Renan GBE Bucks

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Global Business Environment
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Table of Contents
Introduction......................................................................................................................................3
Obtain and interpret information relevant to an analysis of Airline industry..................................4
Assess the impact of government on the structure and operation of a business organisation.........4
Identifying drivers of change in Airline industry related with models and real-life example.........6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8
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Introduction
Business that runs its activities globally, all the factors surrounding the business affect the whole
business and it is known as the business environment. Basically, it differentiates into two
categories like internal and external business environment (Westney, 2017). In this report, Airline
industry’s business environment elements will be obtained and interpreted. It will be discussed
about the government structure and policies and impact on Airline industry’s business operation.
And finally changes of business drivers will be discussed by following
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Obtain and interpret information relevant to an analysis of Airline

industry.
Business environment consist with several elements that surrounds in the environment. Those
elements will be treated as business environment that affect the organisation in making decisions.
Customers, employees, banks, investors and shareholders are treated as the main elements of a
business. Airline industry’s business environment consists with political, economic, social,
technological, environmental and legal factors, also those are known as the external factors.
Political Economic Social Technological Environmental Legal
-International -Global -Changing -Video -Carbon -Laws and
trade financial consumer conferencing emission and policy of
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-Tax policy crisis demographi -Internet greenhouse government
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War, -Rising c -Efficient effect -Anti-
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terrorism, currency -Increasing Aircrafts -Natural disaster competitive
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pandemic -Rising fuel
travel life behaviour
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-Competition cost style
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consumer
demands
Table 1: PESTLE analyse of Airlines industry; Source: Author's Creation
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As, Airline industry runs its business all over the world with lots of employees and it needs to
follow government policy, laws and regulations (Mohamed, 2015). Government policy and laws
like equality act 2010, data protection act, consumer act 2015, employees’ wage should be
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considered as the part of business environment of airline’s industry.

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Assess the impact of government on the structure and operation of a

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business organisation
Government structure, policies and laws of a country affect in the business operation. As a
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multinational company, Airline industry comply with the different countries and territories laws
and regulations. Stable political situation is positive for the business growth and taking easy
decisions. Airline industry complies with the consumer act 2015 when it runs business in the UK
and complies with consumer protection act 1968 running business in India. To comply with this
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act, Airline industry needs to provide quality and safe service to the service users. High tax
imposed on the company affect the operation in business environment (UK Act, 2014). For
example, Airline industry has to pay 19% tax on net profit in the UK and 40% in India as a
foreign company. For this tax policy, Airline industry can give high salary and compensation to
the employees as tax rate is low (UK Act, 2014). On the contrary, it can pay comparatively low
salary as it pays high tax to the government. In the UK, it has to pay £1300 per month as
minimum wage to comply with the wage act 1998. To comply with the data protection act,
Airline industry protect the all data collected from the employees and give compensation if any
employee is harmed because of the leak of the personal information.
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Identifying drivers of change in Airline industry related with models

and real-life example
There are internal and external drivers of the change in Airline industry and will be discussed by
change model. External drivers of change in Airline industry is general environment including
social, culture, demographic, political, technological and economic and business environment
including industry, competitors and consumers demand. Internal drivers’ forces including low
performance, low satisfaction, new mission, new leadership and conflict (Settele and Wiemers,
2015). Airline industry invested lots of money in research and development sector to reach the
new demands of the consumers and introduces new technological device to make the business
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operation fast and easy. To increase the performance and satisfaction of the employees, it
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motivates and trains employees and give compensation. Consumers wants different flavour
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toothpaste and Airline industry started works to add multiple flavour to the toothpaste to meet the
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consumers demand.
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Conclusion
Airlines industry is the second largest industry in UK and runs its business all over the world. All
internal and external factors of business environment affect this industry in running business
operation. Government structure, policies and laws imposed by the UK government impact on
the business operation and industry complies with the different laws like equality act, data
protection act, consumer act and will be penalised if it violates the laws and regulations.
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References
Mohamed, A., 2015. The international business environment: a proposed analytical
framework. International Journal of Business Environment, 7(2), p.168.
Settele, J. and Wiemers, M., 2015. Interacting global change drivers. Nature Climate Change,
5(10), pp.913-914.
UK Act, 2014. An Analysis of the Impact of the International Oil Industry on Airlines (to
September 1988)An Analysis of the Impact of the International Oil Industry on Airlines (to
September 1988)GoldsmithR.Multi Science Publishers, Brentwood, UK. £50ISBN 185 228 135
4. Energy Exploration & Exploitation, 8(6), pp.461-461.
Westney, D., 2017. Global strategy and global business environment: changing models of the
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global business environment. Global Strategy Journal, 1(3-4), pp.377-381.
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Obtain and interpret information relevant to an analysis of Airline industry..................................4

Obtain and interpret information relevant to an analysis of Airline

considered as the part of business environment of airline’s industry.

Assess the impact of government on the structure and operation of a

Identifying drivers of change in Airline industry related with models

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