Individual Management Report on Easy Jet: Strategic Audit and Analysis
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This report provides a strategic audit and analysis of Easy Jet, a British low-cost airline, including a SWOT analysis, PESTLE analysis, and Ansoff matrix. The report suggests using product development strategy for growth.
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TASK Executive summary The aim of the study is to investigate the strategic performance of with the help of strategic audit of organization and then analysed the strategic action which can be taken by company for growth strategy. Then purposes of the report is to execute the performance of employee its current position in market related to industry. There are several issues faced by company during pandemic which is related to company. The chosen company for report is Easy jet which is public company and British low cost airline of Easy jet plc. And founded in 2017, after UK Government triggered article 50 to leave the European Union. Organization headquartered in Luton, England (Timóteo, 2021). During pandemic there are several issues faced by company. This is the safest airline organization which offered good quality of services as well as it help to target large number of customer. There are more than 80 travel agency partners across Europe and bookings continue to grow with around 12 million business passengers (Mrňa and Badánik,2021). That is why organization have its success in order to focus on building the strategy of competitive advantages by considering the unparalleled network and position in the market that is efficient for the low cost model which is well-known brand and strong balance sheet. In the report it has been discussed the strategic audit as well as this is related to financial and business performance over the past 3 years. Then identify the relation of growth in order to focus on different strategies which is used by company and also there are different types of strategic action which is taken by company with the help of Swot analysis . Further, analysis the data on the basis of strategic decision used by Easy jet and then identify with the help of Ansoff matrix and VRIO analysis. Strategic audit Strategic audit is a system which help for identifying the extent of implementing a company's strategy, purpose and how to reach its goal. This is important for the organization which help to focus on current state of business with its objectives and goals in orders to laid out with strategic business plan (Stingel,2022). All the result given in business owners the facts which they need for influencing internal structure with better alignment that help for considering the long term goal. For analysing the strategic audit of Easy Jet with the help of SWOT analysis
thatincludestrategicapproachorplanningwhichevaluatestrengthandweaknessthen opportunities combines with threats in which business establishment encounters. SWOT ANALYSIS Strength- Easy jet is one of low budget service provider which is the biggest strength of the company as well asthis is low budget and leading services' provider (Easyjet, 2022.). At large numbers of destination company provide its services such as Berlin, Barcelona, Prague etc. Also, Easy jet focus on providing good quality of services at customers friendly prices also that kind of feature are help to attract large number of customer which help to build the name across UK air travel industry. Then company use the user-friendly websites which is easy to access by users as well as it help to develop price breakdown strategy (Zaušková, 2020). Weakness- With the help of incredible strength company make its position in the market which help to remain competitive in UK air industry. Also, the are large number of air travel agency in UK which provide same services. When flight takes more than two hours other company offering free food services. On the other hand, chosen company not able to offer same services so that company lack from companies which provide additional services. Due to covid 19 there are 25% of growth decline because it impacts very bad on industry as well as its services or pricing policy influence on other routes which is operated at less profitable (WALCZAK, 2022). Opportunities- Easy has the opportunity of opening new routessuch as Dublin to UK which help to target new customers in order to focus on profitability for increasing the clientele levels due to potential large number of air travellers who are attending soccer matches. This is help for increasing thecustomer experience with company which help to increased pool of passengers. Threats- One of the external opportunity is related tocompetitive market forcesalso it creates pressure on profit margin of company especially related topopular routes (Barqueira, Quadros and Abrantes, 2022). Analysis Pestle analysis It has been analysed that there are some factor which are necessary to analyse that impact on strategic action of Easy jet. This is the essential tool which help to analyse the macro
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economicview of businessas well as it is stand for realistic tool which help to analyse the situation better than stand statistically excellent tool. Factors are as follows: Political- On the basis of political environment it can be said that company influence due to operation of Easy jet via taking policies. Also, it has been threes years company has faced issue related to increasing the environmental regulation that is related to tariffs or employment law which are established with UK besides or complying with trade restriction policies. Due to high rate of taxes and tariffs it impacts on the service of organization. In the year 2019, French president Emmanuel Macron in an attempt to streamline the pension policy throughout the policy which led other people by understanding many of them and would not be earning as much as they expect thereby by leading to strikes which affect Easy jet (Mrňa and Badánik, 2021). Economic- It can be said that there aredifferent types of economic activities influence the strategy of company such as fluctuating prices which impacted by covid 19 global pandemic. Company has no exception or unfortunately dues to restricted plan it was impacted badly by 3 years. In 2019, Easy jet lost a huge sum of money back in the first half of 2019 due to extremely high fuel prices, this is essential element for an aircraft also lost more than 280 million euros (WALCZAK, 2022). Social- Aviation industry is very promising and fruitful career for people that help for developing countries such as UK. However, this field is male dominant field in which female are not as much safe for working in aviation industry. Their recent efforts are including hosting online lectures for student in UK so that they can motivatefemale pilots that leading cause or realistic portrayal what they expect in Aviation industry. Easy jet spent a lot of resources on spending prompt messages and update to potential customers when lock-down restricted in ease of 2020 that help for increasing positive response and positive sales figures. Technology- In the year 2019 Easy jet launched mobile application which help to develop new marketing strategy for impaired with people to book flight easily. Also, in this application customer can speak for booking which help to work fast as compared to book flight by website (Stingel, 2022). Due to this technology advancement company get award for user friend application and website. This technology advancement is beneficial for company which help to work in better way for engineers that help to solve complex issue. This is help to gets technological advancement.
Legal-Company has faced the legal loopholeor scandal related to legal complications. In the year 2020, Easy jet become notorious for huge cyber attack. That impacted company badly related to more than 9 million people in their database. Also, 2000 of people has their credit card numbers which comprised along with intimate details such as contact information which is addresses by departure and landing times. Environmental- This is the first company which use the strategy offirst aircraft company that actually work on makings paperless planes by using Panasonic tough-pads installedthatservedbyreplacinglaptopsandprintersforthecommunication.Easyjet implementing the strategy of e-paper technology which is created by Sony in order to reduce the paper consumption to zero (Zaušková, 2020). This strategy help company to attract large number of customer as well as it help to befully committed in order to reduce carbon emissions down by 50% by using new sustainability policy of EU and UK. From the above pestle analysis it has been analysed that Easy jet get the local popularity in the field of luxurious airline as well as budget airline. Due to bribery scandal company has faced the problem related to disputes between top management. Then environment policy of the company is related to make efforts in order to makes good brand image that help to achieving sustainable benefits in order to reduce their carbon footprint (Dimitrelou, Oikonomidis and Fouskas,2020).Thenhasthecompetitiveadvantageswhichisrelatedtotechnology advancement as well as it help to work on the basis of user-friendly website which help to attract large number of customer by providing them digitalization benefit so that they can easy to book their flight. Ansoff matrix Easy jetoperates both domestically and internationally by more than 1000 routes of nationalso this is inception by acquiring various smaller companies in order to expand the routes, company size, fleet size etc. Also, mores than 15000 employees are working for Easy jet also generated the revenue of 6 billion to rise and then increases the subsidiaries. There are various global operations and business which is based on strategic growth decision and choices. Then it is also possible that there are different growth paths which can be different from region or situation on the basis of internal and external analysis on the basis of organizational factors (Olaganathan, 2021). For the chosen company Ansoff matrix help to analyse the strategy used it as well as it is help by successfully generating giants internationally.
Some strategies that can be used for growth of Easy jet under different category ofAnsoff matrix such as follows: Market penetration- This is the strategy of selling the existing product in existing markets in order to focus on improve the loyalty of customers also it offers save even by becoming loyal members. There are large number of customer are having low cost paying services which help to attract business class flyers in order to use low cost services. As well as organizationwork for improving the services which help for reducing the time to process customer check-ins and then it helps for creatingaccess to available services (Chang,Lee and Wu,2019). Also, organization acquires which is smaller airlines to increase markets share in region which has strategic alliance with hotels and resorts that help for promote tourism activities. Market development- This strategy is refers to selling existing product in new market which help for expanding services as well as expand on the basis of geographical markets. This is also help to target new customer which is related to operating services in countries where does not currentlyfly to. Also, this strategy help for new destination within countries by offering new packages as well as it help top attract new customers by providing new services such as new facilities, increasing luggage capacities in order to create new market segments within existing markets (Okumus, Altinay and Köseoglu, 2019). Product development- In this strategy new product launched in existing market which help action to taken as product development as well as company can use the strategy by increasing product line in order to focus on improve existing product line in context to provides better facilities at existing rates. In this is process there are including better meals, providing more leg space also by offering low cost business class and executive class so that it help to attract large number of customer. It can bes said that this strategy is related towork on certain routes which help comfort level to becomes the leader of aircraft by performing different options. Diversification- This strategy stand out by above three strategies which help to pursued with same technical, economical and financial resources which help for original product line where diversification usually requires by new skill and resources just like Easy Jet did.
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It has been justified that Easy jet should focus on product development strategy which help by new product in existing market which help for target by providing the services as well as it help to provide additional services to customer by attract them. This is also necessary to add in existingservicessuchasfreefooddeliverywhenflighttakemorethantwohours (Zhavoronkova,Zhavoronkov, and Volvach,2018). Also, allow customer to take 2 kg extra luggage facility which help to attract large numbers of customer from another countrys also then it is necessary to provide frequent offers to new customers which help to attract other by refer their friends and family. It is to be suggested that Easy jet should focus on by working efficiently in order to focus on improving their services. This is one of the important part of expanding business and increasing growth of organization. Critical reflection In context to case study it has been understanding that Easy jet is falling down from past three years dues to managing strategic management issues. Also, it has been analysed from the study Easy jet not able to perform well because it has faced issue related to global pandemic issue which is very common from 3 years. I came to know that there are decreasing in sales by 40% because at that time people are not allowed to go outside. I have improved my research skill by following different aspect of case study as well as it help to search for extract, locate, organize and evaluate the content accordingly. Then I have written report by supports of authentic website which helped to enhance my knowledge regarding important sources. Also, I have increase my knowledge in orders focusing on using different frame work such as with the help of SWOT analysis I have identified the strength and opportunity in order to overcome weakness and threat regarding chosen company. On the other hand, it has been taken long hours while I have evaluated PESTLE analysis because this quite lengthy framework which has different aspect including six factors. Also, it helped me to analyse the operating activities of business and how it is affected by other factors. Further, I have applied the Ansoff matrix which help to identify the different strategies which can be used by company in which I have suggest to uses product development strategy from Ansoffmatrix that helped for working effectively. In this strategy company can target to new customer by offering them new product or services. On the basis of deep research I have used by critical thinking method to write the report effectively (Ponomarev, 2020).
It has been critically analysed that there are huge sources available on internet in which it was typical to select authentic research for study. Also, it takes time to make this report as well as I have improved my decision-making skill and problem-solving skill which help me in exam by focusing on better work. I was poor at listening skill when tutor has taught about the research and that is why it was impacted by taking long time in order search for authentic research.
REFERENCES Books and journals Barqueira, A., Quadros, R. and Abrantes, J., 2022. Airline booking applications: the case of Ryanair, Easyjet and tap air Portugal.Aeron Aero Open Access J,6(1), pp.7-15. Chang, Y.C., Lee, W.H. and Wu, C.H., 2019. Potential opportunities for Asian airports to develop self-connecting passenger markets.Journal of Air Transport Management,77, pp.7-16. Dimitrelou, S., Oikonomidis, T. and Fouskas, K., THE EFFECTS OF COVID-19 IN THE EUROPEAN AIRLINE INDUSTRY. RESULTS FROM PEST ANALYSIS. Mrňa, D. and Badánik, B., 2021, November. Differences in low-cost airline operating models in 2018, 2019 and 2020–comparison of easyJet, Ryanair and Wizz Air. In2021 New Trends in Aviation Development (NTAD)(pp. 128-133). IEEE. Okumus, F., Altinay, L. and Köseoglu, M.A., 2019. Corporate-level strategies. InStrategic management for hospitality and tourism(pp. 135-151). Routledge. Olaganathan, R., 2021. Impact of COVID-19 on airline industry and strategic plan for its recoverywithspecialreferencetodataanalyticstechnology.GlobalJournalof Engineering and Technology Advances,7(1), p.33. Ponomarev, D., 2020.Consolidation of airlines in Europe: potential acquisition of Norwegian by EasyJet(Doctoral dissertation). Stingel, H., 2022.European airline consolidation-acquisition strategy for a potential takeover of JET2 by Easyjet(Doctoral dissertation). Timóteo, R.F.D.S., 2021.Equity research-EasyJet Airline Company LTD(Doctoral dissertation, Instituto Superior de Economia e Gestão). WALCZAK, W., 2022. MARKETING INSTRUMENT OF COMPETITION IN LOW-COST AIRLINES.Ekonomiaimiędzynarodowestosunkigospodarcze2021[DEBIUTY STUDENCKIE], p.40. Zaušková, M.V.M.K.A., 2020 THE AIRLINES COMMUNICATING THROUGH SOLOMO PLATFORMS DURING THE COVID-19 PANDEMIC. Zhavoronkova, G.V., Zhavoronkov, V.O. and Volvach, N.N., 2018. Development of the market ofaviationtransportationinUkraine:problemsandprospects.TransMotauto World,3(3), pp.116-120. Online references Easyjet,2022.[Online].Availablethrough<https://www.zoominfo.com/c/easyjet-airline- company-limited/12256221>.