business strategy

Business strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Strategic context...........................................................................................................................1
Different strategic planning tools:...............................................................................................2
TASK 2............................................................................................................................................5
Organisational internal environment............................................................................................5
TASK 3............................................................................................................................................9
Analytical tools and models.........................................................................................................9
TASK 4..........................................................................................................................................14
Strategic choices and directions.................................................................................................14
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
Business strategy is a roadmap that takes the organisation to desired objectives. It is long
term action plan that an entity designs for achieving set of goals. In other words, it is
establishment of standards, operational planning, analysing manpower capabilities, arranging
resources and assigning roles to distinct department which enhances as well as encourages
current organisational approach for attaining all the objectives in predetermined manner
(Agarwal, 2014). Strategies plays important role at organisation as they are form for attracting
more customers, innovations, informing market about new products and ensuring growth with
survival in the surrounded business environment. For understanding aspects of business strategy,
EasyJet is chosen which is an airline company having headquarters at Luton, United Kingdom.
It is considered as low cost airline and operates domestic addition to international scheduled
services in more than 29 nations. The present report covers analysis of impacts as well as
influences that macro environment has on company addition to its strategies. It further access
internal environment along with capabilities of the organisation. Model of Porter's five force is
applied within market sector and various concepts along with models are also applied for
assisting understanding of strategic directions that are with the business.
TASK 1
Strategic context
Organisational overview: EasyJet is leading low cost airline entity headquartered at
Luton. UK. The company employs around 14000 people and since the establishment, it have
grown with combination of acquisitions (EasyJet. 2019.). The mission statement of EasyJet is to
deliver leading returns to various shareholders by maintaining leading network with primary
airports and emphasising towards making travelling affordable as well as easy for the customers.
The vision of EasyJet is to become Europe's most preferred and short-haul airline through
combining leading networks of its airport with friendly services addition to great fares.
Objectives of EasyJet are to make increments within customer equity, to become leader within
airline industry, to satisfy expectations of customers, to improve usage of internet based
technology and to sustain market position.
Strategy is defined as set of rules or actions which are formulated for attaining
organisational key objectives. It is knowledge of goals and blueprint of decisions which shows
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reduction of unnecessary activities and plans to achieve objectives. It majorly deals with
development for long term and takes account of probable customer behaviour as well as
competitors. Strategy plays most important role at EasyJet as to provide action plans, making
choices, allocating resources, coordinating tasks, establishing prioritises, defining
accountabilities, enhancing communication and providing ongoing decision making framework
so that all the staff members works to achieve objectives of the entity. Through strategies, all the
situations are carefully analysed that helps the company to attain fit between internal resources
and external threats with opportunities which shows achievement of strategic intent along with
framing distinct strategic directions.
Different strategic planning tools:
Macro environment: The major uncontrollable addition to external factors which
influences decision making, performance and strategies is said to macro environment. It includes
the conditions which have existence within whole economy and affects development efforts of
an entity in positive and negative ways (Burlton, 2015). Some of the strategic planning
techniques that Corporate strategy manager of EasyJet are as follows:
PESTLE analysis
It is one of important analysis that provides all the relevant information about macro
environmental factors through scanning the pertaining impacts of the outside environment. With
this analysis, corporate managers gains knowledge about factors residing in external environment
that influences addition to impacts the strategies and working of company. Application of
PESTLE analysis on EasyJet is underneath:
Political: Factors which emphasis on political stability, consumer laws, government
regulations and trade restrictions are political factors. The political environment of UK is
generally stable and fair which provides various opportunities to EasyJet to expand in different
nations that impacts positive on the company and its expansion strategies. At same time, the
incident of Brexit has resulted in imposition on various taxations, contributions and trade
restrictions which impacts negatively on the company and its strategies as major long term
policies needs modifications as per new impositions.
Economic: Factors that are connected with business cycle, GDP of a nation, exchange
rates and bank rates results in positive and negative influences on business and its strategies.
UK's economic environment is based on free market economic system. The uncertainty that was
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followed by Brexit has put various economic impacts on airline industry of UK. As EasyJet
operates its key workings in UK's airline industry has faced situations of pound sterling's
depreciation that has impacted negatively on its performance and strategies. At same time,
EasyJet was benefited from interest rates addition to low fuel prices that impacted positively on
its growth in the competition that influenced its strategies on positive path.
Social: Factors like buying habits, customer service expectations, education level and
population analytics are some social factors that influences the workings of airline industry of
UK (Chang, 2016). Population of UK have demands for low prices and higher service quality.
For meeting such increasing demand, EasyJet have stabilised their prices for tickets which has
resulted in attracting more economically minded passengers and increased sales of the tickets
that impacted positively on the company and strategies. But in case with business class
passengers of UK, improved communication facilities and services resulted in reducing needs for
flying down meetings that impacted negatively on the entity.
Technological: Automation, research and development, technological advancement are
some factors that fosters technological environment of UK. Within the airline industry,
technological aspects are used heavily and the population of the same nation depends more on
accessing ticketing as well as check-in services with their hand held devices. Managers of
EasyJet has invested and adopted all the latest digital technological so to provide convenience
and easiness to customers while using the services that impacts positively on image of the entity.
Legal: This factors illustrates the ways a company operate addition to customers behave.
Within UK, various legislations are devised for safety addition to security of passengers and for
air traffic. Management team of EasyJet ensures compliance with all the stated legislations Air
Commerce Act, employment act, safety and security act that impacts positively to offer high
quality and safe travelling services to customers. In contrary, when there are frequent changes
within amendments or provisions of these laws by the government then it causes issues for the
selected entity to work with the old provisions and it impacts negatively of the strategies and
workings of the organisation.
Environmental: Factors like air traffic strikes, travelling chaos and adverse weather
impacts workings of airline industry. There are various changes within climatic environment of
UK due to which EasyJet has to make sudden changes in flights timings and most of the time
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flights are cancelled by the entity which affects passengers satisfactions and impacts negatively
on the revenues as well as additional cost of the entity.
Ansoff's growth vector matrix
The another strategic planning technique that is used to evaluate performance addition to
making changes within strategies or plans of the company so achieving objectives (Chen and
Jermias, 2014). As per this matrix, the entity analyses procedures of marketing and sales volume
of existing products and makes decisions for diversifying products into distinct categories. With
this matrix, corporate strategy manager of EasyJet analyses demands and needs of people that are
riding in external environment. The application of such framework in context to EasyJet is as
follows:
Market penetration: It is the first quadrant of the matrix that is adopted as strategy at the
time company has current commodities with known market as well as needs growth strategy in
the market. EasyJet managers could adopt the strategy so to emphasis on performing activities in
better ways so to increase its sales volume of tickets and revenue margins.
Market development: With this strategy, a company uses its current commodities to
target new market. EasyJet managers could emphasis on adopting this strategy when they have
plans to expand the brand in the new global market through proper research and development.
Product development: The strategy is used by institutions when they have good market
image in existing market and needs to launch new commodities for expansion. It is generally
required when firms have strong customer base as well as have knowledge about market for the
new commodity has reached saturation. In context to EasyJet, customer base of such entity is
strong and with this they could emphasis on developing new products and make their selling
within existing customer market.
Diversification: This strategy is adopted when a company wants to introduce a new
product in new marketplace. It is generally risky as the company has limited information about
needs and wants of new customer segment. By adopting diversification strategy, EasyJet could
focus on introducing a new concept in new market so promoting it in new ways.
From the above, currently EasyJet managers have adopted market penetration strategy in
which the entity uses secondary airports to deliver services to its existing customers at low cost.
With this, the company grabs opportunities to discourage competition and create goodwill.
SWOT analysis:
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