Introduction And Background To Easyjet Management

Essay add: 2-03-2016, 20:21   /   Views: 97

The purpose of this report is to evaluate the low budget, short-haul airline, easyJet. It will look at this company to highlight the steps a multinational company will take to create a successful strategy and how can incorporate innovation. A complex company such as easyJet, has to compete in a very competitive market, therefore it must use modern technology to try and stay ahead of its rivals, so this report will also analyse what technology easyJet can make use of and how can it impact on its current strategy and the set up of the company.

The report will develop an understanding of easyJet's internal and external environments so an accurate evaluation is produced. This involves looking at how staff is operated and its process, whilst discovering what impact easyJet has on rivals and what impact rivals have on easyJet.

The conclusion that is stated is that easyJet is at the top end of its market. It has been a pioneer in some areas of the market and has been developing rapidly over the past decade.

Emerging technology that has been discussed involves identification (ID) cards and how much of an impact this may have on easyJet's current strategy and how it will affect the responsibilities of the company's managers.

1.0 - Introduction

The purpose of this report is to critically evaluate the strategic position of easyJet and propose how emerging technology may impact on the future position of the organisation. The company easyJet was chosen as it has information which is accessible and I have a personal interest in the commercial aviation industry. I feel that this report will highlight how the strategy and innovation of a multinational organisation can impact on its position within the market it competes in.

2.0 - Background

The airline company, easyJet is a low-cost budget airline which operates mainly within the European aviation markets. Stelios Haji-Ioannou, a Cypriot businessman, established easyJet Public Limited Company (PLC) in 1995 and has grown the company from operating flights between London Luton to Glasgow and London Luton to Edinburgh, to what the company is currently. Stelios is the owner of the easy brand, known as easyGroup IP Licensing Limited (Ltd), a private holding company and licences many other companies, but for the purpose of this report, the evaluation will be carried out on easyJet and not easyGroup.

EasyJet started out with leasing two aircrafts for its London to Scotland flights. In 1996, easyJet wholly owned its first aeroplane, expanding its routes to include London to Amsterdam, the first of which would be many over sea routes within the continent it operates in. At the end of the 1990s, easyJet saw itself gain a website online even though it would take a further two years before online bookings could be made by customers. EasyJet bought out a main competitor in Go, which was British Airways challenge to easyJet in the Low Cost Budget Airline sector. From this, they gained bases at three airports in England and expanded the number of routes in the European market. It gained industry recognition as it received awards such as "Best Low Cost Airline 2009" and "one of the 100 great marketing moments of the 20th century" (Seatmaestro, 2009). Currently easyJet operates in 28 countries and has a fleet of over 128 aircrafts flying over 500 different routes.

Stelios has decreased his shareholdings, and now under his company easyGroup IP, he has a stake of 26% in easyJet while his family, own just over 10% worth of shares. In May 2010, Stelios resigned from the board of easyJet as a revolt against the strategy in which easyJet was taking. A row broke out between easyGroup and the board of easyJet which concluded in October 2010 following a High Court case. Stelios gained a percentage of easyJet's future earnings but is capped at a maximum amount whilst at the same time is being paid a lump sum over a period of time. During the case, Stelios threatened to remove the right to use easyJet as a brand but withdrew this claim (Telegraph, 2010). Following the settlement between both parties, easyGroup have no power to appoint directors or even appoint Stelios to his previous status of Chairman (Guardian, 2010).

Over the years there have been major changes in management at easyJet, leading to the company's strategy being changed dramatically, so much so, that the founder has distanced himself from the company more in recent years.,tll:1998,tlh:1999&ei=1Zq9TP_NDIvQjAe45o3AAg&ved=0CHUQyQEoBQ

3.0 - Current Strategic Position of easyJet

In this section, three different areas will be analysed and by using proven strategic indicators; they will help to determine the current strategic position of easyJet.

3.1 - Internal Environment Analysis

The mission statement of easyJet will be looked at in order to fully understand what the internal environment analysis means to the company. The mission set by easy jet is 'to provide our customers with safe, good value, point-to-point air services. To effect and to offer a consistent and reliable product and fares appealing to leisure and business markets on a range of European routes. To achieve this we will develop our people and establish lasting relationships with our suppliers'.

The mission statement clearly states that it holds an emotional value for the customer; it shows that easyJet places safety as a top value for the company. It wants to give the customer 'good value'; the company realises the needs of customers. They understand that a happy customer could be a repeated customer. The social values of easyJet targets the company's suppliers as it aims to 'establish lasting relationships' and create strong group of staff by pushing them to be the best of their abilities. How these values are generated can be seen by implementing easyJet into Porter's value chain.

Infrastructure of easyJetHuman Resource Management MarginI.T. DevelopmentMarketing ServiceInbound Operations Outbound and MarginLogistics

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