Strategic Management Assignment - Easy jet airline
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Added on 2021-02-19
Strategic Management Assignment - Easy jet airline
Added on 2021-02-19
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STRATEGIC MANAGEMENT
Table of ContentsINTRODUCTION...........................................................................................................................1Impact of BREXIT on UK airline industry. ................................................................................1External analysis..........................................................................................................................2Internal analysis...........................................................................................................................3STRATEGIC CHOICE ...................................................................................................................4STRATEGY EVALUATION .........................................................................................................5CONCLUSION................................................................................................................................5REFERENCES................................................................................................................................8
INTRODUCTIONBrexit is the exit of UK from European Kingdom. Easy jet airline company is a low costairlines company which is headquartered in London. It operates on domestic as well asinternational schedules. The study will highlights the impacts of Brexit on airline industries. Thestudy will perform PESTLE analysis of the UK airline industry including recent development inThomas Cook and further report will do internal analysis of Easy Jet by performing VRIOanalysis. Moreover the report will do analysis of strategic capabilities of easy jet. Study will doevaluation of two competitors to easy jet (Morden, 2016). Executive summary. The study is about the Brexit. Impact of Brexit on air lines industries. The study is highlightingthe issues which are been faced by the airlines company. The major issue which is discussed inthe report is that the due to Brexit people flights are not allowed to enter in the UK boundaries.Flights are stopped which results in the loss of business. Another issue which report ishighlighting is that strict laws have been made by UK governments. High prices are charged bythe UK government if they don't follow the laws. Another issue in the report is that theoperational cost of flights are not recoverable due to Brexit. Level of tourism has been decreasedin the country due to brexit (Hill, 2017). By Brexit people stops travelling in the flights whichresults in the loss of revenue generation for the company. The study reveals that VRIO modelvalue of the company is known ie, the financial basis of the company is strong, company usesdigital platform. The HR management very good as by that skilled employees are recruited bythe organisation. The brand name makes the customers trust towards the company. Studysummaries that there many issues faced by the organisation but main issue is that the lessrevenue is generated by the company.Impact of BREXIT on UK airline industry. As in Brexit, Britain has withdrawal from Euro pion Union. This impacted the EasyJet insuch a way that people have limited their trips. As due to Brexit people have stop travellingwhich results in a loss for the company(Ginter, Duncan and Swayne, 2018). no. of flights whichwere flying on daily basis are not flying which is resulting in freat loss for company. Manypeople who have made their bookings but due to Brexit flights wont fly and now they are1
customers are demanding back the money for tickets. So this becomes liability for EasyJet.Travelling of tourist have become less which results in financial loss for the company. Aircraftoperators from UK will is considered third operators and require authorization. Brexit impactedthe overall trade of the Easy Jet as various laws and regulations are made by UK Govt. that iftheir flight enters UK boundaries they have to pay prices which are mentioned the law. Strictrestrictions are made by UK which results in loss of business. EasyJet sales are declined in adrastic manner. As people stops travelling and the goods which were transported by airlines arealso stops (Lasserre, 2017). As the oration cost of the air lines are same but there their flights arenot flying which results in such a way that the expenses are as same but no revenue is generated,which increases liability of EasyJet, in this sense it impacted the air line industries. External analysisPestle analysis of UK Airline industry including recent development in Thomas CookRecent era of economic depression affected various industries and airline industries wasno other exception (Zahari and Romli, 2019). There are various challenges faced by airlineindustries. So, it became extremely important for organizations in this industry to analyse thefactors that had affected their business. PESTLE analysis is a kind of strategic method that helpsin weighing all kinds of external factors that affects an organization’s business. Political factor: Because of Brexit, regulations for airline industry has been changed and hasbecome stricter. Other than this, various policies have been devised for passenger protection.Because of this airline industry organizations need to pay higher tax which is demotivatingorganizations like Thomas Cook. Because of these changes in policies and tax Thomas cook haschanged their packages that they provide to their customers and has laid more emphasis on theircustomer’s stay so that this change in taxation cost can be covered.Economic factor: growth rate of GDP growth in UK is also helping airline industry to establishthemselves and accept changes in taxation positively. This has helped Thomas Cook to focus ontheir travel and tourism business more positively (Trigeorgis and Reuer, 2017).Social factor: Nowadays consumers have become more demanding and because of this airlineindustries need to focus on providing more services at lower price to their customers because ofwhich their profit has changed. This has been a benefit for Thomas cook as this lowering of price2
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