Table of Contents
Task A: Primary external influences to Virgin Atlantic Airline.
1.1 Primary external influences on Virgin Atlantic Airlines.
2.1 Corporate social responsibility of Virgin Atlantic Airline.
2.1.1 Analyze the relevance of CSR to Virgin Atlantic Airlines.
2.1.2 How CSR influences policies and decision-making of Virgin Atlantic Airlines.
2.2.2 Critically evaluate the effectiveness of the organization’s response.
2.3 Demonstrate some areas for improvement in the response of the organization.
Appendix: Overview of Virgin Atlantic Airline.
Corporate social responsibility (CSR) is the responsibility towards society. In this competitive market, the business firm should concern about corporate social responsibility to attract customers and survive in the market. This assignment is prepared to identify the Corporate Social Responsibility and Sustainability of Virgin Atlantic Airlines. Virgin Atlantic Airlines is one of the largest airlines in the UK. It was found in 1984 and its head-quarter in Crawley, United Kingdom. In the first task, this assignment discusses the corporate social responsibility of Virgin Atlantic Airlines. Secondly, this paper provides explanations of the relevance of CSR to Virgin Atlantic Airlines and Carroll’s Four-Part Model of CSR and its application on Virgin Atlantic Airlines. Then, the paper demonstrates some areas for improvement in the response of the organization and gives some recommendations to Virgin Atlantic airlines to improve their performance level. This assignment focuses that corporate social responsibility affects both short-term and long-term duration with sustainable growth. It also focuses on the PASTEL analysis that affects the decision-making of Virgin Atlantic airline.
Task A: Primary external influences on Virgin Atlantic Airline
The most important analysis that helps to take the decision of an organization is PESTLE analysis. PESTLE analysis indicates that an analysis of taking strategic decisions for the firm. Every organization should be taken into consideration the PESTLE analysis. PESTLE stands for Political, Economic, Socio-cultural, Technological, Legal and Environment factors that help to take the decision of an organization (Arthur, 2012). By analyzing these factors, firms can able to know about the external environments that directly and indirectly affect the performance of the firm. This analysis also states that the prospective actions that followed for overcoming negative situations. In this segment of the assignment, the PESTLE factors are explained in terms of Virgin Atlantic Airlines. Virgin Atlantic Airlines is one of the largest airlines in the UK.
1.1 Primary external influences on Virgin Atlantic Airlines
PESTLE analysis states that the factors of Political, Economic, Socio-cultural, Technological, Legal and Environmental. By analyzing these factors, firms can able to know about the external environments that directly and indirectly affect the performance of the firm (Arthur, 2012).
Brexit caused political turmoil: The political factors largely affect the decision and performance of Virgin Atlantic Airlines (Linda, and Nelson, 2013). The Virgin Atlantic Airline has faced various threats for the political barriers, especially in Paris and Brussels in 2016. In the same year, the firm experienced various barriers in European countries due to Brexit. The boycott of Britain from the EU is the most threat to a political imbalance in European countries in 2019. In this situation, Virgin Atlantic Airlines should consider the access power in EU countries and stable their business activities (Virgin Airline Annual Report, 2017).
Ambiguity in future trade policy: The Ambiguity in future trade policy in Britain also negatively affects the performance of Virgin Atlantic Airlines. In the UK, the trade policy is not cleared. That is why; businessmen have experienced various problems doing business in the UK. Due to this ambiguous policy, Virgin Atlantic Airline has to need extra costs for changing its business structures (Virgin Airline Annual Report, 2017).
Government-approved new Heathrow runway: In 2016, the good news for Virgin Atlantic Airlines was to approve a new Heathrow runway in London. This runway has helped the firm to do their flight in Manchester and other areas (Arthur, 2012). From the documents and financial reports, this airline company becomes the largest airline in Britain in 2017.
Due to the reduction of airline passengers, the airline business could not be able to get adequate profit. The rate of inflation also increases all over the world that decreases the value of money as well as the purchasing power of the people that reduces the potential customers of the Airline (Linda, and Nelson, 2013). The amount of revenue of Virgin Atlantic Airline is influenced by external economic factors. In the time of economic recession, the customers are very much concerned about the conditions of flight and quality of services of the Airline business. The speed train service also affects the Airline business and oil price fluctuations also negatively affect the airline business. Therefore, Virgin Atlantic Airlines has to consider the economic factors to exist in the market (Virgin Airline Annual Report, 2017).
Shortage of pilots: The most important problem of the aircraft business is the shortage of well-trained pilots. Most of the airline businesses like UAE emirates; Australia Qantas has to face the challenges to find experienced pilots to run the aircraft. In the next 20 years, the demand for pilots will be more than 6, 37,000.
Changing demographics and cost of travel favoring increased air transportation: Due to the change in demographics and favorable cost of travel, the number of passengers is increasing day by day. As a result, the number of air transportations is also in an increasing trend. India, Indonesia, China, Japan and Turkey are the main potential countries that have more opportunities to increase air transportation(Virgin Airline Annual Report, 2017)……………………………….