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Unit 1 Business and the Business Environment Assignment

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1. Introduction - Unit 1 Business and the Business Environment Assignment

A companys business strategy would be incomplete without a grasp of the industry dynamics and trends, and doing an industry analysis provides such information. This allows a company to proceed rationally and gain an advantage in knowing its target market and market tactics. To begin an industry study, a company must first learn about the many sorts of businesses that are already on the market. There are three categories of organisations in a market: public, private, and non-profit.

Most private companies are run by their owners for the sole purpose of making a profit. The public sector, on the other hand, tends to employ a smaller number of people than private businesses. The majority of these organisations are the result of the creation of new businesses or the privatisation of a public sector entity. – The majority of private businesses are owned by individuals or a group of persons. In addition, they must adhere to the rules and regulations set forth by the government. According to the legal framework of an organisation, the money created by these organisations is reinvested and distributed among the investors of the organisation.

The objective of a non-profit organisation is to meet the needs of society. The majority of volunteer organisations are not for profit, although there are a few that do earn a profit. These kinds of organisations are dedicated to improving the well-being of society as a whole. As a safety net, the majority of non-profits rely on unincorporated associations, corporations, or trusts. Municipal, state and federal governments are examples of the third form of commercial organisation: government entities. Generally, public sector organisations are those that are owned and operated by the government, as well as those that are subject to government regulation.

As part of this analysis, we focus on a few Qatar-based enterprises. An in-depth examination of one of the selected firms will be provided within the scope of the report, focusing on the industrial variables of Qatar that have a direct impact on it.

2. Critical Analysis of the Complexities for each of some organizations from Qatar (Public, Private and Voluntary)

The current section will critically analyse the complexities associated with three organizations from Qatar, belonging to three different sectors namely: Public, Private and Voluntary.

2.1 Public: Qatar Airways


The national airline of Qatar, Qatar Airways, is a state-owned enterprise. Qatar Airways has a hub-and-spoke network from its base at Hamad Foreign Airport in Doha that flies to over 150 international countries spanning Africa and Asia as well as Europe and the Americas and Oceania. More than 43,000 individuals work for the Qatar Airways Group (Chiambaretto and Wassmer, 2019). Since October 2013, the airline has been a member of the Oneworld alliance, making it the first Persian Gulf carrier to join one of the three main airline alliances.

Products and Services

Even though Qatar Airways was just founded in 1997, it has created a wide flight network that now includes 83 countries (Airways, 2018). With a 5-star rating from Skytrax, Qatar Airways has been rated the greatest airline in the world year after year (Sulistya and Ginaya, 2020).

Size and Scope

In the State of Qatar, Qatar Airways serves as the national airline. Qatar Airways is one of the worlds fastest-growing airlines, with a fleet that is among the youngest in the industry. With more than 200 aircraft travelling to more than 150 destinations spanning Europe, the Middle East, Africa, Asia, North America, and South America, Qatar Airways is now commemorating its 20th year of Going Places Together. The organization has 50,110 employees (Kucsera, 2021).

Mission and Business Objectives

It is Qatar Airways’“ primary mission and business objective that they want to become a world-class carrier and cargo service provider with a global reach.

Organizational and legal structure

The hierarchical structure of Qatar Airways may be seen across the company. This is a hierarchical structure in which all but one of the organizations units reports directly to the other unit. The power structure in an organisation typically consists of a single or group of individuals at the top, with several tiers of authority descending from there. As of May 2014, the Qatari government owns 100% of the firm, making it a state-owned enterprise. Since a former foreign minister and other owners bought a 50% interest in Qatar Airways in July 2013, the government has had complete authority over the airline (Kucsera, 2021).


All of the people that work at its airport, as well as the people who travel via the airline regularly are considered stakeholders of Qatar Airways.

2.2 Private: International Bank of Qatar (IBQ)


The International Bank of Qatar (ibq) was founded in 1956 as the Ottoman Bank and is one of Qatars oldest and most well-known commercial institutions. The Bank provides a wide range of financial services, including corporate, private, and retail. ibqs branches, service centres, and ATMs are positioned around the nation in key locations (Alenazi and Barbour, 2019).


Ibqs retail banking division is well-known for its creative approach to product creation, especially when it comes to mortgages and other types of personal loans available at any time of year (Ali, 2020).

Size and Scope

International Bank of Qatar (ibq) was renamed in August 2004, after the bank was taken over by the National Bank of Kuwait (NBK). After increasing its stake in the bank to 30 per cent in July 2007 and selling it back to Qatari investors in 2014, NBK returned to Qatar. iqb has about 500 employees (Ali, 2020).

Mission and Business Objective

To make banking more personal for everyone, IBQ is working hard to realise its fundamental purpose every day.

Organizational and legal structure

IBQ has a top executive who is assisted by several other high-ranking staff members. In a retail bank, the different tasks, such as electronic banking, customer service, and management of certain divisions, are often divided (Al-Muharrami and Murthy, 2017). Hence, it resembles the hierarchical structure that has been detailed in the previous section.

It is a limited liability corporation, which means that its owners are protected from personal culpability for the firms debts and liabilities (Setiawan, 2018).


IBQs shareholders, board of directors, workers, consumers, financial markets, and the government are all stakeholders in the company (Ahmed, 2017).

2.3 Voluntary: Qatar Charity


Once known as Qatar Charitable Society, Qatar Charity is a non-governmental organisation that focuses on humanitarian and development efforts. With more than 150,000 sponsored orphans, it was founded in 1992 in response to the thousands of children who were orphaned by the Afghanistan war, but it has since expanded its scope to include six humanitarian fields (shelter, emergency medical response, food aid and WASH etc.) and seven development fields (health, education, WASH, food security, financial empowerment, housing and social care) (Sulistya and Ginaya, 2020.


The Qatar Charity has been a leading humanitarian and development organisation for more than two decades, providing lifesaving assistance to those affected by war, persecution, or natural disasters while also working to eradicate poverty through long-term development programmes in social welfare, water and sanitation, and education (Siswantoro, 2021).

Size and Scope

Through its network of field offices in 30 countries and implementation partners in an additional 20 countries, the organization is at the forefront of global efforts to assist disaster-affected communities become more resilient so they can eventually survive and grow (Lowi, 2019).

More than 29 million people have been served by Qatar Charitys large-scale humanitarian and development programmes over the previous five years at a total cost of 1.2 billion dollars.

Mission and Objectives

QC aims to give people hope and assist vulnerable communities in dignity by addressing their humanitarian and development needs (Lowi, 2017). At the core of its work, it aims to create a society where people are free from poverty and live in dignity, and to be the preferred aid provider wherever our assistance is needed.

Organizational and legal structure

The Board of Directors, the General Assembly, and the Executive Director are the three pillars of QCs leadership structure. The NGOs Board of Directors sits atop the organisation. All non-profit organisations must have a board of directors to be registered with the local government. As previously mentioned, QC operates on a non-profit basis (Rickenbacher, n.d.). Because it does not make money for its owners, this implies it is a business. The organizations profits and donations are reinvested in the organizations operations.


Members of the QCs board of directors, people it serves, donors or foundations that offer QC grants are examples of stakeholders.

3. Demonstration of the Interrelationship among Organizational Functions, Structures and Objectives and Understanding their Impact on Structure

3.1 different organizational functions (finance, marketing, HR, etc.) interrelate and how they link to organizational objectives and structure

The different organizational functions of Qatar Airways have been able to acquire organizational success. The context will discuss the different organizational functions of this airline company. 

Marketing mix of Qatar Airways

  • Place & Distribution Strategy: The airline basically provides an extensive assortment of services during its reclines with its auxiliaries and separations approximating Qatar Duty-Free, Qatar Aviation Services, and Qatar Airways Holidays, etc.
  • People: Qatar Airways is forever been paying attention to offering the best quality service and conveniences to its travelers traveling to international objectives (Seanyen et al., 2021). This government-possessed company has additional than approximately 40 thousand employees working in terms of it and in the middle of this, just about 50 percentage are unswervingly employed through Qatar Airlines the outstanding are circuitously working in terms of the procedures of the airline (Dehbi, 2018).
  • Process: It fundamentally proposes unsurpassed service throughout its lounges that have been considered as the first-class incurable contribution duty-free shops, conference room, and additional services. In addition, the airline has extended its wings globally as a result of breaching its lounges in Dubai, London, and Paris (Ghialy et al., 2018).
  • Physical Evidence: It has been observed that the in-flight requirements and services interrelated to cabin crew and consumer desk have been able to help infinitely in advancing recovered brand representation (Ghialy et al., 2018).
  • Promotion & Advertising Strategy: Qatar Airways has been competent to implement platforms such as being the sponsor of FC Barcelona and also been the features of Asian Games detained in Doha in the year 2006 and newly signed the world cup sponsorship of FIFA (Seanyen et al., 2021). This Airway carries out such endorsement along with the status of having connected with such elevated profile proceedings and also advanced brand visibility.

HR strategies of Qatar Airways

  • Customer-centric strategy: It has been observed that this HR practice permits the employees in order to keep a closer look further on the consumers & serve them in an enhanced technique (Imbuga, 2018). Therefore, by focusing on the customers, more & more clients will be fascinated by Qatar Airways.
  • Training the employees: The primal focus of this airway is to prepare the recently appointed employees in order to serve the br & along within accomplished services (Wang, 2021). However, employing has been considered as the fundamental step & then comes guidance the hired peoples which also fall on the category of a significant step. This significant training basically period allocates the employees in order to work on their defects & reinforce their expertise (Chiambaretto and Wassmer, 2019). Training period educates the recent employees concerning all the miniature information regarding the organization & working in terms of the advantages of the airways. This human resource approach will assist Qatar airways in order to improve its services & cultivating the industry along with the assist of all experts & accomplished employees.

Financial strategies

Qatar airlines which graded surrounded by one of the preeminent airlines in the Gulf States missing behind Emirates airways has been recognized to engage second fiddle. In the previous year, the airway has supplementary 14 new aircraft to our impressive fleet – which comprises 205 passenger aircraft, 26 cargo aircraft, and 19 Qatar Executive jets (Imbuga, 2018).

3.2 Analyse the interrelationship between different organizational functions and its impact on the organizational structure

The advertising and promotional strategies of Qatar airways have been competent for attracting major customers through promoting on the major entertainment events. This process has been proven to be extremely accommodating in increasing the revenue margin of the airways. The ultimate purpose of the airline organization is to think only about the comfort of the customers. This advertising strategy has been able to permit Qatar airways to congregate a great audience & pull towards more consumers. As a result, it directly impacts the profitability of the organizations. Qatar Airways is well-known in terms of its top rating extravagance class travel. The business basically and first-class travelers have the right of entry through relaxed seating fresh flowers, top-grade wines, world cuisines, and chandeliers. The experience of a five-star accommodating service has been available in the airways and that has been proved to be exceedingly beneficial in drawing attention towards passengers and enhancing business revenue.

4. A detailed analysis of the Positive and Negative Impact of Macro-environmental Factors on Qatar Airways




COVID-19 has resulted in a wide range of restrictions on travel between countries, as well as a need for airlines to adhere to a variety of safety standards. This has had a significant impact on the companys revenue. After some time, a group of countries made a decision that had an enormous impact on the industry.


When it comes to the airline business, Qatar Airways holds a very strong position.

Its also worth noting that the airline spent a lot of money on new planes last year. Airline profits are expected to decrease sharply this year as a result of the COVID-19 travel restrictions imposed by numerous nations, which has had a detrimental effect on airline operations. So, before making any strategic decision, the corporation must take these considerations into account.


The business of Qatar Airways is influenced by a wide range of social issues. It takes into account elements such as population growth, gender ratio, cultural variety, and more. Qatars population may be small, but the countrys high per capita GDP means that residents have a lot of money to spend on vacations and other recreational activities. signal for the organisation, as they will establish a large consumer base for both business and pleasure travel alike. People are now afraid to travel because of the threat of infection from COVID-19. This has had a devastating effect on the airline sector as a whole. As a result of these issues, several airline firms are experiencing significant losses.


Qatar has always provided innovative services to its clients, such as cost reduction, increased customer experience, comfort, etc., through the application of new technological advancements. Its easy to book tickets on Qatar Airways website and mobile app at any hour of the day or night. The government also offers a variety of incentives to help the aviation industry upgrade its technology because it entails enormous costs.


To reduce carbon emissions, Qatar Airways utilises new and efficient planes. As a result, the airline firm has done a great job of reducing its carbon footprint and thereby satisfying a wide range of stakeholders. Airline companies cant ignore environmental considerations if they want to become industry leaders in their field of work.


Qatar Airways has always placed a high value on legal considerations, which is why the airline is often regarded as one of the best in the world. Various new travel restrictions have been implemented as a result of COVID-19 to protect travellers and prevent the transmission of disease. The airline complied with all safety regulations to ensure that all stakeholders were satisfied with the companys operations.

(Sources: Kucsera, 2021; Emil, n.d.; Wang, 2021; Maharani, 2020)

 5. Understanding Internal Strengths and Weaknesses of a Particular business and Demonstration of the interrelationship with Macro factors

5.1 Application of SWOT Analysis

SWOT Analysis has been considered as a strategic tool that might facilitate in investigating the core insights of the organization, and to develop a triumphant approach for the upcoming future. SWOT analysis of Qatar Airways analyses the organization through its strengths, weaknesses, opportunities & threats.


  • Strong backing of management: The airline has been supported by means of the government along with consisting of a well-built leadership strategy (Theodoropoulou and Alos, 2020). As a matter of fact, these particular strategiesintertwined as a result of the privileged and the vision they encompassed were considered as serious factors which resulted in the abrupt up till now rapid enlargement of the airline (Emil, 2019). In reality, it has been measured as the attitude of the leadership towards advancement orientation is what has assisted the airline in order to strike the majority of the grown-up airline businesses.
  • In-flight Services: The ultimate purpose of the Qatar Airways airline is to aim at providing luxury class customers who have been admired for their unimpeachable in flight along with off-board activities (Imbuga, 2018). It is indeed true that the various activities in the airline involve every promising footstep such as negligible waiting time, relaxed lounge seating, the security of baggage, etc to in-flight amusement, customized meal alternatives, online check-in, etc the airline has initiated great care in order to make certain of the fact that customer is experiencing an elevated level of comfort in terms of each stage of the travel.


  • Maintenance of cost management issues: The primary focus of Airways Flight airline is to provide on principally on business class in terms of which there is an assortment of expenditures in order to sustain the quality of various services along within the amenities. Additionally, to this, there have also been found fluctuations in case of fuel prices as well as salary concerns from unionization (Emil, 2019). These particular concerns have been considered responsible for composing cost management critical. As a matter of fact, the airline has to face, major difficulties due to these issues.
  • Competition from low-cost airlines: It has been observed extensively that there is a flow in the number of low-cost airlines (Temirkhanova, 2019). To put in fuel to this particular tendency the worldwide downturn has to be able in bringing consequences in countless airline companies cutting their travel resources along with the effect which people have ongoing favoring budget travel. However, this has been proved to be responsible for resulting in inflexible opposition in terms of luxury airlines from low-cost players.


  • The surge in airline usage: It is indeed true that with the increasing necessity for time, travelers have finally ongoing utilizing additional air tours than road or rail. Therefore, the emergent connectivity of Airways airline to a variety of fractions of the globe is assembling it a favored choice of globetrotters (Temirkhanova, 2019).


  • Competition:The foremost competitor of Qatar Airways airline is Emirates and Etihad Airlines. However, the threats of having these competitors do not completely impact the business in a significant way (Theodoropoulou and Alos, 2020).

5.2 Elucidation of the interrelationship between Strength, Weaknesses with the External Factors

Strength - Political It has been observed in an extensive manner that the Qatar Government has a well-built political will which consists of effect in the incredible enlargement of this airline. In addition, the enhanced reputation of Qatar Airways has played a major role due to its first-class quality services. Therefore, the political impact has been responsible for not creating any kind of obstacles in the way of getting success (Mohandoss and Muthuraman, 2019). Though it has been observed in a deliberate manner that the excessive impact of COVID19 has been responsible for bringing various restrictions in travel and accommodation-related services.

The weakness-The economic condition of Qatar is extremely elevated. Therefore, it has been considered as one amongst the worldwide influential and operates in the preponderance of the states. It has been observed that it has enormous proceeds which basically points out that economically the company. Therefore, it has the biggest opportunity for the airlines (Mohandoss and Muthuraman, 2019). Due to the impact of the COVID19 pandemic the company has to encounter an enormous economical downturn.

Opportunity- Qatar always have been measured in providing pioneering services to its consumers by making use of innovative technological expansion like cost decrease, enhanced customer understanding. Therefore, it has been proved to be beneficial in increasing the rate of financial performance.

Threat- Regarding the impact of COVID-19, people have started evading travel for the horror of infection. This has actually put a very unfavorable collision on the entire airline industry specifically on Qatar Airways. The company faced numerous losses due to the economic recession for the pandemic.

6. Critical Evaluation of the Key Findings and Justification of the impact of micro and Macro Factors upon Decision Making

As per the entire evaluation of the report, it has been observed that the political and social impact has been responsible for creating major changes in the business. Therefore, the key findings illustrated that the various policies and regulations have been responsible for Qatar airways to succeed in the international marketplace. Additionally, it has been considered as the ultimate strength of the airline organization. The social and environmental factors are considered major factors for the economic downfall of Qatar airways. In terms of social factors, the impact of the COVID-19 pandemic has been considered responsible for creating obstacles in the path of decreasing the rate of travel due to the fear of infection. On the other hand, the extreme rate of carbons emission contributes to changing of climate. As a result, the airline industries have to face numerous restrictions for these major issues. It is indeed considered as the major weakness for Qatar airways.

Qatar Airways has a very elevated position in terms of the economy which is the biggest opportunity for the organization. However, the legal factors have no beneficial impact on the organization. It might be a threat to the future of the Qatar airways for the implementation of the further legal structure due to the impact of a pandemic.


From the entire evaluation of the entire report, it has been observed in an extensive manner that the macro-environmental factor and micro environmental factor have an immense impact on the profitability and efficiency of the organizations. Therefore, investigation of the legal structures, scope, vision, mission objectives, and various services has been competent to evaluate major success factors of the organizations. The context proves to be extremely accommodating in depicting the interrelationship between macro and microelements in a deliberate manner. It has been observed that through analyzing these impact of the factors Qatar airways have full-grown from a diminutive company to a most important player in the airline industry of Qatar. Thus, it has been concluded that the entire study has been succeeded in evaluating the overall facts illustrated in the report.


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