SWOT and PESTEL Analysis of Easy Jet: Leadership and Corporate Social Responsibility

This report provides a SWOT and PESTEL analysis of Easy Jet, identifying the factors that influence the opportunities and threats of the business. It also suggests two leadership styles that would suit the business and discusses the importance of corporate social responsibility for Easy Jet.

Context of Business

Contents
INTRODUCTION...........................................................................................................................1
SWOT .........................................................................................................................................2
PESTEL analysis ........................................................................................................................3
Economic factors:............................................................................................................................4
how the changes in PESTEL factors has influenced the Opportunities and Threats business. . .4
Based on the analysis of the PESTEL factors, identify any two leadership that will suit the
business........................................................................................................................................6
Situational leadership theory:......................................................................................................6
Great man leadership theory:...........................................................................................................7
Discuss the importance of Corporate Social Responsibilities for your chosen business using
examples......................................................................................................................................7
REFERENCES..............................................................................................................................10

INTRODUCTION
The term business is referred to an organisation or an enterprise which is engaged in
activities such as commercialisation, industrial activities and professional activities. Businesses
are mainly for profit but also non profit organisation are present for different goals. A business
strategy is made to create a vision and direction for overall organisation (Weinzierl, Revoredo,
and Matzner, 2019). It is very necessary that all people in company must have clear goals and
following the direction or mission of the organisation to achieve goals. A strategy helps in
providing a clear vision and prevent individual from losing sight of company goals and aim.
From this report it will discussed a business SWOT and PESTEL analysis and then evaluation of
how the factors will effect the influenced opportunities and threats of the business with relevance
to an business. Further in this report the leadership style that will be suitable is discussed and at
last of this report the importance of corporate social responsibilities for the Easy jet is done.
MAIN BODY
TASK
Easy jet is a major airline present in UK which is multinational low cost airline group
headquarters present in London Luton airport. It operates both domestic and international
services on over more than 1000 routes and more than 30 countries. It has many sub companies
which work in other countries as name of Easy jet UK, Easy jet Switzerland and Easy jet Europe
(Taliouris, 2019). The company mission is to provide their customers safe, quality with good
value point to point services. To effect and to offer regular and expected reliable product where
fares are generous to facility they are being providing, its business market is ranged in European
routes. They aim to achieve this easy jet develop their workforce and establish long relationship
with supplier. With low cost pint to point airline in Europe. They use cost advantage, operational
efficiency and have a major leading position in UK airports to deliver estimated low fares that
competitors. Easy jet is of the largest airlines in the world with presence of 308 aircraft's,
operation done in 927 routes with more than 30 countries and including 153 airports. Easy jet
consist of highly skilled workforce of over 13000 people, including 4000 pilots and 7000 cabin
crew members present currently.
1

SWOT
The company uses business strategy of easy jet airline by adopting cost cutting measure
like not to provide tickets of connecting flights and not to provide complimentary snacks on the
duration of domestic flights. The aim of this strategy is to get high aircraft utilization, charging
for extra food, priority boarding, and holding baggage (Yrjölä, Ahokangas, and Matinmikko-
Blue, 2018). The SWOT analysis of easy jet is as follows:
Strengths: The strength that are focused in analysis of easy jet are:
strong capital base: The airline has a strong capital base with having a vast market
captured about capitalization with nearly 4 billion pounds and with net cash of 213 pounds. The
credit ratings of easy jet are the best and effective in the world as for an airline.
Technology and insight: Easy jet have huge impact on its customer engagement and
manageable capability, as due to technology they implement wide digital strategy and due to
reach to the engagement they increase customer loyalty than others. The increasing use of data
by the organisation gave users to travel easy and affordably.
expansion and acquisition: Easy jet has get into expansion as under UK it has expanded
their airport reach and also has increased the number of air planes the business operation has rise
in great level.
Low cost model: Easy jet follows a very low cost model by cutting cost which most of
the airlines offers to customers. As it uses low cost model it have strong balance sheet. It cut cost
in extra charges which most of the flight offers.
Weakness: The weakness that are included in Easy jet are:
sensible to additional taxes: Easy jet business function the operation are very sensitive
as any additional taxes or any charge that are imposed by political influence can effect negatively
in their applying strategies.
Criticism: Easy jet has been criticized in European countries for not observing laws in
European union on compensation in cases like delays in flights and cancellation of many
domestic flights which caused many discrepancies (Sutherland, Warwick, and Anderson, 2019).
competitive industry: the flight industry have lot of big players in market which
increases competition. As there are more numbers of airlines for various places this weakness
business operation drastically.
2

Opportunities: The opportunities that are in Easy jet airlines
Easy Jet Travel Packages: the opportunities which can be achieved by influencing easy
jet hotels and holiday packages, the company can introduce travel packages in discount to attract
new travellers. This will also result in creating brand awareness.
Improve Operating Framework: the airline can benefit by improving its operating
framework and providing better services to its customers as better quality attracts luxury and
demand able customers. This is effective in targetting new customers.
Threats: Threats present in easy jet airlines are:
Change in Government Policies: when sudden changes in UK government policies and
other airline regulations will result in changes which the company will not be ready and this can
result in heavy losses and staff disintegration.
Major players in the airline industry: There are many big players in market and they
have large occupied networks of airlines. They are serious threat for easy jet as consumer
shifting of services can take place.
External market forces: the changing economy, gross development rate, rising inflation
can change lot of value in market of prices factor and cost consumption of the airline which
result in threat.
PESTEL analysis
Pestle (political economic social technological legal and environmental). It can be used in
a range of different premise, and can escort employees and senior managers in strategic
conclusion making. Pestle analysis is generally conducted in the context of easy jet (Andone, and
Frydenberg, 2019). This analysis will result in creating an impact of external factors on macro
environment of the organisation easy jet. PESTEL analysis of easy jet is as followed:
Political factors:
In political factors shows government policy and actions effect the economy and other
factors in business. As UK left from European union for some time this effected in stocks
downfall of easy jet. It made the company to make huge changes (Fernandes, 2021). The
pension policy in 2019 was launched it created negative impact for organisation as many of the
employee started strike which effected in easy jet process of airlines.
3

Economic factors:
These factors take records of various aspects which could impact your business. As in
easy jets economy fell devastatingly when the rise of covid 19 took place and travelling was
almost shut down, the airline industry in UK suffered huge losses in process and made negative
fall down. Other economic factors are fluctuations in fuel costs, foreign exchange which will
downgrade of euro etc.
Social factors:
Social factors focuses on cultural and demographic trends of society. These factors are
less influenced in easy jet but need to kept in mind like making regulations for maintaining
gender balance in the pilot community which does not promote gender discrimination
(Rachinger, and et.al., 2018).
Technological factors:
Technological factors are linked to innovation in the business. In easy jet there are
regular technological improvement in digitalization interface like introducing new bag size on
easy jet app. Another improvement is introducing new bag scanning feature to phones
particularly in iPhones. Later the company adopted to data science and advanced analytics.
Legal factors:
Legal factors concern to any legal forces that shows what a business can do and cannot
do. As in case of easy jet heavy regulations are made with three another European airlines, the
legal factor is also effected by changing European airspace supply controlled by air traffic
control (Dörndorfer, and Seel, 2020).
Environmental factors:
This factor concerns the ecological impacts on business. Company need to plan and adapt
to environmental changes. As of easy jet is operating in net zero rate carbon to protect
environment, research on hybrid and electric aircraft services technologies is been in progress to
develop.
how the changes in PESTEL factors has influenced the Opportunities and Threats business.
Easy jet is already in a position of handling the market in terms of management and
operations which have been made it sustain its low cost strategy and remain in profits.
The various circumstances that arises in the business process is also threats and
opportunities for easy jet (Haleem, and et.al., 2021). There are various factors that can
affect easy jet gets affected as threat that can be the airline does not have any business
class segment. The PESTLE factors that will be responsible for easy jet strategies on
threats and opportunities are as follows:
4

Political factors: In political factors there are different aspects as UK left from European union
for some time this resulted in as threat for easy jet as lower flights were processed and huge
changes were done to overcome the situation, as of opportunities the company expanded to new
areas to overcome the threat and discovered new consumers this resulted in adopting new
changes for easy jet (Chin, 2020).
Economic factors: In economic factors there are threats and opportunities to be considered as
easy jet in past years issued many mergers and acquisitions in low cost airline that affected
company but resulted in beneficiary for easy jet, attracting of more customers and low cost
offerings brought opportunities for the business. Where as of low cost resulted in cutting many
services and some target consumer changes service because of this which is considered as threat
for the business.
Social factors: In social factors it is considered to have opportunities in like easy jet is a low cost
carrier on airline business. As the main focus in low cost travels the company became major
player in this field which resulted as good opportunity, where as in same condition it is threat for
the business in different view, as the airline management to expand the market and capture wider
market they need to offer all type of services (Jamel, and et.al., 2018).
Technological factors: in technological aspect there are different advantages for easy jet to
consider like low cost carrier have ability to easily serve the purpose to increase customer base
through the integration of technologies such as application user friendly bookings and
reservations. Where as this is threat to be make regular maintenance in this services and proper
training must be provided to guide the employees and managers so that efficient use can be done
or else it will be threat and result in losses.
Legal factors: there are factors that are being effected by the easy jet in legal aspect like heavy
regulations made between different airlines which is as opportunities in process this allowed easy
jet to not get into conflicts and regulate with not breaking airline norms. Threat are to be
considered as changes in policy of air traffic control and some charges of breaking norms that are
considered on easy jet is breaking reputation.
Environmental factors: the environmental factors are affecting easy jet in different aspects as
per opportunities easy jet focuses on environmental concerns and by having net zero carbon rate
and using more technologies to reduce pollutants. Threats will be if the plan fails and effective of
technology does not result in reducing emission of carbon and other environmental damage.
5

Based on the analysis of the PESTEL factors, identify any two leadership that will suit the
business
Easy jet uses many leadership strategies to get where it is been standing today. The
company has earned high reputation and operates in large amount of networks across UK. Easy
jet focuses largely in developing strong position in European nations. Its competitors are leading
airports in legacy airlines and charter airlines. Easy jet's strategy in cost advantage is relative to
airlines allow customers to get affordable charges for airlines and the factors it uses to build the
strategy are making aircraft configured to get higher number of seats in aircraft's, using advanced
fleets to reduce ownership and maintenance costs.
Situational leadership theory:
The situational theory shows leaders choose the best option to act upon on different
situation which require leadership attribute. This leadership style does not consider any style ace
than other. It is better that different styles of leadership are more accurate for certain types of
decision making(Thapa Karki, Xheneti, and Madden, 2021). this leadership style will suit the
easy jet business as in the past condition there were many changes and adoption which will be
taken place like covid pandemic needed and different leadership skills to change the strategies.
This leadership style will suitable to conquer different changes in political, technological, legal,
environmental and other factors. This will result in taking good decision of the company as the
right time.
Transformational leadership theory:
This leadership style focuses on relationship between leaders and followers. This theory
shows leader who is inspiring, charismatic and encourages followers to change and be better at a
task (Yen, and Lin, 2020). this leadership style will be very beneficial for easy jet as this is very
big organisation present in UK and large number of workforce is present. The transformational
leadership will result in leading the organisation and airlines resources with more engagement
and better results will be provided as this theory shows a leader who have the capability to
influence other workforce to achieve the aim.
Behavioural Theory:
This theory focuses on the actions of the leader, not on mental qualities or internal
qualities. According to this theory people can take upbringing, learn from experience to become
leaders. This theory is not so beneficial for the easy jet because as this theory suggest that to
6

learn from experience, the brand is already using experience of employees and other managers
and using this style will be not so beneficial. As it is perfectly developed organisation in UK in
field of airlines it shows they have efficient leaders to present and use resources to get effective
results.
Great man leadership theory:
According to this theory people are born with the attribute of a leader such as charisma,
confidence, intelligence, and social skills. In this theory supposition is done that great leaders are
born not made. As per easy jet this theory will also be not so beneficial for the brand as they are
hiring in people as per skills and experience. With requiring educational qualifications, easy jet
does not believe in superstition such as leaders are born with traits to lead where as they believe
they are being continuously developed by facing circumstances and building continuous skills by
training and development.
Discuss the importance of Corporate Social Responsibilities for your chosen business using
examples.
Corporate social responsibility is a self regulation model in business that a company uses
to be socially responsible an take accountability on itself, stakeholder of the business and the
public connected with it. By the practice of corporate social responsibility companies will
become aware about the different effects they are having on society which considers economic,
social and environmental factors. To get involved with Corporate social activities results that in
business process the company is focused on developing society in a better way and the
environment with not effecting negatively (Wahyuni, and Sara, 2020). As per current situation
of pandemic easy jet focused on the activities in elements like prioritizing the health of its
customers and employees, supporting health and government officials in their attempts to handle
the effects of the spreading in pandemic, easy jet showed up for communities through
responsible actions. As most the company uses corporate social responsibilities to develop their
brand image and make consumer believe that business are doing actions on more ethical manner.
As for easy jet is doing corporate social activities in committed to the support and protection of
human right standards and function according to in its work force and its customers, the
company is against any type of discrimination. Easy jet has a policy which is against any bribery
practice and corruption. This is done by the business through compulsory anti bribery and ethics
training with examination conducted online for all management and administration stakeholders
7

as well as employees of easy jet. Easy jet practice giving equal opportunities to employer and
seeks to regularly protect the rights of an individual to be free from any kind of discrimination
like harassment on the basis of their race, colour, religion, gender,age, social status or disability.
Easy jet practice to respect the principle of fundamental rights at work in maintaining the labour
standards of it employees while conducting it employment practice in an regulatory and ethical
manner. Easy jet gives effectively recognition to the right of there employees to the freedom to
be associated. The importance of corporate social responsibility are in context of easy jet:
Improved public image: this is important that an consumer who is going to pursue the service
assess the public reputation of the brand. Example: The brand image is improved of the company
like staff members volunteer an hour a week at a charity, this shows brand is concerned about
helping others. This will result to become favourable to customers (Godina, and et.al., 2020).
Increased brand awareness and recognition: the brand awareness can be improved by
committing the work to more ethical practices this will result in gaining recognition and more
people will know about the brand.
Cost savings: as the company will be involved with corporate social responsibilities there will
be changes in adopting sustainable practices such as using less plastic packaging which will
decease production cost and result in cost efficiency.
An advantage over competitors: By adopting Corporate social responsibilities the brand will
stand out in front of competitors in the airline industry. The company will establish an market
reputation that it is one step further in social and environmental factors.
8

CONCLUSION
From the above report it has been concluded that business is of different types and good
strategic planning is needed to get success for an business organisation. As in this report in
context of an company a analysis is discussed with various methods like SWOT analysis and
PESTLE analysis with discussion of related factors in this report is elaborated. Further in this
report how the PESTEL analysis factors affected the result in getting opportunities and threats
for an company is researched and explained the factors that will result in success for the firm.
The analysis of the PESTEL factors, is done and as per the report two leadership style is
discussed that are used by the industry to manage work flow it resulted in efficient working of
management and getting good response in success. At last of this report the importance of
Corporate Social Responsibilities for the chosen organisation is done with resulting benefits in
generating a healthy workforce.
9

REFERENCES
Books and Journals:
Weinzierl, Revoredo, and Matzner, 2019. Predictive Business Process Monitoringwith Context
Information from Documents. In ECIS.
Taliouris, 2019. Policy Making for Corporate Social Responsibility and Responsible
Entrepreneurship in Greece: EU Policy Framework, Governance Context and Business
Sector as Aspects in Sustainable Development Process. European Quarterly of Political
Attitudes and Mentalities, 8(3), pp.15-25.
Yrjölä, Ahokangas, and Matinmikko-Blue, 2018, September. Novel context and platform driven
business models via 5G networks. In 2018 IEEE 29th Annual International Symposium
on Personal, Indoor and Mobile Radio Communications (PIMRC) (pp. 1-7). IEEE.
Sutherland, Warwick, and Anderson, 2019. What factors influence student satisfaction with
module quality? A comparative analysis in a UK business school context. The
International Journal of Management Education, 17(3), p.100312.
Andone, and Frydenberg, 2019. Creating virtual reality in a business and technology educational
context. In Augmented reality and virtual reality (pp. 147-159). Springer, Cham.
Fernandes, 2021. Sustainable business models in a challenging context: The Amana Katu
case. Revista de Administração Contemporânea, 25.
Rachinger, and et.al., 2018. Digitalization and its influence on business model
innovation. Journal of Manufacturing Technology Management.
Dörndorfer, and Seel, 2020. Context modeling for the adaption of Mobile business processes–An
empirical usability evaluation. Information Systems Frontiers, pp.1-16.
Wahyuni, and Sara, 2020. The effect of entrepreneurial orientation variables on business
performance in the SME industry context. Journal of Workplace Learning.
Godina, and et.al., 2020. Impact assessment of additive manufacturing on sustainable business
models in industry 4.0 context. Sustainability, 12(17), p.7066.
Haleem, and et.al., 2021. Supplier evaluation in the context of circular economy: A forward step
for resilient business and environment concern. Business Strategy and the
Environment, 30(4), pp.2119-2146.
Chin, 2020. Location choice of new business establishments: understanding the local context and
neighborhood conditions in the United States. Sustainability, 12(2), p.501.
10

Jamel, and et.al., 2018. Flexibility in business process modeling to deal with context-awareness
in business process reengineering projects. In Enterprise, Business-Process and
Information Systems Modeling (pp. 35-48). Springer, Cham.
Thapa Karki, Xheneti, and Madden, 2021. To formalize or not to formalize: women
entrepreneurs’ sensemaking of business registration in the context of Nepal. Journal of
Business Ethics, 173(4), pp.687-708.
Yen, and Lin, 2020. Investigating the effect of flow experience on learning performance and
entrepreneurial self-efficacy in a business simulation systems context. Interactive
Learning Environments, pp.1-16.
11