Introduction to Business Environment
British Airways in terms of fleet size is the second largest airline in the UK. This report is prepared on business environment in order to help readers in understanding the impact of change in business environment. In this report, stakeholders and their importance from company point of view is discussed in detail. Along with this, strategies are also mentioned in the report that can be adopted in order to maintain good relations with the stakeholders. Further, fiscal and monetary policy and their impact on organization are also discussed in detail. At the end of report, significance of international trade on the UK aviation industry in respect to British Airways is also discussed in detail.
1.1 Purpose of different type of organizations
There are three kinds of organizations like public, private and nonprofit organizations. Purpose of these organizations is given below.
Sole Trader:- These are mainly small sized business that have limited resources. Their main aim to increase their profitability. Due to this reason their main purpose is to control cost as much as possible.
Partnership:- In this mode of business multiple people as an owner of business operate a firm. Their main purpose is to increase profitability of the firm by taking mutual agreeable decision.
Public Organizations:- The main purpose of such kind of organizations is to create employment opportunities. Welfare of existing labor force is another important objective of these public sector organizations. Due to this reason these firms mostly run in loss or they are not able to generate sufficient amount of profits.
Private Organization:- British Airways is a private firm and profit maximization is its primary objective which is divided into various sub objectives. The organization is able to achieve its long-term objectives through achievement of short-term targets or benchmarks. These firms strictly follow the business policy. However in order to earn more amount of profit, the employees’ welfare is ignored sometimes.
Non-Profit Organizations:- These are those organizations which are not established to earn profit. Mainly, these organizations operate for welfare activities in order to help needy people. These needy people may be crippled or uneducated people.
1.2 Extent to which organization meet objectives of stakeholders
There are many stakeholders of the firm like employees, shareholders, government and creditors etc. Firms must meet stakeholders’ expectations in a proper manner in order to grow business at fast pace. These stakeholders are explained below