EasyJet: SWOT, PESTLE, Leadership Styles in Business Context Report

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This report delves into a comprehensive analysis of EasyJet, utilizing SWOT and PESTLE frameworks to assess its strategic position and external influences. It evaluates how changes in PESTLE factors impact EasyJet's opportunities and threats, and how the company leverages its strengths to mitigate weaknesses. Furthermore, the report recommends suitable leadership styles based on Daniel Goleman's model, justifying the choices with relevant literature and examples. A critical examination of EasyJet's Corporate Social Responsibility initiatives is also included, alongside a reflective account of the report writing process, all contributing to a holistic understanding of EasyJet's business context.
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CONTEXT OF BUSINESS
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EXECUTIVE SUMMARY
The present report is based on the study of Easy Jet airways that are headquartered within
the United Kingdom. The present report includes a PESTLE analysis which helps in determining
the factors that affects the functioning of the business of Easy Jet. The Easy Jet has been awarded
for providing their customer with the most user-friendly app which can used by visually impaired
people. Similarly, the use Of SWOT framework is used to determine the strengths, weaknesses,
opportunities and threats of Easy Jet. The present study also suggests the leadership styles that
are suitable for the functioning of the Easy Jet and it includes Democratic style and coaching
style of leadership and the styles that are not suitable for the company includes autocratic
leadership style and pace setting style of leadership.
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Table of Contents
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
SWOT Analysis of Easy Jet ........................................................................................................4
PESTLE Analysis of Easy Jet......................................................................................................6
Analysis based on PESTLE analysis with respect to the SWOT analysis ..................................7
Suitable leadership styles for Easy Jet.........................................................................................8
Leadership styles that are not suitable for Easy Jet.....................................................................9
Importance of Corporate social responsibility for Easy Jet.........................................................9
Reflection Report ......................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
A business can be defined as an enterprise that is involved with activities that relates to
sale of goods and services to the customers for exchange of an amount with an objective to earn
profit for the organization. The present report is based on the study of Easy Jet airway company
which is headquartered in Luton, England, United Kingdom and was founded in the year 1995
by Sir Stellios Haji-loannou that was 27 years back. The key people of the company includes
Stephen Hester and Johan Lundgren. Currently, the company has about 13000 employees that
works within the company. The operating income of the easy Jet as per the financial year 2021
was recorded to be 1036 million pounds and the net income was recorded to be 858 million
pounds as per the year 2021. The parent company of the Easy Jet is the EasyGroup and the
subsidiaries of the Easy Jet includes Easy Jet UK, Easy Jet Europe, Easy Jet Switzerland and
Easy Jet Holidays. The current report will include a SWOT analysis and a PESTEL analysis for
the company Easy Jet for the purpose of identifying different opportunities and threats in the
current market scenario. The current study aims to identify the leadership styles that are suitable
for the company and those styles which are not suitable for the company in the current business
context. The report discusses the corporate social responsibility within the business processes
and includes a reflection report at the end of the report for the purpose of evaluating the
experience gained while preparing the report.
MAIN BODY
SWOT Analysis of Easy Jet
SWOT analysis is a framework used by organizations in order to determine the
competitive position of their brand within the market by identifying the strengths, weaknesses,
opportunities and threats associated with the company. The SWOT analysis of the Easy Jet has
been explained below:
Strengths
ï‚· Easy Jet follows a low cost model within the markets of UK which helps them to provide
their customers with flights pieced at cheap rates and increase their market share.
ï‚· Easy Jet holds a strong position all over the world and has a capital base of around 4
billion pounds (Vlados, 2019.).
ï‚· The company is using the strategy of acquisition in order to expand the current business
across the globe.
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ï‚· It is one of the most prominent brands present in the United Kingdom, Italy and
Switzerland.
ï‚· The company uses a single model which helps them to eliminate their training and
development cost.
Weaknesses
ï‚· If the Government of United Kingdom plans to impose additional taxes on the Easy Jet,
the company have to face losses due to its lower profit margins.
ï‚· It has been identified that the company do not reimburse the amount of tickets paid by the
customers when the flights are cancelled because of certain issues within the brand
(Zhang, and et.al 2020).
ï‚· Easy Jet operates within a competitive industry and therefore needs to work for low profit
margin in order to provide the customers with low prices.
ï‚· Only present in a restricted number of nations.
Opportunities
ï‚· The brand Easy Jet has the opportunity to plan expansion initiating from Europe to the
whole world.
ï‚· In order to increase the profitability of the company, Easy Jet has the opportunity to use
Easy Jet Academy for the purpose of teaching the candidates who are interested in the
same (Munro, Arli,. and Rundle-Thiele, 2018).
ï‚· The company can provide the customers with attractive packages in order to influence the
customers and engage them towards the company.
Threats
ï‚· A change the policy of the Government can lead to a great change in the operations of the
Easy Jet.
ï‚· The industry in which the company operates is very competitive in nature and for the
same, the company needs to launch various features or new and innovative approaches in
order to maintain its position within the market (Jordan-Makely, 2019).
ï‚· Introduction of innovative technologies by other brands can affect the functioning and the
profitability of the Easy Jet.
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PESTLE Analysis of Easy Jet
A framework generally used by organizations in order to determine the external factors
that affects the functioning of an organization can be referred to as the PESTLE analysis. The
PESTLE analysis with respect to the Easy Jet is as follows:
Political factors
There are certain political factors that have impacted the functioning of Easy Jet
negatively. One of the main reason that has affected the growth of the Easy Jet is the exit of
Britain from the European Union. This has affected the operations of the company because a
large portion of the Easy Jet is present in the Europe and it is important for the company to
ensure that the portion of in which the company operates is present in the European Union for
the purpose of making it approachable for the Easy Jet to conduct its operations.
Economic Factors
A number of businesses have suffered due to the outbreak of the Corona Virus across the
globe. However, The Easy Jet has been affected the most as people stopped travelling both ways
i.e., within the national boundaries and outside the boundaries of the United Kingdom (Gupta,
Gupta, and Gupta, 2019.). This has led to a decrease in the profitability of the Easy Jet. The
company also had to bear losses due to the rising the fuels prices in the first half of the year 2019
and had to shut 3 bases because of the outbreak of corona virus.
Social factors
In today’s world, no one wants to pay for something that does not serve them with
enough value and benefits. Therefore, the company needs to enhance their functions and services
provided by them to the customers in the prices they are charging from them currently. For the
same reasons, the company needs to launch innovative features within their airlines in order to
increase the customer engagement towards the brand and increase the profitability of the
company.
Technological factors
In terms of technology, the Easy Jet have proven itself to be remarkable. In the year
2019, the company launched an innovative feature in its app that was specifically introduced for
the purpose of easing the use of the app operable by the people who are visually impaired. The
feature was a voice based features which helps the people who are visually impaired to operate
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the app with the use of their voice. The Easy Jet was awarded for the same reasons as it was
appreciated for the user-friendliness and the convenience of the app.
Legal factors
In the year 2020, the Easy Jet had to face the consequences of a huge cyber-attack within
the company (Gandolfi, and Stone, 2018). Because of the cyber-attack, the company had to
compromise the personal data of around 9 million people which also include the credit card
number of the customers. This affected the functioning and operations of the Easy jet and also
lead to a decline in the brand image of the company.
Environmental factors
In today’s world, the customers are very educated and do realise the contribution of a
business towards the society as well as the harmful impact of the operations of business on the
environment. Therefore, it is essential for a business organization to take certain steps that
engages the customers towards the brand. Similarly, Easy Jet has launched E-papers which can
be used by the customers in order to write something and eliminate the use of paper within the
business organization.
Analysis based on PESTLE analysis with respect to the SWOT analysis
ï‚· The Brexit deal, i.e., the exit of Britain from the European Union has affected the
Expansion plans of the Easy Jet airway's company (Ellis,2020. ). The company had the
opportunity to expand their business within all the European countries that would help
the Easy Jet in order to expand their business and increase their profitability. However,
the Brexit deal affects the functioning of the Easy Jet within the European boundaries.
ï‚· For the purpose of expanding the business and attracting new set of customers, it is
important for the company to introduce extra and special features to the customers which
will help the company in gaining a new range of customers (Bradbury, and Galloway,
2021). However, the data leak that happened in the year 2019 has affected the brand
image of the company as a data of around 9 million people was leaked which included
the credit card information of the customers.
ï‚· The technological innovations introduced by the competitors of the brand hampers the
growth of the Easy Jet airways. This is so because, if a brand launches new technology
within the market, the customers gets attracted towards the competitors and affects the
sale of the Easy Jet. Therefore, it gets essential for Easy Jet to introduce the competitive
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technology within the company in order to survive and compete with other brands in the
market.
ï‚· Since, Easy Jet is a capitally strong brand that exists within the markets of United
Kingdom, it can use it as a strength to capture new markets such as capturing the
countries of Europe by introducing their airlines within new markets and new countries in
order to provide the brand recognition and enhance the profitability of the Easy Jet
(Bonkoungou, Raisinghani, and Idemudia, 2022.).
ï‚· As it is known that the Easy Jet makes use of the single model and makes sure that the
prices charged by Easy Jet is low. It helps the company in reducing the competition that
exists within the industry and help the company in engaging the audience towards the
brand.
ï‚· It has been determined that the company has faced allegations by its customers that it has
not reimbursed the amount of tickets paid by the customers when the flights were
cancelled by the Easy Jet. This affects the brand image of the Easy Jet and hampers the
growth of the company.
Suitable leadership styles for Easy Jet
There are a number of leadership styles which have been given by Daniel Goleman, some
of which are suitable for the functioning of Easy Jet. They are:
Coaching
It is type of leadership style which is suitable for the smooth and efficient functioning of
Easy Jet as this kind of leadership style involves huge amount of time and energy and determines
the strengths of each and every individual working within the organization. When this type of
leadership style is implemented within the Easy Jet, it will benefit the organization by enhancing
the productivity of the employees (Bass, . and Milosevic, 2018.). The Coaching leadership styles
identifies the strengths and weaknesses of the workforce and analyse them to get a brief
understanding for the purpose of determining the capabilities of individuals. This helps the
company in improving their performance by increasing job satisfaction among the employees
and enhancing their productivity.
Democratic
Another leadership style that is suitable for the business operations of the Easy Jet is the
Democratic style of leadership. If the Easy Jet decides to implement democratic leadership, it
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will help the company in preparing future leader by providing the lower management the
authority to make important business decisions by guiding them. The democratic style of
leadership involves sharing of skills, knowledge, experience and diversity within the
organization. Under this kind of leadership style, the current leaders prepared the lower level
management for the upcoming senior positions within the company by assigning them with
authority.
Leadership styles that are not suitable for Easy Jet
Autocratic or Coercive
The autocratic style of leadership is a kind of leadership style that does not respect the
views and opinions of any individual or member of the team except the views of the leader itself
(Basran, and et.al, 2019). This kind of leadership style creates a feeling of dissatisfaction among
the individuals and the workforce and leads to unproductive results. Therefore, this type of
leadership is not suitable for the Easy jet.
Pace setting
It is another type of leadership that is used by certain organizations. However, it is not
suitable for the Easy Jet. According to this type of leadership style, the members of an
organization are required to exactly what has been suggested by the leader within the
organization. This is only possible when the employees are working within a highly competitive
organization in which the workforce is also highly motivated to achieve the goals of the
company. Therefore, this type of leadership is not suitable for the Easy Jet.
Importance of Corporate social responsibility for Easy Jet
The corporate social responsibility of an organization plays an important role within the
scope of a business organization similarly it holds importance for the Easy Jet too. The list of
advantages of the CSR for Easy Jet includes:
ï‚· Corporate social responsibility is used by Easy Jet for the purpose of retaining its
employees and attract new customers towards the organization. This is so because, it
develops a feeling within the employees that they hold importance for the company and
the business is taking steps for the betterment of its employees as well as other sectors.
ï‚· Another factor that indulges the Easy Jet to implement the CSR is that is improves the
brand image among the customers within the market and increases the sale of the
company (Anastasiadou, Lindh, and Vasse, 2019).
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ï‚· The launching of CSR activities also help the Easy Jet to save money as the Government
of a nation provides relaxations in the tax rate to a company that is involved in promoting
the CSR activities.
Several programmes related to the Corporate Social Responsibility of the company have been
launched by the Easy Jet for the purpose of promoting the CSR activities. They are:
ï‚· The Easy Jet has decided to reduce and eliminate the use of plastic within their airlines as
much as possible. This action has been taken by the company for the purpose of
determining reducing the consumption and use of plastic for the purpose of packaging as
it is not environment friendly. This shows that the Easy Jet is responsible towards the
environment and is taking accountability of its actions and also showing responsiveness
towards mitigating its impact on the environment.
ï‚· Another, CSR activity that has been launched by the Easy Jet is hiring physically
disabled people within their organization for the positions such as ground staff, or if they
have any particular specialization in Finance, Marketing or any other field (Al-Malki,.
and Juan, 2018.). This states that the Easy Jet is fulfilling its social responsibility by
employing the individuals which are physically disabled. By employing the impaired
people within the company, the Easy Jet is contributing towards the benefit of the society.
Reflection Report
Conducting this study on the Easy Jet organization has helped in gaining knowledge and
developing certain skills within myself. While conducting this study, I learned the value and
importance of SWOT analysis with respect to an organisation as it helps a company in
determining their own strengths and capabilities that could help them achieve further in their
business. The SWOT analyses helps the company in gaining a understanding of the weaknesses
of the organization and formulating certain strategies which can help them to eliminate their
weaknesses (Al Khajeh, 2018). Moreover, the identification of threats and opportunities with
respect to the business organization, the company learns how to capture the opportunities and
eliminate the threats. Similarly, I also developed an understanding of the PESTLE analysis and
how it is useful for an organization to determine the external factors that can affect the
functioning of the business. With the help of this study, I also learned how a company can make
use of strengths and eliminate the potential threats from the market and what kind of impact the
weaknesses of an organization can make on the opportunities that are available with the
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company. The present study made me learn about the different types of leadership styles that are
used by several organizations and what kind of leaderships are useful with respect to the
functioning of a business. While conducting the research with respect to the market analysis of
the Easy Jet airways, I also gained a brief understanding of how important is the Corporate social
responsibility for an organization and what kind advantages does it provide to the organization.
Therefore, it can be said that overall my experience while conducting this study was really
amazing as I got the opportunity to learn and develop an understanding towards the market in
which the company operates.
CONCLUSION
From the above report, it can be concluded that the different types of frameworks that are
available for the market analysis plays an important role in contributing towards the success of
the organization. The SWOT analysis has been used with respect to the Easy Jet for the purpose
of determining the strengths of the company, its weaknesses, opportunities and threats of the
company. It also identifies the importance of strengths in order to reduce the impact of threats
and eliminating the same as well. Similarly, the weaknesses associated with the company also
hampers the opportunities that are available in front of the company. The PESTLE analysis helps
a company in determining the various external factors that can affect the functioning of a
business includes political factors, environmental factors, social factors, technological factors,
legal and economic factors. The PESTLE analysis also evaluates the impact of each of the macro
economic factor that affects the operations and functioning of the business within the market.
The current report also discusses the strengths, weaknesses, opportunities and threats associated
with Easy Jet within the market by using the SWOT analysis with respect to the Easy Jet. The
present report also suggests two styles of leadership that are suitable as per the nature of
operations of Easy Jet. They are Democratic and Coaching styles of leadership that are suitable
for the company and the styles of leadership which are not suitable for the Easy Jet includes
Autocratic and Pace setting type of leadership. Moreover, the current study includes the
importance of Corporate Social Responsibility with respect to the Easy Jet and also determines
the reasons for which the companies put in extra effort to serve their corporate social
responsibility and contribute towards their role in the betterment of the society. Lastly, the report
has a reflection report attached which shares the inclusion of the experience gained while
preparing the present report.
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REFERENCES
(Books and Journal)
Al Khajeh, E.H., 2018. Impact of leadership styles on organizational performance. Journal of
Human Resources Management Research. 2018. pp.1-10.
Al-Malki, M. and Juan, W., 2018. Leadership styles and job performance: A literature
review. Journal of International Business Research and Marketing .3(3). pp.40-49.
Anastasiadou, E., Lindh, C. and Vasse, T., 2019. Are consumers international? A study of CSR,
cross-border shopping, commitment and purchase intent among online
consumers. Journal of Global Marketing. 32(4). pp.239-254.
Basran, J., and et.al, 2019. Styles of leadership, fears of compassion, and competing to avoid
inferiority. Frontiers in psychology. p.2460.
Bass, A.E. and Milosevic, I., 2018. The ethnographic method in CSR research: The role and
importance of methodological fit. Business & Society. 57(1). pp.174-215.
Bonkoungou, W., Raisinghani, M.S. and Idemudia, E.C., 2022. A Study of the Impact of
Different Styles of Leadership on Project Quality Performance: An Empirical
Analysis. International Journal of Information Technology Project Management
(IJITPM). 13(1). pp.1-14.
Bradbury, T. and Galloway, C., 2021. SWOT analysis. In Encyclopedia of Sport
Management (pp. 480-482). Edward Elgar Publishing.
Ellis, D., 2020. Developing a strategic framework of analysis for air transport
management. Transportation Research Procedia. 51. pp.217-224.
Gandolfi, F. and Stone, S., 2018. Leadership, leadership styles, and servant leadership. Journal of
Management Research. 18(4). pp.261-269.
Gupta, A., Gupta, N. and Gupta, M., 2019. British Airways-A SWOT and PESTLE Analysis-The
impact of Europe 2020 policy. NOLEGEIN-Journal of Corporate & Business
Laws.1(1). pp.1-11.
Jordan-Makely, C., 2019. Libraries as bureaucracies: a SWOT analysis. Library Management.
Munro, V., Arli, D. and Rundle-Thiele, S., 2018. CSR engagement and values in a pre-emerging
and emerging country context. International Journal of Emerging Markets.
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Puyt, R., Lie, F.B., De Graaf, F.J. and Wilderom, C.P., 2020. Origins of SWOT analysis.
In Academy of Management Proceedings (Vol. 2020, No. 1, p. 17416). Briarcliff
Manor, NY 10510: Academy of Management.
Vlados, C., 2019. On a correlative and evolutionary SWOT analysis. Journal of Strategy and
Management.
Zahari, A.R. and Romli, F.I., 2019. Analysis of suborbital flight operation using
PESTLE. Journal of Atmospheric and Solar-Terrestrial Physics. 192. p.104901.
Zhang, Y., and et.al 2020. A swot analysis of the UK EV battery supply chain. Sustainability.
12(23). p.9807.
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