TM4010 Business Environment Report: EasyJet Plc's Industry Analysis

This report provides a comprehensive analysis of EasyJet Plc's business environment within the events, hospitality, and tourism industries. It begins with an introduction to the airline industry and EasyJet's history, aims, and objectives. The report then delves into analytical frameworks, including PESTLE, SWOT, and Porter's Generic Strategies, to assess the external and internal factors impacting the company. The PESTLE analysis examines political, economic, social, technological, legal, and environmental factors, while the SWOT analysis identifies EasyJet's strengths, weaknesses, opportunities, and threats. Porter's Generic Strategies are applied to determine the airline's competitive positioning. Furthermore, the report discusses the importance of business ethics, ethical considerations, and corporate social responsibility (CSR) in today's business environment, with specific examples related to EasyJet's practices. The report concludes with recommendations for enhancing EasyJet's competitive advantage.

BUSINESS
ENVIRONEMENT IN
EVENTS,
HOSPITALITY AND
TOURISM
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Table of Contents
INTRODUCTION ..........................................................................................................................3
PART 1: Introduction and outline of business industry as well as of company along with its
history, aims and objectives.............................................................................................................3
PART 2: Discussing analytical frameworks and concepts linked to academic theory. PESTLE,
SWOT and Competitive analysis of an organisation.......................................................................5
PART 3: Discussing importance of business ethics and ethical considerations including CSR in
today's business environment. .........................................................................................................8
RECOMMENDATIONS AND SUGESSITIONS........................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Business environment refers to a nature that is surrounded by every business organisation
in industry or market. This comprises of certain forces that are being forced due to society,
organisation, employees, or due to some other reason which are not possible to control them on a
quick basis (Armenski, Dwyer and Pavluković, 2018). The term event industry or event
management company refers to a business organisation that is established to provide certain
events arrangements such as corporate meeting, ceremony, or any social event. Hospitality
industry refers to a organisation that offers various services to customers such as food or lodging,
hotels or restaurants, parks or transportation etc. there purpose of establishment is to provide
those services to market which satisfies their happiness and makes them feel joy and
enthusiastic. Companies those comes under the category of tourism industry are those which
provide travelling and transportation such as airways, railways, roadways or via seaways which
helps people to move from one location to another for some purpose. In the present report
various components of business environment are discussed for EasyJet Plc a low cost airline
company based on UK. Also in the report various CSR and ethical activities being conducted by
company is mentioned along with certain recommendations to enhance its competitive
advantage.
PART 1: Introduction and outline of business industry as well as of company
along with its history, aims and objectives.
Industry Introduction:
An airline industry refers to a combination of various different companies which deals in
offering same kind of services to market such as tourism or travelling services that helps
customers to move from one place to another via use of flight (Bravo and Vieira, 2019). This
kind of industry is treated as most important aspect of country's development and increase of its
Gross Domestic Product. Aviation or airline industry along with providing services of tourism
also encourages businesses for setting up of international trade or business because going foreign
via flight is not so hard. The industry generates highest revenue in market and is seen as most
profitable and successful business in industry. The industry continuously brings innovation in its
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services that allows it to remain profitable in market by providing various complementary
services to their customers.
Company Introduction:
EasyJet is a multinational airline service company which offers its services at low cost to
its customers in industry. The business is purely based on England, United Kingdom and oerates
in more than 30 countries across globe. The company is having its businesses covering more than
1000 routes from domestic as well as international airports. EasyJet is having more than 15000
employees who are working for the company in order to make it a big global airline company. It
has certain airlines which are associated with EasyJet such as EasyJet Switzerland, EasyJet
Europe, EasyJet UK and EasyJet Holidays having its parent company as EasyGroup. The
company is having more than 300 aircrafts under its name which are served internationally.
Company is known as second biggest low cost airline after Ryanair UK in industry offering its
services to more than 65 million customers all over.
EasyJet Airline History:
EasyJet airline was established in 1995 march under a parent company named EasyGroup
in ownership of Sir Stelios Haji Loannou from UK. For commencing a business Stelios has taken
a loan from his father worth £5 million. EasyJet has started its operations from only 70
employees having space area of 15000 square feet in the area of London Luton Airport. An
initial aircraft introduced by EasyJet is 737-200 which posses a limit of 130 seats in one time.
Aims and Objectives of EasyJet Airline:
Aim
The company aims at offering safe, point-to-point air and good value services to its
customers at low cost fair prices and to develop strong relationships with suppliers with whose
support company provides smooth services to its clients.
Objectives
The objectives of EasyJet are mentioned below:
 Large Frequency and cheap fair between main airports at Europe.
 To provide safe and responsible services to its customers in efficient manner.
 To attain growth by adding more value into its services.
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PART 2: Discussing analytical frameworks and concepts linked to academic theory.
PESTLE, SWOT and Competitive analysis of an organisation.
PESTLE ANALYSIS:
PESTLE refers to certain external macro environmental forces that has an impact on
performance of business and its profitability (Dmitrieva and et. al., 2020). It comprises of
political, economical, social, technological, legal and environmental factors which are not in
hands of company to control them. The PESTLE analysis for EasyJet airline is done below:
Political Factor: Political factor comprises of various rules and regulations imposed by
local or central government of a country in order to have business according to them in benefit of
nation (Ertogral and Öztürk, 2019).
EasyJet has to face negative impact of political factor due to effect of Brexit in UK. The
company is required to transform its ownership from United Kingdom AOC to Europe AOC
because of Brexit. Due to certain political forces EasyJet has loss customer demand and count
not have control on maintaining its demand as it is required to negotiate with Europe in order to
continue its offerings there.
Economical Factor: The factor from external environment discusses various issues that
are pertaining to development and benefit of nation in which business firm is operating.
Exchange rate, money flow, inflation, etc. are some of the concern issues that comes under this
category (Joppe, 2018).
EasyJet has a negative impact from fluctuations in exchange rate system while operating
internationally. A rise in fuel prices of aircraft impacts fair charges of flights that is being
charged from the customers which got high. Another negative impact on company is due to zero
operations during Covid-19 global pandemic which has out ban on travelling.
Social Factor: The social factor comprises of society concern such as code of conduct,
ethics, agreement, etc. that are to be done in the benefit of society people in general (Köseoglu
and et. al., 2021).
EasyJet in this factor enjoys certain positive reaction of society people as in today's world
youth is very much concerned about their studies and wishes to have best studies which they can
get from abroad. Such acceptance by them helps company to generate higher revenues from sale
of its services.
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Technological Factor: The technological factor consists forces that effects technical
know how in business firm such as innovation, technological change or modification, etc.
EasyJet by adopting data sciences along with advance analytics in its operations enjoys
benefit in market. Another positive impact of technological factor on company is that it makes
regular enhancement in its easyJet app and Bag-sizer interface.
Legal Factor: The legal factor is made up of certain legal laws and policies which are to
be followed in each company to have proper sustainability in industry or market (Kristjánsdóttir,
2020). This comprises of labour laws, minimum wage law, etc.
EasyJet has to abide by the rules and regulations of three different kind of regulators from
European Airlines which are not related to each other in any manner. The company is also
required to follow customer safety and requirement laws that are very necessary to follow if
offers flight services to customers.
Environmental Factor: The factor is concern about various environmental concern such
as pollution, healthy and clean environment, etc.
EasyJet operates at zero carbon emission flights globally which acts as a positive impact
from environment to company. The organisation has also initiated a research related to Hybrid
and Electric propulsion technologies in its “green” aircraft.
SWOT ANALYSIS
SWOT stands for company's strengths, threat, opportunities and weaknesses analysis that
are considered as internal micro environment analytical framework (Luo and et. al., 2020). The
SWOT analysis in respect of EasyJet airlines are done below:
Strengths
 Easyjet has a greater ratio of customer
loyalty in terms of fist preference by
each passenger in market.
 Company operates at low cost fair
charges form its customers due to its
powerful efficiency in operations. EasyJet is the first biggest international
flight company to reduce all emission
Weaknesses
 EasyJet company faces a tough tight
competition at few airports such as
Tegel ramp-up and Berlin Airport.
 The company does not offers long haul
flight services to its customers that acts
its weakness in market.
 The food which is being offered by
EasyJet to its passengers during journey
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that are being produced in form of
carbon.
is being charged with some amount
which is not accepted by customers.
Opportunities
 EasyJet has an opportunity of offering
its flight services to Europe covering
more and more routes.
 Company can start long haul flight
services which will attract more
passengers to fly with EasyJet. There is an opportunity for EasyJet for
offering eatables at cheap or low cost.
Threats
 EasyJet is threatened from its rival
firms who are offering same route
services to passengers approximately
identical prices.
 Continuous increase in fuel prices of
aircraft brings a threat of losing
customers due to charging high prices
because of availability of costly fuel in
market.
 Effect of Brexit has a great impact on
company's performance and sale which
threatens EasyJet to loose market share
and brand image from European
market.
PORTER'S GENERIC STRATEGIES:
Porter's generic strategy refers to a an analysis of company's competitiveness analysis
that every company applies to identify its competitive position in industry (Moutinho and
Vargas-Sanchez, 2018). The strategy comprises of several components such as Cost Leadership,
Cost Focus and Differentiation Focus.
The application of Porter's generic Strategy in EasyJet airlines is mentioned below:
Cost Leadership: This strategy in Porter's generic allows businesses to pay their main
focus on offering high value products with less cost to potential buyers in market
(Novolodskaya and et. al., 2018).
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EasyJet in this category is required to offer its flight services at low cost which can be done
through minimising its operational expenses through some new initiatives in order to be a leader
in market as well as industry in terms of high quality services at low prices.
Cost focus: This component in Porter's generic Strategy talks about focusing solely on
cost of services without focusing on values or uniqueness in it (Prebensen and et. al., 2018).
EasyJet can focus on cost reduction via narrowing its market segment with the help of
attaining cost benefit that can be introduced by charging less fair from customers who are more
sensitive to cost.
Differentiation Focus: This element of strategy talks about offering some unique
product or service to customers which can be differentiated from rival firms services or product
(Sibbritt and et. al., 2019).
EasyJet can add some unique feature in its services which can separate company's
services from other firms who are offering identical services within same industry.
From the above analysis it can be said that focusing on bringing differentiation in its
services would not be suitable for company to gain competitive advantage because the industry
posses limited kind of services. EasyJet can focus on cost reduction because this will cater more
and more passengers towards company that will help him to gain competitive advantage via
generating high revenue.
PART 3: Discussing importance of business ethics and ethical considerations
including CSR in today's business environment.
The term Business ethics refers to a adoption of certain business practices or policies that
are being employed in business code of conduct. Ethical considerations are those which are
being accepted by business as well as society sin overall. CSR is a terminology that stands for
corporate social responsibility of every firm (Siyambalapitiya, Zhang and Liu, 2018). This
includes certain initiatives or actions that are mandatory required by business firms in order for
the development and upliftment of society along with their living standards. It is a compulsion on
every business organisation to contribute some amount out of their profits every year being a
socially responsible and ethical concern business. Every company are required to set-up a
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separate department which will only focus on company's CSR activities which is their duty to
perform.
In UK there is a prescribed norms that needs to be considered when contributing to CSR
activities. Every company in UK whose associated people are having more than 20 % shares in
London Stock Exchange are required to publish CSR report for access of both investors and
company.
Importance of Business Ethics:
Business ethics is a concept of knowing what is right and what is wrong form the
perspective of business operations and duty. This involves certain policies or rules that every
company needs to follow other than governmental policies. The main purpose of indulging
business ethics into organisation is to develop a strong trust among employees as well as
customers with highest integrity and respect (Song and Lee, 2020). The importance of applying
business ethics in company are mentioned below:
 It allows customers and society people to have faith and trust on company as well as its
products because every society people wishes to get respect and feeling of proud by such
organisations with whom they are associated with (Sugandini and et. al., 2019).
 Presence of business ethics in organisation encourages its employees to feel satisfy with
company's values and ethics that brings more efficiency and greater productivity in their
workings. This also helps businesses to retain their highly skilled and experienced
employees for a longer time.
 Abiding by certain business ethics assists companies in formulating effective decisions
by taking consideration into several social, ethical and economical aspects. This brings
decision that are for the benefit of society people and company's employees in their
positive interest (Wu, Cheng and Ai, 2018).
The ethical and CSR activities being done by EasyJet airlines out of its profits as a part of
responsibility are mentioned below:
 The Company EasyJet has launched a project in which company pays some payment who
takes participation in reducing carbon emission projects or carbon offsetting projects at
highest level of standards.
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 EasyJet airlines invests some amount is a form of CSR activity in some projects that
includes regeneration of forest in regions of Africa and South America.
 Few years back EasyJet has invested in India for reducing carbon footprints and presence
of methane as well as nitrogen in weather. Under this initiative EasyJet has installed solar
energy project at large level in regions of Tamil Nadu comprising greater than 820,000
panels of solar energy. This initiative will minimise production of power by the use of
fossil fuels which will bring down approx 350Kt annually of carbon dioxide.
 EasyJet has recognised non availability of clean and pure drinking water in Uganda as
well as Eritrea. The company has initiated to rehabilitate all boreholes that were broken
so to make available a clean and pure drinking water for people living there. This
initiative by EasyJet helps people in drinking clean water which will not affect their
health negatively and can sustain their life with good health.
RECOMMENDATIONS AND SUGESSITIONS
Recommendations are made to companies for their development and success along with
enjoying competitive advantage in industry. The few recommendations made to EasJet are
mentioned below:
 It is recommended to EasyJet that it should try to invest in newer technologies which will
bring greater efficiency and high productivity in business operations of company.
Installing new technologies by EasyJet will contribute in achieving competitive
advantage in industry.
 EasyJet is required to make certain modifications in its strategies that will help company
in improving its strategic management process and better decision making.
 It is a recommendation for EasyJet to offer its flight services in more international market
in to which there is no operations by company. This will increase its revenue, profit,
market share or brand image.
 EasyJet can offer flight services with having multiple stoppages that can allow passengers
to book flight tickets even for shorter journey which will ultimately increase its customer
segment and gain competitive advantage over rival businesses in industry.
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CONCLUSION
From the above report it can be easily concluded that business environment has a major
impact on company's performance as well as its profitability. Business environment comprises of
two major factors which are known as external and internal environment surrounded by PESTLE
and SWOT analysis. Every company operating in a industry has numerous competitors which
creates a tough competition in market that creates a problem for business firm to enjoy highest
level of profits and good market share. In order to sustain in a competitive market company
should scan industry and analyse its position so that can improve its strategies to gain
competitive advantage over other firms. Porter's generic strategy is best suitable for organisations
to analyse competitive market and take certain steps in the benefit of organisations development.
From the report it has also been concluded that there are certain business ethics and CSR
activities that needs to be focused by business firms as a socially responsible entity. Every
company should keep invest some amount from its profits in the development of society and
general public.
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REFERENCES
Books and Journals
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private sector tourism management in Serbia. Journal of travel research. 57(3). pp.384-
398.
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general model of customer loyalty. International Journal of Business and Data
Analytics. 1(2). pp.156-183.
Dmitrieva and et. al., 2020. Economic and Legal Aspects of Regulating the Tourism Industry.
Journal of Environmental Management & Tourism, 11(4 (44)), pp.837-843.
Ertogral, K. and Öztürk, F.S., 2019. An integrated production scheduling and workforce capacity
planning model for the maintenance and repair operations in airline industry. Computers
& Industrial Engineering. 127. pp.832-840.
Joppe, M., 2018. Tourism policy and governance: Quo vadis?. Tourism management
perspectives. 25. pp.201-204.
Köseoglu and et. al., 2021. Hiring People with Disabilities as a CSR strategy in the Tourism
Industry. Tourism Analysis. 26(1). pp.41-55.
Kristjánsdóttir, H., 2020. Tax on tourism in Europe: Does higher value-added tax (VAT) impact
tourism demand in Europe?. Current Issues in Tourism, pp.1-4.
Luo and et. al., 2020. Drivers of carbon emissions in China’s tourism industry. Journal of
Sustainable Tourism. 28(5). pp.747-770.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI
Tourism Texts. Cabi.
Novolodskaya and et. al., 2018. Public-private partnership as innovative form of attraction of
financial resources in sphere of tourism. Journal of Environmental Management &
Tourism. 9(4 (28)). pp.714-720.
Prebensen and et. al., 2018. Creating experience value in tourism. Cabi.
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