Easyjet Eirline: SWOT and Pestle analysis, Corporate social responsibility, Comparison of different styles of leadership

This article discusses SWOT and Pestle analysis, Corporate social responsibility, Comparison of different styles of leadership for Easyjet Eirline. It recommends adopting a transformational leadership style to help Easy Jet in meeting its objectives and regaining its position in the market.

EASYJET EIRLINE

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
SWOT and Pestle analysis...........................................................................................................4
Effective opportunities and threats due to external factors..........................................................6
Corporate social responsibility of the company...........................................................................7
Comparison of different styles of leadership for choosing the best one for Easy Jet airline.......8
Recommendations for suitable leadership style that will help Easy jet in meeting their
objectives...................................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
PESTLE analysis is a very useful tool which is used to determine the external and
internal factors of an organisation. Airline industry is highly affected by the changes having in
the political and economical conditions of the country. This process is aimed to examine the
macro factors which have the power to influence the business of the airline industry. SWOT
analysis is used to review the strengths of an organisation and determine the opportunities
coming in way of success. It also helps in finding out the weakness and threats exhibiting as
challenges for the growth of business (Morlotti, and et.al., 2017). Easyjet airlines is a British
based multinational airlines which is known to offers its services at low costs. It operated in both
domestic as well as internationally. The company is been looking to expand its business and
fulfil the demands of its customers to have a low cost air travel. Easyjet has to face many
challenges because of the changes in external and internal factors.
MAIN BODY
SWOT and Pestle analysis
Swot analysis is a frame work which helps in the analysation of the Strengths,
weaknesses, opportunities and threats. For EasyJet airline Swot analysis can be explained as
follows,
Strengths :
The brand name of this airline company is very strong and due to which company has
some loyal customers. The recognition this company gets from its customers helps it to maintain
strong position in the market. Another few reasons which are considered to be the strengths of
the company is its balance sheet which shows its share holders and stake holders its positive
performance (Marques, 2017).
Weaknesses :
For this company its biggest weakness is that its services are not so preferred outside of
the European continent. The majority of the loyal customers of this company are the elder people
which is not so positive for the organization's future. This organization has been known to suffer
due to the competitors providing very similar prices. This organization is very dependent on
many of the partnership which it has built (Luong, 2019).
Opportunities :

The biggest considerable opportunities for this organization has is that the upcoming
generation of the customers have high demands of cheaper fares. There are more and more
emerging market for the company to enter into. The brand name of this company is being
developed globally which is a opportunity for the company to expand.
Threats :
The competition for this business is very high which always causes threat to the operation
of the company. The customers of this company are having more options due to high competition
which restricts the company to increase its prices. Increase of the aircraft fuel is known to be
concerning for the business of the company as well (Schramade, 2019).
For the analysis of the external factors of EasyJet Pestle analysis is used.
Political :
Due to the events of Brexit this company can face issues in its operation in the European
market. The civil aerospace and airline industry is facing concerning issues due to the events of
pandemic and Brexit. The change in the regulations of the operation of airline industry is what
affects the business of the company.,
Economic :
This organization is affected by the government practices which include change in the
rate of inflation, customs rate and other taxes which influences the business of the company. The
stability of the economy of the market is very essential for the business of EasyJet. The global
economic affect of wars, dispute affects the flight between the countries.
Social :
The increase in the demand of the air travel which has been the social trend for the couple
of years has influenced the business of the company. Due to the social media influence the
company has been basically able to connect with its customers and understand their needs for
improving the services.
Technology :
Increase in the technology opens up new opportunities for the company as it can improve
its services on the aircraft. New technology brings sustainability in the usage of the fuel which is
very effective for the business of the company. Technology helps this company a lot in its
management of the data. New technology brings new flights, new aircraft which can be positive
experience for the customers, affecting the business of EasyJet positively.

Legal :
The laws regarding the protection of the data has affected the business operation of the
company which was needed to be changed and will be needed to change in the future. Other laws
regarding the ticket cancellation and other compensation which can different in different
countries affect the business of EasyJet. The laws related to the travelling of customers from one
country to the other can affect the business of the company as it will decrease the total revenue of
the business.
Environmental :
For this organization it is very important to make sure that it is following the rules and
regulations of the environmental protection regulations. Not following these regulations can
affect the popularity of the business of the company. The environment also affects the operations
of the company as due to changes in weather the aircraft gets affected.
Effective opportunities and threats due to external factors
Political: The negotiators in the Brexit have dropped the prior commitments of the company to
take part in the regulations which are related to the European Union. Moreover there are many
strikes form the employee's side which affects the airline services as well as the brand image of
the company. These strikes takes place due to the low wages and less benefits for the workers. In
such cases large number of employee threats the company to go on strike which disrupts the
operations of the company and brings the image down (Alberto, 2019). Due to the effect of
Brexit European countries are not recognising the approvals for maintenance and the
airworthiness of the flights which are coming from UK. In-spite if the uncertainty, the booking
for the Easyjet airlines is still booming as the company was prepared for it since before.
Economic: The economic condition of UK is unstable currently and this affects the business of
the company. Government of the country is looking for the arrangements which will give mutual
benefits for the business services. Moreover, there are uncertainty due to the future of visa
requirements and cross border supply chains and not to mention the continuous rise in the prices
for fuel. The level of restrictions imposed on the intra European flights has resulted in decreasing
the number of European union routes (Francis, Humphreys and Aicken, 2017). The revenue
which are generated per seat is expected to decrease.
Social factors :

Due to the trend of society which wants to travel more through aeroplane in the recent
years there is a development of opportunity for the business of the company to utilizes. Post
pandemic affects are also generating opportunities for the company as more and more customers
are looking forward to travelling. The influence of the society for the protection of the
environment is affecting the business operations (Bustos Piquer, 2020).
Technology :
The developed sustainability for fuel from the new technology is an opportunity for the
company to utilize. It is also a threat as new technology can threaten the business with new
competition. This is also an opportunity as this company has identified that data driven approach
is profitable for it. New technology provides the company opportunities to provide the customer
new and enhanced services (Liedloff, 2021).
Legal :
Any change in the law and regulations can affect the company in either positive way or a
negative way therefore it can be either opportunity for the company or threats. Some laws
imposed by some countries can be very effective for the business of the company. Due to the
changes in the laws the EasyJet company has to make changes in the operation which are related
to the cancellation and delaying of the flights. The changes in the laws of travelling also affects
the business of the company which posing a huge threat to its revenue (Ndebele, 2017).
Environment :
The change in the environment is a threat for the flights of this company as it can
influence the business operation and make it difficult for the company. Any of the operation
causing affects to the environment can easy grab the attention of the media and the company can
suffer bad image which is threat for the company.
Corporate social responsibility of the company
Corporate social responsibility:
It refers to the duty of company in order to manage social, economic and environmental
effects and also maintaining its operations (Freeman and Dmytriyev, 2017). It is the part of
corporate governance and it is associated with every part of the business which involves human
resources, supply chain, operations, health and safety etc.
Easy jet takes their decision in such a manner which includes all stakeholders interests.
They treat all their customers, employees and suppliers equally and fairly. Company have made

strategies in which they focus on avoiding pollution so that people and environment cannot get
harmed. Company want to reduce pollution and carbon footprints that is why they operate their
business in such a manner which cannot harm the environment. Easy jet works on the
fundamental principles and rights for work so that labour standards of their workforce can be
maintained. So that is why they carefully carry their employment practices which is ethically and
socially correct. Easy jet also provides right to their workforce in regards of collective
bargaining. Company run their business in ethical manner and also have positive image in front
of public. They take care of human rights and also company never discriminate on the basis of
colour, age, gender, caste, religion, race etc. company support human rights standards for the
employees of their organisation and also for their customers. They make sure that their every
passenger should get equal treatment and no one will face discrimination.
Easy jet also gives money in the form of charity or donation to schools, universities,
festivals etc. company also support education and health related practices because they feels that
if company will think about society then only society will support company (EasyJet Corporate
Social Responsibility., 2021). As company and people all live in same society so those company
which harm environment and society practices in order to make profits then those company will
not able to survive for long period. On various occasions Easy jet even run many programs in
which they create awareness or educate people regarding various diseases which can be related
to heart disease, cancer, brain disease etc. company also organise blood donation camp.
Company believes that they are the part of society so have to work with them and for them.
Corporate social responsibility also increases image or builds good reputation of
company. It also helps in increasing sales and as a result company experienced increased profits.
They are also aware of waste management. They try to operate their business activities in such a
manner which can cause less wastage. As more wastage is very damaging for the environment
which increases pollution and carbon footprints. Some waste even takes thousands of years to
decompose in the environment. When company invest in operational efficiencies then it saves
operation costs and also decrease environmental impact. Company also gets easily funding from
outside because investors also support such companies who carry corporate social responsibility.
Comparison of different styles of leadership for choosing the best one for Easy Jet airline
British airline EASY Jet is striving hard for being in the competition and increasing revenue.
After covid-19 pandemic, it got affected the most in a negative manner as it decreased its sales to

the great extent. Now it wants to regain its image and position in the market and it believes that
leadership is one of the main pillars that can help it out in accomplishing its goals. Leadership is
all about an ability of guiding a group of people (Graham and Vowles, 2017). When people at
workplace are being guided in an effective manner then they are more likely to improve their
performance.
There are numbers of leadership styles that have some common features and some unique
features that make each style different. Some leadership styles that play a vital role within
workplace and can be analysed by Easy jet for choosing the best one include:
Democratic: Democratic is one of the best leadership styles as in this style leaders give
opportunities to all employees for taking participation in decision making process. When
employees are being given this opportunity and when they help company in improving decisions
then it boosts their confidence and become loyal towards company (Fiaz, Su and Saqib, 2017).
Limitation of this style is it takes too much time in decision making.
Transformational: In this style, leaders play a vital role as he/she inspires his/her
followers for becoming better and meeting their goals. Leaders work with team members as like
an active team member in order to make them feel valued. There are numbers of advantages of
this style such as: it decreases employees’ turnover rate and places high value of relationship. For
better performance and outcomes, leaders require continuous monitoring and feedback that may
be time consuming and it is the main limitation.
Transactional: In this style leaders use transaction between him and his followers by
rewards and punishment as per the performance of employees. The main focus of this style is to
get tasks done by followers. Leaders set clear goals for employees and tell their followers that
how will they be rewarded for their improved performance. It motivates all employees towards
improving performance (Khan, 2017). Employees’ productivity increased with this style and it’s
the main advantage of this style. Disadvantage of this style is, lack of empathy.
Autocratic: It is just opposite of democratic as from above discussed democratic style as
in autocratic rather providing opportunities to all workers and employees in decision making
process, all decisions are being taken by leaders and managers themselves. It is being followed
when company does not have enough time and also employees are not capable to take decision
and help company in improving decision. But this style sometimes de-motivates employees and
this is the main difference between autocratic and democratic style of leadership.

From research, it found that Easy jet focuses on motivating and encouraging employees by
supporting them in performing their functions. It is a kind of transformational style of leadership.
On the basis of above discussed styles of leadership, it can be said that democratic and
transformational are effective styles that can help Easy jet in regaining image in the market by
motivating employees (Thompson and Glasø, 2018). These styles can help this airline in
increasing staff retention rate and motivating them towards improving productivity by providing
qualitative services to customers. Both these styles can help leader of Easy jet in getting tasks
done with effectiveness and increasing customers’ retention by delivering valuable products or
services.
Recommendations for suitable leadership style that will help Easy jet in meeting their objectives
It is stated that Easy jet implements and uses transformational leadership style for motivating and
encouraging employees by helping them out in improving their performance and completing
their work. It operates domestic and international scheduled services on around 500 routes
between 118 European, West Asian and North African airports so, it requires managing
performance of numbers of employees and also satisfying needs of global customers. So, as per
the current situation of Easy jet airline and nature of its services, some effective leadership styles
can be suggested that are:
Situational: It is an effective leadership style in which leaders adapt their style of leading as per
the current workplace situation and tries to match style with situation. It is stated that there is no
perfect style that can be suitable in all situations so, leaders need to select their different styles of
leading as per the situation. Covid-19 is one of the best examples of changing situations and it
affects this airline to the great extent and they had to change their style (Eliyana and Ma’arif,
2019). So, as per the critical environmental analysis, it is suggested to this airline that this
situational style can be the best. There are 4 styles as per this leadership strategy such as:
Telling/directing: In this style, leaders use high amount of task behavior and low amount of
relationship behavior. Leaders direct and tell their followers as what they are expected to do and
what they need to do. The main focus in this style is getting work done rather improving
relations and it can be used when there is work load or numbers of projects.
Selling/coaching: In this style leaders maintain a balance between both tasks and relations.
Leaders do not only tell employees as what they have to do but they guide as how they have to

do and how they can improve their performance. It is being followed when leaders need to
motivate employees and employees are new at workplace.
Participating/collaborating: This style is high on relationship behavior as in this style; leaders
collaborate and work with team members in order to motivate them. It is being followed when
there is a lack of motivation and leaders need to encourage them for improved performance
(Chan, 2019).
Delegating/monitoring: In this style, followers perform tasks at a sustained level. In this style,
leaders monitor performance of employees and it is being followed when employees are trained
already and they need intrinsic motivation to perform functions.
So, on the basis of above, it can be said that Easy jet can improve its performance if it focuses on
using situational leadership as per the current or changing situations at workplace.
CONCLUSION
It can be concluded that it is important to follow up different business strategies in order
to gain competitive advantage within the market. The style of leadership followed by an
organisation influences the strategies and business response in major extent. The modern
business world is demanding for the increase in the corporate social responsibility and has
impact the business operations in many different ways. Different frameworks are used to
determine the influence of the external and internal factors in the business of Easyjet. It will help
in determining the strengths to deviate with the threats and the weakness which are affecting the
opportunities. There are many different styles of leadership and it is important for Esayjet to
determine the best suitable style which will help the company attain the desired goals. Lastly, it
can evaluated that it is important for the business of Easyjet to work while following the
corporate social responsibility and ethics as the business of the company deals with the lives of
the passengers and the crew members.

REFERENCES
Books and Journals
Alberto, M., 2019. Easyjet Plc Airlines: take-off to new opportunities (Doctoral dissertation).
Bustos Piquer, M., 2020. Estudio del modelo de negocio de una aerolínea de bajo coste:
Ryanair (Doctoral dissertation, Universitat Politècnica de València).
Chan, S.C., 2019. Participative leadership and job satisfaction: The mediating role of work
engagement and the moderating role of fun experienced at work. Leadership &
Organization Development Journal.
Eliyana, A. and Ma’arif, S., 2019. Job satisfaction and organizational commitment effect in the
transformational leadership towards employee performance. European Research on
Management and Business Economics. 25(3). pp.144-150.
Fiaz, M., Su, Q. and Saqib, A., 2017. Leadership styles and employees' motivation: Perspective
from an emerging economy. The Journal of Developing Areas, 51(4), pp.143-156.
Francis, G., Humphreys, I. and Aicken, M., 2017. Where next for low cost airlines? A spatial
and temporal comparative study. In Low Cost Carriers (pp. 113-124). Routledge.
Freeman, R.E. and Dmytriyev, S., 2017. Corporate social responsibility and stakeholder theory:
Learning from each other. Symphonya. Emerging Issues in Management. (1). pp.7-15.
Graham, B. and Vowles, T.M., 2017. Carriers within Carriers: A Strategic Response to Low-cost
Airline Competition. In Low Cost Carriers (pp. 353-374). Routledge.
Khan, N., 2017. Adaptive or transactional leadership in current higher education: A brief
comparison. International Review of Research in Open and Distributed Learning, 18(3),
pp.178-183.
Luong, N., 2019. Huawei's strategic efficiency.
Marques, C., 2017. Expansion business plan to HUB, SA: HUB and Aktion-defferent concepts,
the same commitement(Doctoral dissertation).
Morlotti, and et.al., 2017. Multi-dimensional price elasticity for leisure and business destinations
in the low-cost air transport market: Evidence from easyJet. Tourism Management, 61,
pp.23-34.
Ndebele, T.M., 2017. Harare international airport, a Central-Southern Africa hub in waiting or
opportunity lost.
Schramade, W., 2019. Case Study Air France KLM. Available at SSRN 3425898.
Thompson, G. and Glasø, L., 2018. Situational leadership theory: a test from a leader-follower
congruence approach.Leadership & Organization Development Journal.
Online

EasyJet Corporate Social Responsibility., 2021. [Online]. Available through:
<https://prezi.com/i-d7f2eeidhk/easyjet-corporate-social-responsibility/>
Liedloff, D., 2021. Spotlight: EasyJet strategic analysis[Online]. Available through:
<https://getlucidity.com/strategy-resources/spotlight-easyjet-strategic-analysis/>