Business Strategy Analysis: EasyJet's Strategic Planning Report

This report provides a comprehensive analysis of EasyJet's strategic planning processes. It begins by examining how the airline's mission, vision, objectives, goals, and core competencies inform its strategic planning, emphasizing the importance of these elements in guiding the organization's direction and achieving its objectives. The report then delves into the factors crucial for formulating strategic plans, including internal and external factors, stakeholder considerations, and the role of planning techniques. It evaluates the effectiveness of various techniques, such as SWOT analysis and the BCG matrix, in developing strategic business plans for EasyJet. Furthermore, the report addresses the formulation of strategy, analyzing EasyJet's strategic position through internal and environmental audits and assessing the significance of stakeholder analysis. The report concludes by examining strategy evaluation and selection, presenting and justifying the choice of new strategies, and assessing the roles and responsibilities involved in strategy implementation, including resource allocation and the use of SMART targets. The report highlights EasyJet's strategic decisions and their impact on the airline's success in the competitive market.

Table of Contents
Introduction................................................................................................................................3
Task 1 Understanding the Strategic Planning process...............................................................3
Task 1.1 Assessing in what way the business mission, vision, objectives, goals and core
competencies of Easy Jet inform their strategic planning (AC 1.1)..........................................3
Task 1.2 Analysing the factors that are required for Easy Jet while formulating strategic plans
(AC 1.2)......................................................................................................................................4
Task 2 Formulation of strategy..................................................................................................7
Task 2.1 Analysing the strategic positions of Easy Jet while carrying out an internal
organisational audit (AC 2.1).....................................................................................................7
Task 2.2 Carrying out an environment audit (AC 2.2)..............................................................8
Task 2.3 Assessing the importance of stakeholder analysis during the formulation of new
strategy (AC 2.3)........................................................................................................................9
Task 3 Understanding the approaches of strategy evaluation and selection............................10
Task 3.1 Analysing the accurateness of alternative strategies for Easy Jet.............................10
Task 2.4 and 3.2 Presenting and justifying the choice of new strategy for Easy Jet (AC 2.4
and AC 3.2)..............................................................................................................................11
Task 4 Implementing the strategy............................................................................................12
Task 4.1 Assessing the roles and responsibilities of the personnel possessing the charge of
strategy implementation (AC 4.1)............................................................................................12
Task 4.2 Analysing the estimated resources required for implementing the new strategies of
Easy Jet (AC 4.2).....................................................................................................................13
Task 4.3 Evaluating the contribution of SMART targets in order to achieve strategy
implementation at Easy Jet (AC 4.3).......................................................................................14
Conclusion................................................................................................................................15
Reference List..........................................................................................................................17

Introduction
In order to run business in the proper way, the organisations have to implement various
strategies of business for its better running. Every organisation needs to be very effective
while preparing the business strategies because the strategies need to be made according to
the present prevailing scenario of business. In this study, the business strategies of Easy Jet
are discussed for the better understanding of this topic. Easy Jet is the largest airline of
United Kingdom because it carries a large number of passengers and these operate in
domestic along with international services on more than 600 routes. The organisation was
established in 1995 and it is listed as Easy Jet Plc on the London Stock Exchange.
Task 1 Understanding the Strategic planning process
Task 1.1 Assessing in what way the business mission, vision, objectives,
goals and core competencies of Easy Jet inform their strategic planning
(AC 1.1)
Introduction:
Strategic planning is the process of ascertaining the vision, recognising the goals and
establishing the objectives for future betterment of an organisation. It also involves
demonstrating the sequence of the goals and providing the resources to accomplish the
strategy (Stott et al. 2016, p.955).
Need for strategic planning:
Strategic planning is very important for organisation because it gives strategic direction to
management that leads firm to success. Proper planning helps in development of financial
strategy, human resource development that leads to achieve goals of company. Management
of company takes the responsibility of planning the whole process and the steps required to
increase its growth.As per Wassmeret al. (2016, p.892), planning guidesmanagers to form
goals and objectives that should be targeted to achieve goals for organisation
Strategy:
Easy jet mainly focuses on developing a good position in European airports. Easy jet plans a
strategy that may help them to attract more customers than their competitors. They uses cost
strategy by they provide comfortable travel to customers in affordable fares that may attract

more customers (Stott et al. 2016, p.955). Managers of easy jet do planning from
beginningthat may lead to profit for company. Some important planning done by
management as they provide higher number of seats per aircraft. All the maintenance of
aircraft is properly handled by the managers. They have developed good economic network
that has increased customer demand.Main strategy that easy jet has focused to work are
serving valuable areas that may increase their GDP in European market by providing
customers both leisure travel as well as business travel.
Mission:
A mission statement is the written document, which provides detailed information of purpose
of organisation. In the statement, it is clearly mentioned markets with which target will be
achieved and it gives proper direction to organisation that helps to achieve goals.
Mission statement of easy jet is to provide customers safe, valuable and excellent air services.
They offer consistent and reliable products to customers. An affordable fare is provided to
customers that give leisure to customers and provides good competition in the European
markets (Stadtler and Lin, 2017, p.755).
Managers provide detailed information to employees through mission statement about the
purpose and goal to be achieved by company. The mission guides both employees as well as
managers to effectively work for company.As per Stott et al. (2016, p.955), Strategic
planning may change direction of mission statement to a new direction that may lead to more
success to the organisation. Strategic planning helps to increase benefits of companyand
decreases deficit that helps employees to work in change direction and customers to buy the
products.
Vision:
Vision of the company describes way in which organisation achieves goals. Vision guides
organisation to work on present action and the actions to be carried in future. Vision
describes purpose of the organisation as well as deals with values of company on which
entire system works. Vision gives direction to the employee’s behaviour as well as gives
inspiration and motivation to employees. Proper planning helps managers to create an
environment that gives inspiration to employees to work together to achieve goals for
company.
Goals and Objectives:

The aims and objectives of easy jet are to provide a safe, valuable and comfortable air
services to customers. They aim to provide reliable products at affordable prices and
thatgives leisure to customers and they target to business markets. For this purpose, they
maintain good relationship with suppliers that help to increase customers to them. Strategic
planning helps an organisation to achieve goals (Wassmeret al. 2016, p.892). Proper strategic
planning helps management to create objectives that the company will be able to achieve for
execution of strategic planning. Strategic planning helps to identify goals to be achieved and
develop the process through company can use its resources to achieve target of the company.
Core competence:
Increasing load factor of Easy Jet denotes its core competence. Due to its affordable prices, it
has the capability of attracting customers and thus there is an increase in load factor. High
load factor also implies earning high revenue (Stadtler and Lin, 2017, p.755). Another
competence is high customer satisfaction.
Summary:
The mission of Easy jet helps in indentifying and setting the goals. The vision helps in
realizing the goals. Objectives help in achieving customer satisfaction and their confidence.
Core competence helps in getting market realization. Thus, all these help in strategic planning
for the development of Easy Jet (Easyjet.com, 2017).
Easy jet is experiencing a stable increase on average load factors of the airlines. Easy jet has
increased its growth and has exceeded Ryanair Airlines Company that has the highest load
factor. Now easy jet has highest loading capacity, which helps themto provide fixed costs to
the customers.It has also lowered the unit cost and decrease the problem of over-loading
issues. The number of seats has been increased to maximum that has provided the customers
more comfortable travel. Increasing the capacity of seats has allowed them to provide more
competencies by attracting more customers (Bayraktaret al. 2017, p.40). Easy jet core
competencies also includes that provides high level of satisfaction to the customers.
Companies develop strategies that may be able to meet core competencies.
Task 1.2Analysing the factors that are required for Easy Jet while
formulating strategic plans (AC 1.2)
Introduction:

Strategic planning is the process of selecting the actions, which should be undertaken to
accomplish the goals and realisation of the objectives, to achieve the vision for further
development of the organisation (Wei et al. 2017, p.477). Strategic planning is also done to
set the targets according to the market needs in order to evolve and be competitive.
Why strategic planning is important?
It provides a framework that is, guidelines for the actions to be taken to achieve the desired
results for the success of the organisation. A plan is always required as; it gives a direction to
proceed towards excellence. It helps to understand the market and takes measures
accordingly to face the challenges. It gives the organisation an insight of where it stands and
what resources it holds. This plan helps an organisation to maximise its profit (Bayraktaret al.
2017, p.40). Without a strategic plan, an organisation cannot be active. It may face unwanted
problems and difficult situations. There are few steps for implementation of the strategic
formulation. The organisation should know its target, resources and the objective and mission
while developing the strategic plan. Understanding the market, the potential of the
organisation and the threats are also a part of strategic formulation. It also helps in
understanding the competition, the strengths and weaknesses.
Factors considered while formulating strategic plans:
For formulating strategic plans, an organisation like Easy Jet needs to consider few factors
like planning horizon. It refers to the time duration for which an organisation looks into the
future and makes a strategic plan. It may range from around one year to five years. Outside
influences also plays an important role (Zhu and Chertow, 2017, p.12). Outside influences
may be positive which will help in evolving the strategic plan or it may become a barrier in
the path of strategic planning. Many tasks related to planning require help from political
parties. As a result, change in political environment has a great influence on the planning.
Therefore, it can be said that the mission must be clear to all. In order to pursue the mission,
the organisation has to take into account the available resources while formulating strategic
plansThe culture that is values and behaviours of an organisation should also be taken care of
while formulating strategic plans.
The success of organisation depends on the strategic planning as strategic planning provides
the direction to the firm on which is to work on. There are various factors while formulating
strategic planning is as follows;

Internal factors- For formulating strategic planning for the organisation the policies and
organisational culture affects planning. Easy jet sets the strategy by decreasing the
deficit(Wassmeret al. 2016, p.892). The culture of easy jet affects strategy planning.
Stakeholders- The main stakeholders of Easy jet are competitive air services.
External factors-All the economical, socio cultural and technological factor affects the
strategic planning of Easy jet.
Economical factors- These factors also affect strategic planning as it deals with the total
financial factors and investment factors. Social factors are also very important as per the
changing demand of the customers the products are provided to the customers.
Task 1.3 Evaluating the effectiveness of two techniques for Easy Jet in
order to develop strategic business plans (AC 1.3)
Planning techniques:
Strategic planning involves focusing on the actions, required to achieve the vision of the
organisation. On the other hand, planning techniques are the techniques, which are
undertaken by the managers to achieve the strategic plans. These are the management tools,
used by the managers, which help in making decisions regarding strategic planning
(Trivellaet al. 2017, p.205). Some of the planning techniques are SPACE, PIMS and BCG.
Importance of planning techniques:
Planning techniques are planning tools rather they are corporate management tools, which are
used for portraying an organisation’s brand and the growth of market. These tools help the
managers to react to the situation in their business using them. They help in guiding the
decisions, which are required for planning. They also help in the process of evaluation and
development of an organisation. The planning tools take into account various issues, which
need to be resolved while formulating strategic plans (Bocken, 2017, p.693). These
management tools help in taking decisions, which have long-term effects on the
organisations. They help in completing the planning and achieving the goal. SWOT analysis
is an important tool, which helps in planning techniques.
Applicable planning techniques:
BCG (Global Consultancy Group) is considered as a planning technique. Using BCG model,
business market and its growth can be analysed. According to this model, experience in the
market share reduces cost and increases profit. This classifies enterprises depending on their

growth and profit making potential using the BCG matrix. SPACE is another tool. Full form
of SPACE is Strategic Position and Action Evaluation and it is an analytical technique and
gives a proper idea about business strategy. BCG model Easy Jet will be able to analyse the
growth of the company. It will enable Easy Jet to implement the strategic planning
accordingly and gain customer satisfaction and the BCG matrix will help the organisation to
earn maximum profit.
Easy jet has increased its market growth and overall market share in accordance with the
BCG technique. BCG matrix has proved to be effective to Easy jet as they are able to invest
more by maximising their market share in the market. This hasleaded themanagement of Easy
jet to fulfil demands of customers more effectively.
PIMS helps managers to understand their business and react aptly to business situations. Its
full form is The Profit Impact of Market Strategies (Bui and de Villiers, 2017, p.5).
Directional policy matrix helps in measuring the prospects and strengths of a company but it
is unable to forecast about the profitability of a corporate sector.PIMS will help the managers
of Easy Jet to understand the business well and enable them to take appropriate steps
accordingly. Thus, Easy Jet will be able to achieve its vision of being the largest airline of
European country.

Task 2 Formulation of strategy
Task 2.1 Analysing the strategic positions of Easy Jet while carrying out an
internal organisational audit (AC 2.1)
Introduction:
The organisational audit is an independent key factor that is incorporated into business in
order to enhance the value along with improving the operations of the organisation
(Beckmann and Paul, 2016, p.686). Easy Jet finds organisational audit to be very important
because it helps in achieving their organisational goals in a disciplined manner.
Importance of organisational audit
1. It helps in evaluating the risk management along with improving the processes effectively.
2. It helps the organisation to identify their various strengths and weaknesses.
3. It helps to clarify the issues of the organisation so that it can be resolved accordingly
4. It outlines the challenges that can be faced by the organisation along with mentioning ways
how those challenges can be faced.
Elements for carrying out organisational audit
SWOT analysis
Strength: Easy Jet has developed a good reputation in economical airlines in Europe. This
company offers reliable, safe and timely services to the customers at affordable prices. They
also offer tickets through online booking and travel services. Easy Jet has created a website
that is user friendly because it helps customers to purchase tickets easily. Their main strength
is that they developcustomer’s loyalty by sending emails to customers and giving them
information about online sale of products.
Weaknesses: They do not provide free food services for longer durations. There are number
of low priced airline companies as all the companies have the motive to attract customers at

lower price. Easy jet does not provide any frills and may result in downfall of price of
products.
Opportunities: They providetour packages that attract more customers. Easy jet develops
strategic partnership with airports that helps company to enhance its route system and
increase travel options for customers.
Threat: The cost of fuel has risen thus maintaining low cost is becoming problematic for
Easy Jet.Strikes from unions in the workplace have affected cost structure and pressure is
created and has lead to increase in prices of the products. Competitors provide more frills to
the customers at the same rate that attracts more customers towards them.
Porter’s generic strategies
Porter generic strategy mainly deals with three strategies as segmentation strategy,
differentiation strategy and cost leadership strategies.
Cost leadership strategy-As per Cost leadership strategy maximum number of products is
produced that can be able to lower the total cost. Easy jet manufactures large number of
products that helps them to lower the price of the products as easy jet supplies products that
are available at fixed prices but are easy affordable to customers.
Differentiation strategy- According to Beckmann and Paul (2016, p.686), differentiation
strategy all the products are packed in such a way that products uniqueness can be easily
noticed through packing. By following this strategy, Easy Jet can grab the attention of the
customers more easily.
Segmentation strategy- As per segmentation strategy products are not sold at all markets but
are sold at specific markets. The company produces product that may satisfy as per the
demands of the specific market.
Value Chain:
Value chain helps the organisation to create all the series of activities that are processed and
provides to build values in every step of process of achieving target by the company.
All the activities that are carried by Easy jet are done by providing low fares rides and
delivers the valuable product to their customers and thus maintains great competition in the

market. Easy Jet does the inbound and outbound processes, operations, marketing their
services and serving the customers properly (Easyjet.com, 2017).
Strategic Positioning
Strategic positioning is defined as the process of distinguishing the entire business of the
organisations in a precious way from the peers along with providing the best services to the
customers of the organisations (Buckley et al. 2016, p.882). Strategic positioning helps in
building proper communication with staffs thus maintaining profit in business. Company
provide affordable fares to the customers and comfortable travel facilities in their flights.
Easy jet has increased number of seats per aircraft. It has a strong cost advantage that has
enabled them to provide comfortable travel and save good fares(Stott et al. 2016, p.955). The
performance of Easy jet has increased a lot as it has proper arrival time and departs time and
this increases customer satisfaction. This leads the customers to again travel through Easy jet
and meanwhile increases the total revenue of company.

Task 2.2 Carrying out an environment audit (AC 2.2)
Introduction:
Environmental audit are the tools that helps to quantify the overall performance of
organisation and their position in the environment. Environmental auditing is the
environmental tool that affects the activities on the environment. These tools are used to
improve employee’s activities with the aim of reducing any adverse effect on the
environment.
Importance of environmental audit
With this audit, there is an increase in the entire performance of the organisation's services.
It helps in bringing sustainable development. It starts new opportunities to save the
environment by the organisations. It analyses the input and output sections of the
organisations.
Elements for environmental audit
Opportunities: Easy jet could expand its route system to all over the world by mainly
focusing on customers’ demands. They can offer certain tour packages that may attract more
customers for experiencing their tour packages. Easy jet can improve its operating framework
that may lead it to be more competitive in market. Addition of more frills is another
opportunity that Easy jet can implement for getting more benefits from the market.
Threat: Competitors are providing more frills and route options and maintaining low prices
in fares these threats can lead to damage firm’s position in the market. External market forces
are providing price pressures with increase in oil and environmental expectations that may
decrease customer’s demands for flights.Employee strikes are some internal threats that may
require more money and may affect structure of easy jet and therefore prices of fares may be
increased.
PESTLE analysis

Political: In UK, the political condition was examined by London terrorist bombing and thus,
declining the travel of the people (DaSilva and Trkman, 2014, p.380).Due to certain
deregulation of commercial aviation has caused the political parties to expand laws and has
lead to introduction of new markets.
Economic: The inflation of dollar has become advantageous for Easy Jet airlines but it
degraded the rapid domestic growth of Easy Jet.
Social: Easy Jet has to make various changes in their services so that the organisation can
meet the demands of the customers at low cost, which is very challenging.Low cost has
differentiated both leisure travellers and business travellers as demands of both travellers are
different.
Technological: Easy Jet has to meet various passengers, who prefer the e ticketing and thus,
Easy Jet suffers loss. Low cost is increasing the ability to focus customers through user
friendly websites and improving booking processes.
Legislation: Easy Jet undergoes various law conditions and thus, this organisation has to
implement various strategies according to these law conditions.
Environmental:Easy jet undergoes certain strategy that are planned to protect environment.
It has developed green flying that may not pollute environment and is eco friendly.
Michael Porter’s Five Forces Competitive Theory Model:
Easy Jet has to understand the various criteria so that the organisation can make strategies
according to that.Threats of new entrants are low as due to the barriers of European airline
sector. The main barrier is fixed cost that may come in the path of economic conditions. Due
to the not accessing properly channels of distribution can be barrier in the airport slots
(Gumusluogluand Acur, 2016, p.1030).
Supplier power- Easy jet has good relationship with the suppliers and so the products are
delivered at the right cost to the customers. As supplier has the power to increase the total
price of the products. Satisfaction of supplier with the products is very important.
Buyer power- Customers have power to bargain with price of products and to lower down
the total price. Good buyers can lead to profit by lowering the prices of the product and
increasing total cost.