Analysis of EasyJet's Business Environment: UK Market & Brexit Impacts

This report examines the business environment of EasyJet, a UK-based low-cost airline. It begins by analyzing the market structure within which EasyJet operates, identifying it as an oligopoly. The report then delves into the economic factors within the UK that impact EasyJet, including consumer income, interest rates, demand and supply dynamics, inflation, tax rates, and the potential effects of a recession. Furthermore, the analysis explores the likely impacts of Brexit on EasyJet's business operations, considering challenges related to supply chains, customs, workforce, regulations, and economic issues. Finally, the report assesses the impact of the COVID-19 pandemic on the airline's operations, examining how the pandemic has affected the company's profitability. The report concludes with recommendations based on the findings.

Contemporary Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.Explain the market structure in the UK within which Easy Jet operates..................................3
2. What are the economic factors within the UK that affects the business of Easy Jet?.............4
3. What are the likely impacts of Brexit on the business operations of the company?...............6
4. Analyse the impact COVID-19 is likely to have on the business of the company?................7
CONCLUSION................................................................................................................................8
RECOOMANDATION...................................................................................................................8
REFERENCES................................................................................................................................9
Books and Journal:......................................................................................................................9

INTRODUCTION
Business environment is a term which refers to the factors and forces which create impact
on the organization capability in order to maintain and build the successful customer connections
for relationship. Business environment also influence the organization in order to take the
decision and enhance the organization culture. The support is going to study about the airline
industries of Easy Jet. Easy chat is a British international low-cost airline group that is situated in
United Kingdom. It operates domestic and international scandal services on more than 1000
routes in almost 30 countries (Rezapouraghdam and, Alipour, 2019). Easy Jet Company is
founded on 1995 March in London United Kingdom. Report is going to study about the market
structure in the United Kingdom within the Easy Jet is operating. Also the economic factors
which create impact on the business of the Easy Jet and what are the impacts of covid-19
pandemic on the economy and profitability of the company. This report is also going to explain
about the impact of brexit on the organization operations of the company.
TASK 1
1.Explain the market structure in the UK within which Easy Jet operates.
Market Structure
Market structure is advert to the features of the market or other organization that explain
about the nature of competition and the policies of pricing which are followed in the market.
Also the market structures can be explained as the number of the organization which produced
the identical product and services in the market and who structure or Framework identified on
the basis of their competition prevailing in that market (Bocken, Boons and Baldassarre, 2019).
As market structure help the company to maintain the the business environment and maintain the
good and organized structure in order to to build a positive and effective surrounding in the
organization . the better and effective structure help the company to motivate Their employees
towards the work and also helped the company to know about their marketing advantages and
about their competitive advantages. This will help the company to know about their market
Strategies and how to deal in the market in order to get the more opportunities which are
available in the market.There are four kinds of market structure which is followed by the
company that is perfect competition monopoly, oligopoly ,monopolistic competition. The aim is
to develop or build the market structure is used to analyse and understanding the importance of
market and the level of competition in the market. There are few market structure that identified
the nature of the products and services the number of seller,the number of customer and the
nature of the services and economies of scale or etc.
The Market Structure of the UK’s Airline Industry

The structure which is followed by the Easy Jet organization is oligopoly. Oligopoly is a
market structure with the small amount of the organization . the focus ratio measure the market
share of the largest organization. Oligopoly market structure generally advert to the partial
equilibrium study of industry or market in which the demand side is much competitive while the
supply side is monopolist or can say nor competitive. European airline companies was
determined as an oligopolistic market of the structure. The Easy Jet company follow the
oligopoly market structure and the oligopolistic organization can either give their efforts for
complete hard and end up with perfect competition as. In oligopolistic market the company's is
focusing in the hands of few organization and the actions of every organization is interdependent
that means they should degrees is the price it is likely that they would raise the sales at the
expense of another organization ( Stevenson, 2019. ). The pricing decision of the British Airways
company is relies on the pricing decisions of the competition organization. However, in the
monopoly market structure the Airways of British Company is not required to pay attention to
the pricing of competitors. British Airways company target segment of the audience which
involve in primary market of ABC1 and that preferred high class services which are provided by
the British Airways company.
2. What are the economic factors within the UK that affects the business of Easy Jet?
Economic Factors of UK
The economic factors involved all the activities in a country which are concerned with the
manufacturing distribution and the utilization of product and services. The economic climate has
create a big impact on the organization. The level of the customer which create impact on the
price investment, decision and the amount of the employees in the business. Economic factors
are considered as external factors and it create huge impact on the company towards their growth
and development (Arte and Larimo, 2019). As economic factors create impact on the financial
stability of the company and also create impact towards gaining more opportunities and
success.Economic environment that create impact on the economic environment that create
impact on the organization which are mentioned below:
Changing levels of consumers income
if the consumer's income increasing then it will help the company to expand their
business and improve the economic but if the consumer's income fall then it create negative
impact on the company that means the organization will not able to perform as well because an
employment for low income will create impact on the economic and not provide positive
outcomes.
Changes in interest rate

As interest rate shows the cost of borrowing money or amount of saving which receive in
interest. Interest rate decrease or minimize the access to capital market and developed downward
pressure on the aircraft values. Interest rate might be the present or appear in a range of several
places which is imposed by range of several individuals. It is obvious that the level for interest
rate is wide and amended interest to banking institution but it create impact on the organization
whose Strategies and planning the lying on taking large loan for huge amount.
Demand and supply
Demand and supply create impact on the airline company and on Easy Jet. As if the
demand is increasing or decreasing and supply is a change then it will lead to higher or lower
equilibrium price and quantity. If supply is increasing or decreasing and demand is unchanged
then it will lead to the lower equilibrium price and higher quantity (Ogrodzka-Mazur and Saukh,
2020). air supply and demand the both are much important for the economy because they grow
their impact on the prices of their consumer services and goods within an economy. On the basis
of market economic theory the connection among the supply and demand balance out a point in
the upcoming days or future and this is known as equilibrium price.
Inflation rate
Inflation rate create negative impact on the company which include increasing in the opportunity
cost of holding the money and another is uncertainty over the future information that may the
motivate or discourage the investment in Savings and the another if the inflation rate per rates in
a then the shortage of products or good as consumers begin holding out of concern that the cost
or the prices will raising in the future.
Increasing cost of price
That means the organization are required to read negotiate the wages of the employees
because they need more money to get by (Paital, 2020). But if the inflation is higher than
expected it can also put the company's of investing or create impact on their profitability and
their productivity.
Tax Rates
Flight departure tax creates impact on the travel decision on the demand and also on the
supply side of the Year connections ( Prayudi, Vijaya and Ekawati, 2019). The launching of the
introduction of the tax raises The Heirs and it create impact on the demand of the flights or the
profitability of the company.
Recession
Economic recession has the power to modify the purchasing attitude of the consumers
which might all the organization to leave their prices or clear low volumes.

There are some other economic factors that affect the United kingdom's companies and
that is the United Kingdom is continuously raising the amount of foreign direct investment
would this create impact on the company's. Economic recession or brexit Economics set back
also create impact on the company ( Couldry and Mejias, 2019). International economic factors
like currency exchange rates shipping tax rate interest rate recession these old things create
impact on the cost and the prices of the good and also create impact on the environment of the
business first if the cost which are provided by the company or offering on the products on their
goods in the international market is is higher as compared to locally produced goods then are
required to target expensive or luxury products market segments. The reason or factor which
create impact on the business is customer confidence the customer confidence evaluate the entire
consumers of optimism about the level or condition of the economy. The economic growth and
development also create impact on the economy of the company because if the economics of the
organization is good or if the economy of the country is good then it will create positive impact
for both of them but if the economy of the organization or of the country is bad than negative
impact on business and on the nation.
3. What are the likely impacts of Brexit on the business operations of the company?
Each every industries or company affected by the Brexit because of the potential
economic impact and the mean power barriers and problem like migrated workforce and
shortage of talented and skilled workers. There are few companies that will be impacted more
than other company likes financial services but it is those company that sale their product mighty
nationally and they will going to face some huge change in the environment and in the business.
Are several issues faces by the organization Easy Jet in context of brexit ( Mikuła, 2019). Every
organization faces some different challenges when it comes to the United Kingdom the leaving
the EU but there are few major issues and challenges that require to address and that mentioned
below:
Supply chain it comes or bring a uncertainty of raising the cost in delays to supply chain. Brexit
create impact on supply chain or supplying of products and services globally.
Customs it is very important and essential for the exporters and importers to analyze and
understand the potential customer’s barriers and implications for their organization.
Workforce due to Brexit, there are much of British employment law comes from Europe and
there are few areas are only UK provisions this very required for the organization to address
these issues and their required to consider them.
Regulations the impact or effects of brexit on rules and regulation is potentially enormous. In
several areas the UK usually are widely corporate or works to European standard and it is likely
that United Kingdom policies and regulations will constantly or continue to comply with those
standards but as they are not capable to shape the regulations and policies behind them.

Economic issues brexit create impact on the economy as all parts for all portion of the economy
and IT sector in which the United Kingdom is operate are likely to experience the impacts of
brexit.
In the United Kingdom’s breaks away from the European countries so there will be more
challenging for the country to regulate or shape their structure and their policies. BRICS it create
impact on the chosen company immediately by changing laws and regulations ( Okanga and
Groenewald, 2019). The modification on the changes which are adopted by the United Kingdom
in their legal Framework will lead to headaches or negative impact for the organization because
as they attempt to navigate how the modification and alteration affect their operations and their
contracts for their employees. For the chosen company it’s become quite difficult to accept laws
and policies which are made by the United kingdom's Government and Parliament. Brexit create
impacts on supply chain on the customer base of the company and on their workforce and many
more. The United Kingdom left the European Union on January 31st 2020 and on December 24
UK and European government settled or develop a trade deal that is called trade and cooperation
agreement which help them to identify the future trading connection among the two markets.
4. Analyse the impact COVID-19 is likely to have on the business of the company?
The covid-19 pandemic had a very major impact on the airline industry because of
restriction on travelling and a slump in demand among the travelers. There are major reduction in
passenger numbers because of flight being cancelled or planes flying empty among airport which
majorly minimise the revenues for the airline industry and forced many airline Industries to lay
off workers or declared bankruptcy. Covid-19 pandemic create major impact on the Easy Jet
company towards their growth and development. As per the investigation it's analysis that
approx 4.8 million occupation and jobs in aviation industry may be lost by the upcoming year.
and 43% production from pre covid19 levels. Covid-19 pandemic demotivate or demoralize the
individuals towards their work level and towards their efforts in the company. Because of
covid19 the customers are more afraid to travel in the other countries and to plan a trip in order
to entertain them. Covid-19 creates several impacts on the country and on the organization
towards their success and profitability. It minimizes their revenues and profit because of
lockdown and several new actions which are adopted by the government and Parliament in order
to secure the population of their country ( Marsha and Soedrajat, 2019). As covid-19 create
impact on the human health and their mentality so it's become quite difficult for the organization
to motivate the individuals or motivate their employees to work more hard and with effectiveness
so that they can gain more outcomes. But as covid-19 is a very major problem and it is spreading
across the world very vastly so the individuals become much aware and afraid about their
security and their safety purpose . so it's become much difficult for the organization to maintain
and to overcome these challenges and barriers of covid-19. As covid-19 also create impact on the
mental health of the individual. As it also create impact on their profitability and their revenues
because as passenger flights were cancelled and the price of sending or transferring cargo by air

changed very quickly. Covid-19 is a very e major and dangerous problem because as it create
impact on the organization and human health as well as. It is very required for the organization to
adopt all safety and precautions of covid-19 in order to assure the customers about their safety
and security( Painter, 2020). Due to covid-19 pandemic they become much aware about their
safety and precautions so it is very required for the easy that organization to maintained and
developing strategies and budget in order to adopt the new technologies which help them to
avoid the symptoms and chances of covid-19 and help them towards their safety and security.
CONCLUSION
From the above mentioned report it has been concluded that business environment is which
Edward II the factors that create impact on the capabilities of the organization in order to build a
successful connections among the customers. Business environment is very important for the
company in order to grow in the market . this report analyzed about the market structures of the
country and what kind of market structure is adopted by the airline industry. As per the
investigation it has been analyzed that in UK oligopoly market structure is followed by the Easy
Jet company in order to maintain the environment of their organization. Also this report
described about the economic factors which affect the business of the easy just like changes in
interest rate demand and supply inflation rate increasing cost of price and the recessions and
many more . this report is also explain about the impacts of brexit on the business operations of
the company in what are the impacts of brexit. Brexit create use impacts on the company in
regards of regulations workforce custom supply chain because when the United kingdom's
breaks away from the European countries then it's become much difficult for the organization to
adopt new policies and regulation . after that this report explain about the impact of covid-19 on
the business operations of the company.
RECOOMANDATION
 It is a recommended to the chosen organization to follow some Strategies and planning in
order to maintain their organization structure and their organization environment so that
they can achieve their goals and targets in a very appropriate and effective manner.
 The chosen company also advised to adopt the new rules and policies as soon as possible
in order to become much effective and to grow in the market.
 They are also required or advised to follow appropriate market structure in order to to
focus on ratio and evaluate the market share of the largest organization so that they can
gain more competitive advantages in the Marketplace and become much effective.

 They are also advised to you handle and overcome the challenges which are connected to
the economic factors, with brexit and with covid-19 pandemic in order to to enhance the
productivity and maintain the business environment of the organization.

REFERENCES
Books and Journal:
Rezapouraghdam, H.,and, Alipour, 2019. Workplace spirituality and organization sustainability: a
theoretical perspective on hospitality employees’ sustainable behavior. Environment,
Development and Sustainability, 21(4), pp.1583-1601.
Bocken, N., Boons, F. and Baldassarre, B., 2019. Sustainable business model experimentation by
understanding ecologies of business models. Journal of Cleaner Production, 208, pp.1498-1512.
Arte, P. and Larimo, J., 2019. Taking stock of foreign divestment: Insights and recommendations from
three decades of contemporary literature. International Business Review, 28(6), p.101599.
Ogrodzka-Mazur, E. and Saukh, P., 2020. Contemporary Polish and Ukrainian academic youth: a
portrait without ornaments: a comparative analysis.
Paital, B., 2020. Nurture to nature via COVID-19, a self-regenerating environmental strategy of
environment in global context. Science of the Total Environment, p.139088.
Prayudi, M.A., Vijaya, D.P. and Ekawati, L.P., 2019. What drives MSME performance? The role of
gender, operational aspects, and social environment. Journal of Contemporary Accounting, 1(2),
pp.65-84.
Couldry, N. and Mejias, U.A., 2019. Data colonialism: Rethinking big data’s relation to the
contemporary subject. Television & New Media, 20(4), pp.336-349.
Mikuła, B., 2019. Human capital management as a subsystem of knowledge-based
management. Knowledge—economy—society. Contemporary trends and transformations of
economies and enterprises, pp.133-144.
Okanga, B. and Groenewald, D., 2019. Optimising enterprise resource planning system to leverage a
firm’s absorptive and adaptive capabilities. South African Journal of Information
Management, 21(1), pp.1-15.
Marsha, E. and Soedrajat, M.A., 2019. The Influence of China in Hollywood
Environment. Contemporary Chinese Political Economy and Strategic Relations, 5(3), pp.1143-
IX.
Painter, C. ed., 2020. Contemporary art and the home. Routledge.
Stevenson, H., 2019. Contemporary discourses of green political economy: AQ method
analysis. Journal of Environmental Policy & Planning, 21(5), pp.533-548.