Comprehensive Analysis of Wizz Air: SWOT, PESTLE, Leadership and CSR

This report offers a comprehensive analysis of Wizz Air, a low-budget European multinational airline. It begins with an executive summary, followed by an introduction outlining Wizz Air's background and operational scope. The main body of the report delves into a detailed SWOT and PESTLE analysis, evaluating the company's internal strengths and weaknesses, as well as external political, economic, social, technological, legal, and environmental factors. The analysis explores the interrelation between PESTLE factors and the company's opportunities and threats. Different leadership styles are then discussed, with recommendations for Wizz Air's strategic implementation. Finally, the report addresses the company's ethical and social responsibilities. The report concludes with recommendations and references to support the analysis.

CONTEXT OF BUSINESS

EXECUTIVE SUMMARY
This report discusses on SWOT and PESTLE for organization that need to be analysed
the internal and external factors. Inter-relation between pestle and opportunities and threats are
mention to now better result of market environment. Different leadership style are also
mentioned that are used by organization according to nature of business. However,
recommendation on same is provided for selected company. Lastly, CSR activities are also
shown that need to followed by company.

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
1.SWOT and PESTLE Analysis..................................................................................................4
2. Analysis from SWOT and PESTLE........................................................................................6
3. Different type of leadership style.............................................................................................7
4. Recommendation.....................................................................................................................9
5. Ethics and social responsibilities followed by company.......................................................10
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Wizz Air is a low budgeted European multinational airlines having headquarter in
Budapest. They are working domestic and international services and having the largest fleet of
any Hungarian airlines and serving in more than 44 countries (Kapoor and Kaur, 2017). Its
parent company Wizz Air Holiday PLC is listed on London stock exchange. Wizz Air has the
largest bases at Budapest airport and Luton airport including 70 destinations. In the present
report, it will discuss on SWOT and PESTLE, leadership style that are followed by company,
some recommendation on suitable style to be followed by company for its business growth.
Lastly, responsibilities, responses on their ethics and social responsibilities will be discus from
the whole report.
MAIN BODY.
1.SWOT and PESTLE Analysis
To know the company's future threats and opportunities which need to be analysed by
company in order in avoid the uncertain situation that affect the business operation. This is
internal factors that can be control if corrective measure are undertaken by company to avoid
losses.
Strength Weakness
 Low cost Carrier in the market that
attract more of passenger towards
company.
 High quality service with low p[rice
charge increase the demand of
passenger to take Wizz Air for travel.
 Wizz air has the leading market share
in European market .
 Having the highest level of ancillary
revenue in Europe market.
 Seasonality earning affect the working
flow of company for longer term.
 Wizz Air operate in quite lower
frequencies comparing to its
competitor.
 Low cost of earning that generate less
revenue and profits.
 Raising of funds may be difficult to
overcome losses (Phadermrod, Crowder
and Wills, 2019).
Opportunities Threats
 Wizz Air has future growth in central
and eastern European market.
 External events occurred like natural
calamities or any emergency.

 Some of the airlines produce low cost
and gives more profit to company like
A321 airlines due to its high capacity of
passenger carry.
 Future ancillary potential growth.
 Further liberalization could open many
opportunities in new market.
 Cost may not be cover sometimes due
to low cost and high passenger values.
 Wizz air competitor like Ryanair
disrupt the future growth of company
which also affect the revenue
generation.
PESTLE analysis of Wizz Air.
Pestle analysis is an analysis of external factor that impact the operation of company. It
influences the business through macro environment factors namely political, economical, social,
technological, legal and environmental factors that direct impact the operation of company
(Quezada and et.al., 2019).This need to be analysed before it affect the company operation
market and suffer from loss. The process of Pestle include: Political factor: This factor may affect the company through inter relation between the
countries which have a great impact on company. It is mandatory for airlines industry to
know the political regulation and policies of countries operating in. Additional charges
and taxes for low budgeted airlines find difficult to generate revenue from it. Economic factor: This factor increase the prices and cost of company operating in
countries. Increase in Prices of Oil are expected to increase the cost of airlines which
affect the pricing offers company. However, after Brexit it directly affects the prices of
fair that are charged by Wizz air before. Social factor: These shows the behaviour of consumers that are differed from time to
time. Social factor include the behaviour of people like consumers prefers more airlines
to travel for saving time and avoid railways. However, consumers are willing to spend
more in ancillaries if cost is less on fair tickets (Morrow, Blurmstein and Dibarboure,
2018) Technological factor: Wizz air enhance their digital platforms to engage with their
customers in order to book flight ticket, check status on mobile and website to improve
consumer satisfaction level. On the other hand, it also reduces the cost and time of both
company and consumer for performing the task.

 Legal factor: the legal working of the company for smooth flow of work by implying all
legal requirement from government side. Wizz air had the lawsuit by European
commission for receiving help from certain European airports. Brexit mat bring certain
rules and regulation that need to be followed by company.
 Environmental factor: This factor shows the EU regulation on emission for airlines that
increase the cost of Wizz Air. Certain initiative to protect environment is one of the major
focus by government and authorities that need be followed by company (Shtal and et.al.,
2018)
(Aithal, 2017)
2. Analysis from SWOT and PESTLE.
From the above internal and external environmental analysis the opportunities and threat
that arises from the external factors are:
 Economic opportunities for the Wizz Air that has future growth in central and eastern
European market which can be gradually increased the revenue of company. This also
increase the market share of company and compete with other market competitor with
their unique factors of low pricing. This attracts more customer and increase the demand
of company in new market. It also increases market value of company when it
successfully enters the market and also assist to raise the funds for the future growth.
Whereas, economic threat for company is economic stability of different country that
impact the operation in particular country (Khan and Wajidi, 2019). Company is
operating in different countries, if one country's economy changes that directly affect the
company's financial performance in that country. As a result, company may suffer from
heavy loss and unable to cover the cost which also reduces the price of fair due to less
demand of flight until country's economy back to balance point. Also, Brexit affects the
company policies, rules and regulation which impact the operation and results in unable
to match low effective prices for their customers.
 Social Threat is also one of the major factor that impact the company's operation. As
operating in many country, staff of Wizz Air need to trend in their respective countries
mostly that led to increase in training program across the geographical area. It affects the
efficient training program of staff and finds difficulties to provide training to employees.
However, every country have their own culture which occur as a barrier to company to

meet up with all country culture and trends which are followed by locals. For example:
As the Covid-19 hit globally, it affects the costumer behaviour to avoid travel from
public or private transportation and using their own vehicle to travel. It decreases the
demand of flights and face losses from the pandemic due to increase in cost to maintain
the flight and management (Sharan, 2020).
 Technology opportunities is the most dynamic and powerful factor that can grow
company quickly and take a competitive advantage in market. As, technology changes
very frequently which are adapted by company in order to remain in market and reduce
the overall cost of company. To invest in new market by Wizz Air new technology like
artificial intelligence, Virtual reality and immersive experience, in-flight connectivity is
one of the major opportunities for the airlines industries to attract towards the company.
Biometric is one of leading technology which is used to know the person data sheet
regarding their activities or charges which are implied on the passengers. Through this
technology all authorize details like Licence, citizenship or payment process can be made
out by company easily.
Whereas, technological threat for Wizz Air is managing supply chain of the flights to ensuring
delivery on time, high quality and control cost of the flights is the challenging task by company
to maintain with the changing technology. Further risk are associated with low cost countries due
to economic condition and value of currency that may increase the future cost or reduces the
profit margins.
 Political threat for Wizz airlines and affect the working of company in different countries.
As Wizz Air is operating in different countries having different political parties with their
own rules and regulation, trade policy, tariff on airlines, fuel prices which impact the
overall cost of operation. This need to analysed due to changing nature of political parties
leads to change in policies in country (Anderson and Sun, 2017).
3. Different type of leadership style.
Leadership is a creative skill that come up with an experiences and knowledge that assist
company to achieve the vision of company. There are different type of leadership style which are
followed by companies which are:
Autocratic leadership style: It is a style where one person control decision for the
company and provide very little input from other members of company. Person make decision in

their own belief and knowledge without any involvement of other member suggestions. It
demotivate other member of organization that are not taking consideration of their suggestion for
decision-making (Pahi and et.al., 2018). It is used only in small business where there are small
number of employees in organization. Wizz Air can't adopt this technique which due to operating
in wider market and countries. It is difficult to make an effective decision for company to
achieve the vision of company. However, it is also hard to make decision for large company like
Wizz Air.
Democratic Leadership style: Also known as participative leadership is a style were members of
company can also encourage employee to give their valuable suggestion for decision-making for
company . This style brings new creative ideas which help to make effective decision in order to
achieve the target (Aithal, 2017). It motivates employees for organization and feels as an
important part of organizations. This style can be used by Wizz Air due to its easy nature of
adaptivity that help to achieve target through effective ideas generated by their employees.
Democratic style also promote employee loyalty for Wizz Air for longer time period. However,
this strategy is used for certain task to complete the specific target of company.
Delegative leadership style: This style of leadership offers no guidance to team member of
company and leave decision-making on employee itself. Powers are Leaders provide with
necessary resources and tools to complete the project by members only and take full
responsibility by leader for the decision and actions that are taken by team members (Nicholson
and Kurucz, 2019). Mostly it is found that employees demand more resources and their
productivity is not efficiently performed. This style of leadership is not suitable for Wizz Air as
there projects include high cost of investment which can't be delegated to employees. It also
increases the cost of project and wastage of resources as employee may perform unproductive in
project which lead to failure of company's projects.
Transactional leadership style: This style have the set of activities that include the followers and
the leader that perform the daily task. Transactional leadership help in to deal day to day tasks to
perform daily routine work. Here, leader direct the member to perform the daily task with
resources and rewards are accomplished if high productivity is performed by employee (Banks
and Brydon-Miller, 2018). Nowadays, it is used by various companies and Wizz Air can adopt
this style in order to motivate the employee to perform effectively. Rewards are given to those
employees whose productivity increases the performance of company. It also satisfies employee

towards the company due to proper direction of work to perform, rewards and recognition of
employee in company.
Transformational leadership style: This leadership style shows leaders are working with
employees to identify changes that are needed, inspiring employee towards achieving the vision
of company and innovate and create changes that help to grow and form the success of
company. For Wizz Air this leadership style is suitable at some point where there is a need of
employees motivation and changes are required in company. Leaders communicate, inspire and
guide towards the working of project and it also involves integrity, empathy, self awareness and
authenticity (John and et.al., 2019). The ultimate goal is to inspire and identifies changes needed
by employee for organization satisfaction.
4. Recommendation
The most suitable leadership style that match management style and help t grow further
are democratic leadership style and transactional leadership style. This style is more suitable for
any business but for Wizz Air this style is suitable due to there nature of business. Democratic
leadership style help company to achieve their vision through implementing various creative
ideas that are encouraged to employee to give suggestions. It assists company to know the skills
and knowledge of employee and thinking level of employee to perform efficiently. This style
will also motivate employees towards the working and satisfy employees for company in longer
term. As, Wizz Air perform in various countries that have different nature of work culture.
Democratic leadership style help company to maintain work culture same in all country and
focuses towards the vision of company.
Wizz Air which also follows war and peace leadership process where company has a
large advantage over its competitor in some of the core market by offering effective prices to
their customers. The price factor is major advantage of Wizz Air to complete with their
competitor by offering quality service at low prices. It can be attained if effective democratic
leadership style is followed by company. This style assist employee to perform well and reduce
the cost of project which gain additional profit by the company. It also helps to in growth of
company and becoming the market leader in the airline industry. Whereas, war leadership shows
the existential threat in a form of competitive market, change in economic condition, market
changes or other factors. This situation may arises when there is not suitable leadership style that

are followed by company. Hence, is also occurs as a barrier for company growth and their future
projects to remain market leader in market.
Second leadership style that suit the Wizz Air management and help to grow in company
is transactional leadership style. This style help employee to work daily routine tasks which are
done under the guidance of their respective leaders. Wizz Air company having many flights
schedule for travel in many countries. To maintain all schedule and flights management, leaders
help in to guide their team member to perform the daily task effectively in order to complete
assign task. It increases the productivity of employees to complete daily routine task and achieve
individual goal of day to day tasks. The chain of command is clear to all employees and
communication with their leaders are effectively occurred to perform. It also helps in reduce the
cost of company due to increase in productivity with a simple process of implementing within
the organization. It also allows employees to choose the rewards they want to achieve with the
performance. They can get this rewards through achieving daily tasks effectively and showed
their productivity. Wizz air has more work in daily routine compare to longer projects and this
leadership style help to prevent the work load of company.
This leadership style is also helped company in peace and war leadership. When
company having large advantage over their competitor in some of the core market of Wizz Air
operating. This leadership style help to maintain the competitive advantage of company in
market that help company to increase their revenue and growth of company in other market. It
assists through performing daily routine performance of employee that assign task on daily basis.
This creates the proper flow of work and handle the uncertain situations by leaders through
guidance and inspiring the team members. Whereas, at a time of war leadership style,
transactional style of leadership makes the task more difficult but are handle by leaders through
guidance and motivating to perform in an uncertain market.
5. Ethics and social responsibilities followed by company.
For the large organization or public companies which government had applied certain
percentage of charges from their total revenue or turnover which need to be followed by those
companies. These activities include protecting environment, people, community and
procurement.
Responsiveness: Corporate social responsiveness include the working of company and
their agents towards managing the environment. It is an obligation to contribute in the society

and country for living a quality life in surroundings. Although corporation are not legally
required to contribute to welfare of society but social responsibilities that are contributed by
every business to perform. Wizz Air should contribute in the society to well-being to
environment due to damage cause from pollution from the aircraft. The carbon emission that
harm environment and living surrounding of people.
Responsibility: It s a self regulated business model that socially answerable to itself,
stakeholders and public. This is important for both company and customers and impact on all
aspects include social, economic, society and environment. Wizz Air also take action on certain
CSR activities which increase the morale of employees, society and company that are taking part
to develop the environment of country. This activity is accountable to itself and stakeholder to
the big corporate like Wizz Air which have more responsibilities towards society by setting
standards of ethical behaviour in country.
Obligation: These activities are liabilities of company which need to be followed towards
the society they are operating. These obligations are arises from the government, society,
community, stakeholder or public that implied charges on company which need to be followed
by Wizz Air. This obligation can be related to environment, compensation to public in certain
activities which is accountable on company. These charges are from government side at point
where they are answerable to government for certain activities. For example: maintain the
environment greenery in certain areas, wastage of environmental resources by the company etc.
CONCLUSION
The above report conclude that, PESTLE and SWOT are the internal and external factors
that need to be analysed by company in order to know the changes in environment and future
market. Interlink between the internal and external factors shows the company's opportunities
and threats which need to analysed by company to remain in market. Leadership styles are also
mention which shows their different characteristics and most suitable leadership style is
recommanding for Wizz Air that assist company to achieve the Vision of company. Lastly, CSR
activities followed by company and the responsibilities they are having towards environment.

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