Strategic Planning for EasyJet: Mission, Vision, and Implementation

This report provides a comprehensive analysis of EasyJet's strategic planning processes. It begins with an introduction to EasyJet, a British low-cost airline, and its business model. The report then delves into Task 1, which examines how mission, vision, objectives, goals, and core competencies inform strategic planning for EasyJet. It explores the importance of strategic planning, factors influencing it, and the company's mission, vision, goals, objectives, and core competencies, including its low-fare rates and online ticket sales. Task 2 focuses on strategic positioning through internal and environmental audits, stakeholder analysis, and the selection of new strategies. Task 3 explores alternative strategies, such as market entry and growth, and justifies the choices made. Finally, Task 4 addresses the roles and responsibilities of personnel in strategy implementation, resource requirements, and the contribution of SMART targets. The report uses frameworks like the BCG matrix and SPACE matrix to evaluate strategic positions and plan for future growth. The conclusion summarizes the findings and offers recommendations for EasyJet's strategic development.

Table of Contents
INTRODUCTION................................................................................................2
TASK 1.............................................................................................................2
Task 1.1 Mission, vision, objectives, goals and core competencies informs
Strategic Planning for Easy Jet.....................................................................2
Task 1.2 Factors considered by Easy Jet when formulating strategic plans. 4
Task 1.3 Effective Planning techniques Easy Jet can use for developing
strategic business plans...............................................................................5
TASK 2.............................................................................................................7
Task 2.1 Strategic Positioning of Easy Jet by carrying out an internal
organizational audit.....................................................................................7
Task 2.2Environmental Audit of Easy jet......................................................8
Task 2.3 Significant of stakeholder analysis when formulating new
strategy- ....................................................................................................11
Task 2.4 Section of new strategy ..............................................................12
TASK 3...........................................................................................................13
Task 3.1 Appropriateness of alternative strategies relating to market entry,
substantive growth, limited growth or retrenchment for Easy Jet..............13
Market Growth:..........................................................................................13
Task 3.2 Justify the choices of new strategy..............................................15
TASK 4:..........................................................................................................16
Task 4.1 Roles and responsibilities of personnel who are charged with
strategy implementation............................................................................16
4.2 Resource requirement for implementing Easy Jet's new strategies.....17
Task 4.3 Contribution of Smart Targets.....................................................17
CONCLUSION AND RECOMMENDATION..........................................................19
REFERENCES..................................................................................................20
1

INTRODUCTION
Easy Jet is British Airline which operates under low-cost carrier model whose base is present at London
Luton Airport. Over 820 routes spread across 30 countries and even more are operated by it in terms of
domestic and international scheduled services. Easy Jet plc is included in list of London stock Exchange and is
also an element of FTSE 100 Index It was established in year 1955 (Ahmad, Abdul and Mohd, 2010). Currently
it employs 11,000 people. Easy Jet uses a business model pioneered by South-west Airlines. This model has
been adapted for the sake of European market through further cost cutting steps which include no selling of
conjunctive flights or rendering complimentary meal on board. The slogan presently used for marketing is
“This is Generation Easy Jet”. It is also biggest operator of the Airbus A319. The Airline has over 19 European
markets and UK is the location of its largest base.
TASK 1
Task 1.1 Mission, vision, objectives, goals and core competencies informs Strategic Planning for Easy Jet
Introduction:The envisioning of a desired future and translation of this future into the broadly defined goals or
objectives and a sequence of of ways to achieve them through a systematic process is generally termed as
strategic planning with respect to a particular organization (Beckmann, Hielscher and Pies, 2014).
Need for strategic Planning
It is important because:
2

 It works backward to the status and starts with desired-end.
 It also provides flexibility of choices.
 It allows an organization to come up with right business models to let it flourish (Explore Strategic
Management,2012).
The various factors affecting effective strategic planning are discussed below with respect to Easy Jet:
 Mission: It is a type of statement which is used to communicate the purpose of an organization. Easy
Jet's mission is to provide its customers with safe and quality air services that appeal to leisure and
business markets on European routes ranges. Company will be developing relations with suppliers and
its people.
 Strategy: A plan or method chosen, to bring out the desired outcome is termed as strategy. Easy Jet's
strategy is to develop strong positions in Europe’s leading airports via GDP.
 Vision: It outlines what the organization wants to be in future. It serves as a source of inspiration and
provides a clear decision making criteria (Cox, M.Z. And et.al., 2012). The vision of Easy Jet is to stay
as best low fares airlines in the world.
 Goals: A goal is termed as desired result that is envisioned by an organization to be achieved. Easy Jet
aims to emerge out as one of Europe’s leading short haul airlines by providing the services at low fares
and less complications offered.
 Objective: A specific result that is aimed by an organization to be achieved within available sources and
time frame (Dunning, 2012). Objective of Easy Jet is to provide its customers with safe, quality,
consistent and reliable services within the range of low cost fares.
 Core Competencies: The main strengths of a business including accumulation of pooled and technical
knowledge to allow it to be competitive in marketplace are termed as core competencies. For Easy Jet
these are:
1. Low fare rates in comparison to rivalries.
2. Management of employees and customer relation is effective.
3. Towards corporate social responsibility commitment is there.
4. Selling tickets online.
5. Designs of aircraft are innovative and holds a strong financial position in market.
6. In UK it is widely used airline service.
For the cited organization setting up of mission, vision, goals, objectives and core competencies will
allow them a target area which they have to achieve for the betterment of their organization. Setting up of these
parameters allows the strategic planning to be more enhanced in terms with expansion of business of cited
organization. They allow a sort of motivation to the employees and staff members of an organization for
enhancement of their performance to expand the business of their organization in broader categories.
Summary: To effectively plan a strategy a mission statement is a must. Setting of a mission statement will help
an organization to plan a strategy or choosing a method accordingly. Setting of goals and visions will help to
3

secure the future of organization that at what position it wants to see itself. Objective will help in setting a
motivation to achieve desired results.
Task 1.2 Factors considered by Easy Jet when formulating strategic plans
Introduction:
Strategy formulation refers to chosen the most appropriate course of action for achieving business
adjectives. It can also be defined as take corrective actions for implementation of plans.
Formulation and implementation of main goals and initiatives taken by an organization's higher authorities on
basis of consideration of resources and assessment of external and internal environments where it competes, is
involved within strategic management (Healy and Palepu, 2012).
Why planning is important
For effective strategies one needs to realize the importance of strategic planning which are:
 It outlines the measurable goals of an organization and provides a sense of direction.
 It is helpful in guiding day to day decisions.
 It causes evaluation of progress of an organization and the changing approaches when going forward.
In order to expand the business of organization in broader and numerous categories, first of all outlining
of the goals and mission has to be done which are involved within the procedure of strategic planning. While
formulating strategies, whatever strategy is planned out the assigned entity need to consider the amount of time
period that will be taken by it to get an idea about the approximate time required for its implementation.
Furthermore, when planning also needs to take in account the probability of being affected by the external
factors such as political, etc. In addition to them the amount of issues that could arise while implementing of
that strategy also has to be taken in account. Properly determining an outline about all such parameter will
make the strategy implementation for cited organization more effective.
Factors to be considered when formulating strategic plans: There are some factors which needs to be
considered when an organization is formulating strategic plans:
4

 Planning Horizon: It is the amount of time taken to look forward in future by an organization. Easy Jet
looks forward for to effectively manage changing portfolios and hence define strategic vision. So, they
will be focussing on leadership, drive and integrity in their people that will help them delivering large
cross-functional change products.
 Outside influences: Like any other type of industry an airline industry is affected by various external
factors which include political, economic, social, technological, environmental and legal framework that
analyse this industry. Economic factors include GDP rate, per capital income, industrial production,
disposable income and consumer confidence. Social factors include the travel preferences made by
customers based on reviews from others (Hinchcliffe and Kim, 2012). And to survive in the market
Easy Jet need to stay updated with the latest technology.
 Planning Issues: When a strategy is planned then it must involve each member of the organization for
increasing the chances of its effectiveness. In Easy Jet whenever a decision or strategy is planned then It
overall impacts the manager, target market and customers who book flights. It should implement such
strategies that fully satisfy all of them and no one remains unsatisfied.
 Changes in political environment: There are various policies set by a government which need to be
followed by the organization for setting business. Therefore, Easy Jet needs to stay abide by the rules,
regulations and policies of government of Europe to develop its business.
 Organizational mission/vision/objectives etc.: Easy Jet should plan its strategy per the mission, vision,
objective that it has set, which is expansion of business in Europe market.
 Available Resources: Strategies should be planned per the resources available Easy Jet should first do
findings on resources available for implementing that strategy.
 Organizational structure and culture: Easy Jet's strong and distinct culture is an important asset (Easy
Jet Airlines Company, 2015). It follows a flat organizational structure.
Task 1.3 Effective Planning techniques Easy Jet can use for developing strategic business plans
Planning techniques
The process of thinking about and accordingly organizing activities that are required to achieve the
desired goals is termed as planning technique.
Importance of planning techniques
Planning provides information about the available resources. Allocation of these resources needs to be
done by top management for making effective decisions. These techniques help an organization in setting of
goals which is one of the key process of planning. It also aids in managing the risks and uncertainties associated
with a task. Planning techniques assist in building team and creation of competitive advantages.
5

Strategic planning is every essential element in terms of expansion of business of Easy Jet. In Easy Jet,
first of all mission and vision statement are build up so as to give the staff members a desired goal & targets to
be achieved. Accordingly, planning is done as per the set goals. These should also take in account taking
feedback from customers so that improvement in desired areas could be done. Further, implementation of the
fin al selected strategy should be done under supervision. Till now the best strategy implemented by Easy Jet
has been the introduction of online ticket booking since the year 1988. Since then, almost 90% of the people
prefer online ticket booking which have increased the market share of Easy Jet to the highest.
Different Planning techniques
There are basically four techniques in planning that can be considered. They are BCG, SPACE, PIMS, and
Directional Policy Matrix.
Among them the directional policy matrix analyses portfolio of business. Analysation of the portfolio
allows the organization to get to know about various parameters in association with it so that accordingly
mission and vision could be set.
The Space Matrix helps in determining type of strategy that should be undertaken by a company. This
will allow the cited organization to decide what strategy will be best suited for company based upon the various
influential factors such as external factors, economic factors and many more as discussed earlier.
The other two that could be most beneficial for Easy Jet have been discussed below:
 BCG Matrix: To evaluate strategic position of business brand portfolio and its potential, BCG matrix is
the framework created by Boston Consulting Group.
1. Relative Market Share: High cash returns are a result of high corporate market share. Benefits from high
economies of scale and experience curve are provided to the company producing more thus resulting in higher
profits. If the market share is good for Easy Jet in all countries, then it will gain more profits. Its importance is
that it helps in analysing the position of the organization
2. Market Growth Rate: If the growth rate of Easy Jet is high then it means that earnings and profits are also
high which is a result of lots of cash. This is stimulating their further growth (Neely, 2012). Therefore, business
units that are operating on rapidly growing industries are cash users and are considered as worth investing
whenever they are being expected to maintain their market share in the future.
 PIMS Matrix: It is practised by World Class Organizations. The PIMS (Profit Impact of Market
Strategy) is long term term, comprehensive study of the strategic business units in various major units.
Whenever a new strategy will be formulated in Easy Jet then what could be the possible profits through
it should be determined. How it will be impacting the staff members and the customers should also be
known. The position in the market could be enhanced or not should also be determined. If low cot fares
are introduced then what profit it will cause the organization, impact on the management and working
staff, position in the market because of it should be determined.
6

TASK 2
Task 2.1 Strategic Positioning of Easy Jet by carrying out an internal organizational audit
Introduction
Analysation of internal factors that affect an organization position in market is referred as organizational
audit. It serves as independent, objective assurance and a consulting activity to enhance the value of a company.
For Easy Jet the SWOT analysis allows them to get a better understanding of the influential environment to get
detailed analysis of their business practices. Furthermore, Porters generic strategies allows them to formulate
the various costs so that customers and staff as well are most benefited through their different schemes. In order
to get an idea about all the internal influential factors that could affect their business practices value chain
analysis would be of great help.
Importance of organizational audit
Organizational audit protects an organization from financial misstatements and presents reliable health
picture of organization in market. Moreover, protection from fraud is also provided.
Tools for carrying out organizational audit
 SWOT Analysis: In its focus is on the strengths and weaknesses. Strengths include strong reputation,
brand awareness, low cost and fares, consistent and reliable, low-level overheads (Rogerson, 2010). All
this is result of effective strategic planning and flat organizational structure. Weakness include:
1. Limited Departure airports away from the city
2. People who are not internet friendly fin d it difficult to use
3. Only 1 seating plan
4. cost leadership strategy difficult to maintain
5. Brand name is owned by Sir Stillios so no control over services and products of brand
 Porters Generic strategies: Easy Jet is currently pursuing cost leadership strategy it means to offering
different types of services to its customers at low cost so they can attract more customers in its business
and ensures long term growth in aviation industry. It is achieving this by excluding excess cost and
frills. This cis done by:
1. To reduce distribution cost the company uses internet platform.
2. To reduce the unit cost it maximises the use of aircraft significantly.
3 Company's money for issuing, distributing, processing, and recording of paper tickets is saved.
`4. It has been awarded for catering because no food is made available for free.
Because of the simplified working practices by Easy Jet concept of paperless office has evolved.
5. Its differentiation focus includes targeting small group of customers by offering then different types
of products. Easy Jet is targeting to its customers by offering them differing types of services during flights
such as food as per their customers’ requirements.
7

 Value Chain: This analysis is a tool that analyses firm activities internally. The main goal of this model
is to recognise most valuable activities for the firm and among them which ones need to be improved for
competitive advantage. For Easy Jet the most valuable activity is low cost fare, brand awareness,
consistency & reliability. With the changing environment and market, providing low cost fares could
prove to be quite challenging (Rolag, 2010). Many other airlines with evolution of technology are also
trying to give competition in. Therefore, Easy Jet needs to maintain its policy.
Strategic Positioning: The positioning of an organization while considering the changing environment along
with the systematic realization of that positioning is termed as strategic positioning. It determines character and
contents of organization. The need of strategic position is arising so they company can easily target to its
customers and expand its business. It also helps to company for attracting more customers in firms.
Task 2.2Environmental Audit of Easy jet
Introduction:
Evaluation of external factors affecting an organization is referred to as environmental audit. It helps the
organization to develop opportunities that could benefit a firm and threats that should be excluded.
Importance of Environmental audit:
Since it provides the organization with both opportunities and threats it becomes an essential part.
Whenever, a company wants to establish a new strategy it needs to have a brief idea about how the external
factors will be affecting its performance. Then only it can enhance its performance.
1.Internal Environment – SWOT Analysis of the Easy jet
8

Table : SWOT analysis of Easy Jet
Strength Weaknesses
 Easy jet offer high quality product for
the competitive price.
 Easy jet leading the e co friendly
activity and reducing the global
warming and greenhouse effect
 Easy jet does not give the offer for free
food services longer flight of 2 hours
plus.
 Easy jet has some competitiors-Jet2,
Ryan air, BMI baby.
Opportunity Threats
 Easy jet expands their business in over
the Europe.
 Updated the new technology in fly it
provides the brand goodwill in the
market.
 External market also affect like -increase
in the price of oil increase the the
running cost of flight.
 The Government policy, legislation, war
also affect the Easy jet (Smart Goals.
2016).
External analysis of Easy jet
PESTLE Analysis of Easy Jet
Table : PESTLE analysis for Easy Jet
Political Environment Economic Environment
The government policy, rules regulation,
taxation policy foreign trade policy privatisation
impact the easy jet.
Some economical factor like -business cycle
activity, moneys supply, inflation rate, deflation,
unemployment and competitor’s services and
prices impact the easy jet.
9

Social Environment Technological Environment
Social factor like population, changing the
lifestyle and preferences of the customers and
working condition and attitude of the customer
affect the easy jet.
Easy jet spending the more money for the
research of the industry used the new technology
transfer.
Legal Environment Economic Environment
Legal factor like - health and safety, updating
the new restriction for trade policy also affect
the Easy jet performance.
Easy jet also doing the pollution control
equipment, and parking services for village and
city, disposal of water.
Porter's five forces analysis of Easy Jet
 The bargaining power of buyers is an extreme low threat towards industry.
 The bargaining power of suppliers is also low.
 Threat of new entrants is an important aspect for the five forces. For easy jet this threat is generally low.
 Substitute risk level is medium for Easy Jet.
 Rivalry for this existing industry is extremely intense because rivalries try to compete with its low-cost
fares policy.
By knowing details about the various influential external factors Easy Jet accordingly plans their
strategies by aid of PESTLE analysis. Furthermore, SWOT analysis allows them to get a detailed analysis about
the areas that need improvements. In addition to its major impact of the powers of buyer’s suppliers and
customers affecting business practices of Easy Jet can be known by Easy Jet by aid of Porters five forces
analysis so that accordingly strategies are planned as per scenario.
10

Task 2.3 Significant of stakeholder analysis when formulating new strategy-
Definition of stakeholders
Stakeholder are customers, creditor, suppliers, employees, business partners. every organisation spent
more time for stakeholder impact of the business (Willard, 2012).
 one that has a stake in an enterprise
 one who is involved in or affected by a course of action
 a person entrusted with the stakes of betters
Definition of stakeholder analysis
Stakeholder analysis is the process for identifying the interest of employees and involvement of project, and
knowledge about the project also in the project, conflict resolution, business administration and management. It
is regularly used in the preparation time of a project. It can be done on regular basis or can be done once.
Significance of stakeholder analysis
There are many significance of stakeholder for making new strategy for Easy jet
-The risks that are involved at the initial stages of project planning can be recognised using stakeholder
analysis.
11

-Easy jet conduct the analysis that they help in identifying the opportunity and making the relationship with the
different person
-The analysis help to creating the new strategy and approaches for the benefits relating the stakeholder.
-The analysis is the way and process to reduce the negative impact of easy jet and disadvantages of the group
people
-The analysis also help to build capacity and increasing the responsibility in the Easy jet (zott and Amit,2010)
-The analysis provides the opportunity for increasing the knowledge related to market project and stakeholder
of the Easy jet.
Task 2.4 Section of new strategy
The strategies of Easy Jet focus on new ideas in services of customers and establishing new routes which have
stronger demands. Before adopting any strategy, a company should analyze the three main points that whether
the strategy is suitable, acceptable and feasible. Any decision or action should be performing after ensuring
these three points.
In my opinion, the first strategy that Easy Jet should adopt is the product differentiation. It is the main
requirement for the growth of any organization, since it separate a firm from their competitors.
Acceptability: It is hard to sell any product which have number of competitors in market. Cited firm can
differentiate themselves from other competitors by styling, more advance technology, lower price, etc.
12