INTRODUCTION : Business Environment
1.1 Identification of the purposes of different types of business firms
The business organization introduce itself with some specific goals and objectives, for that management develop plan and strategy to meet them. The main aim of organization depends on the type such as public, private or charity. In that process, private company develop the business with the aim of expanding the market and gain the profit. The management of company conduct market research for analysis the trends and perception of customers to develop product and services of their choice which help to improve brand awareness. On the other hand, public sector firm usually established to give employment opportunities in the society and to protect the industry areas which are highly sensitive in respect of nation’s security. The purpose of organization depends on its type whether it is public or private sector (Woodley, 2006). The charity organizations work for the noble cause to provide the support for people who were not able to earn or having disability mentally and physically. The aim of these organization is to develop opportunities for the needy people to help society.
British Airways has been considered one of the UK’s successive stories of privatization to develop the business and meet the requirements of customers. In 1980’s, management has decided to become private sector organization to overcome the losses. In this situation the company has targeted international as becoming the world’s leading premium airline. Organization has analyze the market and develop new strategy to redevelop the brand value and improve the standard of services and fight experiences. The top management has sated mission to become “The world’s favorite airline” and organization get success by achieve its objective in 1990’s by becoming the World’s most profitable airline (Diane, 2004). Now British Airways is more afraid about the continuous growth in the airline industry of UK as well as international level as new airlines organizations have been arrived in the market with new services and technology which influencing the decision of customers. (Namukasa, 2013). organization is looking to expand the quality of services by offering the qualitative and pleasurable flying experience to the customers all over the world. In that process management of British Airways using the technology and new trends of market to meet the desired services of customers and enhances the market image of company (Shaw, 2007).
1.2 Objectives of different stakeholders
Stakeholders of the organization are those who can influence business activities. They have significant role in the functioning of business venture. The Stakeholders of British Airways can be categorized into internal and external stakeholders.
Owner- The main objectives of owner of British Airways is to earn the profit by improving the quality of services and use of resources effective and efficient level. The main role of owner is to provide the initial guideline to mange the services and craft decision.
Manager- The aim of manager within British Airways is to explain the tasks to staff members and monitors the activity to maintaining standard of services that attract the customers. (Neal-Smith and Cockburn, 2009).
Employee- If the firm fails to fulfill employees need then employees can make barrier on operational efficiency of the company. Employees work with the aim of developing and offering the services requirements and needs of customers.
Customers- The objective of customer is to utilize the services according to prices of services of British Airways.
Government- Government is concerned with the collection of taxes from business project. Government collects different types of taxes from the market like corporate tax on profit, Airport charges for the landing of aircraft in the country (Huettinger, 2014).
Creditors- They can take part in the management decision if the firm has borrowed large amount from the bank. They want to earn interest on the amount they gave on credit to organization.
1.3 The way British Airways fulfill its responsibilities of different stakeholders
Employees: For employees, British airways fulfill their responsibility by framing good organizational policy, providing wages according to company standard facilitating good infrastructure for work, fair and transparent with employees (Kwong and Lee, 2009).
Manager: Company provides high-quality practice related to promotion of employees, best practice for performance appraisal of employees. British Airways management is offering them good salary and facility to encourage them.
Supplier: By offering the payment of raw material for developing food and beverages. In addition to this, British Airways management is involving them in the decision for determining prices. Company meets their objective through efficient working capital management.
Customer: Providing them good flying facility at optimum prices of tickets. British Airways is offering quality services and high standard security for meeting the objectives of customers and visitors.
Owner: They want continuous profit booking for the firm. British Airways is meeting the objectives of owner by maintaining the level of services according to need of customer.
Shareholder: They have invested capital for British airways. Company is meeting their objectives by providing them good return of investment.
Government: UK national government need the safety and protection of rights of customers and visitors who using the services of airline. British airways can meet government objective by practicing ethical and moral standards of services.