BUSINESS ENVIRONMENT

Business Environment

Business Environment

Task 1: Case Analysis

1A

The mission statement of British Airways is to be the unchallenged leader in airlines business for the next millennium (British Airways, 2009/10). Its main purpose is to eliminate all its competition and challenges to achieve its goal of being number one in the airline business. Whereas, the purpose of British Red Cross is to provide voluntary assistance and help to the people in crisis, wherever they are and whoever they are (Humanitarian Forum , 2013). And also, when the crisis ends, they help the people to recover and move on in their lives. Basically, the main purpose and reason for the existence of Red Cross is to 'help the people'. One of the main differences between Red Cross and BA is that Red Cross works as an NGO, or a non-profit organisation. Whereas, the British airways purpose is to make profit.

'One destination' is a corporate responsibility programme introduced by the British airways. It was introduced to ensure that they address the issues that people, who loves to fly, have like the impact it haves on their health, on local communities and on the environment. To address these responsibilities deeper, one destination organises and hosts events like Annual British Airways Environment debate and an Annual Corporate Responsibility Seminar (British Airways, 2009/10). The key focus of one destination is on three points; the environment, economic and social.

The environmental goals of British airways are identified in three categories; waste and recycling, noise and air quality, and the climate change. For the climate change, it aims to reduce net carbon dioxide emission through a cap on emissions from 2020 and a net 50 percent reduction in carbon dioxide emission till 2050 compared to 2005. As claimed by the British airways, they are the only airline member of the Leaders in Sustainable Bio fuels Partnership (British Airways, 2012).

Its social responsibilities are divided into customer, employee, community investment, wellbeing, safety and diversity and inclusion. In 2012 it introduced a new and improved structure for the short haul catering on all routes. In the same year it also achieved the Best Short Haul Carrier Award at Business Traveller Awards. All the flight crew community were equipped with ipads to improve customer service (British Airways, 2012).

1B

Before assessing the impact of fiscal and monetary policies on the BA, it is essential to first understand what actually fiscal and monetary policies are. Monetary policies directly relates to the money supply. It is influenced by interest rates and reserve requirements. For example, at times of high inflation, policy makers can increase interest rates to reduce money supply. Fiscal policies are related to government spending and revenue collections. For example when there is less demand in an economy, the government might reduce taxes or increase its spending to stimulate demand (diffen, 2013).

Fiscal and monetary policies have direct impacts on the aviation industry. For monetary policies, when interest rates rise, travelling costs increase and travel spending drops. Thus, demand for air travel decreases causing a decrease in ...