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4.

(a) External environment of an organization


The external environment contains external factors that affect business organization indirectly.
The organization can’t control over these factors. So, organizations use strategic framework
called PESTLE analysis to evaluate external environment into political, economic, social,
technological, legal and environment factors.
 Covid-19 caused all the airline slowdown across the globe. Virgin Atlantic is also one of
the airlines that stop during the outbreak of covid-19. A lot of airline companies tried to
survive in that pandemic period. Later, virgin airline discharged 3000 staff due to less
revenue and losses. As covid makes people spending less on leisure activities, it would be
really hurt for Virgin Atlantic to survive through the pandemic (Grades Fixer, 2022).
 Technological factors drive all the airlines including Virgin Atlantic. It also plays
essential role in airline industry. The cost of operation is reduced with the help of
technology. As technology is growing rapidly, airlines improve their safety standards to
protect passengers from dangers. Many airlines try to follow technological trend to have
competitive advantages over their competitors. Nowadays, there are lots of opportunities
for Virgin Atlantic to come up with digital disruption because of the increase in
digitalization.
(b) Internal environment of an organization
Internal environment is a component of the business environment. It is also the collection of
various elements that happen inside the business organization. Internal environment of an
organization depends on the choices, activities and decisions of that organization. It also
includes culture, members, events and factors that present within that organization which
influence the decisions making process. Internal environment includes organizational structure,
corporate culture and human resources.
 Virgin group is a multinational company which has complex structure. It also has
around 300 odd companies and every single one works separately. Every company is
allowed to manage their own affairs. The companies also help each other to solve the
problems that happen within the organization. Virgin is a business group that is filled
with shared ideas, values, interests and goals. Branson also allowed his employee to
have the right to do unsupervised decisions according to the situation that face with
rather than following chain of command.
 Virgin group culture is mainly depended on its founder Branson. He believed in hard-
working and responsibilities which influence all companies of Virgin group. This
allowed Virgin group to have talented and ambitious employee who are willing to give
their best. Benefits like social activities, company sponsored weekend gateways and
parties are provided by the organization. Virgin group can be described as a family.
Having that kind of culture promotes relation between each employee and department.
Due to that kind of community, employee can communicate each other effectively in
every department of Virgin group (TechinAsia, 2022).

Reference
Grades Fixer. (2022, April 5). Grades Fixer. Retrieved from gradesfixer.com:
https://gradesfixer.com/free-essay-examples/analysis-of-virgin-atlantic-airline/
TechinAsia. (2022, April 5). TechinAsia. Retrieved from techinasia:
https://www.techinasia.com/virgin-corporate-strategy

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