Unit 2 Business Environment Assignment Help
AC 1.2 State the interest/objectives of AB stakeholders and describe the strategies BA is using to meet them. State the type of stakeholders, their objectives e.g. employees and follow that with the strategies used to achieve this by BA
|Objective of stakeholder||Strategies used to achieve this|
|Customers||They are looking to buy a wide range of services and products.|
They want easy accessibility and hope to buy excellent quality products and services at a competitive price.
|By visiting the websites, by reading magazines, and by watching advertising on the TV.|
|Suppliers||They supply the business needs (products).||By using feedback from the consumer|
|Employees||Wages, bonuses, discounts, holiday pension and want to keep their jobs.||By knowing the company’s objectives and goals, and by being involved.|
|Owners||Profits and sustainability||By using brainstorming techniques or power versus interest grid in order to categorise the stakeholders in a way that provides greater insight into the role they play and, accordingly, how they need to be treated because some stakeholders are more important than others. (R. Allen, 2011)|
|Government||Tax and regulations||By putting forward new measures to tackle persistent tax avoiders; and by promoting sustainable development by assessing the extent to which the emerging plan, when judged against reasonable alternatives, will help to achieve relevant environmental, economic and social objectives.|
AC 1.3 Explain the responsibilities of your BA (health and safety, equal opportunity, environment, taxation) to its key stakeholders and describe how they meet these responsibilities. Give instances where these responsibilities/obligations have been met by your selected organisation
|Responsibility||Why it is a responsibility||Strategies used by BA to achieve it|
|Equal opportunity||The law requires that BA should consider equal opportunity policy that is effectively implemented and communicated to all employees, Act 2010. It may improve the recruitment process, help retain valued employees and deter acts of unlawful discrimination||By combating discrimination, and by applying equal opportunity to recruitment, selection, promotion, transfer facilities, training, benefits procedures, terms and conditions of all BA’s staff|
|Externality-pollution||Transportation of goods by airfreight and road haulage is a major contributor to carbon pollution||By meeting its emissions target by reducing its own emissions. Contribution made by BA (towards the installation of its customer’s solar panels).|
|Health and safety||Under the law BA is responsible for health and safety management, according to Act 1974|
By having an effective health and safety management and risk management in reducing injuries, ill health and costs. By having health and safety auditing (internal or external) to monitor and review the prevention strategies implemented; and by encouraging workforce participation as key to reduce injuries and ill health.
1B(LO 2.2). Taking into consideration the current economic problems facing UK and BA mentioned above, explain how the expansionary fiscal and monetary policies that has been introduced by the current UK government has impacted on the activities of BA and VAA
Fiscal policy is the use of government spending and taxation to control the economy. When the government makes a decision on the goods and services it purchases, the taxes it collects, it is engaging in fiscal policy. This has an aim to counter economic cycles in order to gain lower unemployment, to obtain low or no inflation, and to achieve sustained but controllable economic growth. The fundamental economic impact of any change in the government budget is felt by particular groups, and this could be a tax cut for families with children, for example, increases their disposable income. Fiscal policy is basically, used to demonstrate the outcome on the aggregate economy of the overall degrees of spending and taxation, even more particularly, the gap between them. Fiscal policy is tight when revenue is higher than spending, so the government budget is in surplus; in contrast, expansionary fiscal is when the spending is higher than revenue, this means the budget is in deficit.
1C(L0 2.3). Assess how the EU/UK competition and regulatory policies can or have impacted on the activities of the BA
Regulatory policy is about achieving government’s objectives through the use of regulations, laws, and other instruments to deliver better economic and social outcomes and thus enhance the life of citizens and business. Competition policies are laws put in place to regulate the contest between companies. Under the UK Civil Aviation Act 1982, the CAA must balance a number of objectives in making air transport or route licensing decisions where applications to operate a particular route are contested. These include encouraging British Airways to provide air services at the lowest fares consistent with safety. In recent years there have also been allegations that British Airways has used its strong market position unfairly to competitors’ detriment. Therefore, British Airways was fined by the European Commission in respect of its unlawful incentive scheme for travel agents. This shows how the EU/UK competition and regulatory policies have impacted on the activities of the British Airways. Competition is the way of trying to get or win something such as a prize or a success that someone else is also trying to get or win. Regulatory policy targets the behaviour of individuals or industry. For example a law that states that an individual must have an insurance card. A competitive policy seeks to encourage and improve the competitive process, and to ensure consumers feel the benefits of that process.
Many fiscal policies directed towards the airline industry such as BA and VAA have had significant affected because such taxes and fees can cause the elimination of considerable number of jobs. This has heavily impacted B and VAA have little manoeuvrability of funds to meet the demands of an operating budget.
Deregulation is another fiscal policy that has significantly impacted BA and VAA, since deregulation in 1979, the airline industry experienced substantial growth. This has emerged new competitions in the industry and has drove ticket prices down. The average ticket prices in 1979 remain relatively unchanged as the competitors created connecting flights through the new open sky policy. Also fluctuation in oil prices and exchange rate has directly affected BA and VAA. The price of crude oil has a significant impact on British Airways’ cost structure since fuel costs comprise 30% of an airline’s operating costs. (D. Hay, 2015)
British Airways is competing with many competitors such other Airline companies all over the world and this has encouraged BA to be innovative. The strategy of BA includes sophisticated technology accessories, customer relationships, employee relationships, safety and meeting customer’s needs. Also by keeping its values such as honesty, reliability, on time and good service will always help BA to gain competitive advantage and continue to be successful now and in the future. Order Now