Evaluating the Contemporary Business Environment

Evaluating the
Contemporary business
environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Explain the market structure in the UK within which EasyJet operates.....................................1
What are the economic factors within the UK that affects the business of EasyJet...................2
What are the likely impacts of Brexit on the business operations of the company.....................5
Analyse the impact COVID-19 is likely to have on the business of the company.....................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Contemporary business environment refer to the business that has vast competitive
market that keeps changing at very fast pace, and the owner of the business have effective skills
that helps them to understand about the changing environment of the competition (Biloslavo,
Bagnoli, and Edgar, 2018). The concept of business environment refer to the analysis of internal
and external factors that have an impact on the business and its growth in the market. Business
environment is collection of internal and external factors that have an affect on the level of
effectiveness business have in the industry. This report is based on Easyjet, it is a British
multinational low cost airline group. Its headquarter is in London Luton Airport, company
operates international and domestic scheduled services on over 1000 routes. Approx 14,000
people work in Easyjet, based through Europe and mainly in the UK. This report include
information about market structure in the UK within which Easyjet operates. Also it include
various economic factors within the UK that affects the business of Easyjet. Further, it include
the impact of Brexit on the business operation of the company, also the impact of COVID – 19
on the business of the company.
MAIN BODY
Explain the market structure in the UK within which EasyJet operates.
The airline market of the UK follow oligopolistic structure, this concern with the few
firms that work interdependent. Oligopolistic market structure follow decrease prices market so
that they can increase sales at the expanse of other firms. It reflect perfect competitive market
(Cahen-Fourot, 2020). In the context of Easyjet, company also follow oligopolistic market
structure in the UK, that helps the business to deal with competitive market so that they can
increase the level of effectiveness and growth. Low cost airline market impact the level of
effectiveness and growth in the market. Oligopolistic market structure frame for the effectiveness
and growth in the industry, in this limited number of firms included that perform low cost
strategy in the business for the effective growth and advancement of the business in the
competitive market.
In the context of Easyjet, the airline follow low cost strategy that differentiate its services
from the other people and increase the level of customer base. This allow Easyjet to increase
market share and gain more profitability. In UK many airlines start to follow this strategy that
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have an impact on the growth and efficiency of the market. Also the British Airlines follow this
market structure so that they can provide effective outcome to the business and increase the
growth in market. This structure increase the level of effectiveness of business and its growth in
the market. In order to follow oligopolistic market many airlines gain benefits and growth in
their business so that business can achieve the level of effectiveness.
Oligopoly market structure increase the level of effectiveness in the market that involves
the growth of airlines and market structure (Fernandes, Crasta, and Hans, 2018). This increase
the level of competitive market for the Easyjet, however this strategy is effective for the market
growth and proficiency in the business. Easyjet follow this strategy so that effective outcome of
business can generate in UK. This oligopolistic market increase the level of market competition,
but this market structure help the business to grow and increase the level of effectiveness. Also
this helps to attract more customers so that business can achieve its goals and objectives.
Thus, Easyjet follow oligopolistic market structure in UK and this helps the business to
increase the level of effectiveness and growth in the market. It enhance the level of customer
base and market share so that business can achieve its goals and objectives. It assist the market
structure of UK towards the growth and development also it enhance the level of effectiveness.
Easyjet focus on the increasing number of customer base rather than the margins that assist its
business towards gain of more customer loyalty and growth in the market.
What are the economic factors within the UK that affects the business of EasyJet.
The economic factors assist to adequate level of uncertainty with this ability to manage
market instability and its fluctuation is managed which is resulted towards taxes, inflation rate,
interest rate, foreign exchange rate and many others as well (Fung, and Sergi, 2021). EasyJet is
a British airline company and have followed both national and international route and along with
this having market presence in about 30 countries. It affiliates with the different airline such as
EasyJet Switzerland, EasyJet Europe and EasyJet UK. As in September 2019 company
furthermore operates its business with about 10000 routes and have fleet with about 331 airbus
aircraft, 96 million customers with 159 airports at 3 countries (EasyJet - Factors Affecting Costs
Revenues and Profits, 2018). It is also being the second largest airline as by budgeting of
passenger count and 7th largest airline all across the world. In the year 2017, EasyJet have flown
with the passenger of 80.2 million and that was carried with 86.7 million seats. Due to the
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