Context of Business: SWOT and PESTLE Analysis of Easy Jet Airline Company

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.

CONTEXT OF BUSINESS

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 PESTLE analyse for easy
jet company, explain how to PESTLE factor influence the opportunity and threat of the easy jet,
also maintain how 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
1 External 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
and provide 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-
PESTLE analysis is a tool that is used to understand macro picture of industry
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.

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
Political factor is one of the most important factor for any business growth and opportunity,
when UK decides to separate from European country for same time, that situations 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, economic growth, 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 for their growth.
In 2019, company lost sum of money in first half due to fuel price, because fuel is a most
important component for aircraft. this pandemic situation government announce to 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 to invest more in eco-friendly and 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 1994 by 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 this pandemic 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, cabin cleanliness, 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
flight and offer good flying experience is 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. There are several leadership styles like transformational, 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 members remain 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.

 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
 Corporate Social Responsibilities (CSR) are the strategies and policies that an
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
stakeholders like customers, suppliers, investors, etc. Fulfilling CSR increases the
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
costs and reduced wastage and efficient use of energy and fuel with the help of
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

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.

REFERENCES
Books and journals
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AHP application in airline industry. Journal of Air Transport Management. 68. pp.187-
197.
Latapí Agudelo, M. A., Jóhannsdóttir, L. and Davídsdóttir, B., 2019. A literature review of the
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anxiety among subordinates? A two-wave prospective study of forward and reverse
associations. Work & Stress. 33(2). pp.137-155.
Ohemeng, and et.al., 2018. The relationship between leadership style and employee
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