SWOT and PESTEL Analysis of Jet2: Importance of CSR and Leadership Styles

This report provides a detailed analysis of Jet2, covering its SWOT and PESTEL analysis, the impact of political, economic, social, technological, environmental, and legal factors, and the importance of CSR and leadership styles. The report discusses how Jet2 addresses its strengths to mitigate threats and weaknesses and identifies the opportunities and threats posed by PESTEL factors. It also suggests the suitability of leadership styles for Jet2 based on the analysis of PESTEL factors.

Context of Business

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
SWOT and PESTEL Analysis of Jet2.........................................................................................3
Analysis of PESTEL factors.......................................................................................................6
Suitability of Leadership styles for Jet 2 based on the analysis of PESTEL factors..................8
Importance of CSR for Jet 2........................................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Businesses develop multiple strategies to get competitive advantage in the market by
analysing the internal as well as external environment for which they use different analysing
frameworks such as SWOT analysis PESTEL analysis etc.(Huang and et. al., 2022). To ensure
long-term profitability and increase market share , they adopt effective leadership styles for
increasing the productivity level of their employees. Businesses should also participate in
sustainability programmes and CSR activities to ensure social welfare that will facilitate brand
recognition and governmental support (Namalomba, Feihu and Shi, 2022). In the following
report, the chosen company is Jet 2 that is a British low cost leisure airline that engages in
offering scheduled and charter flights form UK. It is considered as third-largest scheduled
airline of UK after easy Jet and British airways. It has fleet size of more than 90 aircrafts and
operates with more than 80 destinations. The report will cover the SWOT and PESTEL analysis
of Jet2. It will also discuss about the analysis of PESTEL factors that impact opportunities and
threats and how the company addresses its strengths to mitigate threats and weaknesses affecting
the opportunities. The report also focuses on suitability of leadership styles for Jet 2 by analysing
the pestle factors. Further, the importance of Corporate Social responsibility in context with Jet2
will also be discussed in this report.
TASK
SWOT and PESTEL Analysis of Jet2
SWOT Analysis
The SWOT analysis serves as a tool for the businesses to identify their internal strengths
and weaknesses and identify the external opportunities and threats so as to improve the
performance of business by mitigating the weaknesses and threats identified to get the
competitive advantage in the market (Abdullah, Wan and Sirat, 2022). The SWOT analysis of Jet
2 is explained hereunder :
Strengths
 Brand Recognition : The company has
strong brand awareness all over the
UK. Due to the prestigious legacy of
Dart Group Plc., the parent company of
Weaknesses
 Limited Global Operations : The
company Jet2 has limited global
operations as compared to other top
global airlines that have multinational

Jet2.com; it enjoys high brand
recognition and experience in the
airline sector.
 Diversified services : Jet2 airways
offers diversified services to get the
competitive advantage in the UK
aviation industry. It also offers the
package holidays that include hotel
accommodation and transfer with Jet2
flights.
 Travel Agents : Jet 2 offers the
services of booking the tickets through
Travel agents and by convenient
services over the internet and through
communication over telephone. It gives
competitive advantage to the company
as other low-cost carriers do not
generally appoint the travel agents.
 Employees : It has a large employee
base comprising of more than 3000
employees in its airline business that
help in growth of the company by
contributing to its expansion objectives.
businesses like easy Jet, British
Airways etc.
 Labour costs : The company has high
costs structure due to the large number
of employees that cause increased
labour and maintenance costs for the
company.
 Price wars : The company has to face
price wars due to the competitiveness
of multiple strong brands that offer
similar services in the aviation industry
such as Easy Jet, British airways, Ryan
Air etc. It increases the costs of
company because the it makes efforts
to slash the prices to face price wars.
Opportunities
 Growing Aviation Industry : Jet2 has
the opportunity to ensure further
growth in the aviation industry as more
people are using airlines for travelling
purpose that helps in generating
revenues for the company.
 Expansion in Cargo market : The
Threats
 Competition : The company has a
threat from its biggest competitors such
as British airways, easy Jet, Lufthansa
etc. as they are also offering more
frills , for expanded routes and with
effective cost strategies. It affects the

Company has the opportunity to expand
the business in cargo market as it has a
Type A Operating License of UK Civil
aviation Authority to carry the
passengers, cargo and mail on its
aircrafts with more than 20 seats.
 Alliance with airports : The company
has the opportunity to develop
partnership and alliance with the
airports to enhance its route system for
offering more travel options to develop
a large customer base throughout UK.
market share of the company.
 Crude Oil Costs : The company has to
face volatility in fuel costs that affects
its cost structure.
 Macro Environmental factors : The
external factors such as economic
recession or surge in the price of fuel
etc. put pressures on the company that
causes leisure travellers to take less
flights (Ceyhan and et. al., 2022).
PESTEL Analysis
This Analysis provides a framework to the business organizations to analyse the positive
or negative impact of macro environmental factors on the business. Those factors include
Political, Economical, Social, Technological, Environmental and Legal (PESTEL). The
following is the PESTEL analysis of Jet 2 :
 Political : These factors include the impact of change in political policies, political
stability, foreign trade policies, trade restrictions etc. All these factors have direct impact
on the functioning of the business (Kurpiela and Teuteberg, 2022). In context with Jet 2,
its operations have been impacted by Brexit that caused departure of European Union. It
also had to meet the restrictions on international and domestic flights due to covid19 to
ensure safety of the passengers that have negative impact on its business.
 Economical : It refers to the impact of change in economic policies such as change in
interest rates, inflation rates, impact of fiscal policies, monetary policies, disposable
income of people, unemployment etc. The people with high disposable income spend
more on leisure travelling. The economy of UK is very strong that leave a positive impact
on airline industry. However, due to Covid19, Jet2 had to shut its fleet due to flight
restrictions that resulted in revenue loss.

 Social : These factors include the impact of social factors such as change in customers'
preferences and behaviour, marketing trends, cultural norms etc. In context with Jet
2.com, the customers who prefer leisure travelling impact the airline businesses by
booking more tickets. Also, the human interaction in the airlines caused negative impact
on the business due to the spread of covid19, so the company needs to ensure safety of its
passengers.
 Technological : It refers to the impact of new technology, innovation in the business,
adoption of artificial intelligence and automation processes to enhance operational
business (Albert and Pandey, 2022). Use of E-commerce in the business is also a part of
technological impact on the business. Jet2 company has its own website i.e.
www.jet2.com by which it gives regular notifications for its stakeholders. The company
also uses E-commerce in booking the tickets by the use of internet and also uses
telephone to communicate with its passengers. Also, the company has its own mobile app
i.e. Jet2.comapp through which it provides info to the passenger for booking the tickets in
one go in a convenient manner.
 Environmental : It refers to the environmental impact of the companies that includes
sustainability towards the environment, waste management , adherence to the
environment protection laws etc. In context with Jet2, in a statement, it stated that it has
saved 108 million tonnes of CO2 since 2010. it is taking initiatives to sustainability by
ensuring low carbon emissions and low noise pollution. Also, the company has launched
its sustainability strategy with the vision to become “top brand in sustainable air travel
and package holidays”.
 Legal : These factors involve the laws, rules and regulations of the country that the
company has operations in such as consumer protection laws, health and safety laws ,
licensing requirements and permits etc.(Zhou, Li and Yuen, 2022) In context with Jet2, it
needs to ensure the safety of its passengers and staff members so as to ensure compliance
to the applicable laws.
Analysis of PESTEL factors
How the changes in PESTEL factors influence opportunities and threats
By the market environment analysis, company needs to identify the opportunities and
threats to measure their impact on the business. Companies should get the best advantage of

available opportunities in the market and should implement appropriate strategies or use its own
identified strengths to mitigate the impact of threats. Through the analysis of above PESTEL
factors, it has been identified that the factors that pose threat to Jet2 are Political, Economical
and Legal factors and the factors that are identified as influencing opportunities for the company
are Technological, Social and Environmental factors.
Political instability poses threat to the company in terms of hindered operations of the
company. As due to covid19, jet2 had to face the restriction on flights and had to shut its
operations for some period, political factors has been identified as posing a threat to the company
in terms of loss of revenues (Song, 2022).
Economic recessions and uncertainty such as economic trends fluctuation like inflation
rates, interest rates and mainly the fuel prices etc. put cost pressures on the company because of
which the company has to face the competitive disadvantage as other similar companies have
effective cost strategies. Airline business is still facing the issue of refund of money due to
cancellation of flights during the lockdown period.
The company has a threat of losing brand reputation if it does not follow the
applicable laws such as violation of passenger safety laws, licensing permits or employee wage
laws etc. So, Jet2 needs to comply with other laws as well such as environment protection laws,
civil aviation industry rules etc. to maintain its brand image in the aviation industry.
Apart from the above threats from pestle factors, the changes in some pestle factors
create opportunities for the company. Such as technological factors create opportunity of
creating a large customer base for the company by using e-commerce through providing e
booking of tickets through its website and mobile app.
As the company is ensuring environment sustainability by taking initiatives for
reducing carbon emissions and developing strategies for becoming carbon free company in
aviation industry, it will provide the company with governmental subsidies for taking steps
towards environmental improvement and social welfare (Kosko and et. al., 2022).
The company has opportunity to develop a large customer base by considering the social
factors. It should use the social media websites to show the leisure and price effective travelling
services to all class of passengers to develop a wider customer base. Now, when more people are
preferring travelling these days, it has opportunity to grow in the aviation industry.
How the company is addressing its strengths to negate threats and weaknesses

The strong brand awareness of Jet2.com due to the prestigious legacy of Dart group
plc. helps the company in getting competitive advantage and in developing a large customer
base. Due to the strong brand recognition in the aviation industry, people prefer to travel via
Jet2.com that provide the company value as compared to other competitors like Ryan Air, Wizz
air, Lufthansa etc.
As the company offers diversified services , it helps in mitigating the weakness of
limited global operations by expanding its business through the diversified activities. When the
company will diversify its services, it will provide competitive advantage to the business in
terms of expansion of business as compared to the other competitors like easy Jet and Wizz Air.
Also, the large number of employees will help the company in expanding the business as it plans
to diversify its services.
As other low cost barriers like easy jet and British airways do not appoint the travel
agents, it provides competitive advantage to the company to take more bookings by appointing
travel agents for taking more bookings from the existing and prospective customers (Zeng,
Twang and Carrasco, 2022). By ensuring environment sustainability, the company can have
the advantage of reduced fuel prices as government provide relaxations to those contributing to
the environment and taking part in social welfare activities.
Suitability of Leadership styles for Jet 2 based on the analysis of PESTEL factors
By the above analysis of issues, threats and opportunities of PESTEL factors, it has been
identified that the company Jet2.com should adopt the Transformational style of leadership. As
this leadership focuses on bringing transformation in the businesses through increasing their
productivity and by developing a new vision for the company. For the identified opportunities or
to mitigate the threats, company can set a new vision for its business and bring transformation in
the company. Transformation leadership is a leadership where the leader works with the
followers over their self interests to identify the needed change by influencing and inspiring the
employees to commit to the new vision of the business (Odom, Sam and Tomaszewski, 2022).
As the company Jet2.com is planning to diversify its services, it would require more
productivity from the part of employees, so for this, it should adopt the Transactional style of
leadership. This style of leadership focuses on providing motivation to the employees by
employing rewards and punishments to make them omit to the goals of business (Tsai and et. al.,
2022). To achieve the optimal job performance of the followers, it focuses on increasing their

productivity. So, Jet2com can adopt any of the above leadership style by analysing the issues of
pestle factors.
But the below mentioned two leadership styles should not be followed by Jet2.com due to
their unsuitability to the business :
 Opportunist Leadership : The leaders following this leadership style do not give
priority to the organizational interests. They reflect the behaviour of getting personal
advantage and put their self interests above the organizational interests. The leaders
pretend to follow the combination of leadership styles to get personal advancement. So,
this leadership style would not be suitable for Jet2.com as it will not help the company in
bringing transformation for diversified services or for its cargo market expansion.
 Autocratic Leadership : As the company has large number of employees and huge
labour costs, applying the autocratic leadership style will provide ineffective management
of large number of employees and will increase labour costs by decreasing their
productivity. Autocratic leadership styles leave no autonomy for the employees. Leaders
make their own choices based on their own ideas and judgements and rarely take advice
from others. It causes a sense of dissatisfaction among the employees by not getting
involved even in the matters concerning them due to which their productivity tends to
decrease. So, Jet2.com should not follow the autocratic or opportunist style of leadership
as these styles would not be suitable according to their future plans.
Importance of CSR for Jet 2
CSR stands for Corporate social responsibility and is a social welfare activity adopted by
the businesses as an approach to sustainable development for the purpose of facilitating
economic, social or environmental benefits. Various welfare activities fall under the CSR
activities including sustainable development (Ahsan, Al-Gamrh and Mirza, 2022). It is a very
significant activity for the businesses as it provides various advantages such as competitive
advantage in terms of brand recognition and governmental support. Some of the points of
significance of CSR in context with Jet2.com include :
 Brand Value : When the companies participate in social welfare activities, it facilitates
in increasing brand reputation of the company, that in turn increases its goodwill in the
market. So, the CSR activities such as sustainability programmes of Jet2.com like

initiative for reduced carbon emission will provide brand value to the business in the
aviation industry of UK.
 Increased sales : When companies initiate corporate social responsibility projects,
customers prefer to take the services by developing a sense of belief and by hoping for
quality services from that company. They prefer to take the services from responsible
companies. As Jet2.com is working on its strategy of decarbonisation, passengers will
choose this company by observing its ethical behaviour for social welfare.
 Employee Engagement : Employees feel positive working with those companies that
possess a positive public image. The CSR initiatives of companies develops values such
as empathy and loyalty in the organization due to which the better and collaborative team
work is facilitated (Chen, Liang and Wu, 2022). As Jet2.com has a large number of
employees, by taking CSR initiatives for environment sustainability, it is ensuring an
effective employee engagement.
 Governmental Support : The companies that take part in social activities enjoy
governmental benefits in terms of relaxation of some rules and taxation policies and in
terms of getting subsidies from government for their new project investment (Maiorescu-
Murphy, 2022). Jet2.com may enjoy some licensing permits or other relaxations by
ensuring initiatives for environment sustainability.
In context with Jet2.com, its sustainability strategies include to become a carbon neutral
company from 2022 onwards. It ensures environment sustainability by making efforts towards
low greenhouse gas emissions, decarbonization and by striving to reduce the noise pollution with
its best efforts. It is making efforts to use Fuel effective aircrafts to ensure less pollution. It is
also taking initiative for reduction in single use plastics by almost 80%.
As part of CSR activities, the company has taken many steps to become one of the most
environmentally efficient airlines in the world. The company is still striving to be more
sustainable in the air. It will provide the company brand value and ensure employee satisfaction
that will result in increased productivity of the business. The above CSR initiatives of Jet2.com
will provide the company competitive advantage in the aviation industry of UK.
CONCLUSION
From the above discussion, it has been concluded that marketing environment analysis is
very important for every business organization to identify its internal strengths & weaknesses

and external opportunities & threats. Companies like Jet2.com analyse their business
performance by using the different frameworks like SWOT analysis and PESTEL Analysis. It
has been observed that Jet2.com has utilised its strengths in a best possible manner to mitigate
the weaknesses and reduce the threats. The analysis of PESTEL factors has provided an
understanding of available opportunities and identified threats in the market. It has been advised
to Jet2.com to adopt Transformational or Transactional style of leadership and should avoid
autocratic and opportunist leadership to increase productivity of its employees for its new
initiative of expansion in cargo market . As part of its CSR activities, Jet2.com has taken
initiatives for reduced carbon emissions and to become zero carbon by 2023.

REFERENCES
Books and Journals
Abdullah, D., Wan, C.D. and Sirat, M., 2022. International students in Malaysian higher
education. In International Student Recruitment and Mobility in Non-Anglophone
Countries (pp. 235-251). Routledge.
Ahsan, T., Al-Gamrh, B. and Mirza, S.S., 2022. Corporate social responsibility and firm-value:
the role of sensitive industries and CEOs power in China. Applied Economics, 54(16),
pp.1844-1863.
Albert, S. and Pandey, M. eds., 2022. Performance Metrics for Sustainable Cities. Routledge.
Ceyhan, V., and et. al., 2022. Economic viability of industrial hemp production in Turkey.
Industrial Crops and Products, 176, p.114354.
Chen, X., Liang, X. and Wu, H., 2022. Cross-Border Mergers and Acquisitions and CSR
Performance: Evidence from China. Journal of Business Ethics, pp.1-34.
Huang, C., and et. al., 2022. Bidding strategy of energy storage in imperfectly competitive
flexible ramping market via system dynamics method. International Journal of
Electrical Power & Energy Systems, 136, p.107722.
Kosko, S.J., and et. al., 2022. Marginalised Youth Activism: Peer-Engaged Research and
Epistemic Justice. Journal of Human Development and Capabilities, pp.1-21.
Kurpiela, S. and Teuteberg, F., 2022. Strategic planning of product-service systems: A
systematic literature review. Journal of Cleaner Production, p.130528.
Maiorescu-Murphy, R.D., 2022. Business-centered versus socially responsible corporate
diversity communication. An assessment of stakeholder (dis) agreement on Twitter.
Public Relations Review, 48(1), p.102138.
Namalomba, E., Feihu, H. and Shi, H., 2022. Agent based simulation of centralized electricity
transaction market using bi-level and Q-learning algorithm approach. International
Journal of Electrical Power & Energy Systems, 134, p.107415.
Odom, S.L., Sam, A.M. and Tomaszewski, B., 2022. Factors associated with implementation of
a school-based comprehensive program for students with autism. Autism,
p.13623613211070340.
Song, W., 2022. Dictators, personalized security forces, and coups. International Interactions,
pp.1-29.
Tsai, C.Y., and et. al., 2022. Human-robot collaboration: A multilevel and integrated leadership
framework. The Leadership Quarterly, p.101594.
Zeng, Y., Twang, F. and Carrasco, L.R., 2022. Threats to land and environmental defenders in
nature’s last strongholds. Ambio, 51(1), pp.269-279.
Zhou, Y., Li, X. and Yuen, K.F., 2022. Holistic risk assessment of container shipping service
based on Bayesian Network Modelling. Reliability Engineering & System Safety, 220,
p.108305.