Strategic Change Management in Jet2 Plc: Analysis of Competitive Advantages, External Environment, and Issues Faced by UK Travel Tourism Sector

This report analyzes the competitive advantages, external environment, and issues faced by Jet2 Plc in the UK travel and tourism sector. It also provides recommendations for strategic change management. The report includes a company overview, analysis of competitive advantages using Porter's Generic Model, external environment analysis using PESTLE Model, and the strategic management process. The report also discusses the issues faced by the UK travel and tourism sector, particularly the impact of new virus strains. Course code and college/university are not mentioned.

Strategy and Change
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Company Overview....................................................................................................................3
Analysis of competitive advantages............................................................................................4
External environment analysis...................................................................................................6
Strategic management process...................................................................................................8
Issues faced by the UK Travel Tourism sector........................................................................10
Recommendations.....................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Strategic change management refers to the process of managing the strategy in a
structured way for achieving the missions and objectives of the organisation. Strategic change is
very hard for predicting and control, that is why many firms prepare for all the possible
scenarios. It is significant for companies durability. Unless the business are prepared for the
unpredictable, sudden and radical changes they will not be able to survive. Decisions are made
on the basis of facts, knowledge and scenarios as businesses cannot predict what will occur in
near future. Change management strategy is the response plan the business organisation uses for
addressing the change. It is the mechanism which aims for minimizing the negative impacts the
dynamic events bring mean while capitalizing the transformation. This report is based on the
Jet2 PLC which is a British multi-national airlines situated in Leeds, England(Wu and et, al.,
2021). Its main head office is located in the Low Fare Finders House on grounds of Leeds
Bradford Airport, England. This report will analyse about the firms operations and know about it
by using many models such as Pestle analysis, porters five forces and process of strategic change
management , along with the change model. In last the issues which are impacting the travel
and tourism industry with the recommendations for the issues.
MAIN BODY
Company Overview
Jet2 plc, earlier known as Dart Group plc which is a British international airlines
organisation based in England. The firms name for many of its existence was derived from
aircraft type which it flew, Handley Page Dart Herald. After the selling off the units the firm
rebranded as Jet2 in the year 2020. Airlines operations originated in the year 1971 when the Art
Carpenter made 2 firms called Carpenters Air services Ltd. For flying flowers by using the
contractual aircraft to UK maintained from Guernsey and transport of Carpenter for distributing
flowers on UK main lands to the wholesale markers. In the year 1975 the 2 firms became the
Express Air Frieght. Its key persons are Philip Meeson who is the executive chair person of the
airlines(Watson and et, al., 2018). They deals in Charter and scheduled passenger airlines,
holiday packages, cruise lines , resorts and hotels. Firms revenue in the year 2019 was $3,143.
1 million whereas the operatring income was $203.4 million and net income was $177.5 million.
It has 2 subsidiaries as well known as Jet2.com and Jet2holidays.

Analysis of competitive advantages
PORTERS GENERIC MODEL- The model states about how the business organisation
will carry the competitive advantage in the market place. Primarily the 2 generic strategies will
result in low cost, focus and differentiation(Teece, Raspin and Cox, 2020)(. The firm will select
the scope which focuses or offers the goods in the segment of market. Generic strategy will
show choice made of scope and advantage both. Here is the JET2 Plc. Analysis to know its
competitive advantage-
 Cost Leadership- In the low operating cost industry the interesting aspect is the cost
leadership, but JET2 Plc, relies on the cost leadership strategy as the consumers expect
from the airline to offer low fares. But for getting the competitive advantage Jet 2 Plc
requires to make some big changes. So for this the airline opted the "low cost, no frills",
by enabling the consumers to move from A to B without thinking about something else.
Airline is always finding ways for lowering the costs and pat off the investment they
have done, like for ex- the planes fly more in traditional airlines firms for covering the
costs, land in the out of way airports where the taxes of landing are less and many
others so the consumers gets low fares as possible. So Jet2 Plc is focused on the cost
leadership and requires to focus more for overcoming to become market leaderRyan,
2019).
 Differentiation- It is also significant as in this strategy the firms requires for innovating
for attracting the consumers and make them opt the firm instead of the rival firms. By
proposing low fares which is the part of the Jet2 Plc differentiation strategy along with
the "low cost, no frills" strategy. The biggest improvement made by the airline is by
significantly changing the industry by creating the e tickets. This solution has enabled
for nor only cutting the personnel but also made consumers life easy. They can access
the current news with most reasonable costs, checking their bookings and compare the
fares in the 2 weeks period. Along with this they are also trying for differentiating self on
operational side of firm and quality of service. Airlines executives wants the firm to be
known for the operational excellence , on time performance and drive the cost per seat
and enhance profits. Overall the proposition of the consumers is low price with the
convenience and care.

 Focus- In application of the focus strategy there are mainly 2 option , one is
concentrating on cost decrease or some differentiation. Jet2 Plc prefers for focusing on
the requirements of the business air travellers and wealthy travellers who are ready for
the trading of the increased fares for great standards of luxury in planes. Airlines uses the
single aisle Boeing 757s and only give 48 seats for excellent comfort of seating. Every
seat can be folded down in a flat bed and even the business meetings can be held in the
flight. Airlines strategy is being unique by unbundling the services which
conventionally have been thought as standard.
 Differentiation focus- This strategy is the developing of the differentiation strategy,like
the cost focus there are 2 aspects on focusing on differentiation aspect and other one on
entering the business in a niche market. Jet2 Plc operates in the big market where they
have to compete with the other airlines too and for it to operate in a niche market with
some differentiation they will have to invest more which will impact profitability.
The above analysis states that Jet2 Plc uses the cost leadership as it main competitive
advantage where it tries to give consumers the best possible prices for attracting them.
Consumers are always in search of low fares , so they easily opt the Jet2 Plc airlines.
External environment analysis
PESTLE MODEL- It refers to the strategic frame work used for evaluation of the
environment of the business in which the businesses operates. Conventionally this model is used
for the analysis of external environment of business. It is used by the management and boards
in the process of strategic planning and planning of business risk management. Here is the Jet2
Plc analysis-
 Political factors- Nations politics have as great effect on the environment of the
business. If the nation is business positive or its opposite then the stable and strong
political environment becomes important. As every one knows that UK has opted for
departing from the European Union for some time and this decision has impacted the
many Uks businesses in which the Jet2 Plc also comes. The period of Brexit transition
was tough for the businesses as they have major part of businesses in Europe too. In the
Middle East changes in the politics has lead to the increase in prices of fuels which

impacts directly the airlines cost. Enforcement of government policies also significantly
affects the strategies of business.
 Economic factors- It has been founded in the many research that there is relationship
among the air travelling and GDP. As the crisis of finance in the year 2008 the worlds
economy faced a great recession which hurt many travellers. Decline in the business
travellers greatly impacted the airline industry. It was very hard to maintain the low
cost as there was increase in the prices of fuels. In these circumstances the passengers
were tend to find other transport modes which were cheaper like high speed trains. Even
the fluctuations of British Pound, Euro and Dollars might rise the high risk for the low
priced airlines firms.
 Social Factors- In the emerging population of aged people proportion of the elder
people in the society is increasing day by day. This part of population is the one which
also travel less. On other side travelling is becoming more attractive day by day in all the
nations. Low priced airlines like Jet2 Plc encourages more people for travelling more
without taking any tension about the tickets prices.
 Technological Factors- Internet has made it more convenient for the passengers to book
the tickets and do check ins and enhance the efficiency and reduce the demand for the
staff, meanwhile the systems of online booking has made prices of the market
transparent. On other side the technology development like video conferencing and
communication via smart phones permits the people in various areas for having face t
face talks and save transportation cost.
 Environmental Factors- Airline sector is accountable for the 3.5 % change in weather
which might increase to 15% in near future. By the change in climate the conscious in
passengers have risen. This particular shift forces the airlines for flying in the
environment friendly manner. Environmentalists have high level of concern about
airlines CSR. Environment sustainability needed by the governments and NGO lead in
the extra cost to the airlines like charges of carbon emissions and cost of protection of
climate change(Desai, 2019).

 Legal Factors- After the attacks of 911 many strict rules and regulations were introduced
for reducing the terrorism threat in many nations and UK was one of them. Compliances
for these rules were essential for meeting the needs airlines must maintain the level of
standards and services which will increase the cost of the airlines. Legislations of paying
the over booked passengers amount of compensation, lodging and food were
implemented for improvement in the rights of passengers while travelling.
Strategic management process
Strategic change management process refers to the movement of the firm away from the
current state towards the desired future state for increasing the competitive advantage. It is the
approach for bringing the change in the firms strategy structure and systems of human resources
and large environment(Hinterhuber and Liozu, 2019). It needs the attention of management to
the business organisation cultural, technical and political aspects. There are 7 steps of the
strategic change process in the business, Jet2 Plc should follow all the 7 steps for implementing
the process of strategic change-
 Diagnosing the requirement for the change- First Jet2 Plc must anticipate the need of
change for long term survival. So the initial preparation and change planning for the
change management needs the diagnosis for change in the firm. In the diagnosis for the
change the analysis is made of the Je2 Plc members who are ready or change and firms
members for change competency. Diagnosis aids in the prediction in future.
 Diagnosing the organisation- It is the main phase of planned change model. It is the
process of knowing the functioning of the organisation. It gives the essential info about
the change design interventions. Diagnosis can focus on the understanding of the
problems of the firms, including the consequences and causes and identification of the
Jet2 Plc affirmative attributes.
 Collecting and analysing the information diagnostic- If the Jet2 Plc is involved with
the change then they will require to collect, analyse and interpret the info and in last get
feedback about info. Information quality which is collected plays the significant role in
development the suitable interventions for dealing with the changes.

 Igniting the change- It is the stimulation of the individuals and other stakeholders for
the change to occur(Larsen, Boje and Bruun, 2020). It is done by the empowerment,
motivation and education of the stakeholders. For the igniting of the change in the
airlines Jet2 Plc first-
- Establish the sense of urgency.
-Make the powerful coalition change &
-Change communication
 Creation of the network of changes and build the teams- It is essential for building the
change network by the identification of the change financiers, team of change
management, agents of the change and the targets(Liang, Barker and Schepker, 2018).
Members in the network of change carry the various activities for the change bring in
the Jet 2 Plc.
 Preparations and execution of the change management plan- After the Jet2 Plc have
diagnosed need for the change management, completed the analysis of stakeholders,,
which is undertaken for the start of the change ignition, building up the network of
change and determining the team tasks which is related for change. The plan will will
give the management and others involved with the change managements the directions
for the implementation of the change.
 Identification and management of the resistances to the changes- In this step the Jet2
Plc management identifies the resistances which are major, like the organisational ones
and personal ones. It helps them for the assurance of whether the current skills and
contribution will be of some use in future.
 Institutionalizing the successful change programs- It is the last stage change
management process. In this stage the executives of the Jet 2 Plcs who are appointed for
the aim of conducting the evaluation of impacts of the program of change. They perform
the evaluation for understanding the impacts of the changes which are made in structure
and strategy on the performance of the organisation(Limba and et, al., 2018).

Issues faced by the UK Travel Tourism sector
 New virus strains- Uk travel and tourism sector is one of the largest contributors in the
nations economy. But after the outbreak of the corona virus pandemic the passengers who
visiting the country were reduced drastically. This scenario is built as the new strains of
the viruses are coming every day , which is threatening the passengers who wants to visit
the nation. All this is impacting the economy to a great extent.
 Recession- It is the main cause why which the consumer spending power is reducing
day by days and all this has happened afters the pandemic. Travel operators have to
decrease the capacity for filling the programs of holidays. They have to de risk the model
of the business , likes the cutting of the commitments of the hotel. There is risk to this
likes the consumers disappointment for not having the appropriate hotels in correct
place at right time when they wanted to travel(Malik and Khan, 2021).
 New rules and regulations- In UK compliance with the new governments lead
customers regulations of protection likes the Flight Plus Atol. Many of the businesses are
coming in the terms for the reforming and applying for the licences. In Uks scene the
entire image of the protecting of the consumers is under the review and it will haves as
effect on the ways by which travelling to UK.
 Economically risky destinations- In UK where the tour operators have great interest
for springing the mind. Many bodies such as ABTA are working for the assurance that
there is good intelligence for ensuring that the industry and consumers haves the
accurate view of the exact situation and act according to it.
 Access to the finance cost- Due to the seasonal travel nature, companies require the
effective financial markets for accessing the capital at very reasonable rates when they
need(Mishra and et, al., 2018) . They even also have different ways for protecting the
money of the consumers and in times of the less confidence in banking sector and lack
of the availability of finance the pressure on the travel firms is rising. Taxes and capacity- In the tough times the tour operators of UK must put more time
for campaigning the elimination of the values tax destroying. For ex- the Air
Passenger Duty which the Mps argue for aiding to decrease the nations deficit. ABTA

disagrees that the tax cost nation more that makings and is calling for the lobbying by
the groups such ass Fair Tax on Flying. Another issue is lack of the capacity of the
airports in UK which is leaving less margin for the errors. Travel and tourism industry
must keep the pressure for getting the cross party view on issue of the news runways for
the airlines ass UK is in the danger of losing opportunity for establishing itself as the
global travel hub(Nakano, 2019).
Recommendations
Here are some of the recommendations for the Uks travel and tourism sector-
 Government should work with the tourism sector for increasings the domestic and global
both passengers numbers.
 Make sure that the government and industry works for the common goals for boosting the
Uks tourism.
 Ensure that the tourism sector is Effient and productive and globally competitive so the
work force is enabled for meting the needs.
 By creating the new independents travel and tourism hub of data by the support of big
travels firms. It will allow the firms for making the revolution of big data.
 Launching of the Tourism zones by bringing the businesses and locals firms together for
establishing the coordinated growth strategy in the local economy and decreases the
season ability impact.
CONCLUSION
The above report concludes that strategic management is very crucial for the businesses
as it is the process of management of the strategies in the structured manner for the achievement
of the objectives and missions of the firm. In the report the overview of the firm is mentioned
with the business organisations competitive advantage by the use of different models. Further
the analysis of the external environment by the application of the models in context of the firm.
In addition the explanation of the process of the strategic change management. In the end the
identification of the various issues and recommendations for the issues identified were
discussed.

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