Contemporary Business Environment

CONTEMPORARY
BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Various market structures............................................................................................................3
Economic factors of UK and the way they affect EasyJet ..........................................................4
Impact of Brexit on business of Easy-jet in UK..........................................................................6
Impact of COVID-19 on Easy-jet ...............................................................................................8
Recommendation.........................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
The business environment is a collection of internal and extrinsic elements which are
employees, demand of customers and their expectation, supply and demand, government and
may more (Boone, Kurtz and Berston, 2019). This following factors are affecting the function of
the organization also shows the manner to work directly or indirectly (Veleva and Antonova,
2017). The pandemic period of COVID-19 has impact the airline sector very much and the Easy-
jet is being one of them. This report will determine the various market structures in airline
industry and individual market structure of Easy-jet. Further it will show the UK economic
factors that are affecting the company and Brexit impact on business and should Easy-jet invest
in UK is been evaluated. The short-term and long-term impact of COVID-19 is been identified in
this report.
MAIN BODY
Various market structures
The economy has different market structures which are being characterized and essential
related to structure depends on competition in the respective market (Bayraklı and Gül, 2018).
The market structure is also had other determinants that includes products, number of seller as
well as consumers and the nature that goods are having. In the UK market place there are four
main classified market.
Perfect competition: In this type of market structure there are different type of buyers and sellers
who are involved in the competition. This type of market undertaken certain assumption are:
The product categories in the market are homogeneous and easily identified.
Consumer and preferences have no concept.
All the organization have motive to increase their profit.
There entry and exit is totally free without any barriers.
Monopolistic competition: this competition assumption are more realistic as in this there are
huge number of buyers and the sellers yet there is no homogeneous range of products. The
products are also slightly same in this buyer have preferred of choose one product in different
products (Robul, 2020).
Oligopoly: In this type of market there are few organizations who are competing with each other.
So in this buyer are more than compared to the sellers. The firms uses to compete on regular

basis to collaborate together, the market is also being influenced to prices to generate maximum
profit.
Monopoly: In such type of market there is only one seller, so this market is being controlled by
single owner. The single owner have the power to control the demand and supply of that is set by
supplier.
Market structure of UK airline sector
The airline sector is basically a large investment sector any normal businessman can not
able to invest that much money and enter the market. The airline is being characterized as
Oligopoly market structure. This a form where the imperfect competition is performed which is
being dominating the industry (Cattaneo and et. al., 2018). The UK airways is depended on the
decision of the price of competitive companies. As there are very limited number of companies
who are operating and dealing in the market of airlines in UK. In the current market condition
the UK is having third largest aviation channel in all over the world. The oligopoly market and
companies have market power as very few are the operating and making the price.
The Airlines have such structure because in that there is need of huge investment which
is not been collectively invested by every one in the market (Bingemer, Grimme and Maertens,
2021). The government also have to check the entire investment is legal or not before entering
the market of Airlines. If this market is perfect competition market than the pricing is being not
controlled by few people as their were lots of sellers and buyers. The oligopoly is being good
market for such a large investment sector that is airlines. The Britain is having very few numbers
of companies who are dealing in the airline field. When there are need of increase in demand
than they uses to increase the number of flights. There are only 13 companies who are
representing all the sector of airline industry (Park and et. al., 2019).
Economic factors of UK and the way they affect EasyJet
There are different factors which are being affecting the economy including income level,
employment rate, recession, inflation rate and interest rate (Hwang and Lyu, 2018). The factors
of this are not having direct relationship with the business and yet influencing the investment
values in the future.