This report includes SWOT and PESTEL analysis of EasyJet, evaluation of how changes in PESTEL analysis influenced opportunities and threats for the business, and an analysis of the compression between leadership styles. It provides recommendations for the company's future growth.
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Table of Contents INTRODUCTION...........................................................................................................................1 MAIN BODY...................................................................................................................................1 Analysis of SWOT and PESTEL analysis of EasyJet:................................................................1 Evaluation of how changes in PESTEL analysis influenced opportunities and threats for the business.......................................................................................................................................4 Analyse the compression between leadership style....................................................................5 Recommendation:.......................................................................................................................6 Responsibility, Responses and obligations in ethics and social responsibilities of the business. .....................................................................................................................................................7 CONCLUSION...............................................................................................................................9 REFERENCES..............................................................................................................................10
INTRODUCTION Business environment is collection of internal and external factors that influence the decision making process of the company(Amankwah-Amoah,Osabutey,and Egbetokun, 2018). Study of business environment helps organisations to maintain sustainable growth in the market and achieve all the objectives of business in the future. Business environment refer to all the aspect of the business that determined the market environment and all the factors that can increase the level of competition in the market. Thus report is based on EasyJet, company is British multinational low cost airline group. It headquarter is in London Luton Airport. Airlines operates domestic and international scheduled over 1,000 routes in more than 30 country. EasyJet was listed in London stock exchange. This report include information about various business strategies that helps to gain competitive environment. It include SWOT and PESTEL analysis of the organisation, also various changes in PESTEL analysis influences opportunities and threats in the business. Further, it include compression betweendifferent leadership styles and appropriate management style in the organisation. In the last suitable recommendation that can help the organisation in better future growth. MAIN BODY Analysis of SWOT and PESTEL analysis of EasyJet: SWOT and PESTEL analysis of business helps to understand about various internal and external factors that have an impact on the business and it decision making process. Below is the detail explanation of both the models in the context of EasyJet. SWOT analysis of EasyJet: SWOT analysis of the organisation helps to analyse the current position of the company before company make new strategy for the future business(Carlucci, and Schiuma, 2018). It is powerful tool that helps businesses to increase the level of effectiveness in the market. It helps business to gain insight about all internal factors that have an impact on the decision making process of the business all how it effect the business from external factors. In the context of EasyJet, SWOT analysis of airlines helps to increase effectiveness in its future strategies and growthinthemarket.Belowisdetailexplanationofthisframeworkonthereceptive organisation. 1
Strengths of EasyJet:This are the factors that help company to gain competitive advantages in the market(Chiadamrong,and Tham,2018). Also this are the capabilities of the business to gain better outcomes in the market. In the context of EasyJet, company has strong capital base in the market that increase the level of effectiveness of business in the market. Organisation has strong influencing power to its customers by the technologies and insights. They influence customers by customer relationship capabilities, implement its high digital strategy in the market and delivering revenues to the customers with more loyalty. EasyJet follow low cost strategy in the market and due to this strategy company gain highest shares in the market. All these strengths helps the business ofEasyJet to gain competitive advantages in the market. Weaknesses of EasyJet:EasyJet face high level of competition in the market that have an impact on the market, more competition in the market divide its customer base. Also business of EasyJet is highly sensitive to pay additional taxes or any charges imposed by the government due to lower margins in operations. EasyJet does not provide services at many destinations and it could become weakness for its business. All these factors of the business can become its weakness in the market and could affect the profit share and growth of the business. Opportunities forEasyJet:In the context of EasyJet, company can provide its customerstravelpackagesthatcanhelpthemtoattractmorecustomersintheairlines (Chiadamrong,and Tham, 2018). It can increase brand awareness in the market and increase the level profit shares. Airlines can also start its business in new destination areas that can increase level of profitability and growth in the new market. Starting business in new market segment can be a major opportunity for the business, it will all provide customers more satisfaction from the new destination areas. Threats for EasyJet:Changes in government policies can have huge impact on the business of EasyJet, it can all have an impact on the revenue generation of the company. Also there are various major players in the airlines industry that can impact the future growth of the EasyJet. Digital disruption could be a threat for the business of EasyJet. Thus, from the above analysis of of SWOT on the EasyJet helps to understand about various opportunities and threats of the business, also strength and weaknesses of EasyJet have an impact on the decision making process. PESTEL analysis of EasyJet: 2
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This analysis is a framework or tool that used by the businesses in order to analyse micro environment of business(Ersoy-Babula,and Babula,2018). PESTEL analysis helps company to examine all the external factors that have an impact on the profitability and growth in the market. These factorscan be an opportunity or threat for the business. Belowis detail explanation of PESTEL analysis in order to analyse all the macro environment factors that have an influence on the EasyJet. Political factors:This factors of plays significant role the impact of various factors that have an impactEasyJet. The main political factor that have an influnce on the business of EasyJet is transfer of ownership from UK AOC to EU AOC because of uncertainty of Brexit. This could become an threat for the profitability of the business of EasyJet. But political stability and importance of Travel& Leisure in the economy of the country can be an opportunity for its business to expand market share and deal in new market segment. Thus, EasyJet has both opportunities and threat in the political factors, and that could have an influence on the business of respective company. Economical factors:This factors are determined by the performance of economy of specific country(Gesell,Glas, and Essig 2018). This factors includes inflation rate, disposable income, interest rate and exchange rate. In the context of EasyJet, company can use the economic factor of the UK as a growth rate. However due the impact of COVID 19, there was an huge impact on the economy of various countries that this could be an threat for the business of EasyJet. Also there are increasing government's intervention in business of tours and travels because of lock down situation in the UK. Thus economical factor of UK has both positive and nagetive impact on the business of EasyJet. Social factors:This factor refer to the different beliefs and culture of population that have an impact on the decision making of the particular organisation. In the context of EasyJet change in the priories of the customers to drive ancillary revenues could have an impact on the business ofEasyJet. However business can take initiatives for maintaining gender balance in pilot community. In UK people are more like to travel and also professional group of people can in increase the level of probability of business. Thus, social factor of the EasyJet has both positive and negative aspect for the business. Technological factors:These factors to the prevention of innovation in the technology that may have an impact on the operations of the business. This factors can influence on the 3
certain business industry. In the context of EasyJet, continuous digital innovation can boost scanning feature of EasyJet app. Various changes in the technology could be an opportunity for the business respective organisation. Company can introduce new scanning feature to the iPhone it can provide users better satisfaction level from the services. However high technology advancement in the industry of Airline could be become threat for the business of EasyJet because of low cost margins company could not able to change technology according to the market needs. Environmentalfactors:This factors refer to the all actions government take in order to protect the environment from the various industrial impacts(Hair Jr, Page, and Brunsveld, 2019). In the context of EasyJet, company have opportunity to operate in net zero carbon flights across thenetworkinordertogaincompetitiveadvantages.However,rulesandregulationof government of the tours and travel industry could impact the business of EasyJet. Legal factors:This factors refer to all the rules and regulation of government that influence profitability rate of particular industry. In the context of EasyJet, there are various heavy regulatory environment in the UK that could impact the business of respective company. Also change in European airspace supply controlled by ATC. Evaluation of how changes in PESTEL analysis influenced opportunities and threats for the business. Various changes in the PESTEL analysis impact on the opportunities and threats of the business that can influence the level of proficiency in the business. Use of PESTEL analysis in order to analyse opportunities and threats for the business: Political factors:This factor of the business has an influence on the decision making process of the company(Lam,and Wong, 2018). Political factors of theEasyJet provide both opportunity and threat to the business. Transfer of the ownership due to the Brexit situation could be an threat for the business of EasyJet. But political stability of the UK could be an opportunity for the business ofEasyJet to expand its market. Economical factors:Growth rate of the disposable income of the people in the UK could be an opportunity to gain competitive advantages. This can helps the business ofEasyJet to gain effective growth in the market. However due to the impact of COVID 19 people are staying at home rather than going out for vacations and this could be the threat for the business of EasyJet. 4
Social factors:In UK population is more aware about the safety and precautions and prefer drive ancillary and this could become threat for the business ofEasyJet. Take initiative in the business about the equality could be an opportunity for the business. Technologicalfactors:Advancementinthetechnologyinthemarketcanbean opportunity for the application ofEasyJet to increase features that can helps customers easily use the application. However changing trends in the technology can impact the business of EasyJet because of low margins company is not able to follow all the trends and it could become threat for its business. Environmental factors:Operating net zero carbon flights across the network is an opportunity for the business of EasyJet. However, there are various rules and regulation of the government on the tours and travels and it could be a threat for the business of EasyJet. Legal factors:There are various regulatory in the UK that could have an impact the business of EasyJet. And it could be an threat for the business of respective organisation. EasyJet addressing strength to negate threats: There are various strength of theEasyJet's business that helps them to over come from threats of the market. One of the major strength of the company is they focus on low cost strategy that helps the business to overcome from the various competition threats in the airline industry. Also company provide best and effective services to its customers in order to gain loyal customer base in the market(Michael, Reisinger, and Hayes 2019). Organisation also has strong influencing power on customers by the advance technology they use in the market. EasyJet also focus on delivering effective values to the customers and provide them high level of satisfaction in the market. Thus, company is providing various services and offers to the customers in order to maintain better growth in the market and reduce the threats in the market. Analyse the compression between leadership style. There are various leadership styles that can helps the company to gain sustainable growth in the market. Leadership styles increase the level of effectiveness in the organisation and provide better insight to the employees in order to know about the goals and objectives of the firm.Belowarevariousstylesthatcanincreasetheeffectivenessintheorganisational performance. These leadership style could improve the performance ofEasyJet in order to get better growth in the market. 5
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Autocratic style:In this leaders of the organisation thinks they are the smartest one in the company. Autocratic style works in command and control approach, also leaders takes all decisions in organisation without any suggestion of employees and other team members. This leadership style followed by the leaders that try to become effective leader. Democratic leadership style:In this leadership style leaders ask about the other opinion in the organisation. They share all the information with the employee so that they can feel they are the part of the organisation and how they can become active member. It helps leaders to motivate employee and provide effective outcomes to the people in the organisation. Compression between Democratic leadership style and Autocratic style: Democratic leadership styleAutocratic style This leaders ask about the opinion of other team members(Rocha, Fernandes Narcizo, and Gianotti2019).Thathelpsthemtomake employeesmore motivatedandencouraged. Leaders provide basic information to the team member so that they can provide ideas and solution to the team members. In this leaders does not ask about the opinion of other team leaders. They think they know how to manage organisation individually. Also inthisleadershipstyleemployeeofthe organisation think they are not part of the team because of least interference of the employee in the decision making process. Thus, from the above comparison it can be understand that both Democratic leadership style and Autocratic style are different from each other. But in the context of EasyJet Democratic leadership style could be more effective for the business of respective organisation. Leaders can follow this leadership style in order to motivate employee and encourage them towards the effective decision making process. Recommendation: From the above analysis it can be recommended to theEasyJet, that company has various opportunities in the airlines industry that can increase its proficiency in the market. In order to achieve those opportunities in the business company can focus on the effective market analysis strategies that can increase the level of effectiveness in the industry(Schaltegger, Hörisch,and Freeman2019). Alsocompany can expand its market in other countries also so that it can increase the reach of the business and enhance brand identity in the other markets. 6
EasyJet should use effective leadership style that helps its business to gain more profitability and increase morals of the employees. EasyJet also enhance its market strategies by innovation in the services they offer to their customers. This strategies could increase the level of business effectiveness and enhance the growth of business in the airline industry. Management style of the organisation can also has an influence on the level of effectiveness in the business. Responsibility, Responses and obligations in ethics and social responsibilities of the business. In order to make business more effective company follow all the social responsibilities that can help in better growth and sustainability of business in the industry(Shvets, Plotnikova, Prysiazhniuk, and Kostyuk 2019). Responsibilities, Responses and obligations in business can increase increase morals and values in the business. In the context ofEasyJet company follow various ethics and social responsibilities that can help its business to gain sustainability. This couldhelpthebusinesstomakebalancebetweenmakingbusinessmoreprofitableand contribution towards the society. Below is detail disruption of howEasyJet can follow responsibilities, response and obligations in the ethics and social responsibilities. Responsibilities:In airlines industry there are various responsibilities that business must follow in order to provide better insight to the business and its growth in the market(Trad,and Kalpić 2019). Corporate social responsibility of business helps in the better growth and profitability of the business in the market. Contribution towards the society is more necessary than being able to make business more effective in the market. In the context of EasyJet, company follow ethical responsibility byBeing Loyal Towards the customers. It is one of the most important responsibility to provide customers services with effectiveness so that they can feel more satisfying by the various services. Also company alsoRetain Employeefor the long period of time so that they can get effective growth within an organisation. Thus, company follow various responsibilities towards the society in order to gain effective outcomes. Responses:In airlines industry company follow various roles and responses that can help society and its environment better protection and growth. Also businesses should know about how they can understand the various objective of out side environment so that they can effectively increase the level of satisfaction in the company. In the context of EasyJet, company follow all the responses towards the effective environment that can increase the level of effectiveness in the business and can gain better protection. Company follow all the strategies that can helps their employees to work in positive working environment. Also company make 7
effective strategies in order to use all the resources in effective manner and focus on waste reduction so that it can provide better source to the environment protection. Obligation:In Airline industry there are various rule and regulation of the government in order to protect the environment and society and these rules and regulations are important to follow so that environment can be protected(Tseng, and Yeh, 2019). In the context of EasyJet, business avoid legal problem so that it can increase the effectiveness of business and it image in the market. Company follow environment regulation and labour law so that it can enhance the capabilities of business and provide effective growth in the market. 8
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CONCLUSION From the above information it can be conclude that various internal and external factors of the business could influence the growth and profitability of business in the market. SWOT analysis of the company helps in analysing all the internal factors that have influence the future growth of the business. Whereas PESTEL analysis of the business enhance the level of business analysis in the external market. Influence of PESTEL analysis has an impact on the strength and weakness of the company in the industry. Use of effective leadership style can helps the business of respective organisation to gain better growth and proficiency. Various responsibilities, responses, and obligations in ethics and social responsibility of the business can impact the level of effectiveness in the business. Business study of the environment can helps the business to gain better insight about the internal and external factors. 9
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Internet of management artifacts: Internet of Things architecture for business model renewal.International Journal of Innovation and Technology Management,16(08), p.1950062. social skill.Computers in Human Behavior,95, pp.179-186. 11