Business Context Analysis: EasyJet's Strategic Analysis and Leadership

This report provides a comprehensive analysis of EasyJet's business operations within the context of a dynamic external environment. It begins with an introduction to EasyJet, a British multinational low-cost airline, and then proceeds with a detailed SWOT and PESTLE analysis to examine the political, economic, social, legal, technological, and environmental factors impacting the airline. The report identifies key opportunities and threats stemming from these factors, particularly in light of the COVID-19 pandemic and changing customer preferences. It then compares different leadership styles, including autocratic, democratic, and transformational approaches, and recommends a suitable leadership style for EasyJet based on the CEO's statements and the airline's strategic goals. Finally, the report explores ethical and social responsibilities, and the company's response to external factors, providing a holistic view of EasyJet's business strategy and its adaptation to the changing market conditions.

Context of Business
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Table of Contents
Introduction......................................................................................................................................3
TASK 1............................................................................................................................................3
SWOT & PESTLE Analysis..................................................................................................3
TASK 2............................................................................................................................................5
Changes in PESTLE factors...................................................................................................5
TASK 3............................................................................................................................................6
Comparison of different style of leadership...........................................................................6
TASK 4............................................................................................................................................8
Recommendation of a suitable leadership style.....................................................................8
TASK 5............................................................................................................................................9
Responsibility, response& obligations in ethical and social responsibilities.........................9
Conclusion.....................................................................................................................................11
REFERENCES..............................................................................................................................12
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Introduction
External business environment is changing very fast and affecting the functioning of business
organisations in this dynamic context. The changing strategies of competitors also pose an
impact on the business strategy and the way overall response has to be provided to such factors.
Easy jet is a British multinational low cost airline group having its headquarters in London
(Panpatte and Ganeshkumar, 2021). They are operating international and domestic scheduled
services across 1000 routes in 30 countries via its Easy jet Switzerland, Easy jet Europe and easy
jet UK. Presently there is analysis by application of PESTLE and swot frameworks based on
which there is critical analysis of the way different opportunities & threats are affecting business.
Further there is comparison of different leadership style and selection of a appropriate leadership
style.
TASK 1
SWOT & PESTLE Analysis
Pestle analysis:
It is an external environment analysis that is used for the purpose of analysing various factors
that are part of the macro environment and are posing an impact on the overall functioning of
Easy jet:
Political factors: there are certain political factors that are affecting easy jet it includes there has
been transfer of ownership from UK AOC to European union that has lead to high amount of
uncertainties for future policy formulation. Another political factor has been impact of French
industrial action (Su, and et. al, 2020). Easy jet is having high amount of commitment to take
steps so that they are able to achieve the required business outcomes according to EU
referendum so that they are able to select a preferred country so that they are able to achieve a
EU based air operator certificate by securing of flying rights in Europe.
Economical factors: COVID 19 virus has affected the airlines industry in a great manner as
since lockdown situations. The budgeted airlines have revealed that first time in time period of
25 year history there has been significant losses. There is an expectation that they may not fly
more than 20 percent of their total planned capacity in the coming year of2021.
Social factors: The customer’s preference has shifted towards driving of ancillary revenues and
there have been initiatives towards, maintaining a gender balance in the pilot community. In
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situation of covid 19 people have developed preferences for high safety measures so easy jet has
to make lot of modifications and changes according to such developing preferences of people.
Easy jet is having a high amount to focus on their people and culture by development of a
“orange spirit” in which there is a high spirit of commitment for their passengers that is front
line staff that has lead to easy jet be one of the strongest airlines in Europe (Cuong and Hung,
2020).
Legal factors: there are heavy regulations that are part of external environment that have to be
followed by airline industry. There have been changes in European airspace supply controlled by
ATC air traffic control. All such legal requirements have to be adhered in order to operate
according to the regulations.
Technological factors: there has been continuous improvement in the digital internets such as
easy jet has introduced bag size on the easy jet further there has been introduction of new
scanning feature on iphone easy jet is also changing themselves adopting of data science &
advance analytics.
Environmental factors: There are certain factors that are part of external environment that
includes operating in net zero carbon flights across the network and there has been going
research on electric green and hybrid aircraft propulsion technologies so that there can be
development of measures to reduce the harmful impact on the external environment by
promoting of sustainable development (Fiaz, Su, and Saqib, 2017).
It can be summarized from the above made macro environment analysis that easy jet is driven by
a strong underling demand to build up a strong customer position that can lead to getting up of a
structural advantage.
SWOT Analysis:
Strengths weakness
Easy jet is a modern aircraft with a unparallel
networks
It is first choices brand and there has been
increasing customer loyalty
They possess a strong operational efficiency by
development of a low cost model
There has been higher resilience against
Easy jet has been dealing with aggressive
competition at Berlin airport & legal ramp up
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external factors for the purse of maintain the
margins
Easy jet has been first major international
airlines to offset all the carbon emissions
opportunity Threats
There is a growing opportunity for easy jet as a
major international airlines to offset all the
carbon emissions
There has been high impact related with
consumer uncertainty because of instance sof
brexit taking place in Europe in recent years
There has been potential disastrous impact of
COVID 19 on the aviation industry with a loss
of revenue structure
There have been slow growth of European
airlines in past few years
There has been cancellation of flights due to
many political reasons that include French
strikes that has lead to instances of present
customer base shifting to other existing
competitors.
Based on this analysis there is need for easy jet to build up a strong and position by using their
strategy of lean cost advantage and also achievement of higher operational & customer
excellence. Further there is focus on using of available data and information in order to form
their digital marketing strategies that can lead towards growing of their present revenue structure.
TASK 2
Changes in PESTLE factors
Opportunities: From the analysis made from pestle factors it can be said that one of the factors
associated with dealing with the losses taking place because of COVID pandemic can be to
resned swiftly to the changing customer demands according to their change outlook. Such as in
October 2020 easy jet has addede180, 000 seats as their additional capacity in a time of 24 hours
(COVID-19 leads to first easy Jet loss in 25 years - but digital customer experience is top
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priority, 2020). So there is an opportunity to further make changes in their digital assets, app
banners and home page.
Present prospective business strategies for easy jet according to the changing business
environment:
Reduction in human interaction: Easy jet has an opportunity to move towards a aircraft that
does not require human interaction. It involves reducing queuing, improvement of boarding,
improvement of automatic gates process, development of virtual board, digital boarding passes,
reduction of the need for check ins.
Support: Easy jet has to provide digital tools for the purpose of self service to engage with the
airline. As pat they have to focus on delivering self service disruption management so that
customers can be part of quick self serve disruption (Ararand Nasra, 2019).
Social strategy: In the covid pandemic social strategy has been one of the tools that are used by
organisations for the purpose of launching a new social strategies so that is building a hub of
voice of customers in creation of a always on the feedback loop so that there can be shift from a
the present scenario of customer satisfaction scores to creating of a life time value for customers.
Threats:
There is an increasing threats for easy jet in terms of reduction of profit margin that is easy jet is
always competing based on low cost so there is a need to focus on the strategies of dealing with
higher complexity as with tine there has been situations of unbundled pricing frills that is leading
to difficulties in the way cost is managed at easy jet (Novak, Breznik and Natek, 2020).
Easy jet has a presence at many high cost primary airports that may lead to higher regulatory
increase in process and streaming of cost. There is also threat of high labour unrest because
airless industry is very vulnerable to the situations of labour unrest and also among the key
airport based suppliers that include ground handling and round transport.
TASK 3
Comparison of different style of leadership
Type of
leadership styles
Autocratic style
of leadership
Authoritative
style
Democratic
style
Transformational
leadership
meaning It is one the ,
illustrative style
It is the
indicative style
Democratic
leaders are the
It is related to
transforming and
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of leadership
where the
autocratic leader
makes a decision
and all the
directions have
to be followed
by subordinates
& other team
members
according to
their provide
instructions
(Bligh, Kohles
and Yan, 2018).
of leadership
where there is
marking of
confident leaders
where they are
mapping the way
and further
setting of
expectations by
engaging &
energizing the
followers along
the way and the
objectives have
to be achieved.
ones who are
sharing
information with
employees that is
affecting their
responsibilities.
Employee also
has to seek
before apprising
of final
decisions.
improving of the
conventions of
company.
Employees poses a
basic set of ideas
and goals that has
to be complete in a
specific time
duration it may be
a month or week
but the leader is
constantly pushing
employees to work
outside their
comfort zone.
Features In this there is
reduction in
employee morale
as there are
neither consulted
while the
decision is made
neither their
view points are
considered by
the leaders so
there is
reduction in their
morale &
motivation that
affects their
In this style the
leader is
dictating all the
procedures and
policies by
deciding the
goals to be
achieved. There
is complete
control by the
leader which
may lead to a
reduction in
flexibility for
employees and
there is high
It has benefits
such as
promoting the
team spirit
among
employees and
there is higher
cooperation on
their part.
Democratic
leadership style
is also helpful in
enhancing the
present
participation
level of
It is a highly
encouraged type
of leadership that
is present between
growths minded
organisations as
employees are
motivated to take
high risk.
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contribution
level.
amount if
rigidity in the
overall
functioning of
the organisation.
employees with
development of
their creative
mindsets.
From the above mentioned scenario there are different leadership styles that can be used by
leaders in an organisation according to the prevailing situation and its suitability according to the
laid strategies (Mohiuddin, 2017). Transformational leadership is based on the micromanaging
aspect so that employees can be tracked to become transformational leaders by going through the
process of training and mentoring.
TASK 4
Recommendation of a suitable leadership style
As per views of CEO john Lundgren, he said that they understand the preferences of their
customers who are willing to deal with them as the underlying to be strong and there has been a
90 percent enhancement in sales in the following days after quarantine for canary islands in
October. It has resulted in a agile response by addition of 180,000 seats in a time period of 24
hours to deal with his demand. In his statement he has thanked al his employees who have
contributed towards achievement of this strategic position in the organisation that has lead them
to achieve a respective position in the external environment according to the changing
circumstances.
As per above discussed scenario it can be said that for CEO john Lundgren the main emphasis
is on building up of a innovative product category that is not possible with having high
commitment in the organisation that is regarded as corporate sponsors who are the managers
forging a leadership idea to the actual market. Members are part of top management who possess
a belief in updated technology (Maamari and Majdalani, 2017). There is leveraging of the
influence with top management to fund, support and guide teams for better innovation by
focussing on corporate decision process and dealing with investment hurdles. Some of the radical
business models are built up based on technology driven way to enhance the current business
that is part of using the external models if partners & suppliers to deliver a important component
of services.
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So, according to such situation it is recommended that the transformational leadership style is
some the most suitable form that can assist CEO of easy jet to use the attributes of
transformation leaders that include high amount of empowerment, creation of clear vision that is
directly related with job satisfaction for employees and building up of high level of commitment
on their part. Amidst this situation of pandemic it is very important for the organisation to
recover with the challenges of loosing of revenue and market share as there has been shifting
preferences of people. So, for this employees have to be motivated in such a manner that they are
working according to the laid vision of CEO of Easy jet (Xie. And et. al 2018).
Benefits: transformational leadership style is associated with focusing on aspects of authority,
seniority and position with high levels of commitment that is related with loyalty as
transformational leadership is concerned. It can be said that transformational leaders have to use
such qualities beyond expectations so that they are able to set the operations with high amount of
travel effectiveness. Leadership qualities and overall organisational culture posses an important
role in development of overall business outcomes.
TASK 5
Responsibility, response& obligations in ethical and social responsibilities
Ethical and social responsibility process is a very crucial part of business ethics. A responsible
business organisation has to consider the impact of activities and decisions to specify and the
external business environment. They have to be behaving in such a manner that can positively
contribute towards a sustainable development and society welfare. Easy jet posses a clear focus
towards building up of strong relationship with their customers so that they are able to carte a
long term revenues that are more sustainable at same time there is digital access. There is also
focus on development of new revenue streams by leveraging of the network, high cost focus and
further tracking of their overall innovation process.
Responsibility: the main responsibility of easy jet being a low cost airlines is that they have to
deliver a reliable, safe and great value services across different destinations they are having a
responsibility to work according to their laid commitments of cost savings and maintain their
structure of low cost by dealing with their major competitors in the market. There is
responsibility to maintain a clear capital structure that can assist in maximisation of shareholder
returns.
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Response: easy jet is willing to develop a business model to use small airports for the purpose of
avoiding the congestion changes and landing fees. Large airports require aircrafts that is
according to fly at longer holding airports and deal with higher fuel emissions. Waste
minimization is also one of major objectives in order to work more socially responsible as they
are working on ticket lees scenario so that there is minimum usage of paper. On board wastage is
also reduced to some extent by not offering any type of free food services so that wastage can be
managed. Easy jet is able to use bigger and aircrafts with low cost carriers as there is atypical
seating configuration with a airbus of A319 with 124 seats. There is also no frills service that
allows managing the weight and space that is devoted to storage, lavatories and galleys.
Further another major initiate by this brand is their business model that is centred on high aircraft
utilisation that tends to minimize the turnaround time. There is minimal usage of ground
equipments with a shorter dwelling time and leads to surface journey at minimum. All this leads
to minimization of waste and there is reduction in the overall adverse impact on the environment.
Obligations: easy jet is a modem airbus fleet that is using A320 family at aircraft and a 186 seat
cabin with a higher fuel efficiency of A320 neo aircrafts it provides their customers by maintain
the cost and also poses an obligation to ensure safety & security of their passengers.
Easy jet has a management team that is building all the strategies according to the laid vision 7
mission of the organisation such as they are working as one team by coming together for the
purpose of find a way. They also poses a strategy of cutting cost that does not matter for them so
that it can be more easy and lean as a part of their overall business model.
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Conclusion
It can be concluded from above made various discussions that there are different leadership
approaches that are used by leaders according to a particular prevailing situation in organisation
and the laid mission and strategies as per prevailing scenario. There is need to make a detailed
evaluation of the responsibility of various ethical issues in organisations that are to be performed
in organisations so that there can be fulfilment of all the responsibilities and obligations in the
required manner.
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REFERENCES
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leadership style and mindset in error learning and organizational change. Journal of
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Novak, A., Breznik, K. and Natek, S., 2020. How leaders can initiate knowledge management in
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Shtal, T., Buriak, M., Ukubassova, G., Amirbekuly, Y., Toiboldinova, Z. and Tlegen, T., 2018.
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Online
COVID-19 leads to first easyJet loss in 25 years - but digital customer experience is top priority,
2020[online], Available throughhttps://diginomica.com/covid-19-leads-first-easyjet-loss-
25-years-digital-customer-experience-top-priority
Leadership Style at EasyJet, 2020 [online], Available through<
https://www.managementpedia.com/threads/leadership-style-at-easyjet.221107/ >
INVESTING IN OUR STRENGTHS [online], Available through<
https://corporate.easyjet.com/~/media/Files/E/Easyjet/pdf/investors/result-center-
investor/annual-report-2016.pdf>
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