BUSINESS ENVIRONMENT

Business Environment



Business Environment

Introduction

Business Environment plays a crucial role in shaping the success and performance of a company. This paper analyses the business environment and its impact on “Holiday View Travel”, a travel and tourism company operating in UK (www.orchardtravel.co.uk).

The Business Environment encompasses all those elements and forces that have an influence on the overall operations and performance of a business. The term Business Environment refers to both the internal and external factors and structures that are within and beyond the organizational control respectively, and their subsequent control and management.

Discussion

Types of Business Environment

Broadly, the business environment of an organization can be classified into the following two types:

Internal Environment

External Environment (Wetherly, et.al., 2008, pp.136)

Internal Environment

The Internal Environment consists of factors and forces that directly shape the business. These are usually within the control of the business. The business can make changes and amendments to these elements that include its workforce, assets, compensation and benefits, marketing and other such functions to serve its interests. The most important constituents of the internal environment are as follows.

Management

The Management of Holiday View Travel realizes that they enjoy a good reputation and brand image in the market However, they are aware that they cannot afford to be complacent since the competition is tough and the market is saturated. The management of the company wants to set the future tone according to their own wishes and be the market's trendsetters in all departments.

The management wants to highlight their key areas where they are stronger than their competitors and at the same time identify the weaker links where their competitors can score on them.

Human Resource

Holiday View Travel provides an extensive three months training to all of its staff from certified and highly skilled trainers. Communication and presentation skills of employees are also enhanced. It is the duty of staff to create a friendly, safe and helping environment. A doctor is also a part of their team in case of any emergency situation.

Financial Assets

Initial investment of the company was laid in equal share by the investors. All costs are covered by the earnings of the tourism packages and profit is distributed at an equitable rate. The rest of the income is given for the charity purpose

Marketing Resources (Brooks, et.al, 2004, pp.68)

The marketing strategies which the company follows are:

Web advertising:

Web pages are the most important advertising medium to make aware people about our product and services.

E-mail promotions

E-mail is the second medium by which customers can get information about the product and services.

Search engines registrations

Search engines help customers to find products which are available at our place.

The company continuously changes and implements its marketing strategy according to conditions and seasons. Its basic focus is web advertising by contracting with reputed websites. It has registered its domain name. The website has search engines so that the customers can easily search what they need.

External Environment

The External Environment refers to one that influences the business activities in an indirect manner. It consists of factors that cannot be controlled by the business. The external environment has two ...