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Context of Business

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Added on  2023/06/12

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The report is based on Easy Jet that is British multinational low cost airline that is headquartered in London. It discusses SWOT and PESTLE analysis in detail, evaluates changes in the PESTLE factors, identifies two leadership styles that will and not suit the business, and highlights the significance of corporate social responsibility. The report provides various business examples to support the analysis.

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Context of Business

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TABLE OF CONTENTS
.........................................................................................................................................................1
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Performing SWOT and Pestle analysis for the chosen company................................................3
Evaluating changes in PESTLE factors through using examples.............................................5
Identifying two leadership style that will and not suit the business...........................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10
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INTRODUCTION
Business are means where individuals or group of individuals are able to achieve specific
gaols through developing the various strategies and tactics. Further, present report is based on
Easy jet that is British multinational low cost airline that is headquartered in London.
Moreover, study will discuss SWOT and PESTLE analysis in detail so that various strengths
and weakness might be identified and corrective actions might be taken. Also, the study will
evaluate changes in the PESTLE factors through providing various business examples.
Furthermore, study will also highlight two leadership style that would suit and will not suit the
quoted airline while conducting various business operations in the future. Lastly, the report will
also identify the significance of corporate social responsibility and how the airline is following
the same in its daily work through providing various business examples.
MAIN BODY
Performing SWOT and Pestle analysis for the chosen company
SWOT analysis
Strength
Easy jet has been developed as
premium brand that is known for
offering the cheapest flights in UK and
Europe (KİRACI, 2018).
Also, its website is easy to use and
helps in facilitating ticket purchases.
Best known for efficient and friendly
customer services
Weakness
The flight does not offer free food
services in longer flights that many
customer find it difficult
High cost of operation due to
increased competition that limits the
sales of the company
Opportunities
The airline might expand into newer
regional markets and cater to specific
customer segments in that regions
(Gyanwali and Walsh, 2020).
The airline might also offer the travel
Threats
Increased airport fees is serious threat
as it might shut down various routes of
the company
Competitors offering more flight
routes, frills etc. in lower cost is also
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packages with the tours that will attract
more number of customers.
threat to the easy jet.
PESTLE analysis
Political: Various factors such as trade restrictions, political stability , tariff rates etc.
affects the operations of the business on large scale. In context of easy jet the new Brexit
reforms and political instability within the country might negatively affect the sales of the
business. Furthermore, if political parties had certain conflicts within any country than it is
likely that restrictions would be increased that would further impact the airline and its services
that are been provided to the customers.
Economical:. Factors such as inflation rate in any country at any point of time is higher
than it would create problem for the easy jet to offer flight services at cheapest prices thus
decreasing the revenues . However , if there is higher unemployment rate after the pandemic
than it would be positive factor for the firm as it would be able to hire more labour at low wage
rates that would further help in success of the airlines. Other factors such as fuel costs, foreign
exchange also might impact airline both in positive and negative manner depending upon the
situation.
Social: There are various factors such as attitudes, beliefs, norms etc. than need to be
analysed by the airlines as it also affects the business on large scale. Also, in recent times the
airlines is facing the problem in terms of maintaining the gender balance as it seems to be more
male dominated (EasyJet PESTLE Analysis 2021: Lots of Hits and Misses, 2022). Hence , it
affects overall community of the airlines and the creates negative image in the market .
Moreover, other factors such as lack of proper customer services and digital media absence also
creates social problems that needs to be considered on timely manner by the firm.
Technological: If easy jet airlines does not upgrade its technology on timely basis than
there are chances that it might not be able to sustain in airline industry for long time. Thus,
improvement in digital interface like the new bag sizer and bag scanning feature for I phone
users on easy jet online app will create positive impact on working operations. However , cost of
technology and estimated revenues in the future need to be analysed closely by quoted firm so
that there is no wastage of resources on unnecessary activities.
Legal: Certain laws and regulations in UK have to be regularly followed to avoid
negative impact on the business (Kao, Wang and Farquhar, 2020). Moreover, in recent times the

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easy jet have been subjected to cyber attack that leaked the sensitive information of number of
people. Also, the company was been highlight when top management was involved in taking
bribes from the Airbus. Thus, such situations affects the business success and drive sales of the
customers. Furthermore, such cases only increases government intervention in all the future
activities of the business that is not good for the growth and success in long run of the quoted
airline. Also, various legal formalities need to be fulfilled on the right time by easy jet so that
smooth operations might be conducted and there is positive impact on the airlines.
Environmental: In current era people are more concern in protecting the environment
and thus easy jet airline is taking care in introducing the carbon emissions and to become more
fuel efficient. Also, to create more positive impact on airlines it is trying to reduce the
consumption of plastic and other waste in supply chain.
Evaluating changes in PESTLE factors through using examples
The certain changes within quoted airline might be identified through the applying the
TOWS analysis that is as follows:
Strengths Weakness
Opportunities Being known for providing
cheapest flights might be
opportunity for the easy jet as it
would allow to conqueror new
market regions and attract
more numbers of customers
than other airlines that are
present in the target markets
(ALICI and SEVİL, 2020).
Also through operating best
and convenient website the
airline would be able to offer
various travel and tour
packages so that more number
of potential customers might be
The firm through offering free
meals services within the
newest routes would help in
attracting the new customer
segments where more amount
of revenues might be
generated. Also, it would
allow the firm to compete in
best manner with other
airlines that are operating best
in the target market.
Moreover, to avoid the high
cost of operations in the
airlines the firm need to focus
on introducing various new
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connected with the airlines
that is most important goals
of the business.
For example: Through the
current attractive website the
firm is be able to create
awareness about various
offers , discounts and other
benefits that is been provided
on certain routes and flights of
easy jet (Zhang and et.al.,
2018).
innovative ways such as tour
packages that would help in
generating more profits that
would lower down the cost of
the airlines.
For instance: the firm is
using fully automated drop
machines so that check in
queues might be eliminated or
reduced that would allow the
customer to worry less thus
building the brand image of
the airline against some of the
competitors.
Threats Although the airline is known
for providing cheapest flights
to all its customers but in-spite
of it increased airport fees
might not allow to be
successful and might drive the
customers to other options
available in the market.
Easy jet is known for best and
friendly services but the fact
that increased number of
competitors within the market
would be threat to company as
the number of customer might
opt for other airline services in
the market.
The increased airport fees in
recent times and lack of
proper meals services would
impact success of the easy jet
in long run as people are more
interested in quality of the
services and reasonable prices
offered by the airlines to have
best customer service
experience (Hausladen and
Schosser, 2020).
Furthermore, high cost of
operations due to constantly
changing airline environment
and the pressure of the new
competitors strategies and
working is serious threats to
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For example: Ryanair and
Pegasus airlines in UK are also
constantly trying to offer
innovative services to the
customers at lower prices.
Thus, through such efforts the
competitors are trying to build
strong customer relationships
that would further affect the
working of the easy jet in
current times
operations of the business.
For instance: due to new
Brexit reforms easy jet is
finding difficulties in
continuing the operations in
various European regions and
also due to this reason the cost
of conducting various
activities have been increased
that is major threat to the
business.
Identifying two leadership style that will and not suit the business
Though easy jet is successful in operating into various regions of the world through
developing successful business policies and plans . However, in the current times after the
pandemic and the new Brexit reforms quoted company should adopt the two best leadership
styles so that monitoring of the employees might be done in better manner. These are described
as follows:
Affiliative:
According to Atasoy, (2020) this type of style would be best suited to the firm in
accordance with recent times as in this type of leadership leaders tries to build strong bond with
the team and fosters the sense of belonging to the organisation. Moreover, this type of
leadership is good in hard times so that appropriate morale of the employees might be boosted
and more positive working environment might be created. However, Zhang, Cao and Wang,
(2018) argued that this of leadership might reduce team productivity levels as the
underperforming teams member might go unnoticed by the airlines. Also, this type of
leadership style struggles with more number of complex problems at the workplace. Moreover,
this leadership style would be best for the firm as pressure from the competitors and stress of
existing employees would be reduced through providing full support and guidance so that
challenges might be overcome in positive manner.
Strategic:

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On the basis of Wen and et.al. (2019) strategic leadership style works in volatile ,
complex and uncertain environment that is influenced by various factors. Also, the main focus
of strategic leaders is on the productivity. Furthermore, leaders here focused on developing
environment where the employees are able to forecast organization needs and are ready to take
certain responsibilities in the future. However, Pishgooie and et.al., (2019) argued that best
strategic leadership is only possible when easy jet top management develops best and proper
reward and incentive programs so that employee remain motivated and satisfied with current
job roles for longer time period. Also, implementing strategic plan is is riskier as if it does not
work in planned manner than there might be huge losses to the airline (13 common leadership
styles, 2020). Also, sometimes future predicted by the strategic leaders might not work
efficiently due to constantly changing future policies within any country.
Thus, these above two leadership style are ones that easy jet would use to face certain
threats in the business. However , Leadership need both theoretical knowledge as well as
practical knowledge to improve efficiency by directing the fellow members. Their are different
type or leadership style some, but some style can be not good for the organization. Leaders are
the instructor and care taker of organizational goal as well as employees interest. As EasyJet is a
profitable business with sustainable development in the organization and they should avoid these
type leadership style.
Bureaucratic:
According to Kadiyono and et.al., (2020) Rigidity can be harmful for the organization as
bureaucratic leaders follow old methods which organization is following from long or what they
have studied. In this dynamic environment new and innovative ideas are very important to keep
an competitive edge in the market. Bureaucratic leaders reject's such new ideas as their believe
as companies is in profitable state. Airline business need to fulfill the customer need for the
customer building as well as their loyalty towards company. In such type of leadership,
employees struggles to change. In the view of such leaders, changes could waste time and
resources if it doesn't work. This can affect the working in the organization and EasyJet will
record more employees turn over because it will bring dissatisfaction among employees.
Delegative or laissez-fair:
In regard to Mansaray, (2019) In this type of leadership, leaders does not give sufficient
interference to their fellow members as they believe employees could do it on their own. This
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can empower employees but also can restrict employees development. Such type of leadership
can affect the working in Easy-jet as employees will not get proper direction to work in a
effective and efficiently. Lack of proper guidance can could lead to wrong doing. On the other
hand Xie and et.al., (2018) stated that without proper record and analyzing of employees would
bring more relaxed nature towards the organization which will affect the working of the
business. Easy-jet in their academy itself have to guide and proper monitoring of staff has to be
done to know their competency and working ability. Such type of leaders does not have
leadership quality they are enjoying the privilege but with lack of meaningful terms.
Importance of corporate social responsibility
In this new emerging world, customer are moving toward the sustainable products and
services. Businesses operating their activities responsibly to mark social and environmental
issues have more more value in the customers mind. Customers are seeking products and
services from those businesses who operates towards betterment of the social and environmental
factor. Profit is one of the major factor in the working of the business. But when this businesses
takes CSR in account, attracts more customers. Consequently, CSR seen as a good practice for
the business in sustainable operation. EasyJet work towards the sustainable tourism with some
unique element, reducing and simulating the carbon emission and work in UNITED NATION
sustainable development goal.
Some direct benefits are:
Improves public image.
Businesses operates with social responsibilities have more value in the market. As the customer
gets attracted more toward such business (Xia and et.al., 2018). Public get influenced by such
businesses which are working towards the betterment of the society which is helping people
directly or indirectly. EasyJet focuses on the sustainable tourism by which customer gets more
attracted by this practices which help the business in profit maximization as well as the society.
Competitive edge.
Those businesses who takes social responsibilities in account attracts more and more customer
which gives them a competitive edge to the business. Businesses offering same products and
services might not be on the same page when a business work in responsible way more customer
shift toward it. Appealing customer by social practice gives a upper hand in the market which
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helps business to grow. In such competitive market EasyJet has a prior edge in the market
because its work in responsible towards society and environment.
Happier internal business environment.
Studies shows that's businesses who prioritize CSR having more employees satisfaction.
Employees feel more purpose to work when they get sense they are working to make difference
in the existing world (Barnett, Henriques and Husted, 2020). EasyJet provide more sustainable
working environment which cuts down the employees turn over and regular training and
assessment in their own academy give the business more competent workers. Workforce gets
sense of working towards the betterment of the new world.
More sustainable business.
Creating business as well as employees more innovative and creative helps the organization.
Rigidity can not build a strong business, by that business has to work in new and innovative
direction. Emerging trends and changing environment need proper time to time renewable
process for the working of the business. Easy-jet has the ability to adapt which makes the
working more smooth in the long run.
Customer pays more.
When customer gets attracted by the product or services they are willing to pay more. Survey
shows that the customer are willing to pay more if the companies takes social responsibility.
People are will to pay more for Easy-jet rather choosing other flights which may cost low to
them. As customer get belonging with such practice and goes for more sustainable services.
Influence investors.
Investor looks for the businesses who has more customer loyalty and their repeated customers.
Sustainable working of businesses which gives more competitive edge in the market which
attracts the investor to invest which can be benefit for both company as well as investor. As
EasyJet is fulfilling all their investor needs by that more new investor are interested in investing
in the company which shows the companies goodwill.
Reduces cost.
Every business is working for the profit maximization, by that CSR does not mean that business
should not give up on their profits. Proper machinery and equipment can cost high in the initial
stage but in the long term that will save lot of money each year (Ali, Frynas and Mahmood,

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2017). Airplanes which are less carbon emission centric cost high, EasyJet is still making profit
as it attracts more customers.
Opportunities in new market.
In this dynamic environment businesses applying CSR practices which can bring new
opportunity. As being a profitable business, they can shift their business model,mode of working
and many things which can help business in long run.
CONCLUSION
From the above report it can be concluded that through easy jet is working efficiently in
various parts of the country but in spite of there are certain weakness that need to be overcome
by the airline over the period of time. Also, report had identified certain external and internal
factors affecting the airlines through applying SWOT and PESTLE analysis. Moreover, the
study had conducted TOWS analysis so that better strategic planning might be done for the
future activities by the quoted airline. Furthermore, the report had identified strategic and
affiliative leadership style that would be best suited in accordance with current organisation
situation. However, report had analysed that top management of easy jet would not be able to
achieve objectives through using Bureaucratic and delegative leadership style especially in
times of Covid and new Brexit reforms where chances of uncertainties are higher. Lastly, the
study had discussed importance of corporate social responsibility and impact on business in
detail.
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REFERENCES
Books and Journals
Ali, W., Frynas, J. G. and Mahmood, Z., 2017. Determinants of corporate social responsibility
(CSR) disclosure in developed and developing countries: A literature review. Corporate
Social Responsibility and Environmental Management. 24(4). pp. 273-294.
ALICI, A. and SEVİL, G., 2020. Analysis of Internal Financial Factors Affecting Stock Price in
Airline Businesses. The Journal of International Scientific Researches. 5(Ek). pp.28-46.
Atasoy, R., 2020. The Relationship between School Principals' Leadership Styles, School
Culture and Organizational Change. International Journal of Progressive Education.
16(5). pp.256-274.
Barnett, M. L., Henriques, I. and Husted, B. W., 2020. Beyond good intentions: Designing CSR
initiatives for greater social impact. Journal of Management. 46(6). pp. 937-964.
Gyanwali, S. and Walsh, J. C., 2020. Influencing factors of organizational performance in Nepal
airlines corporation. International Business Research. 13(1). pp.268-283.
Hausladen, I. and Schosser, M., 2020. Towards a maturity model for big data analytics in airline
network planning. Journal of Air Transport Management. 82. p.101721.
Kadiyono, A. L. and et.al., 2020. Develop leadership style model for indonesian teachers
performance in Education 4.0 era. Systematic Reviews in Pharmacy. 11(9). pp. 363-373.
Kao, G. H. Y., Wang, S. W. and Farquhar, J. D., 2020. Modeling airline crisis management
capability: brand attitude, brand credibility and intention. Journal of air transport
management. 89. p.101894.
KİRACI, K., 2018. Factors that determine the capital structure: An empirical study on low-cost
airlines. Scientific Annals of Economics and Business. 65(3). pp.227-246.
Mansaray, H. E., 2019. The role of leadership style in organisational change management: a
literature review. Journal of Human Resource Management. 7(1). pp. 18-31.
Pishgooie, A. H. and et.al., 2019. Correlation between nursing managers’ leadership styles and
nurses' job stress and anticipated turnover. Journal of Nursing Management. 27(3).
pp.527-534.
Wen, T. B. and et.al., 2019. Leadership styles in influencing employees’ job
performances. International Journal of Academic Research in Business and Social
Sciences. 9(9). pp.55-65.
Xia, B., and et.al., 2018. Conceptualising the state of the art of corporate social responsibility
(CSR) in the construction industry and its nexus to sustainable development. Journal of
cleaner production. 195. pp. 340-353.
Xie, Y., et.al., 2018. Leadership style and innovation atmosphere in enterprises: An empirical
study. Technological Forecasting and Social Change. 135. pp. 257-265.
Zhang, L., Cao, T. and Wang, Y., 2018. The mediation role of leadership styles in integrated
project collaboration: An emotional intelligence perspective. International Journal of
Project Management. 36(2). pp.317-330.
Zhang, Y. and et.al., 2018, July. Training demand analysis for airlines safety manager based on
improved OTP model. In International Conference on Human-Computer
Interaction (pp. 334-342). Springer, Cham.
Online
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13 common leadership styles. 2020. [Online]. Available
through:<https://www.ivey.uwo.ca/academy/blog/2020/01/13-common-leadership-
styles/>.
EasyJet PESTLE Analysis 2021: Lots of Hits and Misses. 2022. [Online]. Available
through:<https://pestleanalysis.com/easyjet-pestle-analysis/>.
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