domestic and global business environment

Global and Domestic Business environment

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Introduction

The success of business such as Emirates Airline depend various internal and external business environmental factors. The factors are grouped into global and domestic environment thus, the paper address how both international and domestic business environment factors affect Emirates Airlines Company.

Question 1

Emirate airlines are one of the well-known businesses in UAE. The business has obtained international reputations as well as awards for its outstanding business progress in the gulf region. Like other business and organizations, the business is also affected by both international (global) and domestic forces or factors. Such forces together with changes in the political spheres affect the performance of the organization negatively or positively, hence this paper tries to define the how these international and domestic factors affect Emirates airlines both national (locally) or internationally (Globally). The below are the factors that influence Emirates Airlines domestic business environment (Aspinall, 2001).

The economy of United Arab Emirates

One of the most influential forces that affects emirates airlines environment is the economy of United Arab Emirates as a country. The economy of UAE is known to be one of the most growing economies in the world; the economy is coupled with a huge target market for all the products produced and paves way for investment. Since UAE is the gate towards the gulf region, the economy favors the emirates airlines business to keep track of all it planes and aircraft around the world. Investors and tourists frequent spam the region seeking room to invest and to experience the nice summer season in the area.

Clients Patterns

United Arab Emirates is known to be one of the countries with ever changing market trends. Market patterns determine the entire business process of emirates airlines marketing frameworks. It is noted that various business activities are dependent on the market patterns that at most cases are determined using a market analysis. The changing dynamic of the UAE’s customer patterns has made Emirates Airlines a successful business in the region since the flow of passengers from the international platform come to UAE at different alternate times hence posing a constant market for the airline. In addition, the diverse customer trend has also offered the airline an ample time to evaluate its strengths and weaknesses hence able to determine the business opportunities. The domestic trend of events that UAE hosts as well as the local events are also one of the platforms that customers come to the country in great numbers.

Laws and Policies of United Arab Emirates

Ever altering business laws in United Arab Emirates promote the business in the entire sector such as marketing and planning. The new laws on airline business can influence the target market strategies of emirates airlines. The UAE airline market is manifested with tyrants who have the capital to change or influence laws and policies that favor their business hence offers them the chance to promote and develop their businesses. For this case the emirates airlines is one of the business in the country that is managed with money kings in the region hence influence the nature of laws that govern the airlines industry paving way for their flourishing of their business. However, the UAE government has lied out legal frameworks that promote the airline industry since it one of the leading revenue contributors. With this, the Emirates Airline business gets a competitive advantage over other foreign airlines (Bräuer et al., 1997).

Service Lines

Airline business has service trends that are affected by various factors such as cost of domestic travels. Emirates airlines have the influence of the regions service trends hence easily controls all domestic and international travels in the region.

Question 2

Environmental forces that affect global business have various semi-factors that in it that affects Emirates airline. The following are the environmental factors affecting global business environment.

Fundamental business Issues

Various issues are considered important facet in helping airline industry to flourish in the United Arab Emirates. For the case of Emirates airlines, there most significant issue that affects the global environment is the information relating to passenger trends. UAE is a standpoint zone in the gulf with enough information relating to the air travels. With the best airport in the region, the country has enough security and business information about the business hence favorable for Emirates Airlines.

The Economic Environment

The economy of UAE is noted to be the second most developing economies in the world. The region enjoys the economy boost due its availability of natural resources as well as room for investment. With this in mind, the business has various platforms that allow room for improvements. The economy of the country also offers the airline with a conducive environment for the business growth and development. The country has a steady exchange rate that offers the company with an added advantage when purchasing aircraft and other financial necessity.

The Political Environment

The political environment of the country is a key determinant towards the success of the airline industry so does the Emirates Airlines. The political framework of the country favors business investment at most international business. For example, the government of UAE has promising approaches that invite investors. For the case of Emirates Airlines, the business enjoys this element of global business environment.

The Legal Environment

The countries legal body is one of the constituents that promote the emirates airlines business since it allows the business to flourish in the country as well as undertake its duties to the international arena. The business benefits from this body as it encourages the success and development of the country.

Social Structure

There is no success in the business arena without a good social structure. United Arab Emirates is one of the countries with a complex social structure hence posing difficulties for most business organizations such as Emirates Airlines to succeed in the region, mostly foreign business, but for the case of Emirates Airline is enjoys the international recognition hence not affected by the domestic environment. The global environment plays a key role towards the airlines success.

Question 3

How Environmental forces affect the job of individual manager within this organization

It is evident that the manager to the Emirates Airlines is affected by both domestic and global business environment is various ways. The manager is affected on the ways to make business decisions for the company and the other main impacts that the manager feels is that the manager is affected when making developmental decisions hence the entire business structure is affected by the environment (Purkis, Riegl & Andréfouët, 2005).

The type of business environmental factor influence the manager when determining the type of business to invest and the steps taken to improve the current business. For example, global business environmental factors influence the manager of Emirates airlines when choosing the best marketing strategies to market their company in respective companies that the airline plans to go.

In addition, for the business to flourish in other nations that is yet to invest in, the legal framework of the country is one of the most influential factor. Hence, this affects the manager of Emirates Airlines when choosing the risk management plan and the success tools for the company.

How to determine the opportunities and threats that its managers must confront?

In order to determine the opportunities and threats of the company market and growth analysis must be undertaken these include analysis such as SWOT analysis. The manager and the management team of Emirates Airlines may determine the threats and opportunities by first evaluating the level of risks that the business expects and it having now.

In addition, the threats and opportunities can be determined by accessing the functionality of the successes and weaknesses of the business. This will highlight the pending factors that are prone to be threats as well as opportunities.

References

Aspinall, S. (2001). Environmental Development and Protection in the UAE.United Arab Emirates: A New Perspective, 277-304.

Kettrup, A., Matuschek, G., Utschick, H., Namendorf, C., & Bräuer, G. (1997). A macro STA-system for environmental samples. Thermochimica acta, 295(1), 119-131.

Purkis, S. J., Riegl, B. M., & Andréfouët, S. (2005). Remote sensing of geomorphology and facies patterns on a modern carbonate ramp (Arabian Gulf, Dubai, UAE). Journal of Sedimentary Research, 75(5), 861-876.