Jet2holidays: Organizational Structure and Business Environment Report

This report offers a comprehensive analysis of Jet2holidays, a tour operator company, focusing on its business organization and environment. It begins with an introduction to business organizations, defining their structure and key characteristics. The report then delves into Jet2holidays' hierarchical organizational structure, highlighting its benefits such as clear roles and promotional opportunities, while also acknowledging drawbacks like communication challenges and reduced flexibility. The core of the report involves a detailed business environment analysis. This includes a SWOT analysis, identifying Jet2holidays' strengths (strong brand, diversified services, financial position), weaknesses (high labor costs, maintenance costs), opportunities (global expansion, marketing), and threats (market competition, potential for future pandemics). A PESTLE analysis follows, examining political, economic, social, technological, environmental, and legal factors influencing the company. The report concludes by summarizing the key findings, emphasizing the importance of various organizational functions and the impact of external factors on Jet2holidays' operations.

UNDERSTANDING
BUSINESS
ORGANISATION

Table of Contents
INTRODUCTION...........................................................................................................................3
Organization structure......................................................................................................................3
Business environment analysis........................................................................................................4
SWOT analysis............................................................................................................................4
PESTLE analysis.........................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
Understanding the business organization is referred as the carrying the main purpose of
commercial enterprise. It helps in describe the business structure and that helps meet the business
achievements. Business are focus on generate the profit and improve their productivity. Business
organization is consisted the various types and legal form of organization such as limited liability
company, sole proprietorship, partnerships and corporation business. The main characteristics of
the business organization is includes the profit motive, buying and selling, risk and uncertainties,
economic activity, social activity, customer satisfaction and customer experience and many
more. There are some five elements of the business organization is community, ownership,
purpose, good leadership and communication (Gursoy and Chi, 2020). Business organization
structure are determined the various factors such as liabilities, control, tax treatment and
liabilities, etc.
Jet2holidays is tour operator company that provide the holiday package in the hospitality,
tourism industry (Page, 2019). It offers the great holiday packages to their customer and
destination from ten UK airports includes the family packages. The focus on company is provide
better customer services and routes to leisure destinations. This report will discuss the
organizational structure and its benefits as well as discuss the business environment's analysis
with internal and external environments through the helps of SWOT and PESTLE analysis.
Organization structure
Jet2holidays company had hierarchical structure or tall structure. It has includes the many
leaders and layers of the management within the organization. Company follow the top to down
approach with the long chain of command for proper control and coordination. Manager also
have the narrow span of control so, it helps in manage the organization structure of jet2holidays
(Mcconnell, 2021). It includes the managerial position in business involves the senior manager,
vice presidents, supervisor and assistant manager. It consists the pyramid structure of business to
represent the control, communication and authority. There are many managerial level within the
organization.
Benefits of tall structure:
 In this structure, roles and responsibilities are clear and member of company know their
role within the organization.
 The narrower spans of control for managers.

 Roles are distributed in proper manner.
 Manager of jet2holidays supervise to employees so, they get more support and advise to
accomplish work in appropriate ways. They also encourage their employees to become
succeed and reach higher position within the organization.
 There are more promotional opportunities for employees with design training and
development programs.
Drawbacks of tall structure:
 The main disadvantages is longer line of communication and it difficult to manage.
 Employees feel demotivated due to the many numbers of managers.
 It is less flexible because the communication and decisions go through the managerial
layers.
 Employees job satisfaction are low and get stressed because some times managers are
most good as they expected, and they also adopt the toughest strategies by controlling
and monitoring them. Employees get less eager to work.
 Delegation of authority and responsibilities are also less due to layers of structure (Butler
and Read, 2021).
 It also consists the less creativity and flexibility are also made difficult for employees.
 It involves the ineffective communication and message is distorted because information
are reduced likely from manager to employees.
Business environment analysis
Business environment can be defined as the aggregate of all the factors, forces and
institutions that are external to the business of the enterprises and are beyond the control of
business enterprises, yet they have high influence over the growth and functioning of the
enterprises. Let's use different analysis to understand the business environment's impact in detail.
SWOT analysis
SWOT stand for strengths, weakness, opportunities and threats. It is an analysis which
helps identify the internal strengths, weakness of the business and external opportunities, threats
of the business. It is helpful in taking the business decisions in the enterprise (Petrova and et.al.,
2018).
Strengths: jet2holidays is a very popular tour operator which has a strong brand name which
can be used by the company to rebuild itself after the pandemic. It has expertise in offering

diversified services and holiday packages and the same can be used to attract the people back
for travelling after the pandemic. Further, company has an extremely wealthy financial position
and same can be used to facilitate the discounts on the packages which can seem attractive to the
customers.
Weaknesses: due to inflation the labour rate is all time high and it increases the cost of
packages. Further due to pandemic cost of maintenance has increased regarding the safety
measures that needs to be followed. They have to run on 50% capacity as per the government
guidelines which makes the operations less profitable.
Opportunities: as it is a leading tour operator it can enhance its expand its operations at global
level which can increase the profitability of the company. Choosing new methods of marketing it
can expand its customer base and bring the customers back for travelling after pandemic.
Reviving the market by using the cult tourism places at cheap rates may seem lucrative and give
an edge in the market (Moutinho and et.al., 2018).
Threats: in UK there is a high competition in the market which makes jet2 holidays put extra
efforts for surviving such tough competition. Also, there are chances that pandemic like
situation may come again and people tend to restrict the travelling during those time which can
freeze the business operations and incur losses.
PESTLE analysis
This analysis helps identify the key external factors which influence the working of the
organization and are not under the control of the business. It has 6 important external factors
such as political, economic, social, technological, environmental, legal (Hamilton and Webster
2018). These factors may have favourable or unfavourable effects on the business lets understand
each one in detail.
Political factors: the political environment significantly influences the operation in travel and
aviation industry. Due to Covid-19 there were a lot of restriction and guidelines which required
to be followed by jet2holidays. Such factors acts unfavourable for the business. Yet the
government's revival plan for the tourism industry has lately acted in favour of the business as
UK government has given a lot of taxation reliefs and subsidies for the business.
Economic factors: due to factors like Covid-19 which led to high rates of inflation, the prices of
fuel & oil has increased which has directly increased the airline ticket cost. Also, tourism
industry remained the worst hit from the pandemic as people stopped travelling altogether which

severally unfavourably impacted the business operations. Also, there was a huge lay off of
employees during pandemic which has affected the post pandemic working structure of the
jet2holidays.
Social factors: emergence of millennial generation has redefined the consumer behaviour and
this generation travelling more than their respective ideal estimated travel. Hence, it has
favourably impacted the jet2holidays business. Also, there is a shift in people opting for self
booking without help of tour operators which is significantly unfavourable for the business
(Stylos, Zwiegelaar and Buhalis, 2021).
Technological factors: there are a lot of technological advancements which has flooded the
industry, it makes jet2holidays incorporate the same in the business which has increased the cost
of operations. It has unfavourable impact on the business. Yet adopting such technological
advancement also gives business an edge by facilitating good customer service and quality
experience while choosing jet2holidays.
Environmental factors: for jet2holidays environmental attraction and resources remain very
important and such factors needs business to rethink their practices such as reducing the carbon
footprints, minimizing the wastage etc. jet2holidays is constantly adapting such measures which
has build a great brand image of the business. Hence, this factors works in favour of the business.
Legal factors: There are multiple rules and legal regulation which needs to be abided by the tour
operators as these are highly strict in nature and implications are very serious in case of non-
compliance. Such aspects make the operations complex and careful which acts unfavourable for
the jet2holidays. Yet it is the legal regulations and various bodies which are acting as the watch
dog which makes the industry very legit and trustable from the customer point of view
(Williams, Rodriguez Sanchez and Škokić, 2021).
CONCLUSION
As the conclusion, business organization is consisted the various major function such as
finance, marketing and operations. All this is dependent on each other. Jet2holidays company is
the private limited types of organization. The main role of the business organization is carrying
business for more profitability and productivity. Jet2holidays is the second largest business in
tour operators and also deliver the holidays packages. It parents company is jet2 plc in the
hospitality and tourism industry. Customer can use the discount code with the helps of enter
destination, review booking and passengers details, select meal , seats and extra. Clients can

easily book their flight with click through to the jet2 website. Company offer the inclusive and
inclusive plus to customer and satisfied them with provide the better services. company attract
more customer and employees by follow the positive culture and structure of company. The
characteristics of business organization is includes the job satisfactions of employees, better
communication, efficient usage of resources, better working environment, effective
communication.
In the conclusion, This report discussed the business environment of jet2holidays with
swot and pestle analysis factors such as social, economic, political, environment, legal and
technological factors that affects the jet2holidays. This report also elaborated the tall
organization structure of jet2holidays with the various benefits and drawbacks of tall
organization structure.

REFERENCES
Books and journals
Butler, D. and Read, D., 2021. Unravelling Theory: Strategic (Non-) Disclosure of Online
Ratings. Games, 12(4), p.73.
Gursoy, D. and Chi, C. G., 2020. Effects of COVID-19 pandemic on hospitality industry: review
of the current situations and a research agenda. Journal of Hospitality Marketing &
Management. 29(5). pp.527-529.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Mcconnell, I., 2021. Airline extends suspension of flights and holidays. The Herald (Glasgow,
Scotland).
Moutinho, L. and et.al., 2018. Strategic management in tourism, cabi tourism texts. Cabi.
Page, S. J., 2019. Tour operating and travel retailing. In Tourism Management (pp. 245-292).
Routledge.
Pan, S.Y. and et.al., 2018. Advances and challenges in sustainable tourism toward a green
economy. Science of the total environment. 635. pp.452-469.
Petrova, M. and et.al., 2018. Regional tourism infrastructure development in the state strategies.
Problems and Perspectives in Management. (16, Iss. 4), pp.259-274.
Stylos, N., Zwiegelaar, J. and Buhalis, D., 2021. Big data empowered agility for dynamic,
volatile, and time-sensitive service industries: the case of tourism sector. International
Journal of Contemporary Hospitality Management.
Williams, A. M., Rodriguez Sanchez, I. and Škokić, V., 2021. Innovation, risk, and uncertainty:
A study of tourism entrepreneurs. Journal of Travel Research. 60(2). pp.293-311.
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