A Comprehensive Analysis of EasyJet's Business and Leadership Report

This report provides a comprehensive analysis of the budget airline EasyJet. It begins with an introduction to the company and its business model as a low-cost carrier. The main body of the report includes a detailed SWOT and PESTLE analysis, evaluating EasyJet's strengths, weaknesses, opportunities, and threats, as well as the political, economic, social, technological, legal, and environmental factors impacting the business. The report then evaluates the changes in the PESTLE factors and their influence on the airline's opportunities and threats. Different leadership styles, including autocratic, democratic, transformational, and transactional, are compared and contrasted. A suitable leadership style is recommended for the company, and ethical and social responsibilities within the organization are discussed. The report concludes with a summary of the findings and includes a list of references.

Budget
Airline

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Swot and Pestle analysis:.............................................................................................................3
Evaluation of changes in factors of Pestle and its influence in opportunities and threats of
business:.......................................................................................................................................6
Comparing and contrasting various style of leadership:..............................................................7
Recommending a suitable leadership style for company:...........................................................8
Commenting on responsibility, response as well as obligations in context to ethics as well as
social responsibilities in the procedure at an organization:.........................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
A budget airline which can also be termed as low-cost carrier refers to an airline that tries
for keeping its prices as well as fares which is lower in comparison to its competitors. Budget
airlines generally do it by doesn’t offering services such as, free food as well as drink in a flight.
Apart from it, keeping low fines for airports by the way of keeping it on accurate
time. Therefore, airlines of low-cost can be described as airlines which offers flights at a lower
rate of price in comparison to more of a reputable airline. Hence it can be stated that, customers
hence have to somewhere cut its corners and hence forego its comforts such as, legroom as well
as free drinks. Such type of concept can be termed as no-frills concept (Dube and Nhamo,
2019). This report is based on evaluation of budget airline named, EasyJet. Entity is founded in
the year 1995 by Stelios Haji-Ioannou. It is headquartered in United Kingdom.
This report covers conduction of swot and pestle analysis for the budget airline. Further,
changes in factors of pestle and its opportunities as well as threats in business is evaluated. Apart
from it, different styles of leadership are compared as well as contrasted and comment is
provided on current leadership as well as management style of an organization. In addition to it,
recommendation is provided for a suitable style of leadership which matches style of
management and helps business in growing. Lastly, this report involves comment on
responsibility, response as well as obligations in relevance to ethics or social responsibilities in
the procedure at the organization by utilizing evidence from the research.
MAIN BODY
Swot and Pestle analysis:
SWOT: SWOT analysis can be defined as a technique of strategic planning which is
utilized for the purpose of helping an organization in context to identification of strengths,
weaknesses, opportunities, as well as threats which are related to competition and project
planning of an entity. This technique or tool is designed for the purpose of utilizing in
preliminary stages of processes of decision-making as well as can be utilized as a tool that
enables evaluation for strategic position of an entity of various kinds, which involves, profit
enterprises, national or local governments, Non-Government Organizations and many more
(Sulphey, 2020). It is intended for the purpose of specifying the goals of an organizational

venture and helps in identification of internal as well as external factors which are favourable or
unfavourable for achieving such objectives.
Strengths Weaknesses
 Main advantage which is associated
with EasyJet is regarding its price
structure. average fares of a company
are somewhere around 50 percent
lower in comparison to that of major
carriers on routes of short-haul.
 Cost per seat of an organization is its
advantage because major flag carriers
comes up as to average price
differential.
 fleet of EasyJet consists of single
aircraft family, Airbus A320, which
provides advantages in context to crew
certification as well as training and
maintenance.
 Earnings of EasyJet are highly
seasonal, along with it profit of
business is relied on a strong summer,
i.e., half year which indicates (April to
September) for offsetting a loss-
making winter, i.e., (October to
March). It makes it vulnerable for any
unexpected problems for summer in
an industry which is beset by the ‘one-
offs’.
 Disputes in the recent years among
Stelios and management which
generated adverse publicity as well as
arguably damaged brand image of an
organization, in particular where
business drew attention towards
factors which indicates poor on-time
performance.
Opportunities Threats
 Although notoriously cyclical as well
as currently passing through a phase
which is sluggish, it can be stated that
the aviation sector still remains an
industry which is growing in the
medium term to long term, through
common consensus. EasyJet, refers to
 Presence of EasyJet at various high
cost airports which are primary, most
of it enjoy regulatory increment in
price, and hence provides a headwind
for driving to streamlining its costs.
 As airline is growing and business
model of it has been developed which

a significant market player, which is
well placed for participating in this
type of growth.
 For the purpose of maintaining price
advantage in business, EasyJet must
ensure maintaining its cost of unit
advantage against legacy carriers
which are continually looking for
trimming costs as well as are
transferring essential parts of its short
haul networks for lowering cost
subsidiaries. Here, initiative of
EasyJet worked extremely well.
involves unbundled pricing, ‘frills’ for
example allocated seating as well as
distribution channels such as GDSs. It
has added complexity. Such increasing
complexity comes up as a threat if
management is about to lose focus.
Pestle: PEST analysis can be described as a framework of factors of macro-
environmental which is utilised in environmental scanning as a component for strategic
management. It serves as a part of an analysis which is external when computing a strategic
analysis or conducting market research for EasyJet. It gives an outline of the various macro-
environmental factors that is required to be taken in consideration (Filina, 2019). Further, it is a
tool that helps in understanding market growth as well as decline, position, potential of business
and operational direction. Factors of pestle analysis are described below:
 Political: Political factors pertains a huge reflect on political stability of a region in which
EasyJet is operating. As, ggovernment grants permission for purchasing new Aircrafts it
pertains positive influence on company. Apart from it, collaboration of European
Countries and making of good relationship with EU indicates political stability. This
stability is an essential advantage in relevance to growth of EasyJet.
 Economic: Despite of global recession, the company is making high profits. Economic
down-turn made people more price sensitive in context to their consumption. Hence,
strategy of low-fare of EasyJet proves to be exploiting for demands of customers for
travelling at cheaper prices. Further, currency exchange rates also effect an organization

economically. Apart from it, the recent decline in value associated with US dollar in
comparison to Euro is paying off for EasyJet.
 Social: During this recent years, viable change occurs in the life style of citizens. People
nowadays travel more often either for holidays or business purpose. The emergence of
airlines which are low-cost and its business models had fostered several types of changes
within tourism as well as travel industry and is having a huge impact on behaviour of
travellers. Cultural changes in context to travelling is going to benefit for the success of
EasyJet.
 Technological: The rapid changes or development in technology pertains a significant
effect in context to growth and operations of an organization. The usage of internet
ensures that an entity to operate in an efficient manner and it opens new ways which
helps the customers for knowing about various spots and locations of holiday. EasyJet is
required to keep track for technological developments in field of e-commerce as well as
aircraft manufacture in context to gaining an advantage over competitors.
 Legal: CAA regulations in relevance to charges that are related to take-off as well as
landing charges for airports and lack of take-off as well as landing slots serves as a reason
for making it an issue for carriers for finding suitable airports (Yilmaz, Malagas and
et.al., 2018).
 Environmental: Different markets pertains different norms and environmental standards
that can impact profitability of a firm in market. Even within a nation often states pertains
different laws related to environment and liability laws. There are various changing laws
related to environment which is required to be followed by EasyJet that often impacts
productivity and profitability of business.
Evaluation of changes in factors of Pestle and its influence in opportunities and threats of
business:
While considering political factors it can be stated that following the deregulation of
European commercial aviation, a fleet for low cost carrier is reshaping the landscape of local
airline. It comes up as an opportunity for an organization to enhance its profitability and
sustainability. Further, down-turn in economy made people sensitive regarding price which again
proves to be an opportunity for EasyJet. As, strategy of low-fare of company helps in enhancing
demands of customers in relation to travelling at low prices. Changes in taste and lifestyle of

consumer represents both opportunities as well as threats for an organization. Opportunities in
case of popularity of worldwide destinations along with holidaymakers as well as growing trend
in relevance to international business ventures and threats are in context of alternative holidays.
Further, in relation to technological factors it can be analysed that paperless operation, the
administration as well as management of a firm are undertaken on systems of IT, that are
accessed by secure servers and provides flexibility in running of EasyJet. Hence, the
development of next generation aircraft also leads towards technological opportunities in context
of fuel efficiencies. In addition to it, the European deregulation of a commercial aviation
provides both major strategic threats as well as opportunities. The mainstream airlines which
faced severe competition in price from discount carriers proves to be a threat. Further, threats are
there in relevance of legislative environmental laws in regards to pollution and usage of more
fuel which are environmentally friendly, as it is at premium prices. Moreover, energy sources
that are used, namely oil pertains vast environmental implications. Here, threat is associated in
relation to fines as well as rise in cost associated with raw materials (Roussos and et.al., 2017).
Comparing and contrasting various style of leadership:
Leadership indicates the essentials for being able as well as prepared for inspiring others.
Basis of effective leadership is ideas that are original or borrowed and ability to effectively
communicated with others in such a way that engages employees of EasyJet to act in a way the
leader wants working staff to act.
Different styles of leadership are explained below:
Autocratic leaders are leaders which makes decisions without consulting team members,
even if input of working staff proves to be useful. This style of leadership proves to be
appropriate at a time when quick decisions are required and when there is no requirement for
team input, as well as when team agreement is not necessary for the purpose of successful
outcome for EasyJet. However, such style can be quite demoralizing, as well as it can lead
towards high levels for absenteeism or staff turnover.
Democratic leaders formulate the final decisions; however, they involve team members
in the process of decision-making. Such type of leader encourages creativity, and hence, people
are highly engaged in tasks and decisions. As a result, it team members are tend to pertain high
job satisfaction as well as high productivity. It is not an effective style for using, at a time when
leader is needed to make a decision quicky.

Transformational leadership: Transformational leaders pertains integrity as well as
high emotional intelligence . Such type of leaders motivates people by a shared vision for future,
and communicate well with employees. They are also self-aware , , empathetic , humble as well
as authentic (Feng, Zhao and Feng, 2020). Transformational leaders tends to inspire team
members as they expect best from its team, and hence holds themselves accountable for actions
of employees. They set clear objectives, and have good skills of conflict resolution. It leads
towards high productivity as well as engagement in EasyJet.
Transactional leadership: This style of leadership starts with an idea that members of
team agree for obeying their leader at the time of accepting a job. The word "transaction" usually
includes an organization paying members of team in return of their effort as well as compliance
for short-term task. The leader pertains a right for punishing team members in case their work
does not meet with an appropriate standard.
Delegative leaders: Laissez-faire or delegative leaders provides their team members
with huge amount lot of freedom in context to way of working as well as how team members set
their deadlines. Such leaders provides support with resources or advice if required, but they do
not get much involved in tasks performed by team. This autonomy leads towards high job
satisfaction, but on the contrary, it can also be damaging in case team members do not manage
time in a well manner, or if they do not have adequate knowledge, skills, as well as self-
motivation to doing tasks of EasyJet in an effective manner.
Recommending a suitable leadership style for company:
By evaluating impact and influence of all styles of leadership on members of team and
working of an organization it can be stated that in case of EasyJet transactional style of
leadership works well. Transactional leadership is focused on results and conforms to an existing
structure of a firm as well as measures success in accordance to system of rewards or penalties of
an organization. Transactional leaders pertain a formal authority as well as positions for
responsibility in a company. Such type of leader is hold responsible for maintenance of routine
by management of individual performance as well as facilitation of group performance in
EasyJet. Such type of leader focuses on setting the criteria for members of team in accordance to
requirements that are previously defined. Performance reviews proves to be the most common
approach for judging performance of employees. Transactional leaders work best for employees

who pertains knowledge regarding their jobs as well as are motivated by system of reward-
penalty. The status quo of business is maintained by transactional leadership (Taneja, 2016).
Further, Transactional leadership refers to a leadership style which values structure as well
as order in every organizational relationship. It is most common style of leadership that is used in
huge corporate environments, operations of military as well as international agreements.
Transactional leadership needs specific rules and regulations that is required to be followed for
completing stated goals. It transforms people and resources in an organized manner for ensuring
achievement of specific results in a typical timeframe. This is a style of leadership that is
required to for employees of EasyJet to becoming self-motivated. Team members within a
transactional leadership style is required to be able to work with a environment which is highly-
structured. Apart from it, this leadership style focus on providing results above any other thing as
well as motivates working staff for achieving them by offering rewards and consequences.
Transactional type of leadership structures various specific rewards which helps in
gaining success which have parameters that are clearly defined. Team members know when they
are going to reach that reward as well as what they will receive when they effectively accomplish
task. In a simultaneous manner, members of team are also informed about about team leaders
which are supervising team members for ensuring outcomes are effectively achieved. In a
creative and innovative environment, creating an achievable objective can be difficult. An
objective can become achievable at a time when there exists an ending point. Further,
transactional leadership helps in creating such end points which serves as a part of overall
structure of an organization. It means members of team can develop in confidence as they are
progressed towards objectives as every step that is required to take is overviewed for them. A
transactional style of leadership creates an effective command which is recognized in an easy
manner by entire team. Structures in a team are implemented with the precision. Transactional
leadership can be termed as straightforward as well as simple.
Commenting on responsibility, response as well as obligations in context to ethics as well as
social responsibilities in the procedure at an organization:
Corporate social responsibility indicates towards strategies which companies put in an
action as part for corporate governance which are designed for ensuring the operations of an

organization are ethical as well as beneficial for the society. Corporate social responsibility can
be discussed as the expectation that an entity maintains a balance among profit making and
contribution to society. Organizations which are socially responsible are conscious towards
trade-off among economic development as well as the welfare of society or environment (Müller,
Kieckhäfer and Spengler, 2018). Hence, EasyJet therefore refrains from practices that are
socially harmful as well as contribute towards activities which are socially beneficial. Following
are some activities related to corporate social responsibility which are conducted by EasyJet:
 Operating across an improving environmentally conscious Europe, entity can lay
claim for having the fleets that are youngest as well as most fuel-efficient around.
Further, EasyJet is proud of it and playing a role in helping to shape a future which is
greener for European aviation.
 Commitment of EasyJet to environment comes up as a priority. Organizational
objective is to ensure that existing business of it is as effective as possible, in context
to both in the air as well as on the ground, further it ensures to strive for finding ways
for minimising environmental impact of it in the future. Impact of business on the
environment includes, emissions of greenhouse gas: carbon dioxide, water, nitric
oxide as well as nitrogen dioxide.
CONCLUSION
From the above report it can be concluded that a low-cost airline or budget airline refers
to a airline which is operated by giving a high emphasis on minimization of operating costs as
well as without some of a traditional services or amenities that is generally provided in a fare
which ultimately results in lowering of fares and decrement in comforts. For the purpose of
making up for revenue that is lost in decrement of ticket prices, the entity may charge some extra
fees for example, fees for carrying-on baggage. Further, there are different types of leadership
styles which have its own specifications.

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