Understanding Jet2holidays: Organizational Structure and Analysis

This case study provides an in-depth analysis of Jet2holidays, a British tour operator, examining its organizational structure and business environment. The study begins with an introduction to business organizations and the importance of organizational structure, followed by a detailed look at Jet2holidays' tall organizational structure, including its advantages and disadvantages. The main body then delves into a business environment analysis, utilizing SWOT and PESTLE analyses to assess the internal and external factors influencing the company. The SWOT analysis identifies Jet2holidays' strengths, weaknesses, opportunities, and threats, while the PESTLE analysis examines the political, economic, social, technological, legal, and environmental factors affecting the company. The conclusion summarizes the findings, highlighting the company's competitive advantages, potential for growth, and strategies for mitigating external risks. The report concludes with a list of references used in the study.

Understanding
Business
Organisations

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Organisational structure of Jet2holidays......................................................................................1
Business Environment Analysis:.................................................................................................3
SWOT Analysis:..........................................................................................................................3
PESTLE Analysis:.......................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
A business organization is a entity which is formed by law to carry the commercial
enterprise. Understanding the business organization is important to optimum use of the available
resources and growth of the organization. It is very important to have a framework in the
organization to define the activities direction and flow of the information for achievement of the
goals this is known as organizational structure. A business is also surrounded by various factors
in the environment which can influence the functionality of the business. These can be internal or
external (Cheah and et. al., 2019). The organization choose for the case study is Jet2holidays. It
is a British tour and holiday package provider company. The company was established in 2007
as a subsidiary of Jet2 Plc and headquartered in Leeds, United Kingdom. It is the second largest
tour operator company of UK. The company serves in Europe,United States and Turkey. This
report aims to study the organizational structure of the Jet2holidays. This report aims to study the
business environment of the company; the different internal and external factors which
influences the organization and how company can minimize the influence of these factors
through using Swot and Pestle analysis of the the organization.
MAIN BODY
Organisational structure of Jet2holidays
Organizational structure is a framework which defines the flow of the information and
direction of the activities for achieving the objectives of the organization . These activities
includes roles, rules, responsibilities, supervision and coordination. There are different
organizational structures such as Tall, Flat, functional, divisional, matrix, team based and
network. The Jet2holidays company follows the Tall organisational structure in the business
(Killingsworth and Eschenbacher, 2018).
The tall organisational structure have various levels of various layers of management of
managers and leaders. In this structure the business uses the top to bottom approach and this
have a long chain of command in it.
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There are various benefits and drawback or using this structure in the organization which
are as follows;
Benefits for the organization:
 This enable company to have more control over the different operations.
 The managers have less employees so they can provide extensive supervision to the
subordinates.
 This structure reduces the mistakes potentials in the work doings of the employees which
provides a sense of security from being punished in certain cases (Vveinhardt, 2018).
 This is helps to reduce the decision making complexities by dividing the roles and
responsibilities among the different layers of the management.
 The employees have more promotion opportunities this motivates them to perform better.
 The job roles for each position in the chain of command is specific so the employees
become proficient in their respective field and this also reduces the overlapping and
multiple roles occurring in the business.
Drawbacks:
 This type of organisation structure is expensive for the company as it have different of
mid level managers. The company have to pay more salaries and other benefits.
 The communication, decision making process and also the responses towards the
management are also slower in this structure (Khan and et. al., 2018). as it have to pass
through different layers of management.
 The managers in this have no autonomy of decisions.
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Ill
ustration 1: Tall Organizational Structure

Business Environment Analysis:
Business environment refers to the sum of all the forces external or internal in its
surrounding of operations. The analysis refers to the study of these internal and external factors
which can influence the business. Business environment analysis includes different analysis such
as SWOT analysis, PESTLE analysis, Industry analysis, and Competitor analysis (Urbach and
Röglinger, 2019).
SWOT Analysis:
SWOT analysis is the tool that is used by business to identify its strengths, weaknesses,
opportunities and threats. This model analyses the internal (strengths, weaknesses) as well as
external factors (opportunities and threats).
Strengths: These can be defines as the key aspects in which the business holds a competitive
edge from the competition. The main strengths of the Jet2holidays are as follows;
 the company holds a major presence in the UK. Also it is second largest tour operator in
the UK.
 The company is working with its sister company jet2 airline. Which enables the company
to provide customizable packages.
 The company also partnered with different hotel chains which provides a competitive
edge to the company.
Weakness: These are the characteristics of a business in which the business lacks. The business
can improve its position in these areas further (Chang, Wong, and Chiu, 2019). The weaknesses
of Jet2holidays are as follows;
 The competition in the industry has limited the number of customers and brand loyalty
 The company has to face social and cultural issues in managing the offices in middle east.
Opportunities: These are the areas in which the business can improve and expand its market
position further. The opportunities of the Jet2holidays are as follows;
 The company can tap into the other tourist destinations like Asia, Australia and other
countries.
Threats: These are the factors that can affect the business in the negative way the threats of the
Jet2holidays are;
 The company is facing intense competition from the TUI travels, Kuoni travels and other
competitors.
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PESTLE Analysis:
This analysis includes the study of the different external factors which influences the
business from outside (Khujamatov and et. al., 2022). These external factors are beyond the
control of any business. The pestle analysis of Jet2holidays is as follows;
 Political Factor: These are the factors which derives from the influence of the
governments and politics. These includes tax rates, fiscal policies, trade barriers, disputes
between countries etc. the company is affected by the BREXIT deal in Europe. The
number of travellers are reduced by this. The government regulations of visa fee,
promotion of tourism in the country can affect the business of Jet2holidays. Also the
relations with another countries affect the tourist numbers in case of Jet2holidays the UK
government maintains good relation with America and European countries is favourable
for company.
 Economical Factor: These are the factors that relates to the economy of the country.
These factors are the interest rates, exchange rates, growth rate, employment rate, GDP of
the country and inflation (Correia and Gomes, 2022). The income of the people working
in the United kingdom is higher, it is favourable for the company people can afford travel
cost. But the current situation of the United kingdom is bad the currency is falling in
comparison of dollar, This can negatively affect the company.
 Social Factor: These are the factors which comes from the society. these includes social
trends, age, culture, demographics, attitude and lifestyle of people. The company is
operating in the United States and the Europe region , it is in favour of the company
because of the culture and similarities between the countries.
 Technological Factor: These factors are related to the technology. In today's world the
technology is used in the businesses everywhere. These factors includes like automation,
cyber security, research and development etc. The company uses its sister airline jet2
airways company for the transportation it is beneficial for the company. Also the
company provides information of different tour packages on websites which is easily
accessible. But the comparison websites can affect the business.
 Legal Factor: The legal factors that comes from the law and legislation of a country. This
includes the rules and regulations, trademark, patients, licences and permits, consumer
protection laws and employment laws (Chao and et. al., 2020). The ease to access for the
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visa can affect the business. The United states have the most difficult procedures for the
visa approval it can negatively affect the company. The banks in the UK also provides
loans to the people for tourism purpose which is a favourable conditioning for the
company.
 Environmental Factor: These factors comes from the changes in the environment.
These includes factors like climate change, Carbon footprints, air pollution, water
pollution, reducing natural resources etc. (Nanaji and et. al., 2019) the tourist causes the
pollution in the countries this is negative for the company and the climate change crisis
can also negatively affect the company.
CONCLUSION
From the above discussion it can be concluded that the company has a strong competitive
edge in against of the competitors. The company has different partners at different tourist
locations which helps the company to best facilities to the consumers. The company can improve
in the brand loyalty of the consumers. Also the company has the opportunities for expanding to
the other market that could lead to more market share and growth. The competition from others
is posing a major threat in front of the company. Also it can be concluded that the company has
favourable external factors such as the government's good relation with other countries, the
higher income of the people in the UK. Similarities in the culture of the tourist destinations and
the loans from the bank for travellers. The external environment also affecting the company in
negative way such as the difficult visa approvals, excess visa fee in Europe, and the
environmental issues causing by the travellers. Overall from above report it can be concluded
that the company has the potential to grow further and it can minimise the impact of the factors
for sustaining in the competition.
REFERENCES
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