Easyjet Pest Analysis Paper

It is important to examine Easyjet’s strategy due to the changing financial climate in the UK and Europe such as the 2008/9 recession and Brexit.

This report illustrates an in-depth look of easyJet and will also discuss an analytic research that was made to demonstrate aspects of the history of the airline, along with the marketing strategy and brand strategy used and implemented by the low-budget airline. The strengths, weaknesses, opportunities and threats, known as SWOT analysis, will also be illustrated along with the external environment better known as PEST analysis which consists of the political, environmental, social/cultural and technology factors of easyJet. In addition an analysis of the competitive market environment of easyJet will be shown, which includes an overview of easyJet’s main competitors and the nature of business in which they operate

The sector employs more than 3 million people. Prior to the 1990’s, the air transport industry in Europe had been traditionally highly regulated and dominated by national carriers and state owned airports. Since then a single market for aviation has been created. The single market has seen the removal of all commercial restrictions for airlines flying within Europe. These include restrictions on routes, number of flights and the setting of prices.

In 2002-2003 EasyJet in the pursuit of reinforce and change their market conditions acquire “Go”, a low-cost airline who helped to reinforce a cultural and commercial challenge: Integrate Airbus into EasyJet network (Goodson 2005). The company acknowledge that interdependencies

The essay will firstly introduce the organisation easyJet. Secondly the essay will explain about how easyJet uses its operation strategies and its competitive priorities. Finally the essay will discuss the most important operation decision and explain it further in detail. easyJet is a well known low-cost airline which operates in several European countries and has been founded by serial entrepreneur Sir Stelios Haji-Ioannou in 1995. easyJet undertook intensive research of a United States owned low-cost airline ‘Southwest Airline’. Most of the concepts for easyJet were adopted from Southwest airline; however easyJet added its own touch which reduced operating costs even further. EasyJet was strategically located at London's Luton airport.

Political. This factor looks at how government and legal regulations affect LG’s operational structure. Regulations that must be considered include food safety, tax policies, and employment laws. For LG, law requires all employees have a California Food Handler Card, with new hires having 30 days from the date of hire to obtain a card (ServSafe® California Food Handler, 2016). Furthermore, LG is required to maintain, and make available to the Food and Drug Administration (FDA) supplier records that identify the immediate previous sources and the immediate subsequent recipients of the food products that are handled by the facility (U.S. Food and Drug Administration, 2016). LG is subjected to sales and use taxation in addition to alcoholic beverage taxation. California State Board of Equalization (BOE) indicates LG’s regional sales and use tax at 8.625% per transition (Find a Sales and Use Tax Rate, 2016). The alcohol beverage tax differs in regard to the type of alcohol served. LG manages a full bar meaning they serves liquor, cocktails, wine, and beer. Therefore their alcohol beverage taxation rate varies

The long term affect that is going to have is that if there are not as

The local business we interviewed is CTLGroup, a subsidiary of Portland Cement Association. CTLGroup stands for Construction Technology Laboratories, and it specializes in construction engineering and testing. They also offer consulting services and have been involved in many projects which range from dealing with retractable roofs for a stadium, to assisting with construction of a water treatment facility. It was founded in 1986 and its headquarters are based in Skokie, Illinois. They have a number of locations in the United States and also have a location in Qatar. After speaking to the accounting manager, Marlen, we learned a little more about the overhead costs and the allocation of this company.

Uber is an organization that is in the transportation industry, which offers the personal service of automobile drivers (Walker Smith, 2016). Further, political factors in the PEST analysis include the following: tax policy, trade control, competition regulation, environmental law, anti-trust law, discrimination law, regulations, and laws regulating environment pollution (Jurevicius, 2013). Moreover, organizations often view political factors affecting the business as extremely important.

In contrast, the British Airways considered Virgin Atlantic Airways as its major competitor. Due to the deregulation of the European Airline, many airlines have been able to cope with the changes and make a strategic move of entering in this travel industry. One of the industries that open its market to the airline industry is the British Airways (BA). British Airways is regarded as one of the UK’s largest international scheduled airline. It is known for being such because of the strategies imposed by the management of the airline industry.

The opening of new markets within the EU exposed many national carriers to strong competition. This trend has been furthered by the continuous liberalization of the global aviation industry and specifically the recent OpenSkies agreement between EU and the US which allows the national carriers to arrange the Atlantic flights from the airports that are not airlines’ ports of origin. (BATA, 2010).

British Airways have been the symbol of the United Kingdom and its airlines for many years. They are the largest airline in the UK and have the largest amount of international flights and destinations. British Airways was formed in 1974 after four UK airlines, BEA, BOAC, Northeast Airlines, and Newcastle, were dissolved. The airline aimed at being a worldwide network and achieving economies of scale. This joining of four different organizations caused the airlines to have over 50,000 staff members and 215 aircrafts, which is considered to be grossly overstaffed and suffered allot of management structure problems. British Airlines also suffered serious cultural differences due to a ‘class’ distinction with the staff members.

British Airways has focused its mission and objectives towards satisfying its key stakeholders that include employees, customers, Government and the British public. The company has been successful in dealing with cultural differences that arise between the UK and foreign countries, adopting a geocentric approach to hiring workers. The airline has also created a flexible organisation that responds quickly to the changing needs of

Significant developments have occurred in the field of air transport. A large number of countries made remarkable progress in liberalizing international air transport regulations, and became involved in full market-access arrangements. At the same time, the airline industry underwent a major shift and saw the forging alliances and mergers between companies in order to consolidate their presence in a market environment characterized by strong competition. (Icao.int, 2013)

You will investigate the British Airways and provide a personal, but informed, view of the company. The assignment will give you the opportunity to apply your understanding of the Business Environment to the analysis of an international business from a range of different perspectives: considering how businesses set their objectives, influence their stakeholders, control their costs and fix their prices within the context of a particular national environment (the UK). The submission should be suitable for publishing in a specialist ‘business’ magazine.