Strategic Analysis of EasyJet: Business Context and Leadership

This report provides a comprehensive analysis of EasyJet's business context. It begins with an introduction to the context of business and its impact on organizational objectives. The main body of the report includes a detailed SWOT analysis, examining the airline's strengths, weaknesses, opportunities, and threats. It then delves into a PESTLE analysis, exploring the political, economic, social, technological, legal, and environmental factors affecting EasyJet. The report assesses the impact of changes in PESTLE variables on the company's threats and opportunities. Furthermore, it compares and contrasts various leadership styles, offering recommendations for the most effective leadership and management approaches. The report also touches upon corporate social responsibilities within EasyJet's business procedures. Finally, the report concludes with a summary of key findings and recommendations.

Context of Business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
SWOT Analysis...........................................................................................................................3
PESTLE Analysis........................................................................................................................5
What impact have changes in PESTLE variables had on threats and opportunities?.................6
Compare and contrast different leadership styles and provide recommendations for the best
leadership and management approaches......................................................................................8
Recommendation of a suitable leadership style.........................................................................10
Corporate social responsibilities in the business procedure......................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The context of business is related with summarising of various factors which are giving direct or
indirect impact to the business. Besides this, these are the aspects which are helpful for the
business to make choices and accomplish their objectives in most effective manner. Business
management is defined as the process which could be helpful in making plans and organising the
same so that differentiated aspects within business can be covered. These concepts are directly
related with gaining profits and market prominence by the business so that long term survival
can be seen (Simarmata and et. al., 2017). There are numerous alternatives which can be exerted
by the business in order to develop such concepts and to analyse business proceedings in
comparative manner. For better understanding of these concepts the current report is associating
such aspects related with EasyJet which is low cost multinational airline group headquartered in
London Luton airport. The company is operating domestic and international scheduled services
which are covering more than 10,000 routes and 30 countries as well. The prominent objective of
this report is to examine those variables which are having direct or indirect impact over the
business. On the other hand the report is analysing internal capacities with the approach of
SWOT analysis in order to minimise risk content of the business and to gain varied opportunities
as well. In the last part of this report various leadership styles are elaborated and comparison is
performed so that the best and the most advantageous strategy could be used by the business. For
a business CSR is acting as a prominent aspect so in the last part of this report light is being
enumerated over CSR concept.
MAIN BODY
SWOT Analysis
SWOT analysis is defined as a strategic planning tool which is used by the business in order to
examine their internal capacities and such weaknesses which are leading the business to face
risks and dodges within succession planning. SWOT is acronym of strengths, weaknesses,
opportunities and threats so using this method the company may get to know about all these
factors so that rivals can be treated in better manner and market competition can also be exhaled
(Efthymiou and Papatheodorou, 2018). For an organisation SWOT is considered as a forward
looking aspect by which internal analysis can be executed and in the same manner some
practices may also be adopted that would be beneficial in developing success opportunities and

benchmarks. With the help of SWOT analysis business obligations can be acquired by the
business so that higher profitability and consistency within business can be seen. In the reference
of EasyJet SWOT analysis is elaborated as under:
Strengths
 The company is managing their
business with low cost fleet in which
best quality services can be rendered.
 The company is able to make auxiliary
profits so that they are up for gaining
growth opportunities as well.
 EasyJet is having steady rise in their
profits which is helpful for them in
gaining sustainability.
 The company treats their employees as
their asset and in this manner they are
providing appropriate training and
development measures to them for
sharpening their skills.
Weaknesses
 Various vulnerabilities are seen by
EasyJet in their business operations due
to fluctuation in political condition.
 Higher baggage fines are being paid by
the company and this is major reason
that they are able to make lowered
profits.
Opportunities
 EasyJet is continuously putting efforts
in order to enhance experience of their
customers and in this manner
digitalised technology is used by them.
 By using market expansion strategy
EasyJetcan expand their market within
various segment of Europe and other
markets.
Threats
 The outbreak of COVID-19 has
impacted aviation industry in negative
manner as government of various
nations has initiated several regulations
for this industry.
 The implication of Brexit has also
provided negative aspects to the
business of EasyJet.
 Due to union strikes the company has
faced negative implications over their
profits and market image.
 In the current time people are attracted

towards booking using online media
and these are appealing to various
cybercrimes.
 The dimension of LCC is achieving
high market rivalry in current time.
PESTLE Analysis
PESTLE analysis is regarded as examination of external factors which are existed outside of the
business and may have significant relationship with business structure as well. These are the
factors which are existed outside the environment and are having direct or fluctuated connection
to the business (Fasone and Zapata-Aguirre, 2016). Using PESTLE analysis external factors can
be examined by the business so that overall working of functional department can be improved.
This is the model which is helpful in improving business functions as external factors are linked
with internal proceedings of the business and in the same manner so that in proper format so that
to deal with business discrepancy. Using SWOT analysis venture may analyse such factors and
issues that can be mitigated at early stage. In the context of EasyJet this analysis is elaborated as
under:
Political factors
 The impact of fresh air control strikes within European aviation companies and they are
providing direct impact over EasyJet.
 The company is requisite to associate their business functions with international aspects
and various economic dimensions.
Economic Factors
 EasyJet is having issues after outbreak of COVID-19.
 There are different macroeconomic issues related to rising of pricing gasoline, foreign
exchange rate and these are having direct impact over EasyJet.
Social factors
 In the context of EasyJet the company is having their own pilot association so that to
provide efficiency to their pilot.
 Customers are spending higher in Europe so that this is creating expansion opportunities
in the business.

Technological factors
 For gaining better to customers using digital platform is essential for EasyJet in order to
place their services in appropriate manner.
 Using of AI could provide advantage to EasyJet.
Legal factors
 The company has acquired license within UK so they are allowed to operate only within
British airline.
 Rules changing within regulation of baggage which are associated with higher business
impact.
Environmental factors
 There are various initiatives which are leading to minimise carbon footprints.
 Fuels are consumed by aircraft in huge manner and due to this impact over the
environment are seen.
What impact have changes in PESTLE variables had on threats and opportunities?
In the respect of EasyJet the company is defining their political aspects as gaining such
commercial opportunities by which the company is trying to regulate their level of pollution in
order to minimise negative impact over environment and their market image as well. In this
manner the company is executing such practices for the major purpose of minimising
environmental impacts and challenges as well. This initiative may lead the company to gain such
opportunities by which they can take corrective decision regarding their business expansion in
some other countries (Derudder, Devriendt and Van Nuffel, 2016). Economic factors are linked
with accumulating of market scenario as in this case COVID is the emerging issue which has
given negative implication to various business and they lead to shut their ventures. In light of
COVID pandemic the government has imposed ban over airlines in order to spread the virus and
they are allowed to operate in terms of emergency. In the condition of emergency the
government permission will be taken by airlines so that they can deal with complex situation and
could provide help to needy person. COVID has impacted the economy of whole the world and
now people do not have enough money to buy tickets as no earning has been seen in this year.
Inflation is also a negative aspect that has given rise to cost of gasoline and other oils. In lieu of
this various programmes are launched by such academies in order to enhance abilities and skills
of their pilots and to give them opportunities to enlighten their career in aviation industry. This is

the manner in which better opportunities are given to employee for boosting their skills and
proficiency.
This is the manner in which EasyJet is trying to retain their customer for gaining business
sustainability and to invite more customers to get added in their business. EasyJet is able to get
immense opportunities in the market by meeting needs and expectations of their customers and
by attaining development aspects as well (Anwar and Hasnu, 2016). The current market is
regarded as contemporary environment and for this using of digital platform is one of the
essential measure that would be advantageous for the business to exert their functions in most
effective manner.
The role of technological factors within business is vast and in this manner EasyJet is
trying to understand uses of machines and other equipment so that to gain market proficiency.
Government of UK is providing grants and license to such business and in this manner
differential opportunities to expand business can be inhaled. Besides this policies of baggage are
varied from place to place and these are also decided by the government and somehow they
impact business functions of EasyJet. Environmental factors are generating higher prospect for
EasyJet and in this manner the company is required to minimise their emission of carbon so that
safeguard to environment can be referred. In the current scenario businesses are targeted towards
using less fuel and to enhance environment upkeep in order to sustain for longer period.
Addressing their strengths in order to counteract their weaknesses and dangers that are
limiting their possibilities
In current time this can be said that due to political surroundings EasyJet is requisite to
manage connections with several countries so that they can reduce certain issues in managing
their business (Wongleedee, 2017). This relationship will be helpful for the company to
differentiate their services from rivals and gain higher opportunities to expand their business.
Besides this the company is facing issues of baggage fines and this is regarded as the major issue
which is limiting their profits. Innovative ideas can also be used by EasyJet for enhancing their
profitability and lead the market over their competitors. Another issue faced by EasyJet is related
with outbreak of COVID as due to this barriers in operations are faced by the company. Due to
certain restrictions this is not easy for EasyJet to manage their business in this critical situation
and to expand their business in different market segments. Using of latest technology is a trend
which is inhaled by EasyJet in optimal manner in order to attain their business objectives and to

acquire prominence over the market (Raut and et. al., 2019). In this manner trend of online
booking is increasing and in this manner customer will have to share their personal information
which attracts cybercrimes. Due to lack of security aspect data of customer may get leaked and
this is the greatest wound to brand image of EasyJet which may result them minimising of
customer portfolio.
Compare and contrast different leadership styles and provide recommendations for the best
leadership and management approaches.
Leadership is defined as the ability in which order are given by an individual to their
subordinates in order to implement various plans and actions so that they can perform their
workings and tasks in most effective manner. Leadership is playing significant role in rendering
motivation to people so that they can perform with utmost quality and provide assistance of
development to organisation in which they are working. There are different authors that have
given their theories on leadership styles and these are differentiated on the basis of political,
social and other constraints (RIZAN and et. al, 2020). In the context of EasyJet the company is
using such route within their business so that to share their goals with their employees and to
take out their fuller efficiency in performing various obligations. These leadership styles are
helpful for the business to attain overall business objectives and provide significant guidance to
people involved under the same. In this manner some of the leadership styles are elaborated as
under:
 Democratic leadership style: Under this style of leadership leader tend to take input from
their every member in order to manage harmony of the group. The leaders is only person
who is responsible for taking decision at final level but in elementary level all the
candidates of groups are associated with providing efforts so that endeavours of the
business can be attained. This leadership style is considered as one of the best style as
this helps people to stay motivated and involved in their jobs. This leadership style relates
that how people make choices in relation to dealing with uncertainties coming over their
path. For example: EasyJet is arranging some sort of board meeting and a democratic
leader is going to hear aspects undertaken by each and every member so that solution can
be taken out as assimilated manner and employee feel valued within the organisation.
Using this leadership style maximum output can be taken out by an individual and this is
a great sign for dealing with sustainability.

 Autocratic leadership style: This style of leadership is associated with taking of decision
only by an appointed authority so that centralised power of command can be kept within
the business. This leadership style doesn’t involve employees and other parties in
decision making so that the entire decisions are being taken by the leader only. Under this
leadership style leader is only the person who is being valued is the leader. In the context
of EasyJet the management team is keeping the authority to change working hour of their
employees so this makes them an autocrat leader (Bastola, 2020). The market is dynamic
in current time and organisations are not able to retain their employees so this is regarded
as the greatest issue with the businesses that to have higher employee turnover. For
retaining them best leadership style is to be used so that employees get expertise for each
and every situation. Executives are defined as the person those are having potential to
deal with complex situations and acquire prominence within their field. So leaders are the
person those are taking responsibility of working under complex situation so that growth
can be received by employees.
 Transformational leadership style: The main objective of transformational leadership
style is to gain regular transformation in the business in order to improvise overall
functions. For every business employees are delegated with some roles and
responsibilities and these are requisite to be exerted so that overall working can be
exerted insignificant manner and employees can even perform out of there area of
comfort. Leader is dividing job roles among each and every employee and these are
aligned with attaining organisational goals and objectives in appropriate manner. For
every phase risk and hurdles are there and a transformational leader is the one who
convert those issues into opportunities and keep their work going.
 Transactional leadership style: This leadership style is related with the method in which
employees may perform their duties and obligation in most effective and advantageous
manner for the organisation. For marketing department transactional leadership style is
utilised as in recurring manner some reports are required to be prepared within this
department in order to evaluate their performance and to analyse overall position of the
business (Seyedsafi, 2017). On the basis of these reports incentives are given to
marketing personnel and this may impact their performance in negative or positive
manner. Under transactional leadership incentives are given on the basis of individual’s

performance so that they can learn regarding their job role and active performance in
significant manner. For example: when appropriate amount of incentive is given to an
employee that means the company is valuing their efforts and at the same time the
employee become valuable for them as well.
Recommendation of a suitable leadership style
Coach-Style Leadership
These are the leaders those are highly emphasised over minimising such issues which are
creating barriers for employees in performing with their qualities. These leaders are emphasised
over developing a manner in which overall objectives of the business can be met in impactful
manner. These leaders are wholly dedicated to develop growth of the business so that success
ratio can be increased. For EasyJet the leaders are trying to communicate with their subordinates
so that skills and proficiency of employees can be enhanced. These leaders are having
differentiated skills and this is regarded as the major reason that employees are happy to work
with such leaders.
Bureaucratic Leadership
Bureaucratic leadership is related with autocratic leadership as traits of both of these leaders are
similar. On the other hand bureaucratic leaders are inclined towards rejecting ideas and opinions
of others and they do not welcome the same (Russell and et. al., 2018). This is regarded as the
situation of creation of conflicts as practice of dominance is existed within this leadership style.
In the context of EasyJet this leadership style may develop centralised command power within
leader so that they can work without any interference.
Corporate social responsibilities in the business procedure
CSR is defined as the act in which contribution to society is provided so that development
opportunities can be rendered within society. Under this manner using charity as major functions
societal benefits can be provided. CSR in current time is regarded as one of the prominent
measure and in private sector as well the concept is taking higher emergence. When an
organisation is dedicated towards society then its brand image gets increased and resultantly
profitability will also be hiked (Vo, Xiao and Ho, 2019.). Adopting social responsibility will
develop overall productivity of the business and in this manner resources can be used and
acquired in optimal manner which is beneficial for the business in long run. CSR is taking its
edge in dealing with productivity and constant working so that overall development of the

business and society can be seen. Using CSR EasyJet can deal with their major issues that could
be related with environment and its reciprocal effect over the business. In this manner the
company is using CSR practices in primal manner in order to serve the society in better way and
to protect them as well.
CONCLUSION
From the above detailed discussion this can be concluded that analysing internal and
external competencies within business is required as these could provide such edge to the
business by which several growth opportunities can be inhaled. In this manner using SWOT
internal analysis can be performed and this would be helpful in analysing internal strengths so
that capabilities of the business can be enhanced. On the other hand PESTLE analysis is used for
analysing external factors that may impact internal working of the organisation. For dealing with
these factors keeping appropriate leadership style is helpful as this would be giving direction to
employees in that business can be managed in full-fledged manner. In current time CSR is
holding high degree of approximation in which by providing social benefits an organisation can
make their path of success.

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