Strategic Business Plan of EasyJet: Analysis, Evaluation, and Strategy

This report offers a comprehensive analysis of EasyJet's strategic business plan. It begins by assessing the airline's mission, vision, goals, objectives, and core competencies, highlighting their influence on strategic planning. The report then delves into the factors considered during strategic formulation, including internal and external environmental audits, and the significance of stakeholder analysis. It evaluates the effectiveness of techniques like SWOT and PESTLE analysis employed by EasyJet. The report further explores alternative strategies relating to market entry, growth, and retrenchment, justifying a chosen new strategy for EasyJet. It examines the roles and responsibilities of managers at different levels and estimates the resources required for successful implementation, including the use of SMART targets. The report emphasizes the importance of strategic planning for achieving long-term goals, making effective decisions, and competing in the market, with a focus on EasyJet's low-cost service model and use of technology.

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TABLE OF CONTENTS
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
1.1 Assessing the mission, vision, goals, objectives and core competencies of Easyjet which
influence the strategic planning...................................................................................................3
1.2 Analyzing the factors which have been considered by Easyjet when formulating strategic
plan...............................................................................................................................................4
1.3 Evaluation the effectiveness of techniques which are used by the recognized company at
the time of developing the strategic business plan.......................................................................5
Task 2...............................................................................................................................................6
2.1 Analyzing the strategic positioning of an Easyjet by internal organizational audit..............6
2.2 Environmental audit of an Easyjet airlines............................................................................6
2.3 Assessing the significance of stakeholder analysis when formulating new strategy.............7
Task 3...............................................................................................................................................8
3.1 Analyzing the alternative strategies relating to market entry, substantive growth,...............8
limited growth or retrenchment for Easyjet................................................................................8
2.4-3.2 Present and justify the choice of a new strategy for Easyjet...........................................9
4.1 Assess the roles and responsibilities of manager at different level strategy........................10
4.2 Estimation of resources will be required by Easyjet for successful implementation of
chosen strategy...........................................................................................................................11
4.3 Explain the SMART targets contributes in the successful implementation of strategy......12
Conclusion ....................................................................................................................................12
References......................................................................................................................................13
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INTRODUCTION
Business strategy is an important tool for achieving the desired task because it provides
the direction and guidelines towards the achievement of set objectives. It is useful for long term
planning more than 3 to 5 years. The present report is based on the EasyJet strategic business
planning and use of different techniques of strategic business plan. This report also analysis the
internal and external environmental factors which affects the strategic business planning of the
EasyJet airline company. It main focus on to provide lower cost and effective quality of airlines
services to mass people and gain competitive advantage. It also follows the market penetration
growth strategy tools for achieving the larger sales volume and retains the customers for a long
time period. EasyJet air Line Company uses the extensive technology which one is helpful in
online ticket booking, time saving and reduced paper in order to get higher efficiency.
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Task 1
Task 1.1 Assessing the mission, vision, goals, objectives and core competencies of EasyJet
which influence the strategic planning
Strategic planning
It is the process of define the strategy, decision making to achieve the set target goal in
business. Moreover, it also extends the guiding and implementation of that strategy. To create a
effective strategic planning management take the strict decision towards achieving the target
goals. It is important for the organization because it provides sense of direction and guidelines
towards measurable goal. It is a specific tool that is useful for taking day to day decisions and
evaluating the ongoing process to effectively achieve the goal. EasyJet are the leading and
cheapest airline services of the company (Hamel, 2012). The mission of this company is to
provide low cost services to the mass people. Mission, vision and goal of an organization makes
a greater impact on a strategic planning because strategic planning are prepare and implement on
the basis of company future prospects, mission provides the direction towards accomplishment
of desired goal. Strategic planning are to be set according to these factors.
Mission:
Strategic planning starts with defining mission of the company. Strategic mission gives
guidance to both management and employees which focuses on their efforts. A mission of the
firm is to describe the purpose of a company.
Role
It has its own role to provide safe and valuable services to their customers. It makes
positive contribution in the wealth of the society.. Safety of the passengers has top most priority
compare to other services during the traveling.
Importance
Importance of the mission includes the process of achieving the target of the airlines
company which has to be set by the management of the EasyJet. A mission of the company plays
the vital role to achieving the long term goal.
Mission Statement
Mission statement of Easy jet is “To provide our customers with safe, good value, point-
to-point air services. To effect and to offer a consistent and reliable product and fares appealing
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to leisure and business markets on a range of European routes. It provides high range of services
to different demographic region. To achieve this, we will develop our people and establish
lasting relationships with our suppliers.
Vision:
Role
A vision of the company describes future picture of an organization. A vision statement
inspires employees to give more effort and provide framework for strategic and operational
planning.
Vision of easy jet
Vision of an organization shows the dreams and hopes for the future. Its vision is to build
the future airline services provide strength as the largest low cost airline in Europe.
Goals-
Role
Measurable goals are important for evaluating the progress and understanding the
employees and managers. Goal of an organization are useful tool for strategic planning and it
acts as a nut and bolt for a strategic process. Goal of the EasyJet is to server their services to
mass people and retention the passengers for a longer time period.
Importance
Importance of goal setting is the most effective approach to achieve the long term goal
set by the company and it is very important to give the boost to the business growth.
Objectives
Role
There are several objectives of every organization to sustain in the current market
and maintain their brand value like they have to provide best services to their regular customers
and providing best facility to their employees and employers. Moreover, major role of the
company is to achieve the set target goal and improve their quality services.
Importance
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In the importance of the objectives of EasyJet, includes the effective planning to achieve
the long term objective. Mainly to reach the target goals small objectives are must require for the
company's growth and these plays vital role in achieving the long term objectives of the
company.
Core competence
Role
Core competence of EasyJet is very effective way to attract more passengers
towards their providing services and best facility. Moreover, there is effective core competence
of the EasyJet is satisfaction from the passenger's side. In the importance of the core competence
passenger's satisfaction is must for the firm and for the greater improvement of the organization.
Importance
Core competency of EasyJet is to provide low cost airline services point to point
destination. Online services help in getting larger revenue because 90% of flight tickets are
booked by using the internet service. EasyJet is the low cost service provider so that it attracts
more and more customers to avail the services. EasyJet airline has 6000 employees staff they are
work in departments like pilots, crew member, staffs and employees they provides effective
services to customers.
Summary
There are several factors that affect the strategic planning in terms of positive or negative
both the ways. Likewise mission, vision, goals and objectives directly affect the services of the
EasyJet’s in positive way. Once organization clear their mission in the right direction and then
make strategic planning accordingly so they can easily achieve their set target. Effective goals
and objectives are also affecting the development of the firm and improve their services. Core
competency influence the strategic planning of the company in effective manner like they
provide low cost airline services to their passengers and online services provide to book tickets
and many more.
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Task 1.2 Analyzing the factors which have been considered by Easy jet when formulating
strategic plan
Strategy formulation
Planning horizon
Strategic plan is a set of processes where the range of strategies is developed and
provides contribution towards achievement of organizational goal. Strategies are implemented
according to the set goals and objectives as per the vision and mission of an organization. Top
management of an organization is responsible for effective implementation of strategic set
objectives.
Outside influences
Organization structure reflects the company’s image in front of people if the firm follow
formal pattern of interaction and coordination. It shows by the behavior of human being who is
the part of a company. All the beliefs and assumptions are made by particular organization for a
period of time and it helpful for the new employees.
Organization culture
It is a set of shared mental assumptions within an organization (Meskendahl, 2010).
Every company has their own unique culture which reflects their own mission, vision and goal.
Leadership style of an organization also influences the strategic planning of an organization
because leadership influences others towards accomplishment of the target and directs the firm to
make it more cohesive and coherent. Leadership attributes drives organization in a way to get
competitive advantage in the market place.
Planning issues
Leadership can take organization the up to remarkable height buy giving guidance and
direction. Many departments are responsible in the strategic planning of the process. Internal and
external environmental factors are to be considered when framing strategic planning of a
company.
Organizational mission, vision
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During the strategic planning process, it includes vision, mission, objective and value
preposition are to be considered to achieve great advantage. Competitive environment also
affects company’s strategy due to barraging power of buyers and suppliers and potential of new
entrants and their substitutes. Finance resources needed to be taken in to account while
implementation of strategy. Human resources need to be considered in the strategic planning of
business. Technological factors also influence the strategic planning.
Financial resources- It can be considered when framing a strategic plan because it a life blood
for operating day to day functions. Financial factors makes greater impact when preparing
planning. It can be done on the basis of appropriate allocation of budget to a specific activity. It
also affects the expansion of business and services at large level.
Human resources- It is the intangible assets for an organization without the HR no one firm can
survive in market. According to the level of human resources strategic planning of a business are
to be made. It plays a vital role in managing all the activities in an efficient manner.
Importance of strategic planning
 Strategic planning is very important tool to provide the outline and direction to achieving
the long term goal and improve the business tactics.
 Making the effective decisions and conduct the operation to compete with the other
organization, effective strategic planning is so important.
 It is very necessary tool for the company's growth and achieve the targets, It is also attract
the financing and management accounting.
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Task 1.3 Evaluation the effectiveness of techniques which are used by the recognized company
at the time of developing the strategic business plan
Planning techniques
Several strategic planning techniques are to be used for different circumstances. EasyJet
uses two strategic business plan techniques which are SWOT and PESTLE analysis.
Importance of planning techniques
It provides cost effective and high quality airlines services across Europe. It also
provides user friendly website to everyone so that anyone can easily access the airline related
information. It also uses online promotion techniques and offer discounted ticket which is
emailed to the existing customers. This policy attracts the customers to avail the services. It
provides faster services its average turnaround time is 30 minutes (Pagani, 2013). It have many
opportunities to open alternative routes for major European cities and it is cost effective and time
saving for alternative customers. It provides comfort and refreshment services during traveling
time.
PESTEL Analysis- It is basically related to external environment of an organization
which affects the organizational activities up to a large extent. Political and legal factors affect
the growth and image of the company. Several taxes and any legal changes which are more
complicated to adopt it. . Globalization of business boosts the traffic continuously for a long time
period. Social and cultural factor vary from region to region. Many of the people are not aware
how to use credit card over the phone and internet. Low price is the key elements of the brand.
Advance booking of tickets are less expensive and also Core competency of EasyJet is to provide
low cost airline services point to point destination. Online services help in getting larger revenue
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because 90% of flight tickets are booked by using the internet service. EasyJet is the low cost
service provider so that it attracts more and more customers to avail the services. EasyJet airline
has 6000 employees staff they are work in departments like pilots, crew member, staffs and
employees they provides effective services to customers. o gives discount on online ticket
booking. It provides internet and telephone booking system. Promotion strategies are very
attractive which can be done the use of slogan and campaign which promote the vision and
mission of the company.
BCG: BCG is a matrix that used in business brand and business strategies planning
process. EasyJet’s market share and market growth are very high in compare with other airlines
like sky, British airways, Aero Lloyd.
Competitive analysis- It is the another tool that are considered while making the
strategic business plan. It provides the information about the competitor strategy and their future
planning, it helps to makes certain changes in the existing business plan in order to gain
competitive business advantage.
Supply chain analysis- It is basically based on the customer wants and demand. It
matches with the customer demand in order to fulfill the customer satisfaction. Supply chain can
change according to the customers varied demand. Supply chain are always be prepared in
flexible manner that helps in making instantaneous changes.
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TASK 2
Task 2.1 Analyzing the strategic positioning of an Easy jet by internal organizational audit
Internal organizational audit
Internal audit of an organization includes the company assets, resources, system and
procedure are to determine for the purpose of identifying the strength and weakness. Resources
of an organization effectively audited which relates to physical, human, intangible and financial
resources. Physical resources have effective approach which can be easily accessible to the
customers. Human resource department consist number of number of employees all around the
Europe and high technology and trained staff helps in to provides low cost operations (Hamel,
2012). Core competency of Easyjet is to provide low cost airline services point to point
destination. Online services help in getting larger revenue because 90% of flight tickets are
booked by using the internet service. Easyjet is the low cost service provider so that it attracts
more and more customers to avail the services. Easyjet airline has 6000 employees staff they are
work in departments like pilots, crew member, staffs and employees they provides effective
services to customers. Internal audit are to be under consideration of organization culture.
Importance
 Low cost service provider strategy is useful for achieving high level of sales as well as
revenue. Financial resources of an EasyJet are optimum in level because it does not
generate larger annual revenue in terms of profit.
 This strategy helps to cover huge market area. It is the second biggest airline industry in
UK. It provides best online booking and best online consumer service. They have various
varieties of services like airbus, airplanes with sufficient number of Boeing and seats.
EasyJet regularly modifies their services and new planes are used for maximizing
performance of flight and reducing the time and cost for passengers. Company regularly
invests lot of money in technology which reduces the paper work and increases the speed.
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Task 2.2 Environmental audit of an EasyJet airlines
EasyJet always focuses on providing best quality of services to their customers which
satisfies the customer needs and makes them happy. It always believes in maintaining long term
relationship with customers and gives valuable importance to them. EasyJet jet also provides
some additional services as per demand of customers which includes room reservation in hotel,
transportation, insurance and tourist guide. The main motive and mission of EasyJet is to provide
safe and good value services to their customers (Scholes, 2015).
SWOT Analysis-
It consists of Strength, Weaknesses, Opportunities and Threats of a related organization.
Strength and Weaknesses are internal factors of an organization while Opportunities and Threats
are the external factors of an organization.
Porter's generic strategies
These strategies are used to describe that what are the process that company apply to
achieve the set target goals and there are several strategies like low cost, differentiated or focus.
It includes cost focus, differentiation focus.
Value chain
Porter's value chain process includes the firm's infrastructure, human resource
management, technology development, procurement, these are the supportive activities of that
process and the primary activities are inbound logistics, operations, and outbound logistics.
EasyJet apply the porter's value chain process to achieve the long term goal of the company.
PESTEL Analysis of EasyJet
Political factors- Political instability in UK has negative impact in company’s operation.
Governmental interference decreases the revenue of company so that company operations are
that company operations are difficult to perform in unfavorable situation. European Union
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