Strategic Analysis of EasyJet: SWOT, PESTLE, Leadership & CSR

This report provides a comprehensive analysis of EasyJet's business context, employing SWOT and PESTLE frameworks to evaluate the company's internal strengths and weaknesses, as well as external opportunities and threats. It assesses the impact of political, economic, social, technological, legal, and environmental factors on EasyJet's operations, particularly in light of events like Brexit and the COVID-19 pandemic. Furthermore, the report evaluates suitable leadership styles for Marks and Spencer, examines EasyJet's corporate social responsibility initiatives, and highlights the company's efforts to address social issues such as gender imbalance in the aviation industry, technological advancements, and legal challenges. The analysis provides insights into EasyJet's strategic decision-making and its attempts to maintain competitiveness and customer trust in a dynamic market environment. Desklib offers a platform to explore similar solved assignments and study resources.

Context of business

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Perform a SWOT and PESTEL analysis.....................................................................................3
Evaluating changes in PESTEL factors that influence the opportunities and threats of easy jet:
.....................................................................................................................................................7
Evaluation and recommending leadership styles for Marks and Spencer...................................8
Evaluation corporate social responsibility of easy jet:...............................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Context analysis is an act for examine the environment in which a enterprise function.
Business management mainly focus on the scanning the external environment which affects the
different functions of the enterprise. Context analysis considered both macro and micro factors of
an business. Business environment has been considered as circle surrounded by various factors
which has highly influence on the business environment. It is a method of implementing
decisions which are taken by higher authorities and also try their best to achieve it. For any
organisation it is very important to track and monitor their pre plan objectives. For brief
understanding of this concept the company chosen in this report is easy jet. It is a British
multinational low cost airline. Headquarter of the company is located at London Luton Airport.
At present it run domestic as well as international services, over 1000 routes and it operates in
more than 30 boundaries. (Adeleye and et.at., 2020).The following report will have examination
of macro and micro analysis of the company through SWOT analysis and pestle analysis. This
report will have also cover information about changing in the macro environment the threat and
opportunities of respective company. It will further include business leadership style and
importance of social responsibilities of the company.
TASK
Perform a SWOT and PESTEL analysis
Swot analysis:- This term is comprises of strengths, weakness, opportunity and threat, it seems
to be a very essential tool for the company in order to understand their internal and external
environment, strength and weakness are the micro factors in the company which a company can
change according to the need and opportunity and threat are the macro factors of the company
which proper control is not is in the hands of management of the company (Bika and Frazer,
2021).This technique is considered most important for strategic planning, it is helpful in
lowering the impact of risk as well as formulating strategic plans for company. In reference to
the company easy jet the SWOT analysis has been mentioned as,
Strengths:
 Strong capital base: Easy jet airline has a strong capital base, the respective company
has massive market share, it is low cost airline so by this feature it is different from its

rivals and able to create a good reputation, also the credit ratings if this airline is very
strong (Dörndorfer, Hopfensperger and Seel, 2019).
 Technology and insights: Easy jet is able to influence its customer base by serving them
best services. They maintaining a good relationship with their customers, this helps them
in increasing customer loyalty. By enhancing data facility with various new technology
helps user to make travel easy and affordable in longer period.
 Expansion and acquisition: Easy jet has able to enter into the expansion and acquisition
and they enable increase in its business operation to a huge level.
Weakness:
 Competitive industry: Easy jet is facing tough competitors from its rivals. For any
destination there is availability of various other airlines also (Jamel, Saidani and Nurcan,
2018).This could a biggest weakness for the company.
 Sensible to additional taxes: Easy jet is highly sensitive in context to its business
operations. Any tax imposed by the government can affect its business because it is a low
cost airline.
 Services not available in many locations: Easy jet is operating its business in Europe,
many other destinations where they are not providing their services this could be biggest
weakness as they can increase their revenue by operating in other locations also (Koç
and et.at., 2018).
Opportunity:
 Easy jet travel package: The respective company can direct deal with the hotels and
holiday for affordable stay for their customers so that there is increase in brand awareness
among customers to attract them to their airline.
 Improve operating framework: Easy jet airline can enhance their operating framework
and serve best services to the customers so that they can increase their brand image and
can capture more customers (Kucharčíková, Mičiak and Hitka, 2018).This will help in
longer period of time, it can be important opportunity for the company.
 Expansion in Europe: Easy jet can enhance its services in many other destination in
Europe so that they can improve its brand image and also get higher revenue out of that.
 Threat:

 Change in government policies: Regular changes in the policies of the government and
strict aviation rules and regulations can affect the revenue of the business to very huge
extent (Mahmood and et.at., 2020).
 Major players in the airline industry: This could be a major threat for the company as
there are many players present in the airline industry for capturing customer base. This
will have also impact on the revenue of the business.
 External market forces: By change in the value in the market place can highly impact
business operation and also it could be a great threat for the company because it influence
business revenue also.
PESTLE analysis: This is a strategic tool used by the management of the company to examine
external environment by evaluate risks and opportunities into Political,
economic,social,technological,legal and environment. This analysis has been considered as a
framework which assist the organisation in analysing all the external factors which impacts on
business at a great extent (Mozumdar, Hagelaar and et.at., 2020). The company easy jet is going
to use this tool for have a better understanding of impact of macro factor in strategic decision
making. Through pestle analysis the management of the company has gain depth knowledge and
this assist them in formulation of strategic plan for the business. In context to easy jet pestle
analysis is being discussed as,
 Political factor: This factor has been considered as most essential factor for the business.
There is no doubt that for any business political factor is played an important role in the
long term success of the company. In this government rules, regulations and political
stability is include. Political factor is not only affect business function but it also affects
its productivity. In addition to easy jet the major factor is the government has decided to
depart from the European union for some time from now (Nascimento and et.at., 2019).
They have majority shareholding in the EU, this will effects on the ongoing operation as
well as on the revenue of the business.
 Economical factor: It may include rate of interest,wages,government laws,tax rate,
employment,unemployment,polices and many other, which have a impact of the business
at a great extent. The impact level through this factor is not in the hands of the
management of the business. In context to easy jet the company is highly affected by
global pandemic of Covid-19. Most of the people do not ready to travel in such a

condition, as well as their was strict order of government to not allowed to travel and if
travel the capacity should be reduced to 50%. airline are the one among all business who
suffered a lot in the pandemic (Osuszek and Ledzianowski, 2020). And by this other
problem has arise increasing fuel cost. Easy jet has immensely affected by these situation,
through this they suffered from loses.
 Social factor: It is comprises of attitude, belief, attitude, behaviour, choice of the
customer and social-culture and others, which affects the business operations as well as it
reduces efficiency. In addition to easy jet getting into aviation field has been considered
one of the promising career in UK, but this is highly male oriented or dominated field.
The respective airline has working for the same to solve this problem for people. The
company has come up with the idea of giving lecture to the students for dominating
culture, they appoint many female pilots as well into business. This has been a good step
taken by them and this helps them in increasing brand value (Shayganmehr and et.at.,
2021).
 Technological factor: It is the innovative thinking and creativity which implement for
the launching of services in newer ways or forms and analysing new opportunities by
using new technologies to improve better functioning of operations in the business. In
reference to the company easy jet the management of the company launches its mobile
application where customers easily and conveniently book their tickets and they have also
implement the boarding tickets on mobile application this is very helpful in reducing time
taken, it is access on both iPhone and android.
 Legal factor: It includes law related to safety, customer rights and employee rights,
patent, copyrights etc. in context to company easy jet they was the part of legal scandal,
in company their was a biggest cyber attack clashes in this approx 2000 people was a part
of the scandal and their data was leaked in data credit numbers also filled. And there was
a another case filed against easy jet as one of the member of the company has been
caught by taking bribe.
 Environmental factor: It includes living organism, it includes, temperature, food,
population density, etc. This factor is considered as essential factor because of low
availability of raw materials, and target of pollution which are formed by the government
of nation. In context to easy jet they are first airline company to implementing e paper

technology. The company also uses Panasonic tough pads installed which is the
replacement of tops and printers.
Evaluating changes in PESTEL factors that influence the opportunities and threats of easy
jet:
From the above PESTLE analysis it has been discussed different factors available which affect
the business function of the easy jet. The company is lacking somewhere they are not able to
perform at extent level due to which growth and profitability ratio of the company has been
affected. There are different factors available which has been discussed below,
 Political factor: There has been new rules and regulations implemented by the
government in which they depart from European nation now and Brexit due to this the
company has faced many problems related to customer base, loyalty, customer trust,
revenue as well as productivity as many of their shareholdings is in the market of Europe.
This has been considered as threat of the company because in this the company has a risk
of fear. This is negatively effects the performance of the company. Somewhere this could
be the reason behind they are not able to expand their services in the EU destinations. by
this the company does not able to increase its customer base. To overlap the effect of the
situation on company they use its brand image and experience in order to gain customers
trust and also to attract customers (Song and et.at., 2019).
 Economical factor: In pandemic COVID-19 the company faced lot of problem the
management of the company increased prices of tickets due to this their has been a
conflict between customers and company. In that situation economic instability has been
recognised. This is a threat for the company easy jet as it forces the company to stay
competitive in the market place. To overcome this situation, the company introduced
many safety measures taken by them in order to stay safe and they also uses their brand
reputation to improve customer base. This plays an significant role in reducing ticket
prices in shorter period of time.
 Social factor: This factor impacts of the easy jet business in a positive way, the
management of the company is ale to do change , they introduced many programs and
lectures for the young generation student in UK in this they talk about male dominance in
this field. The company has come up with the innovation by appointed female pilots for

their airlines. This is greatest opportunity for the company to gain customers loyalty and
can help in change in the decision making power of the customers by spreading news of
equal opportunities between male and female.
 Technological factor: The company now mainly focusing of online application
providing to the customers in which they come up with innovative and creative technical
idea which helps them in gain customers trust. In comparison to its rivals the company is
good presence in online application. This is opportunity for the company by focusing
more on the online application they can capture more customers of its competitors in the
market. Easy jet is able to increase its profitability or revenue by utilize this technology in
a effective manner. The customers also feel happy and satisfy by this services because
through this they able to save their time and energy.
Evaluation and recommending leadership styles for Marks and Spencer
Leadership is the ability of the individual to influence and persuade its other fellow
team members by motivating, supporting and regular monitoring them in an organisation. The
leaders are the one who make vision into reality, they have the capability to guide its members to
achieve a common goal (Susilo and Diharto, 2018). Company uses different leadership styles for
motivating its members within a organisation. Proper guidance provided by the leader for
subordinates can help in developing effective working environment. For better understanding of
the leadership style Daniel Goleman's leadership styles has been discussed below,
Meaning:
The leadership style states the need of monitoring, supporting, guiding the subordinates
into business organisation. Leadership style refers leaders character behaviour by which they
influence and motivate others to create and perform well in the organisation. There are six
models of the Daniel Goleman's which helps them to understand better its employess, these are
mentioned as,
 Affiliative leadership:- This leadership style is about and centred is people in the
organisation. The management of the company creates a positive environment for their
employees so that they can perform well their tasks. Through this the company is able to
eliminate conflict between team members and they make a good team. By this company
have create balance between right or wrong ambiance (Sutherland, Warwick and
Anderson, 2019).

 Democratic leadership:- In this style the leaders provides an opportunities to its fellow
team members to open up their thoughts and ideas. This leadership style assist the
management to get more innovative ideas as well as to maintain a good and healthy
relation with their other team menbers.
 Commanding leadership: In this leadership style the management of the company give
a particular tasks to its team members and employee have to finish that task without any
obligation. In this style the leaders adopt one way communication to its subordinates.
 Authoritative leadership: In this leadership style the company focusing on giving
direction to the subordinates in order to achieve common objective or goal. They give
them full authority to achieve that tasks in whichever way they like to perform (Yaremko
and et.at., 2021).
 Coaching leadership: It is exactly like its term describe, in this leadership style the
leaders not only focus on sales targeted goals but they also focus on personal
development on individuals. In this leaders take care of their team members.
In order to achieve targeted goals in shorter period and to increase productivity in the
business organisation the company should implement coaching leadership style for better
functioning in the business. Through this style the employees can perform to their best and
company will enjoy growth. A motivated and well trained employee can perform extraordinary.
Evaluation corporate social responsibility of easy jet:
To improve the brand value of the company or enhance shareholder value it is important
for the organisation to fulfil social responsibilities. Companies which are good at perform social
responsibilities adopts those policies which are promotes social well-being and take care of earth
by reducing pollution. The CSR is self regulating business model which are uses by the
organisation in order to perform all their responsibilities. There are various types of social
responsibilities which are mentioned below,
 Ethical responsibility: It is related to the well-being of the employees in the
organisation. In addition to this, it also promotes its ethical practices for its raw material
suppliers. By performing this role the company able to eliminated gender inequality,
religious problems into business in a effective manner. The management of he company
is also provides better wages and salary to the employees so that they can live a better
standard of life. In context to the company easy jet they maintaining a healthy

relationship between employees and company so that the can keep them happy and this
helps in increasing profitability and productivity into business.
 Philanthropic responsibility: This responsibility has focussing on humanism and also
paid focus on unfortunate individuals. To fulfil this responsibilities many donations have
given by the organisation as a charity fund on both national and international level. In
context to the company easy jet the top level management in the company promote
charity fund as well as volunteer them also.
 Environmental responsibility: Net zero carbon flights has been introduced by world's
first major airline after inform it would start all jet fuel emissions. It is essential for the
company to focus on all the environmental laws and the carbon foot print. In context to
easy jet the management of the company follows all the environmental laws imposed by
the government
CONCLUSION
From the above mentioned report it has been concluded that if a business want to
effectively operate its activity than it is important for them to have a better understanding of the
context or business. If a company want to expand its business in the market it is essential for the
management of the company to formulate strategic planning in a proper manner. Further it has
been concluded SWOT and PESTLE analysis of the particular company for understanding of
micro and macro environment for operating business into competitive market. The report also
covered the strengths and weakness from this the company can found out opportunities and
threats. It also included different leadership styles in business in order to satisfy their employees.
In addition to these it also included CSR which have a good and positive impact on the image of
brand and also with their shareholders.

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