Business Studies with foundations: Context of Business

Business Studies with foundations

Assignment title: Context of Business

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Module Leader: Guru Srinivasan

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Introduction

There is tough competition in the market and every company is struggling to survive. Therefore, companies are making a new strategy for survival or winning over the competitive company. Sometimes making a strategy for the company is highly influenced by the other company. Sometimes opponent’s strategy is made in such a way that it affects company business. A company needs to make strategy excluding the business environment. Excess competition sometimes makes things wrong. Sometimes company strategy depends on the business environment. There is a need for strong leadership which can make the strategy in a company and turn it into success. Good leadership is always welcome in the company and it is needed so that company could take a strong approach, a new strategy could be made and win the competition.

There is an Easy jet company which belongs to Europe, this is a small budget company. Strong leadership inside this company is making new strategy to survive in the tough competition of airline. This report will contain the SWOT and PESTEL analysis of this company. This report will contain the different kind of leadership this company has gone through. It will contain the Accountability, Reply and Duties in their Ethics and at the same time, it will contain the Social Responsibilities in the processes using evidence from this company. This report is based on the leadership style of Easy Jet.

Task 1 SWOT and PESTEL analysis

SWOT analysis of Easy Jet

Strength:

• It has developed a brand reputation which provides services at a low cost. This is quite popular among student and young travelers (Gürel and Tat 2017).

• It provides value-added services like online service, ticket booking facility, helping desk, and many more.

• Its website is quite a user friendly so it is easy to handle it and using it. An online ticket could be processed from this website.

• This company is going to add some new features like adding some new safety plan to the plan.

• They provide email alert to the customer and text base service to change in schedule. By this way, they earned the loyalty of a customer.

• It is dealing with situations and continuously focusing on reducing carbon emission. This company knows its social responsibility and continuously working towards it.

• Its customer service is quite friendly and supportive (Pan, et. Al, 2019).

• Easy Jet is increasing its route and flight which will increase its customer base.

Figure 1: SWOT analysis

Weakness

• There is tough competition in a low-cost fare-based airlines company. Spice Jet has tough competition among them it has to make a customer base in that segment. This point could be considered as a weakness of this company.

• Some of the older people do not like a party environment inside the Easy Jet. The only youngster is attracted towards it. This could be considered as a weakness of this company.

• There is no food for the longer flight which is a problem for the customer

Opportunity

• This company could extend its route to a wider place. This company could make its reach to the various continent so that its customer range will increase.

• Easy jet could offer travel packages for various customer. This company may announce different packages for a different kind of customer.

• This company needs to add some more specification, it needs to make a change in the framework which will be better for the company.

• Easy Jets needs to look at strategic partnership with airport authority so that more frequent travelling could be made (Vlados, 2019).

• Business-class of the Easy Jet needs to be focused as this class is less effective more economical change.

Threats

• Increasing airport fees could be a threat as if these fees will increase then the company has to pay more money to the airport authority and which will eventually imbalance the cost of the company. In that case, a company needs to discuss with airport authority otherwise it will have to shut down some of the routs.

• Similar kind of company offering low-cost service flight to the company which is a threat to Easy jet. This company needs to find a counter plan for this.

• There some external market force which is threats to the company which includes rising cost, environmental expectations, and economical situation of the market. Which may cause a reduction of the customer.

• Sometimes internal factors are also considered as threat like a labour union, strike, and demands. All these factors add some of the threats to the company.

PESTEL analysis of easy jet

Political

When looking for the political analysis there is chaos in the EU. Britain is taking an exit from the EU, so this thing could impact to this airline. Ownership of Easy Jet from UK AOC to the EU AOC has been done (Song, et. Al. 2017). There is the impact of industrial action as well.

Economical

• There is a huge impact of COVID 19 on the economics of this company. Easy Jet has been in trouble due to the bad impact of COVID19. There is huge customer loss, and the company is not able to earn enough, it has put an impact on the Easy Jet.

• There is fluctuation in some of the macroeconomic factor-like fuel cost, foreign exchange, and many more like this, which has an economic impact on Easy Jet.

Social

• There is a changing of priority for the customer in generating revenue. This is a social responsibility for Easy Jet

• There is social pressure to have a female pilot, these things can make an impact on Easy Jet.

Technological

• There is a technological change in the company as there is interface change for booking a ticket and looking for status.

• There is a new technology for scanning of the bag in the company.

• There is new data analyzed based technology in the company.

Legal

• There is the regulatory body in the EU which always keep eyes on this airline.

• There is airspace availability which is given by the ATC. Or Air Traffic Control.

• There are charges of Bribery on the Founder of Easy Jet.

Environmental

• There is a need to operate at low carbon emission all over the route.

• There is research on hybrid and electric green aircraft propulsion technology.

Figure 2 PESTAL of Easy Jet

Task 2 Influence of PESTEL on threats and opprotunities

Easy jet is an EU based company which is working in a few of the country nearby EU. When looking for the PESTEL analysis, it can be said that there is an opportunity for this company and at the same time there are threats as well.

Opportunity:

• There is an opportunity to extend is market all over the world as from PESTEL analysis it can be seen that the company is changing its technology. It is changing the interface for ticket booking, it is changing the bag scanning system, it is upgrading the technology so all these things collectively will increase its customer base hence increase its market (Gürel and Tat, 2017).

• Opening the new market for Easy Jet as it is said that, there was bad impact on the economy of Easy Jet but now the market is opening and route is increasing so this is an opportunity for Easy Jet. Company has just started after the COVID 19 so there is a new opportunity for the business.

Threats:

• As it is mentioned in the PESTAL analysis is that company founder is charged with Bribery case, so this could be a threat for Easy Jet as told that company can go into legal trouble sometimes. So, board director needs to take step wisely.

• In PESTAL analysis it is told that company has pressure to deal with the environment, the company is supposed to do less production of carbon emission. This thing may create some problem in spreading its business. Company has to find some other alternatives then only they will be able to spread the market.

• Regulatory bodies always have an eye on this company so this company needs to take every step carefully. This company needs to be careful in doing business.

Task 3 Different leadership styles

There has been a lot of change in the leadership of Easy Jet. The company is very old and it has gone through a lot of changes. The current ECO Johan Lundgren is one of the finest businessmen of the world is leading this team. This guy has done a good job of running this job in COVID19. Though the situation was not good enough still company managed to survive and now it is again on the way of earning money.

Previous chief executive officer CEO Carolyn Mccall OBE CCMI has been awarded a gold medal. This is considered as the highest medal is given by charter management institute, this award is given by recognizing the way of leadership. This company has made a profit even after providing low fare to the customer this shows how the better team is leading. In winning speech, he said instead of the product he is working on people and that’s how the company makes a profit.

There are several styles of leadership styles which are:

Figure 3: Leadership styles

Autocratic style: In this kind of leadership a team leader is like “do, What I say”. In this kind of leadership, there is no much scope of progression. Team leader decides on its own. This company Easy Jet does not follow this kind of leadership. Here in the board meeting, everyone has the right to speak.

Authoritative style: This is a little upgraded version of the Autocratic style. In this kind of leadership company leader says “follow my order”. Here the leader is not like a king but he is confident in his ideas. Easy jet does not follow this kind of leadership in their team.

Pacesetting style: This kind of leadership could be considered as “Do as I do”. In this kind of leadership, the leader takes the first step and then the team follows him. Here the leader is confident enough and dedicated enough to full-fill his goal. Easy Jet follows this kind of leadership. Company leader makes a decision with market analysis and take a lead, he takes the first step and team follows it.

Democratic style: This kind of leadership could be described in a sentence “what could you think”. In this kind of leadership, the leader thinks about what other people think about this project. Here what more people think will be accepted. Easy jet follows this kind of leadership.

Coaching Style: In this kind of leadership leader says “I have this kind of view and here are the benefits and demerits”. Here leader has an idea and he wants to coach it to the others. Easy jet does not follow this kind of leadership.

Affiliative style: In this kind of relationship leaders connects with people, here people come the first kind of relationship works. Here the leader is connected with the real issue and people on the ground. Easy Jet follows this kind of leadership.

Laissez-Faire style: This kind of leadership is opposite to the Autocratic style of leadership. Here all can give an opinion in the team meeting and final decision could be made. Easy jet does not follow this kind of leadership. The company has some strict rule though it takes all personal opinion (Gilligan, 2017).

The appropriate leadership style what this company has shown in the current ECO Johan Lundgren’s era is Pacesetting style. Here everybody has the right to speak and leader listen to them.

Task 4 Recommended leadership style

There is a lot of leadership style is being followed all over the world. Every company has a different kind of leadership style as we know. Easy Jet is following the Pacesetting style of leadership till now/ this leadership is quite good. This kind of leadership could be considered as “Do as I do”. In this kind of leadership, the leader takes the first step and then the team follows him. Here the leader is confident enough and dedicated enough to full-fill his goal. When a leader makes a plan in this company then the opinion is taken from all of the team members. The team leader has a big responsibility on his solder to listening to all of them and taking a decision is a different thing. End of the day results matter, success or failure will go on leadership. Some of the advice is pretty good to hear but at the same time, it could be unpractical. A leader needs to hear everyone, there may be a chance that someone from the team could give good advice which is appreciable, then the leader needs to follow it (Rotondo, et. Al, 2020).

So, this company Spice jet needs to follow pace setting and democratic both. First of all, the company is already doing good in their field, but due to COVID 20 company is going to face some kind of economical loss. Company has to take a different step then the only company will be able to survive or earning more. Till now leadership has accepted the peacemaking leadership style. In this style leadership could be considered as “Do as I do”. In this kind of leadership, the leader takes the first step and then the team follows him. Here the leader is confident enough and dedicated enough to full-fill his goal. Till now every CEO has followed this leadership and the company has got a golden award for the leadership. This time company needs to take a different leadership style. The company needs to follow a democratic leadership style. This kind of leadership could be described in the sentence “what could you think”. In this kind of leadership, a leader thinks about what other people think about this project. Here what more people think will be accepted. The easy jet leader will hear more options and ECO can decide which one is better than going on that leadership instead of stuck on this own idea. This is time to change as the world is changing very fast so company leadership needs to change as well. The affiliative style could also be considered. In this kind of relationship, leaders connect with people, here people come the first kind of relationship works. Here the leader is connected with the real issue and people on the ground. Easy Jet leaders when connecting with people then there may be some good kind of idea came out. So, this is hired options company needs to look for otherwise democratic and Pacesetting leadership style is good to go.

Task 5 Ethics and social responsibilities

After a study of a lot of articles and research paper about the easy jet one things could be proudly said that this company is a responsible, committed and has good ethics. This company Easy Jet is committed to the environment and customer service.

Responsibilities: This company is dedicated to customer service. From the research paper, there is a lot of evidence that this company is responsible for customer service, this company is responsible for emitting less carbon in the environment, this company is responsible for less production of CO. This company has a strategic plan for reducing carbon oncoming time. For this company is using the latest technology, the company is investing in producing the latest technology which will help in reducing less carbon. Sustainable development is the demand of the current time and the company is looking towards it (Ponomarev, 2020).

Response: Response is the word company can be associated with. Company is responsive in the customer response; it is responsive for any issue related to the company. If there is a legal issue or customer-related issue or any kind of issue the company will response soon. Their team is quite helpful. Company website and application is responsive too. Company is responsible, they do not simply deny the things.

The obligation in ethics: This company easy Jet has high moral values. This company is quite responsive and possesses some value in it. The company believes in sustainable development and this company does its part of social responsibility. This company has it’s CSR (corporate social responsibility) fund which is being given to the various filed. After all of the conversations, it can be seen that this is responsible and responsive company. Easy Jet knows its responsibility towards society, it knows the responsibility towards the environment, it knows its responsibility towards the customer, and it knows responsibility towards human life and they do work accordingly (Rodrigues and Rocha, 2019).

Conclusion

Easy Jet has gained so much popularity in a small time. Company is making a lot of profit, and it is increasing continuously. In the cut-throat competition surviving is a difficult job but this company is not only surviving but making profit, all of this credit goes to the leadership team. This company has a really good team; therefore, the company can make so much profit. This company follow the leadership style in which all of the people are allowed to speak. This report discussed each and everything related to the leadership of the company. This report discussed what kind of situations this company has trough SWOT analysis. This company could be judged based on PESTEL analysis. This company is good at the customer response, this company is good at technology using, this company is good at ethics and many more. Easy jet has almost 300 routs and This company owns almost every plan it uses. This company is growing all over the world and its leadership is playing a very important role in this. The way this company and its team are working; in near future, every county will have this company. This report firmly discussed the opportunity and the threats this company has, and how this company can make benefits from the opportunity.

References

Alberto, M., 2019. Easyjet Plc Airlines (Doctoral dissertation).

Gilligan, A., 2017. Easyjet to filter toxic air in cabins. The Sunday Times, Londres, 17.

Gürel, E. And Tat, M., 2017. SWOT analysis: a theoretical review. Journal of International Social Research, 10(51).

Pan, W., Chen, L. And Zhan, W., 2019. PESTEL analysis of construction productivity enhancement strategies: A case study of three economies. Journal of Management in Engineering, 35(1), p.05018013.

Ponomarev, D., 2020. Consolidation of airlines in Europe: potential acquisition of Norwegian by easyjet (Doctoral dissertation).

Rodrigues, M. And Rocha, V., 2019. Easyjet-airline (Doctoral dissertation).

Rotondo, F., Corsi, K. And Giovanelli, L., 2019. The social side of sustainable business models: An explorative analysis of the low-cost airline industry. Journal of Cleaner Production, 225, pp.806-819.

Song, J., Sun, Y. And Jin, L., 2017. PESTEL analysis of the development of the waste-to-energy incineration industry in China. Renewable and Sustainable Energy Reviews, 80, pp.276-289.

Urriza, Natividad Goni., 2020, "Determination of International Jurisdiction in Matters Relating to an Application for Compensation and Compensation for Damage Resulting from the Cancellation and Delay of Flights: Judgement of the Court, 7 November 2019, Case C-213/18, A. Guaitoli and Others v. Easyjet Airline Co. Ltd." Cuadernos Derecho Transnacional 12: 1030.

Vlados, C., 2019. On a correlative and evolutionary SWOT analysis. Journal of Strategy and Management.