Research Report: Globalisation's Impact on EasyJet's Finances

This report investigates the impact of globalization on EasyJet's financial performance. It begins with an introduction to globalization and its benefits, focusing on EasyJet's mission and background. Task 1 outlines the research proposal, defining the research question, hypotheses, and objectives, supported by a literature review. The literature review explores EasyJet's financial performance over the past five years, future competitiveness using Porter's Five Forces, and the financial problems faced by the company. The report also includes a conceptual framework detailing the structure, research methodology, data analysis, and outcomes. The report discusses the research outcomes, reflections on the methodologies, and recommendations for future research, concluding with a summary of findings and a call for further investigation. The report also includes a table of contents, references, and appendix to provide a structured and in-depth analysis of the topic.

Research
Project

Table of Contents
TITLE: ............................................................................................................................................1
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Produce a research proposal that clearly defines a research question or hypothesis
supported by a literature review..................................................................................................1
P2 Examine appropriate research methods and approaches to primary and secondary research.
.....................................................................................................................................................8
TASK 2..........................................................................................................................................11
P3 Conduct primary and secondary research using appropriate methods for a business
research project that consider costs, access and ethical issues..................................................11
P4 Apply appropriate analytical tools, analyse research findings and data..............................11
TASK 3..........................................................................................................................................13
P5 Communicate research outcomes in an appropriate manner for the intended audience......13
TASK 4..........................................................................................................................................22
P6 Reflect on the effectiveness of research methods applied for meeting objectives of the
business research project...........................................................................................................22
P7 Consider alternative research methodologies and lessons learnt in view of the outcomes..22
CONCLUSION .............................................................................................................................22
RECOMMENDATION.................................................................................................................23
REFERENCES .............................................................................................................................24
.......................................................................................................................................................25
APPENDIX ...................................................................................................................................26

TITLE:
“To investigate the impact of globalisation upon financial performance of Easy Jet”.
INTRODUCTION
Globalization is the effective process of integration and interaction among people,
governments and companies worldwide. It describes a systematic process by which regional and
national economies, culture and societies have become integrated via the global network of trade,
transportation, immigration and communication. Globalisation has brought benefits or
advantages in developed nations as well as negative impacts. The positive influences include a
different number of factors which are trade, technology, education, employment, investments
and capital flow, competition, culture and organization structure (Chanzu and Gekara, 2014).
Hence, it becomes essential for enterprise to prepare and present their accounting or financial
information in a relevant, accessible, timely, understandable, reliable and comparable way. All
these qualities of financial data can be achieved via the adoption of globalization's major
elements in the preparation and showing of financial report. These elements includes,
harmonization of accounting standard and information technology. For this dissertation, given
organisation is Easy Jet which is a British low-cost carrier airline located at London Luton
Airport, England, United Kingdom. It was founded in 1995 by Sir Stelios Haji-loannou, John
Barton, Johan Peter Lundgren. Mission statement of the company is to provide our customers
with good value, safe and point-to-point air services.
TASK 1
P1 Produce a research proposal that clearly defines a research question or hypothesis supported
by a literature review.
Background of research
Globalisation has been explained by the international Monetary funds as the maximising
integration of economics worldwide, especially trade and financial flows. There are different
factors related to the financial performance of Easy Get such liquidity, leverage, asset utilisation,
firm size and market share position. Along with this, implication of globalisation in its different
manifestations have been thoughtful for the airline sector, not just on the demand side, where the
nature, geography and scale of demand in international markets has lead to important shifts
(ERTÜRK, 2015). Under supply side, where explicit and implicit global coordination of policies
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by government regarding security, safety and environment and the private sector have impacted
the organization and technological environment in which airline services are delivered. Therefore
globalisation also impact on business, operations and corporate social responsibility of Easy jet
which indirectly or directly influence on market share and sales of company.
Rational of the research
Globalisation has direct impact on financial performance of company. By developing an
understanding regarding these topic or research, researcher can get advantages by different ways.
Rational or reason of this study can include benefit to the learners and investigators of this
project. In this, researcher can gain different benefits from the field of study. Globalisation is
highly impact on financial performance of Easy Jet, researcher can find out numerous reasons to
overcome negative impact of globalisation. Learners or investigators which are doing this study
can know the influences of globalisation on financial performance of airline company and can
even prepare effective solutions for these these issues (Eriksen, 2014). Along with this, one of
the main reason behind selecting this topic is to evaluate the financial performance, future
competitiveness, financial problem faced by Easy Jet while globalise their business operations.
This research also help an investigator to develop effective and better strategy for improving
performance at global level. Therefore, globalisation is a biggest topic that help an investigator
or individual to gain more knowledge and achieve personal and professional goal. It will also
help learner or investigator by enhancing future growth and development.
Aim of the research
Main aim of this research is “To identify the impact of globalisation upon financial
performance of company”. As case study on Easy Jet.
Objectives of research
 To study the financial performance of Easy Jet in the past five years.
 To understand the future competitiveness of Easy jet.
 To analysis financial problem of Easy Jet. To recommand different strategies for future performance improvement.
Questions of research
 What are the financial performance of Easy Jet in the past five years?
 What are the future competitiveness of Easy jet? What are the financial problem faced by Easy Jet?
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Research hypothesis
This is also consider as an important and essential part of dissertation. According to the
research topic, there are two hypotheses for example: globalisation has positive influence upon
financial performance of company is a H0 (Hypotheses) whereas globalisation has no positive
influence upon financial performance of Easy Jet is a Ha (Hypotheses). Therefore, both type of
hypotheses used for this project to ascertain positive and negative impact of globalisation on
financial performance of organisation (Gansler, Lucyshyn and Rigilano, 2013).
Conceptual framework
This section of dissertation includes structure of entire report which help an investigator
to identify issues and ways to overcome it systematically. All these structure of report are
determined as under:
Chapter 1: Introduction: This is a first part of research project and includes different
information about the background of study, reason behind selecting topic, research aim,
objectives, hypotheses and questions. All these are consider important part for researcher to do
each activity of research systematically.
Chapter 2: Literature Review: This is second section of dissertation which includes the
actual knowledge about substantive findings, as well as methodological and theoretical
contributions to a specific study.
Chapter 3: Research Methodology: This is another part which help an investigator to
collect accurate data about the research topic (Intriligator, 2017). In this chapter, research onion
is consider most effective framework which includes different methods such as philosophy,
strategies, approach, data collection, time, budget etc.
Chapter 4: Data analysis and interpretation: In this chapter, Thematic analysis is
important analytical tool which help a researcher to develop themes and collect data about the
topic from the respondents. For this chapter, questionnaire is prepared by the researcher to
accumulate relevant and valid information which is related with the field of study.
Chapter 5: Research outcomes: In this part of research, research outcomes are discuss
which are mainly based on primary and secondary source. Questionnaire is a part of primary
sources and literature review is consider as a part of secondary source.
Chapter 6: Reflection and recommendation for future alternative research
methodology: In this chapter, opinion and view of researcher about the entire activity of research
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are include. Along with this, in order to overcome issues about the globalisation some
recommendation are provide to the company. For this, interview is refer as a future alternative
research methodology to accumulate information about the topic.
Chapter 7: Conclusion: It is consider as a last chapter which cover entire detail and
outcomes of research activities (Joshi and Desai, 2012). Thus, it is important for investigator to
achieve better results for research.
LITERATURE REVIEW
A literature review is introduce as a comprehensive summary or detail of previous
research study on a topic. This part of research includes different source such as books, articles
and many other relevant ways to collect proper information about the study. It should provide a
theoretical base for investigation and support researcher to determine the nature of study. Main
purpose of conducting literature review is to identifying gap in previous research. In this chapter
of dissertation, all research objectives are answer in systematic and effective manner.
The financial performance of Easy Jet in the past five years
As per the viewpoint of Hugh Morris, 2018, it has been evaluated that easy jet has
experienced a great trading environment with the help of their strong network, capacity
reductions and bankruptcies of competitive airlines and the impacts of Ryanair's flight
cancellations. In order to compute the financial performance of easy jet the annual reports of the
past five years are examined. In that report, it is said that the financial performance of EasyJet
has increased with three factors such as Business, operations and CSR. With the help of
globalization company usually increases its business operations. They have increased there
business in various countries such as Asia, Africa and rest of the Europe. With the help of
increasing business they have gained a huge financial performance (Nkurunziza, 2012). Apart
from that, they have also increased there business operations. Therefore the financial
performance also increases. Another factors behind the increasing financial performance of
EasyJet within the last five years is CSR. This is also known as corporate social responsibility.
The company has participated itself in many CSR activities. Therefore their performance also
increase in the lime light. The customers of EasyJet found the company to help the customers.
Therefore the company gained a good image among its customers. A good image among the
stakeholders help the company to gain a competitive advantage. Apart from that, the company
increases it financial performance as well.
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The future competitiveness of Easy jet
To identify the future competitiveness of EasyJet, porters five forces is used. The
implementation of porters five forces is displayed below:
Competitive Rivalry
There are two factors in this section. When the competitor are more in market for
EasyJet, it will be difficult for the company to sustain its market. While in case the number of
rivals are limited. The company will not face any type of competition. After analysing both the
cases, it can be said that EasyJet will face a huge competition in future from its rivals. It has
many rivals such as Emirates etc.
Supplier Power
It determines the power of suppliers. Ion that case, it is determined that how the suppliers
can increase their prices (Ochieng, Riwo-Abudho and Njanja, 2013). In case of EasyJet,
increased prices will give a loss to the company. Due to competition in future, EasyJet can face a
serious issue of supplier power. The suppliers of EasyJet could be fuel suppliers etc. Although
the prices of fuel depends upon the international market. In spite of that, the operations of
EasyJet can be influenced.
Buyer Power
This is the power of customers of EasyJet. If the customer power increases, the company
will face many serious issues with it. The customers will not choose the flight of EasyJet because
of their buying power. In future, if the customers gets the options of rivals of EasyJet than their
power will increase this will increase the chances of increasing their power.
Threat of substitution
The company can get threat of its rivals. In case of EasyJet, the entry of rivals in the same
field can increase the chances of competition. This will result in lowering the customer base.
Therefore, in future if the investment is done in favour of rivals, EasyJet can face threat of
substitution.
Threat of New entry
This is the threat of new business coming in front of EasyJet. If the company will face
rivals in future, the customer base will decrease automatically, therefore the financial
performance of company will decrease accordingly.
The financial problem faced by Easy Jet
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As Easy Jet is one of the most occupied airline in Europe and so it needs to be managed
and handled effectively and efficiently (Pain and et. al., 2016). There are various financial
problems faced by Easy jet and they are discussed below :
 Rising fuel prices : Oil prices are tend to be the most important and challenging factor
that are faced by Easy jet. When fuel prices rises, this means that essential part of the
flight is being compromised. This will further rise the prices of tickets or may cut the
services which are provided to the customers free of cost, etc. in turn will affect the
financial position of the company. Environmental concern : Natural disasters and environmental catastrophes which are
always a n important concern and unexpected in nature (The Challenges Faced by
EasyJet, 2017). For instance, a volcanic ash which occurred during the period of
recession which further results in cancelling the large number of flights and this will
affect the companies financial position. Due to this, the Easy jet will suffer huge loss. Consumer confidence : The customer assures that the services they are getting from
Easy jet are of superior standards and it gives the company assurance that customer will
again use the services of the airlines in future (Sarkar and Sarkar, 2013). During the
period of recession, its is very important to deal with customers as they are the most
important source of generating profits. If company fails to satisfy customers like
providing unhygienic meals or act of terrorism, etc. then company will suffer loses.
Different strategies for future performance improvement.
As business world of airline has become highly competitive so Easy jet will adopt various
strategies which will enhance the future performance of the company. For this purpose, the
following are the points discussed below which will contribute in improving future performance
of the company :
 Low cost airline : Easy jet runs a number of operations from its aircraft hangar where it
provides a tremendous space for engineering teams to check and this will improve the
companies fleet of aircraft and compiles the operations of business with IT and digital
department (.EasyJet uses digital to drive competitive advantage, 2017).
 Digital technology : This enhances the customers experience as they search digitally for
flights and books them at the appropriate price (Stearns, 2016). It gives customer an ease
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of exploring various aspects of technology driven initiatives like booking, cancelling,
check in, etc. This saves lot of time and money and improves the performance.
 Customer experience at an attractive price : Easy jet has departed to outstanding
attempts to assure that their customer are delighted with their prices and makes assurance
that their customer will return again in future. For this purpose, easy jet put great
emphasis on updating their mobile applications which is very important.
 Interaction through Mobile application : Easy jet is putting great emphasis on
increasing the interaction through mobile application. Recently, twelve percent of
boarding passes of the company were issues through mobile. It also gives benefit of
saving booking documents on mobile devices and gives pleasure to small groups and
families to check in and travel together.
 Making check in process easier : The organisation has currently added a feature in their
mobile application of scanning passports which will make check in process easy. It will
allow traveller to use camera on their mobile phones to click snap of their passport to
auto populate the fields on the check in form with correct information.
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P2 Examine appropriate research methods and approaches to primary and secondary research.
Research methodology is a important process which is used to evaluate the accurate
information to formulate the business decisions and to achieve effective outputs for the research.
To construct a proper research approach, the research onion is considered as the effective
framework for the researcher. The following framework consists of various layers which are
described as follows:
Research philosophy: It is described as the ways by which a researcher collects the
required information regarding the research. They consist of two types which are positivism and
interpretivism philosophies (Tadesse, 2013). There are some advantages and disadvantage of
research philosophy which are determined as under:
Advantages Disadvantage
Interpretivisim philosophy can be economical
and fast which will directly help an
investigator to accumulate accurate
information or data according to the topic.
Positivism is not very essential in collecting
theories. In this, research methods tend to be
artificial and flexible. As it not help researcher
in collection of accurate information about the
globalisation.
Justification: For the following research, interpretivism philosophy will be used because
it is effective with the other methods of the topic. Positivism is not considered for this because it
is ineffective in carrying out the research activities.
Research approach: It can be summarised as a structure or set plan in which the research
activities are organised in a effective manner. Research approach contains of two parts inductive
and deductive approach.
Advantages Disadvantage
Deductive research approach can be time
saving which will helps an investigator in
collection of accurate information within
minimum time period.
Inductive research needs maximum time ad so
less subject matter will be included. This
approach demands expert facilitating qualities
on the part of the researcher.
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Justification: Deductive approach will be used in the following research as it helps in
constructing a hypothesis situation for the existing theory in the research. It leads the research to
achieve the set goals and objectives respectively.
Research Strategy: It is required to provide a path or a action plan for conducting the
research in a desired manner. Research strategies includes case study, survey, questionnaire, etc.
all these are effective strategies for collecting accurate information regarding the study.
Advantages Disadvantage
Questionnaire is a most essential research
strategy which helps an investigator to assess a
large group quickly.
This method is easy to evaluate accurate and
reliable data about the topic.
Questionnaire is not good instrument for
researcher because it not provide in-depth
information about the globalisation.
Sometime, questionnaire create few issues for
researcher such as interpretation problem,
analysis issue etc.
Justification: The research strategy used in this research project is questionnaire as it
leads in gathering accurate and authentic information related to the project topic.
Research Choice: It is also a important part of the research methodology which the
researcher use for applying the information to complete the dissertation of the project
successfully. It involves two methods in it quantitative and qualitative (Veeran, 2012).
Advantages Disadvantage
One of the main advantage of qualitative
research as it produce comprehensive and more
in-depth information about the impact of
globalisation on business.
In qualitative research, data collecting is often
time consuming.
Interpretation of outputs is basically biased
because it is impacted by the investigator's
perspective.
Justification: In this project qualitative method is used as it is suitable for collecting
appropriate data for the research. Whereas, quantitative is used to collect figures and numbers
which are not required for this project.
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Time Horizon: It is used to complete the project in a set given time with all the research
activities covered. For the discussed report Gantt chart is prepared which will describe the time
horizon in a proper manner. Gantt chart is important for the researcher as it finds the opening and
closing time of the research activities.
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