INTERNAL & EXTERNAL FACTORS OF BUSINESS ENVIRONMENT

Internal & Factors of Business Environment



Internal & External Factors of Business Environment

Introduction

One thing that is constant in this world is change. Every facet of this world and of our lives is suspected to change. As the world is moving at a fast pace and different technological, economical and social changes are taking place so in order to be successful it is imperative that one should evaluate him or her self from time to time.

These changes can be of different nature and sorts for an organization these changes can be internal and external. An organization can only be successful and maintain its success for a long period of time if they track these changes properly and respond to these changes immediately.

In this report, I would be discussing these internal and external changes in detail, how these changes effect an organization and how an organization can respond to these changes.

Selection of organization for critical analysis of internal & external factors

To discuss and critically analyse the impact of internal and external environment factors I have chosen British Airways. In following paragraph I will analyse how British Airways has responded to different changes and how they can improve their different functions further.

Organization description

First British airline company was established in 1919. At that time there were many small airline companies operating like Aircraft Transport, Travel, Handley Page Transport, In-stone Airlines and British Marine Air Navigation they all face immense competition from outside forces and to beat that immense competition all of these small airlines combined together and form British Airways.

Factors that change business environment

There are certain factors that cause changes in the internal and external conditions and surroundings of an organization. These changes are categorized as internal and external changes. There are certain factors in the external and internal environment and surroundings that cause these changes, these factors are known as internal factors of business environment and external factors of business environment. In following paragraphs this paper will be discussing these internal and external factors and its impact on chosen organization and how the organization responds to these changes. Before proceeding to describe these factors and its impact on chosen organization that is British Airways it's vital to perform the SWOT analysis of the organization.

SWOT ANALYSIS of British Airways

SWOT analysis of British Airways aids them in formulating strategies to avail opportunities, adopting policies to save themselves from endangers of external environment of the industry and improve their condition by analysis of weaknesses.

Strength

Financial stability

Presence in international market

Presence at Heathrow airport

Strong image of the brand

Diverse workforce and its proper management

Weakness

Decrease in profitability

Low growth of revenues

Poor employee management

Lack of change management

Opportunities

Developing market of Asian region

Increase in trans-pacific cargo

Global airline market

Quality system of SkyTrax

Agreements of open skies

Threat

Increase in the prices of fuels

New entrants having low cost structure

Increase awareness of environment

General economic downfall all over the globe

Availability of short haul flights

Increased terrorist activities

Decreased consumer spending

Increased consumer awareness & bargaining power

Strict rules and regulations of AEA, 2009

Agreements of open skies

Internal Factors

Internal factors are those ...