• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Unit 12 - International Dimension of Business Task 2

Extracts from this document...

Introduction

Task 2 For this new task, my focus will be on investigating the factors that influenced one of my two chosen businesses to develop an international business. Throughout this task I will also be outlining the strategic objectives of having an international presence, I will be explaining the theory of comparative advantage and I will be explaining the effectiveness of my chosen business's presence internationally. The business I have decided to choose to focus on in this task is British Airways and this is because it is a global business, it will therefore most likely give me more to explain and analyse compared to the European presence of RyanAir. Strategic Objectives I will now be thoroughly explaining some of the basic strategic objectives that many companies decided to use/work towards. From this, I will then choose some of the strategic objectives that relate to British Airways and why they have them. A strategic objective simply put is an objective that has important long term implications - involves using major resources and states a main objective to be worked towards (end result). Examples of strategic objectives are as followed below: Raising Profits and Market Share Out of all the reasons for wanting to expand onto the international scene, gaining higher profits and obtaining more market share are probably the most obvious. Put very simply, working in a multinational market as opposed to an individual country provides the opportunity of more customers - meaning the opportunity of more sales (turnover). Along with this, expanding internationally gives a business the opportunity to work in a more demanding and competitive market as they will not only be battling for the most market share of a market in e.g. - the UK, they will be competing for the most market in a specific continent and on a world scale market which is likely to increase efficiency and work productivity of workers. ...read more.

Middle

Taking all of this into consideration, allowing British Airways to work in their nations must have been a good decision because not only does it give people a wider selection to choose from, it also provides firms working in the same field a good reason to improve their quality and efficiency and not take consumers for granted which in the end, must be beneficial to the nation. The only negative I would point out that comes from allowing a business such as British Airways into a nation is the problem of pollution. Pollution is quickly becoming a world spread problem and it arises from things such as cars and planes. Allowing British Airways to operate in turn means more planes entering the country which would definitely add to the problem, fuelling criticism from environmentalists as to why they were ever allowed in in the first place. Employment and Development of New skills and Knowledge No matter how established the nation may be, there is not one country in the world where employment is 100% and thee is where the allowance of foreign businesses relate. The more companies that operate in a country, the more jobs available there will be and that is without a doubt one of the main attractions for host countries when allowing businesses from other countries to operate there. As I mentioned earlier, ultimately it is a decision the government must take to decide whether the introduction of a foreign business would benefit the country's economical state and whether it be the Prime Minister of the UK or President of USA etc. one of the main priorities of country leaders is to tackle unemployment issues and that is why it is so tempting for governments to allow businesses from outside the country to invest in operating and advertising themselves there as it is a brilliant and effective way of opening up new jobs and this would apply to British Airways. ...read more.

Conclusion

Just like I previously done, I will now produce a table to try and back up this theory will the help of Wikipedia. Year Profit/Lost Before Tax (�m) 2008 883 (32% UK) 2007 661 (29% UK) 2006 616 (31% UK) 2005 513 (29% UK) 2004 230 (32% UK) 2003 135 (36% UK) As can be seen on this table, here is the data regarding the profit made by British Airways from the years of 2003 to 2008. The success of British Airways between this time period is clear to see as their profits continually rise which is strange considering their number of passengers flown consistently declined from 2003 - 2007. Even though, the percentage of UK based passengers flown each year is identical to the percentage of profits British Airways gained from UK operations each year. So for example in the year of 2008, British Airways gained �883 million profit before tax and 32% of this amount came from UK flights which would come to just over �2821/2 million and despite this being a substantial amount, yet again most over the profits came from overseas operations and this would amount to roughly �6001/2 million. Just like I did so previously, I will now show a table consisting of BA's profits from UK operations, from overseas operations and the difference between the two which will determine the effectiveness of British Airway's international presence from the years of 2003 to 2008 in terms of profit. PTO for table YEAR OVERALL PROFIT PROFIT FROM UK FLIGHTS ( PROFIT FROM OVERSEAS FLIGHTS DIFFERENCE (effectiveness) (�m) 2008 �883m �282,560,000 �600,440,000 �317,880,000 2007 �661m �191,690,000 �469,310,000 �277,620,000 2006 �616m �190,960,000 �425,040,000 �234,080,000 2005 �513m �148,770,000 �364,230,000 �215,460,000 2004 �230m �73,600,000 �156,400,000 �82,800,000 2003 �135m �48,600,000 �86,400,000 �37,800,000 Total between 2003 - 2008 �3,038,000, 000 �936,180,000 �2,101,820, 000 �1,165,640, 000 As you can see by this table, the effectiveness of British Airways' international presence over the last 6 years has been extraordinary. As expected, most of British Airways overall profits come from their overseas operations. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Case Studies and Analysis section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Case Studies and Analysis essays

  1. Marked by a teacher

    Skills and Knowledge Needed to Work In A Business Environment

    5 star(s)

    The person who doesn?t maintain security and confidentiality this could lead to your company to loose of trust of clients, possible prosecution especially under the data protection act. Information security means protecting information and information systems from unauthorized access, use, disclosure, disruption, modification, or destruction.

  2. In This unit I am gong analyse the product knowledge required by employees of ...

    health and safety Cleaner * No way around * Use safety signs * Health and safety standards * Use of chemicals * Hygiene standards When the customers are at Alton towers, most of the visitors are going to want directions to rides or ask the staff questions about the theme park.

  1. Internal Analysis of "Ryanair-The "Southwest"of European Airlines" case

    Ryanair invested resource to establish website for passengers. It made passengers more convenient. Spending on advertising and promotions to expand its market is reduced as most advertising takes place on the website. There promotion is also used to sell excess capacity, such as two-for-one offers, which creates market awareness.

  2. How external factors can affect the ability of Tesco achieving its aims and objectives

    If any store is found to have sold alcohol after 10 pm they are eligible for a huge fine and bad publicity among other penalties. Tesco Monaghan has an off-licence section in store and sells some spirits at the express till.

  1. Aims and Objectives of A Business

    should install an announcing system where one member of the staff might advertise by announcing when the classes will be going on and on which days. To keep staff motivated the club can provide promotions and bonuses that will make work efficiently.

  2. The international business environment of Apple Inc

    Manufacturing products in America will be much more expensive than manufacturing it in another developing country as costs can be lower. P2 There are many economic activities such as those that the government inflict upon that will either encourage or restrict international trade.

  1. Unit 1 P3 P4 P5 P6 Business Organisation and The Business Enviroment - comparing ...

    Sainsbury?s were really excited as they increased their sales rapidly. They are more than confident especially that their main competition Tesco?s sales fell by 1.8%. Chrysler was not prepared for a recession but then again this was the first recession since 1991.

  2. Unit 4 P1 explain different types of business information, their sources and purposes

    Different departments have different methods of communication so it may vary where and when information comes from to compile the written information that is developed The purpose of onscreen information at my chosen organisation The reason why Tesco PLC would use on screen information is to make their consumer and

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work