growth of company. British Airways addresses the needs of its shareholders by continuing to develop effective business strategies that allows the organization to grow in short term as well as long term manner.

Customers: The responsibility of British Airways towards its various customers is fair pricing of services, transparency and higher safety regarding the services it provides (Lenssen, Louche and Van Den Berghe, 2005). The company provides these features to the customers and ensures that global standards for passenger safety are strictly followed.

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