Context of Business: Strategic Analysis of Wizz Air UK Ltd, Luton

This report provides a comprehensive analysis of Wizz Air UK Ltd within its business context. It utilizes SWOT analysis to assess the company's strengths, weaknesses, opportunities, and threats, focusing on low-cost fleets, auxiliary profits, and the impact of COVID-19 and Brexit. The PESTLE analysis explores political, economic, social, technological, legal, and environmental factors affecting the airline, including air control strikes, the COVID-19 outbreak, pilot training programs, and environmental regulations. The report discusses the impact of changes in PESTLE variables, comparing and contrasting different leadership styles, recommending suitable leadership approaches. Finally, it highlights the role of corporate social responsibility in Wizz Air UK Ltd's business procedures. Desklib offers a platform to explore similar solved assignments and study resources.

Context of Business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
SWOT Analysis...........................................................................................................................3
Pestle Analysis.............................................................................................................................4
What impact have changes in PESTLE variables had on threats and opportunities?.................5
Compare and contrast different leadership styles and provide recommendations for the best
leadership and management approaches......................................................................................7
Recommendation of a suitable leadership style...........................................................................9
Corporate social responsibilities in the business procedure......................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The business context is associated with differentiated factors those are providing direct or
indirect impact over the business using various viewpoints. On the other hand these aspects are
helpful in making such choices within business which are helpful in attaining organisational
objectives in appropriate manner. Business management is the process which is helpful in
planning and organising various aspects existed within an organisation. These are the concepts
which are related with revenues and profits within business. Adoption of various alternatives
within business is necessary as this will lead into developing concepts such as budgeting and
many more so that comparative analysis can be performed (Goodpaster, 2016). In order to
understand these concepts this report is prepared in the background of Wizz air UK Ltd which is
a low cost airline service provider situated in Luton airport of UK. This airline is having
scheduled services in the context of Hungarian parent and they are using corporate brand as well.
The major purpose of this report is to analyse different variables existed in PESTLE analysis and
their impact over the business. Besides this the report is analysing internal capabilities with the
help of SWOT analysis so that to mitigate any coming risks and inhale differentiated
opportunities as well. In the last part of this report different leadership styles are being compared
so that to use the most prominent and advantageous leadership. At last the role of corporate
social responsibility is being explained in this report as CSR is termed as one of the most
influential aspect of the business.
MAIN BODY
SWOT Analysis
SWOT is referred as the strategic planning approach which is helpful for the organisation to
analyse their internal capacities and such weaknesses by which several barriers can be faced by
them. With the help of SWOT analysis strengths, weaknesses, opportunities and threats can be
analysed so that rivalry within industry can be treated in better way and market competition can
be inhaled in most effective manner (Gürel and Tat, 2017). SWOT is termed as a straight
forward approach in which internal analysis is performed and in the same manner these aspects
can be used to mitigate external threats and to inhale higher success as well. For an organisation
SWOT analysis could be impactful in meeting such obligations of the business in which they can

minimise different types of risks and gain higher profitability as well. In the context of Wizz air
UK Ltd SWOT analysis is elaborated as under:
Strengths
 The company is having low cost fleets
which are best in this class of services.
 The company is making auxiliary
profits which are leading to develop
different growth opportunities for
future time.
 The company is making increased
profits in steady manner which is a
higher beneficial aspect.
 The company is investing in their
employees in terms of training and
development so that to sharpen their
skills (Janich, 2017).
Weaknesses
 The company is facing huge
vulnerabilities due to political
instability due to which functional
issues are seen within the organisation.
 The company is required to pay higher
baggage fines which is high in cost and
leads to develop lower profitability as
well.
Opportunities
 Wizz air UK Ltd may emphasis over
increasing experience of their customer
by using digitalisation as their major
technology.
 The company may adopt market
expansion strategy in order to expand
their business in central and Eastern
Europe.
Threats
 The implication COVID-19 has given
huge negative loads to aviation industry
as due to restrictions imposed by varied
government.
 The BREXIT implications have given
negative impact to the business in
context of gaining market prominence.
 The issues are faced due to union
strikes which are leading the company
to face negative market image.
 The inclination of people towards
online booking is attracting various
malwares and cybercrimes.

 The category of LCC is gaining high
market competitiveness.
Pestle Analysis
PESTLE analysis is defined as such external analysis which is having significant structure which
is used to analyse external factors existed within external environment and may have direct or
indirect manner. With the help of PESTLE analysis external factors could be understood in such
a manner that internal working of the business can be improvised. This model is used to perform
a broad fact examination so that in frequent manner such aspect can be analysed which are
having direct or indirect impact over the business (Kim, Lee and Park, 2016). With the help of
SWOT analysis external impact over the venture can be analysed and such issues can be
mitigated those are linked with growth and sustainability of the organisation. In the context of
Wizz air UK Ltd this analysis is elaborated as under:
Political factors
 The influence of fresh air control strikes over European aviation companies as these
impacts are related with Wizz air UK Ltd.
 The company is required to align their business functions with international and
economic development aspects.
Economic Factors
 Wizz air UK Ltd is facing huge impact due to COVID-19 outbreak.
 There are various macroeconomic issues such as prices of gasoline, foreign exchange rate
and many more factors are having direct impact over business of Wizz air UK Ltd.
Social factors
 In the context of Wizz air UK Ltd the company is running their own pilot academy so
that to gain proficiency in training aspect.
 Customer spending is increasing within Europe and in this way Wizz air UK Ltd is
getting opportunities to expand their market.
Technological factors
 In order to provide better experience to customer using digital technology is helpful for
Wizz air UK Ltd.
 Using artificial intelligence could be an advantage for Wizz air UK Ltd.

Legal factors
 The company is having UK route license and this manner that they are allowed to operate
within British airline.
 Changes in regulation of luggage are having higher impact in the business.
Environmental factors
 Initiatives are required to be taken in relation to minimising carbon footprints and
emission.
 Fuel consumed by aircraft is required to be minimised so that environmental efficiency
can be improved.
What impact have changes in PESTLE variables had on threats and opportunities?
In the context of Wizz Airline political aspects are defined as such commercial opportunities in
which the organisation is trying to regularise level of pollution so that to minimise environmental
harm and to avoid negative impact on their market image as well. The company is following
certain aspects of environmental issues so that to minimise differential environmental challenges
(Stawicka, 2017). This will be helpful in providing such opportunities in order to investigate
rules and regulations of other countries so that decision can be taken for business expansion.
Economic factors are associated with generating such threats to the company and as a result of
COVID-19, airline businesses were forced to stop their business operations due to imposition of
lockdown. In this manner government has denied operations of airlines without any situation of
emergency. In case of emergency government tool any decision to allow airlines to operate their
flights so that to deal with such critical situation. This has given negative implication on
economic condition of the country since people did not have enough money to buy airline ticket
due to pandemic. Inflation has increased and due to this cost of gasoline and petrol has increased.
There are various programs that have been launched for providing trainings to pilots in order to
spread awareness to people and to provide greater opportunities to work under aviation industry.
In this manner the company is giving better opportunities to their employees for enhancing their
skills and capabilities as well.
In this manner Wizz Airline is able to retain their customers for longer duration of time so that
they can reach out to maximum number of customers and may lead to enhance their experience
as well. Wizz Airline is having better opportunities to gain higher market image within market so
that development aspects can be attained (Stirna and Zdravkovic, 2016). In the current time of

contemporary environment all the aspects are required to be based on digital platforms so that in
smooth manner functions can be executed.
The technological aspects within business are aiming at understanding machines in more specific
manner. As the government of UK has provided various grants in which licence is required to be
operated so that at several locations legal components can be managed by acquiring differential
options. On the other hand baggage policies are differentiated from place to place and they may
have different government regulations that may have direct or indirect impact over the business.
Environmental factors are creating higher prospectus for Wizz Airline as the company is
required to minimise amount of carbon footprints so that to safeguard environment and to
mitigate such issues as well (Shestakovska, Durglishvili and Kushnir, 2018). In current time
businesses are aimed towards using lesser fuel so that to increase environment efficiency in most
effective manner.
Addressing their strengths in order to counteract their weaknesses and dangers that are
limiting their possibilities
In current time due to implication of higher political surroundings Wizz Airline is required to
maintain extreme connections with various countries so that to minimise issues in their
functionality. With the help of appropriate relationship with countries this may provide
differentiated opportunities to convert their weaknesses into opportunities and strengths. On the
other side various baggage fines are also faced by companies and in order to eliminate this issue
serious rules are to be made so that benefits can be received. They can also use various
innovative ideas which will help them to minimise their fines and to lead higher profitability.
The company is facing various another issues due to outbreak of COVID-19 as in current time
this is regarded as the major issue in which barriers are created between organisation and their
potential customers (Beaverstock, Derudder and Faulconbridge, 2016). In this time due to
various restrictions this was not easy for Wizz Airline to conduct promotional events and to
expand their business to another market territory. In recent time the use of technology is
increasing on regular basis so in order to align with the same the company is providing online
booking facilities. As in current time due to high online bookings people are required to provide
their personal information and this is a threat for the company and may leads to cover various
cyber-attacks. Due to lack in data security information can be leaked and in this manner brand

loyalty can be lost. This may result into facing several issues related to losing of potential
customers.
Compare and contrast different leadership styles and provide recommendations for the best
leadership and management approaches.
Leadership styles are defined as the manner in which orders are given and plans are implemented
so that to motivate people. There are various authors those are differentiating leadership styles in
which leaders are demonstrating political, corporate and other aspects. In the context of Wizz
Airline their executive is providing appropriate routes to the business in which suitable style is
being adopted so that goals can be shared by employees and overall business can be managed in
significant manner (Kim and Park, 2017). There are various leadership styles which are helping
the business to attain its objectives and to receive proper guidance. Some of the major leadership
styles are elaborated as under:
 Democratic leadership style: Under this leadership style the leader takes input from
every member of their team. As leader is responsible to make final decision but at the
same time every employee is given authority to get involved in the decision making so
that to leads overall business endeavour. This leadership style is regarded as one of the
best styles in corporate world which is helpful in encouraging employees to higher extent.
This leadership style is related with how choices are being made by individual so that to
hold degree of certainties. For instance, Wizz Airline in the aspect of board meeting the
democratic leader will hear to various employees and their provided business related
solutions in order to make differentiated choices. With the help of this leadership style
within the business choices can be put within the business and approximation can also be
received.
 Autocratic leadership style: This leadership style is related with taking such decisions
without incorporating employees in decision making process. Staffs are not included in
decision making so that in decision of leader is being valued. Wizz Airline and their
management is having power to alter working hours of their employees (Wynn and Jones,
2019). In the current time due to dynamic market environment companies are not able to
retain in the market for longer duration of time and in this manner employee retention has
become the major issue. In this manner the best leadership style can be used in order to
provide expertise to various situations. Strategic executives are the people those are

performing major activities of the business so that potential succession opportunities can
be received. Leaders are taking such responsibility to work on business condition in such
a manner that steady growth to employees can be provided. Wizz Airline is planning to
execute differential planning for critical situations so that to provide benefits to their
employees in long run.
 Transformational leadership style: The major goal of transformational leadership style is
to provide continuous transformation so that industry and business functions can be
improved. In every business their employees are having such business duties and these
are required to be executed in effective manner and the role of leader is to take out their
employees out of the comfort zone. For every employee some particular job role is given
by their leader and these are aligned with attaining business objectives in appropriate
manner. At every phase of the business risks and hurdles are being faced and a
transformational leader is having role to acquire such new tasks in order to gain
proficiency.
 Transactional leadership style: This type of leadership style is associated with the
manner which could be provided to employees so that to execute their jobs in appropriate
manner. In marketing department transactional leadership style is being used in which
report of quarterly incentives are prepared and in the same manner in the end of the
quarter results are provided in positive or negative perspective. In the presence of
transactional leadership style in the basis of performance incentives will be given to
employees and this will help them to learn their job role in more specific manner. For
instance in the context of marketing department when bonus is given to employees that
means efforts of employees are worth for the same. Transactional leadership style is
helpful in providing such job responsibilities to people and in this manner firm’s
objectives can be accomplished with impulsive manner.
Recommendation of a suitable leadership style
Coach-Style Leadership
These are the leaders which are focused over addressing such issues so that to develop
overall employees and to develop qualities of people. These leaders are focused over meeting
business tasks in most effective manner (Quinn and Jones, 2018). These are the leaders those are
spending to overall business growth with higher ratio of succession. In the context of Wizz

Airline these leaders are communicating with their sub-ordinates in such a manner that
knowledge and skills can be assimilated. Leaders with this personality type are having distinct
skill set and due to this they are able to gain strengths of employees in appropriate manner. This
manner employees group can also be encouraged.
Bureaucratic Leadership
Leaders within bureaucracy style are helpful in taking care of opinion of individual
similar to autocratic leadership style. On the contrary in this leadership style, executives are
prone to reject opinion of their subordinates. This is the situation of creating conflicts in which
various practices are used so that practices of dominancy are seen. For Wizz Airline this
leadership style may develop separate edge for the business in terms of executing various
functions.
Corporate social responsibilities in the business procedure
Corporate social responsibility is defined as the act of self-regulation which is aimed at providing
appropriate contribution to the society. This is the manner in which using charity and objectivity
benefits to society can be rendered in optimal manner. Besides this, it could be helpful in
developing private sector in such a manner that social ideas can be developed and ethical
behaviour can be provided. When a business is more socially responsible then overall market
image can be developed and in the same manner brand value can also be enhanced. Social
responsibility is helpful in developing productivity of the business which is helpful in gaining
efforts over using resources to fuller manner. Corporate social responsibility is helpful in gaining
higher productivity and consistent working as well (Babkin, Plotnikov and Vertakova, 2018).
With the help of CSR policies Wizz Airline may solve their major issues such as environmental
consequences and many more. The company is associated with using higher range of CSR
movements and this manner they are able to serve their society and protect individual and
environment as well. They are also attempting to use lesser fuel to their planes so that effective
technology can be used and in this manner brand value and market image can be enhanced.
CONCLUSION
From the above report this can be concluded that SWOT and PESTLE analysis are two
necessary approaches that can be used within business so that to analyse internal and external
environment. PESTLE analysis is helpful in analysing such factors those are having direct or

indirect impact over the business. On the other hand SWOT analysis could be helpful in
developing such effective strategies for the business which is helpful in establishing inters
relationships in functional area. In order to execute the business in effective manner and
rendering proper direction effective leadership plays significant role and this could be helpful in
managing the business in long run. CSR are the movements which societal benefits can be
rendered by the business and at the same time business benefits can also be attained.

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