EasyJet: Contemporary Business Environment Analysis in the UK Market

This report provides a comprehensive analysis of EasyJet's contemporary business environment, focusing on the UK market. It begins by examining the market structure in which EasyJet operates, highlighting its competitive landscape. The report then delves into various economic elements within the UK that directly impact EasyJet's operations, including inflation, recession, government intervention, labor costs, supply and demand, and the money and banking process. It also assesses the likely effects of Brexit on the airline and the significant impact of COVID-19 on its business. The report emphasizes the importance of understanding these factors for strategic decision-making and achieving competitive advantage within the airline industry. The report from Desklib, offers valuable insights for students studying business development and related fields.

CONTEMPORARY BUSINESS ENVIRONMENT

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Explain market structure in UK in which Easy Jet will be operating.......................................................3
Explain different economic elements within UK that impose direct effect on operations of Easy Jet.....4
What is the likely effect of Brexit on operations of organisation named as Easy Jet...............................7
Impact of COVID-19...............................................................................................................................8
CONCLUSION...........................................................................................................................................8
REFERENCES:.........................................................................................................................................10

INTRODUCTION
The contemporary environment of organisation is competitive so it is necessary to
cooperate with environment for purpose of marketing that help in achieving good results and
attracting large number of user in future period of time. To interact with present shareholder as
well as general audience is not determined as a procedure related to luxury but it is determined as
a need of competition. Therefore the expert of marketing agrees that organisation must be a
communicator and also promoter. Furthermore, the major concern is how to communicate
technology to other person and make strategy accordingly. This assignment will provide a
discussion regarding Easy jet. It is determined as a British international Airline company located
in England, UK. This company was founded by Sir Stelios Haji-loannou in year of 1995. The
main focus is to provide appropriate services to its passenger during particular phase of time
period. Therefore, they need to assess current environment of organisation in UK by assessing
marketing structure of UK. They also assess economic element in UK that impose direct effect
on organisation, effect of Brexit on organisation and also affect of covid-19 on company during
particular phase of time period (EASY JET, 2021).
MAIN BODY
Explain market structure in UK in which Easy Jet will be operating.
In current time, the market is determined as a competitive and dominated by different
supplier. Therefore, it is necessary to analyse market structure in which Easy Jet operate their
business. Firstly, the organisation is determined as a main supplier in marketing industry.
Secondly, it is necessary for firm in market must be independent (Suszyński, 2020). In addition
to this, the other organisation is not capable to take entrance in existing or prevailing industry.
Hence, they provide a superior quality of facilities and focuses on reducing level of competition.
In UK, these markets are determined as a beneficial in order to attract large number of user
during the period of time. Also, the management team of Easy jet focuses on providing superior
services at lower price in order to attract large number of user and increase higher profit in future
period of time. There are different kind of rivalries provide similar kind of services to its user

during the period of time. Thus they possess ability to fix cost for increasing higher profit during
the period of time. Furthermore, when scale of progression of this kind of market increase supply
of services that reduces cost during particular phase of time period. Moreover, the customer of
UK is not focuses on cost of product in this kind of market.
As per perspective of user, they focuses on taking quality services that is offered by UK
market are advantageous for business organisation. In addition to this, it is necessary for Easy Jet
to provide better services to its user that helps in achieving competitive advantage over rivalries
at market place. They provide quality services at lowest price in order to attract large number of
user during the period of time. In current time, the primary target of Easy Jet is private as well as
government corporate organisation, they focus on increasing market share by serving or
providing different kind of services to government agencies and also their main focus is on user
who needs services at low cost. This organisation operating their business is around 156 airports
within around 33 countries (EASY JET FACTS, 2021). In addition to this, they operate their
organisation by using segment related to route network during particular phase of time period.
According to this process, the chosen company focuses on providing superior quality services at
low cost that help in achieving competitive advantage over rivalries at marketplace. The system
related to services in UK market is differ and impose direct effect on image and reputation of
company at marketplace and the focus of customer is on providing preference to excellent
services during the period of time. Hence, the positive image in market attracts large number of
user that helps in increasing profit margin in future period of time. In addition to this, the market
focuses on providing excellent services to its user of UK. And, the perspective related to market
structure in which Easy jet operates. There are different benefits that are confronted by
organisation that help in increasing progress within market industry in future period of time
(Amankwah-Amoah, Osabutey and Egbetokun, 2018). In current time, the primary target of Easy
Jet is private as well as government corporate organisation, they focus on increasing market
share by serving or providing different kind of services to government agencies and also their
main focus is on user who needs services at low cost.

Explain different economic elements within UK that impose direct effect on operations of Easy
Jet
Every domestic as well as international organisation is affected by different economic
element that is prevailed at market place. In addition to this, there are various economic element
that imposes direct effect on organisation at UK in which several are these interest rate, exchange
rate, infrastructure quality within travel as well as leisure industry, skilled workforce and so on
that imposes direct effect on organisation. Every organisation focuses on analysing need and
wants of user in order to increase profit margin in future period of time. They also focus on
maintaining or providing superior services to its user that help in achieving competitive
advantage over rivalries at market place. Therefore, it is easy to operate different functions of
business organisation in an appropriate manner but it is impacted by various factors. Hence, this
kind of element or factor is linked with services provided by them. And, the economic factor
imposes direct effect on the financial status of company. Thus, the organisation focuses on
analysing the need of user, taxes assets value and many more. The economic factor that imposes
direct effect on business, their overall activity that can assists them in achieve objective of
company during the period of time. In addition to this, there are different legal rules and
regulation within country that affect the organisation (Bogda and Beata, 2018). It has been assess
that the economic factor is determined as the important part that imposes direct effect on
organisation. And several economic elements are going to be mentioned below:
Inflation rate the rate of inflation arises then exchange money is high in economic area
as well as not supported by similar accessible services. The cost of services raises and on other
hand, preserve organisation during the particular phase of time period. Thus, due to increase in
cost of product that are required for providing better services to its user then it increases cost for
company which impose negative effect on operations of organisation. Due to Covid-19, the
inflation rate increases and the individual person do not prefer to travel through airlines industry
that imposes negative effect on sales of company.
Recession due to increase in recession, the service provided by Easy jet is also increase
their cost than it decreases profit of company during particular phase of time period. Due to
recession, the organisation continues faces losses that erodes sales and profit margin at the time
of recession and it is determined as an important factor that imposes direct effect on organisation.

In order to reduce cost, their focus is on staff cutting, firing staff, lower down capital expenses by
advertising budget and many more that increases direct effect on image and reputation of
company in front of customer at market place during particular phase of time period (Boone,
Kurtz and Berston, 2019). Due to Covid-19, due to increase in recession, the Easy Jet increases
cost of their services which decreases experience level of user in the market. It decreases sales
and profit margin of company during the period of time.
The growth of economy and its improvement the money range that preserved into these
sector of finance for staying individual person in society that imposes direct effect progress of
economic condition of country. In addition to this, due to increase in corona virus, the growth of
economy is getting diminished and its affect sales of company during particular phase of time
period.
The trade loops are also very important in fluctuating price of services which is provided
by the company. The government intervention in free market is also determined as a major
economic factor that increases direct effect on airlines as well as leisure industry. Due to change
in government intervention or increase in their involvement, the organisation changes their
policy quickly that imposes direct effect on their operation. Due to Covid-19, it increase in
involvement of government on activities and function performed by business organisation, it
negatively affects the operations of organisation.
Labour costs as well as productivity in economy Due to increase in labour cost, it
imposes direct effect on organisation during particular phase of time period (Cumming, 2018).
Doe to increase in labor cost, it increases cost for company that impose negative effect on sales
and profit margin during particular phase of time period. Thus it is assessed by business
organization that there are different economic factor that impose negative effect on operations
and functions of company. Due to Covid-19, the increase in labour cost imposes direct effect on
operations and functions of Easy Jet during particular phase of time period. Due to increase in
labour cost, it adds cost to productivity of organisation that imposes direct effect on company.
Supply and demand these are determined as a two economic factor that impacted
business organisation. Demand is determined as willingness of user to buy or take services which
is provided by Easy Jet and supply is determined as how able the business organisation satisfy

demand of its user. Due to increase in Covid-19, the supply is more than demand which erodes
profit margin of Easy Jet.
Money and banking process the process of banking as well as fiscal policy imposes
direct effect on economic atmosphere in addition with user of organisation. Money in overall
procedure imposes direct effect on requirement of user. There are different kinds of similar
services which are provided by rivalries that decreases utility of customer and also it enforces
direct effect on sales and profit margin of the company. Hence, it is assess that due to falling
down utility element that imposes direct effect on operations of business organisation during
particular phase of time period (Dura and Driga, 2017). Due to covid-19, the facility of Banking
depict borrowing capability of individual person in addition with marginal and absolute utility
after taking similar kind of services, the user satisfaction need reducing that leads to decrease in
sales and profit margin of business organisation.
Income and unemployment is other important factor of economy that imposes direct
effect on process of organisation. Due to increase in virus, the intensity level of economic
elements as demand rate in company and also nation include buying power of individual person
during particular phase of time period.
Therefore, on the basis of above given different kind of economic element of UK
imposes direct effect on organisation. It is necessary to analyse economic factor in order to
increase profit margin and sales of business organisation in future period of time and the
business organisation need subordinate to fulfil its wants during particular phase of time (Raman,
Garg and Thapliyal, 2019).
What is the likely effect of Brexit on operations of organisation named as Easy Jet
Effect of Brexit on Easy jet: It is determined as an absolutely differ. Therefore, it is
determined as important factor of uncertainty after UK agrees to leave EU in year of 2016. The
uncertainty is on high loop and as per time, uncertainty increases due to present situation during
the period of time. Brexit in addition with political crisis against economic one is not expected
by individual person. There are different kinds of factor that imposes direct effect on business
organisation. Many investigator assess that Brexit is determined is important for uncertainty in
order to conduct different kind of business organisation. Due to Brexit, it decreases productivity

levels of organisation operate within UK (Hawryszkiewycz, 2019). Within UK, most of the
organisation believes that Brexit is only reason for reduction or decrement in sales as well as
profit margin during particular phase of time period. It is the only reason to increase in costs
which imposes direct effect on sales of organisation. The crucial factor that concerned is UK
based organisation is effected just because of Brexit which imposes negative effect on operations
and functions of company. Due to Brexit, they also suffer a different kind of losses that imposes
direct effect on organisation but they require changing their plans and also containing different
kind of uncertainty for longer period of time. The element related to innovation must be targeted
by effect of Brexit and they become restricted with accessibility to financial system. In addition
with this, the filmy industry within UK also affected by Brexit. In assistance of this, the UK
organisation which involved in sports is also hit by impact of brexit in an appropriate manner.
Hence, there are different reasons of uncertainty which imposes direct effect on company.
Therefore, on the basis of above given analysis, the effect of Brexit leads to different
economic implication for UK. The organisation that operate in UK faces different kind of
problem due to increasing cost and decreases profit margin during the particular phase of time
period. Due to brexit, the organisation of UK will confront various kinds of challenges like
labour shortage, affordable cost outside the market. This imposes direct effect on operations and
functions of UK during particular phase of time period. Brexit also imposes direct effect on
business organisation are that decreases profit margin of company in future period of time
(Lenart-Gansiniec, 2018).
The effect of challenge of covid-19 on airline industry and future trend: Easy jet assesses
perception of airlines industry during the situation of covid-19. Thus, there is different kind of
challenges faced by them. Due to covid-19, it decreases growth of organization during particular
phase of time period. Due to covid-19, many individual people want to sit home and avoid trips
that decreases profit margin and sales of company during which impose negative effect on
growth during the period of time. Apart from this, the organization focuses on providing better
services to its user according to their need at lower cost that helps in increasing experience level
of user. Due to effect of covid-19, Easy Jet change different kind of activity for conducting
different task in an appropriate manner. The chosen organization focuses on preventing
passenger from effect of Corona virus while they are on trip. And they are also emphasized on

providing superior quality or excellent services to them on affordable prices that help in
increasing experience level of user during particular phase of time period (Xie and Redding,
2018).
On the basis of above given discussion, there are different kind of challenges which is
faced by airlines industry in order to perform different kind of activities in an appropriate
manner. The main purpose is to cope up with this kind of challenges and conduct various
activities that increases experience level of user in future period of time. Thus, their main focus
is on providing excellent services to its user that helps in increasing profit margin and overcome
from those losses that is raised just because of Covid-19.
Impact of COVID-19
Due to covid-19, the national lockdown as well as quarantine restriction have damage to
different kind of industry around globe. This is also applied on airline as well as travel industry
because the government closed borders and also they want against all important trips that impose
negative effect on organization. The effect of corona virus on airline sector is emerged as from
25 years of history. Easy Jet offered losses for first time during the particular phase of time
period, after covid-19, they only focus on reducing its costs and increases efficiency around its
network and double down its strategy to provide excellent experience to its user that help in
achieving competitive advantage over rivalries at marketplace (Liu and Stening, 2016).
In addition to this, Easy Jet needed to use time to decrease demand and to increase
investment in services that must be digitalized first and able to taking benefit of capital market
that is on demand so that they provide effective services to its user according to their needs that
help in increasing profit margin in future period of time. In addition to this, due to covid-19, it
has been analyzed that Easy Jet suffered loss is related to pre-tax which is around 1.27 billion as
compared to profit of 430 billion in similar period of last year. Therefore, it has been assess that
there are huge loss suffered by Easy Jet that imposes negative effect on organization due to
covid-19. In addition to this, there are different kinds of challenges which is confronted by
management team of Easy Jet in year of 2020. Therefore, their main focus is to minimize losses,
decreasing cash burn and introducing biggest cost as well as restructuring programs that rising
above 3.1 billion in liquidity into date (Mcdonnell and Sikander, 2017).

CONCLUSION
On the basis of above given report, it is assess that contemporary environment of
organisation is competitive so it is necessary to cooperate with environment for purpose of
marketing that help in achieving good results and attracting large number of user in future period
of time. To interact with present shareholder as well as general audience is not determined as a
procedure related to luxury but it is determined as a need of competition. Therefore the expert of
marketing agrees that organisation must be a communicator and also promoter. Furthermore, the
major concern is how to communicate technology to other person and make strategy accordingly.
The main focus is to provide appropriate services to its passenger during particular phase of time
period. Therefore, they need to assess current environment of organisation in UK by assessing
marketing structure of UK. They also assess economic element in UK that impose direct effect
on organisation, effect of Brexit on organisation and also affect of covid-19 on company during
particular phase of time period.

REFERENCES:
Books and journals:
Chatzoglou, P. and Chatzoudes, D., 2016. Factors affecting e-business adoption in SMEs: an
empirical research. Journal of Enterprise Information Management.
Del Giudice, M., Carayannis, E.G. and Maggioni, V., 2017. Global knowledge intensive
enterprises and international technology transfer: emerging perspectives from a quadruple helix
environment. The Journal of Technology Transfer, 42(2), pp.229-235.
Heise, U.K., 2017. Environment, Technology, and Modernity in Contemporary Japanese
Animation. In Contesting Environmental Imaginaries (pp. 117-135). Brill Rodopi.
Jin, X. and Weber, K., 2016. Exhibition destination attractiveness–organizers' and visitors’
perspectives. International Journal of Contemporary Hospitality Management.
Kumar, R. and Sethi, A., 2016. Doing business in India. Springer.
Rusu, L.D., 2017. Romanian Approaches in Risk Management. Managerial Challenges of the
Contemporary Society. Proceedings, 10(1), pp.95-98.
Rutland, P., 2018. Business and state in contemporary Russia. Routledge.
Online:
EASY JET, 2021[online]. Available through<https://www.google.com/search?
q=easy+jet&oq=easy+jet&aqs=chrome..69i57j69i59j0j0i131i433j0j69i60l2j69i61.2767j0j7&sou
rceid=chrome&ie=UTF-8>
EASY JET FACTS, 2021[online]. Available through<https://www.google.com/search?
q=fact+about+easy+jet&oq=fact+about+easy+jet&aqs=chrome.69i57j0i13j0i5i13i30l3j0i390l3.
6263j0j7&sourceid=chrome&ie=UTF-8>
EASY JET, 2020[online]. Available through<https://www.google.com/search?
q=impact+of+covid-19+0n+easy+jet&oq=impact+of+covid-
19+0n+easy+jet&aqs=chrome.69i57j33i10i160.11491j0j7&sourceid=chrome&ie=UTF-8>