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Low-Cost Airlines and Network Strategies

   

Added on  2020-02-23

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Running head: STRATEGIC MANAGEMENTStudent ID number-Module name- Strategic Management PM 303Module Code- PM 303Name of the universityDeadlineAuthor Note:
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2STRATEGIC MANAGEMENTExecutive SummaryThe main aims of the following report are to analyze the strategic management of Easy JetAirlines Company. The mentioned company is one of the largest low cost carriers of Europebased in Luton, England. Because of the pullout of Great Britain from European Union thecompany is in a crisis as the EU has warned that the companies based in England will not enjoythe advantages that they enjoy in the European zone. The management of the company has takenthe decision to shift its base in Germany. The report has discussed in detail about the micro andmacro environment of the company.
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3STRATEGIC MANAGEMENTTable of ContentsTask 1...............................................................................................................................................5PESTLE ANALYSIS......................................................................................................................5Figure 1- PESTEL Analysis............................................................................................................5Porter’s five forces analysis.............................................................................................................7Figure No 2 – Porter’s Five Forces Analysis...................................................................................8SWOT ANALYSIS.........................................................................................................................9Figure No 3 –SWOT......................................................................................................................10Table No 1- SWOT Table..............................................................................................................10TASK 2..........................................................................................................................................12Physical Resources........................................................................................................................12Financial Resources.......................................................................................................................13Human Resources..........................................................................................................................13Competencies Analysis of the company........................................................................................14Core Competencies........................................................................................................................14Threshold competencies................................................................................................................14Task 3.............................................................................................................................................15Current Strategic Statements of the Company...............................................................................15Vision Statement............................................................................................................................15
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4STRATEGIC MANAGEMENTFigure No 4 – Vision Statement....................................................................................................15Figure No 5– Vision Statement.....................................................................................................16Mission Statement.........................................................................................................................17Figure No 6– Mission Statement...................................................................................................17Recommendations..........................................................................................................................17Conclusion.....................................................................................................................................18References......................................................................................................................................19
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5STRATEGIC MANAGEMENTTask 1PESTLE ANALYSIS Figure 1- PESTEL AnalysisSource- (Cattaneo et al. 2016)Political aspects- The Government of Germany is parliamentary and the country has ademocratic constitution. The chancellor is the one who heads the executive branch of the Federalgovernment. The well designed political structure of the country enables smooth businessoperations. The presence of an independent Judiciary system protects the fundamental rights ofthe people and the business (Cattaneo et al. 2016). Overall it can be said that Germany is apolitically stable country. The sophisticated business sector and a proper infrastructure help thecountry to innovate and stay competitive. Easyjet will find it easy to carry on its plans forexpansion as because Germany is gradually increasing its presence within the European Union
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6STRATEGIC MANAGEMENTand NATO. However there are also some problems in the political structure of the country as taxregulations and tax rates in Germany is one of the main hurdles for Easyjet to carry on itsbusiness. Economic factors- Germany is the fifth largest economy of the world in terms of PPP and is thelargest economic power of Europe. The presence of a large number of manufacturing andinnovative industries which are technological advanced helps the country to be one of the leadingexporters of different items live machinery, Chemicals and vehicles. Financing for differentcompanies are also very cheap due to very low interest rates. The gross domestic production ofthe country is one of the highest in the world indicating the purchasing power parity of thecitizens. Social Factors- Germany ranks 9th inthe world in terms of human capital Development. Asmentioned earlier the technology of the country is of world class. A considerable amount ofbudget is allocated for health care and education (Malighetti et al. 2015). The labor productivityis very much high since the year 2011. There are also some problems that exist in the Germansociety (Cumming and Zahra 2016). There is a lack of Higher Education and Training in thecountry the growing social divide is also a cause of concern while the ethical discrimination isstill followed out largely in the country. Technological factors- Germany is famous for its most innovative and technologicallyadvanced manufacturing companies especially cars. Local competitionis very high in the marketwhich paves the way for the companies to innovate new and challenging products. Governmentpolicies support the use of large scale Technology to gain an unprecedented advantage over theother products in global market. However Germany has been facing shortfall of skilled labor for
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