Context of Business: SWOT and PESTLE Analysis of Easy Jet Airline Company
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This report provides a SWOT and PESTLE analysis of Easy Jet Airline Company, evaluates how changes in PESTLE factors have influenced opportunities and threats, identifies two leadership styles that will suit Easy Jet and two that will not, and discusses the importance of corporate social responsibility.
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CONTEXT OF BUSINESS
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Table of Contents INTRODUCTION...........................................................................................................................3 SWOT analysis and PESTLE analysis of easy jet airline company......................................3 Evaluate how the changes in PESTLE factors has influenced the Opportunities and Threats of easy jet......................................................................................................................5 Based on PESTLE analysis, identifying two leadership styles that will suit Easy Jet and two leadership styles that will not suit the company..............................................................7 Importance of Corporate Social Responsibilities for Easy Jet..............................................9 CONCLUSION..............................................................................................................................10 REFERENCES..............................................................................................................................12
INTRODUCTION Context of business define as understanding of various factors that affecting the business includes how the business work and what is the goal of the business. It is used by various sectors, to identify how to implement their strategy.It is important to clarifies what an individual think about and what they want to convey. Furthermore, it also helps to create the best content as well as strategies within an organization. Basically (Timóteo, R.F.D.S., 2021).it provides clarity about the content so that the company can understand the conception in most successful manner.they operate in domestic and international flights and scheduled their services on over 1000 routes in more than 30 countries. Later, this report will elaborate the aspects of SWOT analysis and PESTLEanalysefor easy jet company, explain how to PESTLE factor influence the opportunity and threat of the easy jet, also maintainhow the easy jet company addressing their strength to negate the weakness and threat affecting their opportunity, also describe based on PESTLE factor, what kind of two leadership style suit for easy jet company and two leadership style which not suit for them and discuss importance of corporate social responsibility in the context of easy jet. MAIN BODY SWOT analysis and PESTLE analysis of easy jet airline company Swot analysis is a method of identifying and analysis internal and external factor that help the organisation to shape their activity and achieve (Onyusheva, and et.al., T., 2020.)the strategic goal .swot analysis in the context of easy jet company . Strength- 1 Strong capital base– This airline has strong capital base, its market capitalisation is 4 billion pound and net cash position is 213 pound. The credit rating of this company are the strongest in the world . 2 Technology and insight– They have capability to deal with the customer, implement the digital strategy and generate the revenue by increasing customer satisfaction and loyalty . Increasing the classy use of data helps the customer to make travel easily and affordable . 3 Expansion and acquisition– This company expand their company operation in great context .
Weaknesses- 1 Competitive industry-In these industries they face lots of competition in the market because there are various airlines for various destination. 2 Services not available in many destinations- They are not able to serve services in different destination, only serve in Europe. Opportunities 1External market force- Generating values in the market may be a great threat for generating income. 2 Easy jet academy– This academy can be source of additional income for this company. 3 Easy jet travelling package- This company also provide packages of hotels and holiday to attract the customer and increase the company awareness. 4 Improve operating framework- If this company improve their operating framework andprovide better services to customer, this will be a great opportunity for their company. Threats - 1 Change in government policies– The timely changes in government rules and regulation that can impact on the business revenue. 2 External market force- Generating values in the market may be a great threat for generating income PESTLE analysis for easy jet company- PESTLEanalysisisatoolthatisusedtounderstandmacropictureofindustry environment. It helps to understand external factor which affect their business operation. 1 Political– Countries politics has great impact on its business environment, whether the business is positive or negative. That time UK government decide to depart from Europeans union for some time that move affects many UK companies including easy jet. So political factor affects the company's growth 2 Economic– Many businesses faced lots of difficulties in pandemic Covid 19, so that there many people restricted their travelling plans and in that situation airlines suffered the most from all business that time the growth was zero.
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3 Social– This is great career option for people specially in develop country. It is male dominated field. So that this company has been working on this matter. they provide training to the female pilots. They also work hard for digital presence so they connect with their customer. 4 Technology– In 2019 they launched the mobile app so that customer easily books the ticket. It was a voice feature on the app so that customer uses this app in easy way. 5 Legal– In 2022 they become notorious for hug cyber attract in which all the customer data and sensitive information was leak. this situation put negative light on business. 6 Environmental- It was the first company who actually work on making planes paperless. they are fully committed to reduce theory carbon emission 50%.in 2020 they announce to collaboration with Wright electric to make electric aircraft to full-fill their vision to become first carbon free aircraft. They also try to reduce the consumption of plastic and reduce the waste. Evaluate how the changes in PESTLE factors has influenced the Opportunities and Threats of easy jet Politicalfactor is one of the most important factor for any business growth and opportunity, when UK decides to separate from European country for sametime, thatsituations affect the easy jet air craft company because most of the shareholder belongs to European union, in that situation company face supply demand imbalance, fluctuation in general economic trend, increasing the fuel cost that all factor affect company growth. Economic factor includes exchange rate, economicgrowth, declines globalisation, (Prichinet, and et.al., 2020.)inflation, cost of living, tax rate. That factor affects the company growth, in that situation their us no opportunity fortheir growth. In 2019, company lost sum of money in first half due tofuel price, becausefuel is a most important component for aircraft. this pandemicsituation government announceto restrict policy of travelling this step affect the aircraft business. society and the way of doing thing that affect the company because customer are most important part the company, in Covid 19 people are not like to travel outside so that no opportunity for growth. Technical factor affects the company, because it reduces the cost and improve airline operation by using advance aircraft engine technology. and technology create better connectivity with passenger, enhance better experience. Airline company impacted by regulation, tax policy, international trade, national war. this factor
affects the company opportunity because there are many rules and regulation which are require offering safe travel and also provide good services. Environment factor affect the airline industry’s most rather than any other company. Fuel is one of the major expenditure of the company so require toinvest more in eco-friendlyand climate change also impact the company so that it is an opportunity to build green flying procedure to protect the environment. Examples on how easy jet is addressing their Strengths to negate Threats and Weakness affecting their Opportunities Easy jet company founded in 1994by sir stelios hajji-Loan non,easy group is parental company of easy jet it is an old, 4 star aircraft company which provide low cost air travel which is unique and attractive strength of the company, they carried more than 65 million passenger. So that makes world second largest budget airline company in the UK. In thispandemic situation their operating revenue is (1.036) million (2021) and now its revenue is (1458) million. It provides productive services, buy on board food and beverage,cabincleanliness, so that it is more preferable than other airline,people wants more quality, more benefits in reasonable price, all this facility provide by this airline its main aim is to make travel easy, affordable, enjoyable whether it for business or leisure. As compare to any other company, provide the low cost air flightand offergood flying experienceis make this company more competitive and preferable. most attractive think of easy jet is providing allowance and less airport hassles because people don't need to get any boarding pass stamped. Its flying attendant are nicer and over all experience are very good as compare to other airline. They also get advance in technology because they have sky wise data platform which will allow the engineer to intervene early and replace part before component failure, they also prevent passenger from experience of delay and cancellation. Easy jet sets the strong presence in major airport, loyalty program and reduction of cost and expansion in holiday markets. It also grabs the opportunity by taking care of environment by providing eco-friendly air flights, in every flight they use engines which generate less carbon, also they support the project that protect deforestation, plant trees, also generate renewal energy. Also, they have opportunity to reduce the labour cost by hiring junior employee at the half salary
, by making a better use of it employee's time. It takes opportunity to build the strong fresher team to take care of their company. It also provides the facility to the passenger to free cancellation with full refund if the passenger change their within 28 days retire departure, one of the most important method to grab the market is TV advertisement and website message company and create awareness about company. These are the strengths of easy jet which convert weakness and threat into opportunity. Based on PESTLE analysis, identifying two leadership styles that will suit Easy Jet and two leadership styles that will not suit the company. Leadership is a quality and ability of a person to motivate and guide other people or employees to work efficiently to their best and achieve the set common goal. The most important aim of an effective leadership is to get followers or employees to perform their best in the most effective ways.Thereareseveralleadershipstylesliketransformational,transactional,autocratic, democratic, paternalistic, laissez-faire, etc. The two leadership styles that will be effective for Easy Jet are- Transformational leadership style This leadership style helps to motivate the employees from within. The leaders try to inspire and encourages followers to bring positive changes that will boost the growth of the company. The leaders gain trust and respect by setting examples that the members follow to work more efficiently. The leader also focuses on the development of each member of the group and their success aligned with the organizational goal(Al-Malki and Juan, 2018). The major advantages of transformational leadership style are that it inspires the employees to remain loyal to the company and act according to what’s best for the company, the employees are encouraged to embrace changes by finding and adapting new and innovative ways to work and achieve goals which also promotes creative thinking, the group membersremain satisfied as they are valued and their goals are given due importance which reduces labour turnover and the costs related to it. This style of leadership can only be successful when the lines of communication are open, clear and effective and regular communication and feedbacks are received for smooth functioning of the group and the pressure on the employees is kept in control.
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Democratic leadership style In this leadership style, all the members take part in the discussions and decisions. The group members are free to exchange ideas in decision making process and thus, it is also called participative leadership and shared leadership. The final decision is generally taken by the leader who decides who will be a part of his group and guides his followers to have adequate skills and knowledge to encourage creativity and innovation. The major benefits of this leadership style is that all the employees are involved which encourages creative thinking to innovate and find better methods and ways of completing tasks more efficiently and helps to solve complicated problems as experience and knowledge of the entire team can be utilised, the free flow of ideas and open line of communication makes the members more connected and improves relations among them and with the leader, improves job satisfaction and all this result in better working of EasyJet. The two leadership styles that will not suit the company are- Laissez-faire leadership style The free-rein leadership is a style in which the subordinates are given the task to make decisions and the leader delegates his power and responsibilities and takes low to no initiative. The followers rarely receive any guidance from the leader and have to set their goals and take necessary actions(Nielsen and et.al., 2019). The main issues with this leadership style are that the employees are not clear about their roles and responsibilities and can become demotivated as the leader shows no concern for the tasks and goals and is not involved in discussions or decisions, the biggest drawback of this style is the lack of accountability as the leader and other employees can blame anyone if the tasks are not completed as there is no clear chain of command. Bureaucratic leadership style This leadership follows a fixed chain of command and the supervisor or leader has the authority to create and implement all the rules for decision making and management. The rules are generally rigid that govern the employees(Alheet and et.al., 2021). This style of leadership can be beneficial for firms where the employees lack creative thinking and require control but also has several shortcomings like the productivity remains the same and is very difficult to increase as consistent methods and rules are followed, this is not a
very efficient system as such rigid regulations can make the employees slow so that they can follow all the rules and procedures, staff turnover might increase due to dissatisfaction among workers due to increased pressure of rules and regulations and any changes in the environment which can be an opportunity for the business cannot be grasped effectively as the leaders and employees are not flexible and cannot adjust with changes on time. Importance of Corporate Social Responsibilities for Easy Jet CorporateSocialResponsibilities(CSR)arethestrategiesandpoliciesthatan organisation follows to contribute to and have a positive impact on the society, community and environment as a whole. The organisation tries to work in a way that is ethical and helps the society and environment. CSR is an emerging concept that is valued by everyone including employees, customers, etc. Being an airline business, Easy Jet has several CSR activities like reducing air pollution and wastage of resources , increasing fuel efficiency and treating employees, passengers and suppliers fairly, etc.(Latapí Agudelo, Jóhannsdóttir and Davídsdóttir, 2019) The rise of environment consciousness in people these days lead to the shift in company’s focus on making its operations eco friendly and reduced carbon emissions and decrease in use of plastics. Easy jet ensures sustainability by effectively maintaining standards of human rights by providing equal treatment to all the employees as well as passengers and ensured their utmost satisfaction. The company made its own anti- bribery and corruption policies and gives proper training to the employees to maintain ethics and the importance of CSR. The various ways in which fulfilling its CSR can be beneficial to the company are- It increases the brand reputation as people generally prefer companies who make better CSR efforts and treat their customers with utmost respect which increases sales by attracting new customers and improve trust and loyalty of the customers for the company. This maximises revenue and profits. Companies with good reputation and goodwill attract people to work for and with the company(Park, 2019). So the company can get many talented and skilled employees easily and also helps to retain them in the company which saves time and reduces the extra costs of staff turnover and recruitments.
The organisations are now involved in various donations and charitable events that attract positive attention of media which also increases a company’s goodwill and increase passengers preference towards the company. CSR is a management concept that the firm uses to integrate social and environment issues in its operations for the betterment of these factors and business along with its stakeholderslikecustomers,suppliers,investors,etc.FulfillingCSRincreasesthe company’s credibility and thus improves suppliers’ trust and helps in easy procurement of resources(Karaman and Akman, 2018). The increase in sales and profitability can help in easy access of finance as the investors are more attracted towards successful companies where they would get good and higher returns on their investments. By using the resources efficiently and reducing wastage and emissions, the company can cut down on the unnecessary costs to save and use the money in further improvement of its operations. The company’s financial performance is improved due to cutting down of unnecessary costsandreducedwastageandefficientuseofenergyandfuelwiththehelpof modernization programmes in CSR strategy. The various CSR strategies also help to improve the operational performance of the organisation by increasing passenger revenue due to the preference of passengers for companies that take CSR initiatives. The company which fulfils its CSR activities tend to have good relations with authorities due to their good brand image that can reduce the company’s regulatory burden. Finding ways to work efficiently in eco-friendly ways increased company’s creativity and leads to new innovations in products or methods to achieve its CSR targets without hindering the company’s operations. CONCLUSION The report highlights the study of one of the largest European airlines Easy Jet. The company was evaluated using SWOT analysis and PESTLE analysis that highlighted the internal and external factors that affect the company. The competition is very high in the industry, so the company uses rigorous advertisements and promotional activities to gain competitive advantage in the industry and become a market leader in a few years. To
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master over its strengths , grasp opportunities , overcome its weaknesses and fight with the threats, right leadership style is very crucial for a company. Based on the analysis, The styles that will suit Easy Jet are democratic leadership and transformational leadership that will increase creativity and innovation in the company and styles like bureaucratic and laissez-faire will be ineffective for the company. The project aimed at outlining the importance of Corporate Social Responsibilities for the company to run smoothly and become even more successful in today’s time when everyone including investors, suppliers, employees and passengers give importance to the environment and society and prefer companies who take CSR initiatives and operates in environment friendly ways.
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