EasyJet is a British low-cost airline founded in 1995 by Sir Stelios Haji-Ioannou. It operates flights to over 150 destinations in over 30 countries, making it one of the largest budget carriers in Europe. The company has a flat organizational structure, which means that it has a relatively decentralized decision-making process and a relatively horizontal hierarchy. This structure has been instrumental in allowing the company to be agile and respond quickly to changing market conditions.
One of the key features of EasyJet's organizational structure is its focus on cost-cutting. The company operates on a low-cost business model, which means that it seeks to minimize its expenses in order to offer low fares to its customers. To achieve this, it has implemented a number of strategies, such as using a single type of aircraft for its fleet, minimizing ground staff, and streamlining its operations.
Another key aspect of EasyJet's organizational structure is its reliance on technology. The company makes extensive use of technology to automate many of its processes, including booking, check-in, and boarding. This has allowed it to reduce the need for human intervention and keep its costs low.
EasyJet's organizational structure is also characterized by its decentralized decision-making process. The company has a flat hierarchy, which means that decisions are made at the lowest possible level. This allows employees to be more involved in the decision-making process and helps to foster a culture of innovation and accountability.
Overall, EasyJet's organizational structure has been instrumental in its success as a low-cost carrier. Its focus on cost-cutting, reliance on technology, and decentralized decision-making have allowed it to remain competitive in a highly dynamic market.
Board of Directors
The strong social control obliges the organizational members to behave alike each other. Such organizational culture is deemed favorable for promoting a creative and innovative work attitude. Financial position of EasyJet and Ryanair Easyjet Plc 2006 £ million 2007 £ million 2008 £ million 2009 £ million 2010 £ million Current Assets 1,087. Less pressure is put on at check-ins now as less baggage is checked in and more people check in online. In this case, EasyJet faces the same challenge as a company in Europe.
Source: Self-generated from David 2008. David was appointed to the Board on 17 November 2020. Current Competitive Position of EasyJet Porter 2004 provided a strategic framework that illustrates five influential competitive factors of the industry; therefore, this report would analyze the current competitive position of EasyJet in light of Porter 5 forces. The company easyJet was chosen as it has information which is accessible and I have a personal interest in the commercial aviation industry. For instance, in 1992, following the expansion of the European Union, there was an increase in the airline destinations. Also, Easyjet has experienced difficult financial position due to the global financial crisis as the customer purchasing power has reduced and influenced them to find out cheaper services. Furthermore, it is important to note the fact that the management team should work out a plan to ensure that the cost estimates are within the range of the company operations.
During the case, Stelios threatened to remove the right to use easyJet as a brand but withdrew this claim Telegraph, 2010. Easyjet 2009 Annual report 2009 of Easyjet. Source: Self-generated from Weihrich 2010. The staff turnover rate was 7. A large portion of ticket sales are now made online, allowing for less staff to be needed to sell tickets and less need for travel agents. Moreover the employees needs to feel assure that the management are by their side during the time of emergencies.
That is in the event that the political and legal environment does not sustain the plans. The risk of entry by potential competitors In essence, the airline industry is placed in a position where there is a potential new entrant into the industry. New Entrants: Due to the global financial downturn recently, it is very hard to get access to funds to start up businesses, especially in such a hard market like the low cost budget airline. As an airline, EasyJet has skilled and motivated workforce which ensure that the travellers are able to enjoy quality services. New Entrants The obstacles to entering this market are large capital investment and constrained slot accessibility, which makes it far difficult for the new companies to find appropriate routes. Looking at the weaknesses, as compared to other airlines, EasyJet does not have sophisticated aircrafts.
EasyJet Company's Strategic Analysis and Marketing
Learn More This is a tool which is used to evaluate the internal and the external environment of a business. The organization keeps its door open to the outsiders and integrates the flexibility so that everyone can fit into it. The employees enjoy working in the organization and the rate of absenteeism is slow. Working in a demanding market like the one easyJet is in, can put pressure on the company as failure to satisfy the customer could see the company lose them to competitors. In essence, focus remains on pricing strategy and the expansion of its route network across Europe and even other parts of the globe. Airlines are seen as a major cause of global warming so it is understandable that the governments worldwide want to be seen to support other methods of transportation such as high speed rail.
Management Impact On The Worker of EasyJet Airlines Company
An example of glass ceiling would be that of with women. He tries to find out his true potentials and self-fulfilment. Early promotional activity focused on the airline's relatively low pricing compared to incumbent operators. Implementing safety management systems in aviation. Furthermore, the profitability of this industry depends on the business strategies which will be laid out by airline companies such as the EasyJet. On 20 November 2018 EasyJet ordered an additional 17 A320neo, taking their total neo order, including the A321neo, to 147. She became Senior Independent Director on 5 August 2020.
EasyJet Company: Strategic Management and Business Policy
Due to unpredictable conditions such as weather or union strikes home or abroad then the company must be able to control its staff and fleet. However, this company has achieved profitable growth in European short-haul aviation by following the provision of the Civil Aviation Authority, and Regulation 3 of the Licensing of Air Carriers Regulations 1992; however, frequent change of aviation regulation to avoid the risk of terrorist attack has influenced on the business. Sure, the work can be fast paced. However, EasyJet intends to follow market growth strategy by introducing its operation in 115 new routes; therefore, it should concentrate in few external and internal factors to be a leader in the new market though this company is operating with high confidence in 27 European countries. In the recent past, the airline has been carrying out an evaluation regarding its fleet.
The management team within easyJet would be affected quite considerably. One of the most important aspects which have made this airline to stand out is the route system. The outermost will be artefacts, middle will be the values and beliefs and inner most will be the underlying assumptions. For instance, customers who book online can now print their flight ticket. Prior to this she was a member of the executive management team at Fujitsu. London: Global Professional Publishing Ltd. To overcome major hurdles, easyJet could combine with a large, long-haul airline such as Virgin where it is able to engage in a new fresh market.