Analysing the Impact of Environmental Forces

1. Introduction

Today the business environment is changing very drastically and fast and in this changing nature of businesses, every business organisation is changing the pattern of their retaining, recruiting and engaging process of employees also where both the external and internal changing forces are involved as the requirements and demands of the stakeholders of that company. In order to present this changing nature, the British Airways company is selected which manage approximately around 40,000 employees in it including 15,000 cabin crew members, 3,600 pilots & 5,500 engineers also. Here the report will present knowledge of organisational operations, impacts of the environmental forces on the organisation at both micro and macro level & market sector or industry level. It will also highlight that what are the requirements of the stakeholders of that company and how they manage to tackle them and how they take actions to the policies of the stakeholders. For the most comprehensive insights into all these topics, business dissertation help can provide valuable guidance.

2. Demonstrating an understanding of the nature of the environment that organisations operate in.

The internal environment or the environment where the British Airways operate in is consisted of different elements which forms and creates the nature of business culture where their employees work. British Airways has chosen the focus differentiated element to support their business culture and environment of their internal operations and functioning to be more dynamic, customer-focused and service goaded business currently (Karami, , 2017). British Airways Company stated recently that their aim is to soon be very much high-performing, market-focused & implement the planetary premium air hose in their flights. Among their other aims, they wanted to be the universally taking planetary premium air hose, be such an air hose to pick-up the long haul premium clients with them and present an outstanding fleet service to their clients at every possible touch point (Randall, , Lo,, Papatheodorou, , Efthymiou, , & Njoya,, 2018).

Furthermore, they started to invest in accomplishing their functioning services to be outstanding some of which includes a Club World Cabin in which they will offer more comfort and privacy to the passengers, in their Boeing 747 and Boeing 777 there will be Two-by-Two place constellation in its Club Europe, in Galleries & lounges at the terminal 5 and 3 in Heathrow, Milan, Vancouver and Johanesburg there will be check-in system from Mobile and PDAs & along with these there will be in-flight amusement systems & so on for the passengers (Cozmuta, , Selling ‘The World’s Favourite Airline’: British Airways’ privatisation and the motives behind it., 2021).

In their firm operational structure, they have changed the old monotonous directional manner & turned them to be more flexible in every situation. However, it will be tougher for them to tackle the outer or external business environment due to the rising competition with other airlines. Apart from this they are also seeking to pull off the efficiency of their employees with the clocking-in system facility where they are besides that also seeking to cut down the regularity in the employee absenteeism nature for better performances (Petrescu, R. , 2020). It has also been noticed and reported many times by the employees that they are feeling bullied sometimes at their work environment by either some of their seniors, managers or by their colleagues. So they are focusing on more to make a qualitative and efficient work culture ad environment for all the employees maintaining the equality in working with less bossy nature.

3. Illustrating and explaining the impact of environmental forces on organisations at a micro and macro level.

Micro-environment and impact of its forces:

Suppliers- The overall supplier costs excluding the cost of fuel were held flat for over the year despite the significant inflationary pressures on suppliers’ own costs for British Airways.

Customers- The customer-oriented facilities of British Airways are its loyalty scheme, punctuality, new aircraft, dining, club world, lounges, family travel, technology & the trust and experience of 100 years of flying (British Airways, , 2020).

Employees- British Airways objectivised to have diversity on their employees related programme regarding diversity issues such as disability, age, race, religion, gender and sexual orientation and many others amongst all employees equally.

Competitors- Current top competitors are Jet2.com, Delta Air Lines Inc., Virgin Atlantic, easyJet, Monarch Air Group, United Airlines, American Airlines, Virgin, Southwest Airlines, Flybe Limited (British Airways, , 2020).

Shareholders- Shareholders urged the investors to vote against the current packages saying that there was “ample evidence” that British Airways was about to face turbulence when they announced it.

Media- Media also has a huge impact on British Airways regarding creating the public image of the organisation whether positive or negative, either about their crisis or struggle or abut coping up with their problems and challenges.

Micro-environment and impact of its forces:

Political forces- Apart from political stability other political forces including the level of bureaucracy, the extent of corruption, home market lobbying activities, activities of trade unions and others.

Economic forces- Economically the air transport generated a total of 13.5 million jobs whether direct, indirect or induced contributing around US$ 880 billion a year to the world GDP (British Airways, , 2020 ).

Socio-cultural and demographic forces- These forces developed the whole market impacting lifestyles, tastes and fashions as per customer requirements, trends and often long-haul or destinations.

Technology forces- British Airways uses advance technology to increase their engineering and service quality of fleets which is route to competitive advantage.

Legal forces- Due to the legal forces British Airways suffered many strikes and rigorous actions that is why they are aware of the implications that the trade unions can cause and try to be ready to handle them.

Ecology and physical forces- They have plans of zero wastage to landfill, to reduce the average noise per flight, cut down their CO2 emissions by 2050 and also to improve carbon efficiency by 25% by 2025 (British Airways, , 2020).

4. Assessing the significance of impact of environmental forces at an organisation on market sector or industry level.

There are some very prominent & significant environmental force impacts on British Airways on market sector or industrial level-

British Airways need to build 'Social' Pace to create their Brand Equity. British Airways have taken off their 'social' flight where some are indulged in ways to engage with the customers to have a built of lasting relationships with them (Singaravelu, & Amuthanayaki, , 2017). This ultimately means to step out of the current corporate comfort zone and have real-time engagement with the customer, but that's a feat which British Airways have to achieve if they wanted to enhance their brand equity and achieve a mind share of today's customer range.

The Customer World is both Online and Offline where manoeuvring between both of them holds the key to Success. The current online medium is the Internet as representing by all the online travel agencies and travel websites in the airline business is today a very much powerful revenue generator for airlines as presented by the British Airways too among others (Wiener, , Hoßbach,, & Saunders, , 2018).

Analytics, proved to be an 'Altimeter' for the British Airways airline business. With the recent proliferation of various other channels, the data generated through each channel is multiplying by its minute (Insaurralde, & Blasch, E., 2019). An altimeter, analytically, measures the correct height of an aircraft above the sea level which is a very crucial piece of information for the aircraft to remain aloft. Analytics basically equips the British Airways’ business with all the crucial insights which states that they are analytically emerging as an 'altimeter' that will help them and their airline business to stay aloft.

Increased focus on the Regulatory and Standardization route impacted British Airways. While regulation has envisaged, there increased the safety of passengers and improvement in sustainability of the business which gives compliance & adds to the total operational cost (Li, , Jiang, , Cheng, , & Scott, , (2021)). This cost British Airways bears on their own without passing on to their passengers. New regulations given for the global airlines industry which British Airways also must engage in with a compliance program that can optimize their business processes and transform their operations.

5. Demonstrating an understanding of the requirements of a variety of stakeholders to a chosen organisation.

British Airways stakeholders include their hardworking & efficient employees, valuable customers, their shareholders, government authorities, impactful competitors & great suppliers. All of their requirements go like this:

Employees – The employees and management are intimately connected with each other and the company. The employees and managers demand to have a security of income, safe and comfortable working environment, job satisfaction, skills & career growth and to have growing interest in their work (Di Maddaloni, & Davis, , 2017).

Customers – They are the ultimate source of profit to the company where they just expect to have products & services on reasonable prices with good quality in case of the goods and services by British Airways (Hilgemann, , 2019).

Shareholders – The relationship of British Airways and their shareholders is much strong since they always required having high interest related with the financial success of British Airways. They always enquire and interfere in the big decision makings of British Airways (Cozmuta, , Selling ‘The World’s Favourite Airline’: British Airways’ privatisation and the motives behind it., 2021).

Government Authorities – This sector has a wide range of governmental regulation, laws, rules and legislations including domestic, international and European sections divided. Since there are some of the bilateral agreements in between some countries, British Airways cannot operate in some specific routes (Gupta, , Gupta, , & Gupta, , 2019).

Competitors – British Airways is one of the largest airlines with turnover around 8.99bn which is followed by easyJet and Virgin Atlantic where British Airways always tries to maintain their specific low cost airlines tag without affecting the decisions (Kshetri, & Voas, , 2019).

Suppliers – The Airbus & Boeing are the two main suppliers where their demands put big impacts and shows high interest on the company (O’Neill,, 2018). From the perspective of fuel supplier, there is only one supplier who is dependable for the entire power of decision making made by British Airways.

Media – Media has always been helpful for British Airways as they have always highlighted and supported British Airways covering all of their aspects including the fleets and cabin crew facilities (Ferguson, , 2021).

6. Measuring and appraising the effectiveness of the responses of organisations to policy actions taken by key stakeholders.

In case of British Airways, the stakeholders’ relationship with the company is that what gets connected by their supply and demands with each other and from all of the stakeholders there are some of the specific and most dominant stakeholders which can be listed as:

Customers – They are the most significant and prominent stakeholder because they are the only component depending on which the whole business is running of the British Airways (Ferguson, , 2021). British Airways always tries to keep their existing customers happy and satisfied and aims to attract more new customers and audiences.

Employees – The Front Face of British Airways has always been heavily unionised due to which the management and employees relationship became strong day by day influencing their customers too with their internal and external power (Di Maddaloni, & Davis, , 2017).

Competitors – The competitors also plays a major impactful role in the journey of British Airways consisting of ups and downs. For having a continuous competitive advantage, British Airways have maintained their image of being a low cost airline (Kshetri, & Voas, , 2019).

Suppliers – The of British Airways have two categories of suppliers where one is the Airbus & Boeing suppliers and the other is the fuel suppliers of British Airways and both of them have their powerful involvement in the major decision makings of British Airways (British Airways, , 2020).

Media – Media’s relationship with British Airways is quite good because their entire rise has been captured and highlighted by them but whenever there came any negative news they also criticised them too (Gupta, , Gupta, , & Gupta, , 2019). British Airways always maintained a stable relationship with the media to have good relationship with the publics, their customers and passengers (Karami, , 2017).

Financial Institutions – All the financial institutions that are interconnected and impactful on the operations of British Airways have high interest in their business functions and improvements (O’Neill,, 2018). They can, whenever, refuse to grant funding which is needed to gear up the ratio and liquidity of British Airways.

Conclusion

British Airways has chosen the focus differentiated element to support their business culture and environment of their internal operations and functioning to be more dynamic, customer-focused and service goaded business currently. Media’s relationship with British Airways is quite good because their entire rise has been captured and highlighted by them but whenever there came any negative news they also criticised them too. British Airways stakeholders include their hardworking & efficient employees, valuable customers, their shareholders, government authorities, impactful competitors & great suppliers. Finally it can be concluded that from this they are also seeking to pull off the efficiency of their employees with the clocking-in system facility where they are besides that also seeking to cut down the regularity in the employee absenteeism nature for better performances.

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