Government Influence on British Airways' Business Environment Sample

Introduction : The Influence of Government Policies on British Airways and the Economy

Business environment is the combination of both internal and external which has high level of impact on companys operation & overall performance. This report analyses the important effect the government has on the economy as a whole in the setting of a broad business environment, having particular emphasis on British Airways. It is an important global airline, deals a complex array of legal structures, rules & regulations and global dynamic (British Airways, 2023). The goal of the report is to make clear the complicated connection that exists among organizational strategy and initiatives from the government. The investigation offers insight into how British Airways as well as other private firms discuss and react to the legislative ballet through investigating legal nuances and environments of competition.

TASK 2 : Exploring Organizational Diversity and Its Impact on Business Operations

1. Providing an overview of the different types of organisations in different sectors

The initial part provides an in-depth examination of organisational variety throughout a range of sectors. The intricate network of the business atmosphere is composed of up of a number of organisational shapes, all of which faces unique possibilities and challenges. The different types of ownership and legal arrangements of public, corporate and non-profit organisations influence their business choices. Knowing these organisation variations equips the viewer for an in-depth study of how government impacts the size and operations within chosen commercial enterprise, showing the intricate connection between regulatory structures and organisation processes.

2. Legal structure in business:

The decision regarding the type of legal structure is essential in the complicated world of business. Moreover, it defines the organisational structure and creates the connection among stakeholders between the organisation and oneself. Companies in the UK have the use of an array of legal buildings, each with particular advantages and disadvantages. Companies have to have an advanced knowledge of these frameworks for them to make choices which advance their objectives and purpose.

Sole proprietorship: The sole proprietorship represents a basic organisational form in which just one individual controls and oversees a business. The structure of this company is easy to understand and gives complete power. However, the proprietor carries endless personal liability for the corporate responsibilities. For example: In the case of salon, restaurant etc all the decisions are taken by only one authority.

Partnership: In a partnership, two or additional individuals collaborate while exchanging the ownership and management their responsibilities. The advantages are in combining assets and making choices. But individuals are also equally accountable and disputes can occur. For instance: in the case of John Lewis partnership partners are equally liable for the all the activities and profit or loss occurred from operations.

Limited liability partnership (LLP): The different parts of restricted companies and partnerships are merged in an LLP. This kind of legal structure protects personal belongings from debt owed by companies. Companies that provide professional services, shopping malls, real estate services etc are appropriate to this structure. However, given the specifics of its company's and its tasks, British Airways is unable to profit fully from a limited liability company (LLP).

Limited Company: There are quite numerous advantages to establishing a company with limited liability, especially a public limited liability company (PLC) as British Airways done. Liability of investors is restricted at what they invested, protecting individual wealth. Massive amounts financing is rendered feasible by having the ability to sell shares to the general population (Allen, Kraakman and Khanna, 2021). PLCs have to, however, conform to stringent laws and undergo scrutiny from the public.

A PLC organisation is in accordance with British Airways' wide operations, giving the opportunity for significant funds for aircraft mergers and acquisitions advances in technology, and worldwide growth. Accountability and transparency are additionally crucial elements of a PLC's constitutional structure, especially in the highly scrutinised airline industry.

3. Presenting difference between public and private ownership funding sources

There are in fact two different paradigms in organisational framework: public and private possession, both of which have particular characteristics and consequences. The differences between the two types of ownership are especially apparent in the instance of British Airways, which is a private enterprise.

Private ownership: Being a privately owned company, British Airways stands out by an emphasis of control in the ownership of private or institutional financiers. Usually, the system of ownership is sealed, indicating that stocks are kept in secret and not exchanged openly (Public Company vs. Private Company: Whats the Difference, 2023). The top management of the business receives an amount of power and autonomy over making choices when the business is a privately held business, which allows it to adjust to marketplace dynamics using more agility and strategic versatility.

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Forms of financing: Private businesses, including British Airways, mainly rely upon private funding sources of information, including as capital contributions from investors and financing through debt in the form of securities or loan. This provides a company the autonomy to make choices on policy without influence from government agencies and to change its finance strategies to keep up with changing organisational objectives and marketplace circumstances.

Public ownership: Public ownership, by the opposite hand, involves government agencies or other public entities owning a significant share of an organisation. In these instances, shares can be traded on open markets for stocks, rendering ownership available to an extensive variety of financial institutions and typical participants (Fu and Swallow, 2020). Greater laws and regulations, scrutiny by the public and the potential of governmental involvement in strategic choice-making are all frequently linked with this theoretical framework.

4. Assessing UK competition policy and anti- competitive practices

The robust concurrence policy of the UK is essential for maintaining balanced dynamics in the market, preventing monopoly conduct, and protecting the interests of customers. Market structure mainly includes oligopoly, monopoly, monopolistic, perfect which state the degree of competition pertaining to the goods or services offered by the firm. By doing assessment, it has identified that British Airways falls under the category of oligopoly market structure. On the basis of this, there is small number of firms which have significant influence on industrys operations. Competition Markets Authority, or CMA, is in the position of enforcing the regulation, which aims to promote a competitive environment, which in return promotes effectiveness, creativity, and choice for customers in the market place.

Legislative framework: Both the Competition Act of 1998 and the Entrepreneurship Act of 2002 offer a comprehensive statutory structure that regulates the implementation of UK competition laws (Whish and Bailey, 2021). By tackling an array of detrimental to competition practises, such market-sharing, fixing prices and the abuse of positions of power, these regulations assist with levelling up the playing field for firms.

Impact on businesses like British Airways: Implementing rules regarding competition is essential for businesses like British Airways that are operating in a highly competitive marketplace. The airline business undergoes scrutiny with regard to economic price, excellent service, and justice of price (Competition law and anti-competitive behaviour, 2023). As keeping of its responsibilities, the CMA checks into any breaches, looks at the marketplace, and sets enforcement measures into effect to prevent anti-competitive behaviour.

Fair competition and consumer protection: The primary objective of UK competition laws is to preserve equal competition, which stimulates businesses to create novel products, reduce expenses and improve productivity. The focus is on customer satisfaction ensures that businesses that include British Airways give emphasis to offering clients with price and excellent services, thus establishing an atmosphere of competition that eventually benefits those who use the services.

5. Role of the competition and markets authority (CMA)

With the goal to ensure that markets function effectively and fairly and that healthy competition exists for the betterment of customers, The competitions and market Authorities CMA) is a crucial regulating organisation in the UK. The CMA was authorised in 2013 by the enterprise and regulatory act of 2013, and has an array of duties, including implementing competition regulations, investigating into unlawful conduct, and promoting market transparency.

Investigative authority: The CMA has been authorised to carry out thorough inquiries into industries and markets that might show unlawful competition. This entails making sure that companies stay inside the legal limits imposed by the Competitiveness Act of 1998 by thoroughly investigating mergers and acquisitions and company practises that may undermine competitiveness.

Market studies and reports: Furthermore to delving into specific scenarios, the CMA examines the market as a whole in order to assess how competitive a sector is overall. These research investigations provide new perspectives on market dynamics, flagging out potential obstacles to competitiveness and offering remedies for enhancing the well-being of consumers.

Enforcement and remedial measures: The CMA possesses the power to take remedial measures upon the discovery of illegal procedures. It might entail suggesting institutional fixes that bring back rivalry in the market, enforcing behavioural modifications, or enforcing fines (Competition and Markets Authority, 2023). The primary goals of the CMA's measures are to encourage responsible corporate practises while tackling inequalities.

Consumer protection: The protection of consumer interests is one of the CMA's main goals. The CMA helps to create a marketplace where companies prioritise delivering superior products and services, customers have choices, and prices are reasonable through encouraging open competition.

Advisory role: In its encouraging role, the Competition and Markets Authority counsels the public, politicians, and businesses regarding matters related to competitiveness. In along with educating partners on the significance of equitable competition for the benefit of customers and economic growth, this role promotes openness (Fung and Roberts, 2021).

6. Government objectives and economic regulation

The government regulates the country's finances via fiscal and monetary policies, but its objectives go above preserving stability in finances. The government's economic policy impacts jobs, taxes, inflation, the currency payments, as well as and currency rates throughout the recession. The daily operations of businesses like British Airways are greatly affected by this legal framework (Gao and Que, 2022). In an effort to encourage economic expansion, the government regularly changes rates of interest and provides tax incentives. Strategic assistance, influencing labour markets and business hiring choices, must be undertaken for achieving employment objectives.

Tax regulations additionally have a direct impact on company finances that affects decisions about investments and success. These regulations have a connection, which emphasises the government's function as a major economic controller that creates the business climate and affects the investment decisions made by businesses who engage in it (Lyu, et. al, 2023). During recessions, the exchange rates are impacted by governmental regulation of the economy, which affects global trade and the competitiveness of company's like British Airways. The government utilises monetary and fiscal measures to attempt to achieve an appropriate balance with the goal to stabilise the economy, which influences the external environment that businesses compete in on a worldwide scale.

7. Globalization and its impact

Globalisation, or the globalisation of economies and the community, has an enormous effect on businesses, rivals, and industries across the world, especially organisations that include British Airways. Globalisation manifests up in the travel business as wider sectors, a broader customer, and more intricate supply chains arise. Cross-border transportation of individuals and items is on the rise, which carries with it both advantages and drawbacks. Working in these globalised surroundings, British Airways needs to deal with variations in rules and regulations, cultural peculiarities, and changing demands of customers. Although globalisation promotes rivalry, it additionally opens doors to novel markets and collaborative initiatives (Hay, 2020). British Airways needs to understand and adapt to developments in geography, technological advances, and economic trends worldwide.

Globalisation requires constant adjustment to changing customer pReferences and market trends across numerous geographical regions. The airline has to capitalise on advantages of opportunities for meaningful cooperation and partnerships while navigating geopolitical uncertainty and financial disparities (Decker, 2023). The ease of travelling globally, developments in communication, and advancements in technology all emphasise how interconnected markets become. Leveraging the benefits of the rise of globalisation reducing expenses, and promoting creativity, British Airways has proven its ability to adapt to a constantly evolving global surroundings, preserving its competitive edge and reactivity to the changing trends changing the aviation industry internationally.

CONCLUSION

By summing up the report, it has been articulated that business organization's framework and activities are significantly impacted by government agencies. It can be seen in the report that varied business units differ in terms of their size, scope and objectives. Further, it has been articulated that there is a significant difference take place in the sources undertaken by public and private firm for fund raising. It can be stated that competition policy and authority facilitates elimination of undesirable practices. Besides this, it can be inferred that fiscal and monetary policies highly impact expansionary activities of British Airways. It can be summarized from the evaluation that globalization has positive impact on sales, profitability and market share of the firm.

REFERENCES

Books and Journals

• Allen, W.T., Kraakman, R. and Khanna, V.S., 2021. Commentaries and cases on the law of business organization. Aspen Publishing.
• Decker, C., 2023. Modern economic regulation: An introduction to theory and practice. Cambridge University Press.
• Fu, G., Liu, P. and Swallow, S.K., 2020. Effectiveness of public versus private ownership: violations of the safe drinking water act (SDWA). Agricultural and Resource Economics Review, 49(2), pp.291-320.
• Fung, S.S. and Roberts, S., 2021. Covid-19 and The Role of a Competition Authority: The CMAs Response to Price Gouging Complaints. Journal of European Competition Law & Practice, 12(10), pp.734-745.
• Gao, C. and Que, Y., 2022, March. Fiscal Policy and Monetary Policy of the UK. In 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022) (pp. 2253-2257). Atlantis Press.
• Hay, C., 2020. Globalization and its Impact on States.
• Lyu, J., Le, V.P.M., Meenagh, D. and Minford, P., 2023. UK monetary policy in an estimated DSGE model with financial frictions. Journal of International Money and Finance, 130, p.102750.
• Whish, R. and Bailey, D., 2021. Competition law. Oxford University Press.
• Online
• British Airways, 2023. Online. Available through <https://www.britishairways.com/content/en/ca/information/about-ba#:~:text=British%20Airways%20is%20a%20global,exciting%20sustainability%20initiatives%20with%20you.>
• Competition and Markets Authority, 2023. Online, Available through https://www.instituteforgovernment.org.uk/explainer/competition-and-markets-authority
• Competition law and anti-competitive behavior, 2023. Online, Available through https://harperjames.co.uk/article/competition-law-an-overview/
• Public Company vs. Private Company: Whats the Difference, 2023. Online. Available through https://www.indeed.com/career-advice/career-development/public-company-vs-private#:~:text=The%20key%20difference%20between%20public,the%20public%20under%20certain%20requirements.