Understanding Business Organisations Case Study Sample

Introduction Of Understanding Business Organisations

Low-cost carrier EasyJet was established in 1995 and is located in Luton, England. With over 330 aircraft in its fleet and over 1000 flights to more than 30 countries, it has expanded to become one of the biggest airlines in Europe (EasyJet,2021) The organisational structure of EasyJet is set up to guarantee optimum effectiveness and adaptability. The airline is organised into a number of divisions, each in charge of particular tasks, including operations, marketing, finance, and customer service. The COVID-19 epidemic, which has significantly reduced demand for air travel and led to the firm declaring its first annual deficit in 2020, has a huge influence on the contemporary setting of EasyJet. The airline was forced to change how it operated and put in place cost-cutting measures, such lowering the number of employees and the size of its fleet. Additionally, Brexit has raised doubts for the whole aviation sector, which may have an impact on costs, rules, and routes(Whittington, 2019). Despite these difficulties, EasyJet is nevertheless dedicated to its low-cost business strategy and has kept up with innovation by introducing new routes and digital projects to enhance the passenger experience(Keller, 2016).

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In this case study, Easy Jet's organisational structure, roles, and culture will be examined. We'll also talk about the internal as well as external elements that their firm is affected by as a consequence of new scenarios like pandemics, Brexit, as well as other crises. We will give a thorough review of the aviation sector in addition to its present situation using environmental analysis methodologies like SWOT and PESTLE. Also, the study will help in acquiring a deeper insight into the issues and possibilities confronting the airline business by utilising environmental analysis methods like SWOT and PESTLE, and based on that the report will provide suggestions for EasyJet's future success.

Business Organisational purposes

Organisational purposes are the overarching reasons for why a company exists and the goals it aspires to. A company's mission and vision are crucial elements of its organisational goals since they give the organization's actions direction and inspiration.

Easy Jet's goal is to make travel for everyone simple, economical, and safe while upholding its commitment to environmental responsibility and ethical business practises. This company's emphasis on giving customers an affordable, accessible travel alternative while simultaneously appreciating the value of environmental stewardship is reflected in its mission statement. The mission of Easy Jet is to be the top short-haul airline in Europe by providing the finest in-class customer service and technological advancement. The company's desire to grow and extend its activities while retaining a strong ethical foundation is reflected in this vision statement. EasyJet is able to convey its values and goals to stakeholders and link its organisational goals with its business strategy thanks to a well-defined mission and vision. As a result, the business may concentrate on its core skills and accomplish its long-term objectives, all while serving the requirements of its clients and promoting sustainable growth.

Easy Jet's mission is to make travel for everyone safe, inexpensive, and simple while upholding its dedication to environmental sustainability and ethical business practises. The firm has a number of goals in place to do this, including growing its market share, expanding its route network, lowering its environmental effect, and enhancing customer happiness (EasyJet, 2021).

Maintaining EasyJet's status as Europe's top short-haul airline through ongoing development and expansion is one of the company's core goals. By launching new routes, boosting frequency on current routes, and growing its fleet size, the firm hopes to accomplish this goal (Johnson, Scholes, & Whittington, 2019).

Reducing its environmental effect through the deployment of more fuel-efficient planes and environmentally friendly business practises is another important goal. EasyJet has established a goal to become the first net-zero carbon airline by offsetting its carbon emissions via investments in renewable energy by 2022. It also has an aim to lower its carbon emissions per passenger kilometre by 10% by that time (EasyJet, 2021).

Organisational Structure

The organisational structure of EasyJet is effective and built to serve the company's low-cost business strategy. With a small number of hierarchical levels and an emphasis on cross-functional teams, the structure is comparatively flat. The Board of Directors, which sits atop the hierarchical structure, is in charge of determining the organization's overarching strategic direction. The executive management team, which comprises the CEO, CFO, and other senior executives in charge of various business divisions, provides assistance to the Board.

Operations, marketing, finance, and human resources are just a few of the functional divisions that fall under the senior management team. Senior managers who answer to the executive management team oversee each department. To support the company's overall business goals and uphold its low-cost structure, the divisions collaborate closely. With a focus on cross-functional teams that cooperate to solve issues and spur innovation, EasyJet also has a strong culture of empowerment and cooperation. This may be seen in the company's internal communication channels and the way that personnel from various departments and locations are connected by means of technology (Lashley, 2018).

EasyJet's effective organisational structure offers the business a number of advantages. First off, the flat organisational structure makes the business flexible and sensitive to market developments. This is due to decentralised decision-making, where managers are empowered to act and make decisions at each level to meet new situations. This makes it possible for the business to react swiftly to shifting market circumstances while maintaining its competitiveness (Johnson et al., 2019). Second, the cross-functional teams promote cooperation and creativity, allowing the business to swiftly develop new concepts and products. This occurs as a result of collaboration between personnel from various departments in order to address issues and seize opportunities (Lashley, 2018).

The functional organisational structure does, however, also have certain disadvantages. The propensity for isolated thinking and a lack of communication across departments is one of the key negatives. Due to lack of coordination and duplication of effort, this may have a detrimental effect on the performance of the business (Johnson et al., 2019). Since there are fewer hierarchical levels to advance through, the flat structure can also prevent employees from seeing a clear career development. Lower retention rates and staff morale may result from this (Lashley, 2018).

Organisational functions

Organizational process can be defined as the process that involves the coordination and fusion of human, material, and financial resources. To get outcomes, it's crucial to use all three resources. As a result, organisational function aids in achieving outcomes, which are crucial for a business to operate effectively.

Function	Description	Interrelationships
Finance	EasyJet's finance function is responsible for managing the company's financial resources, including budgeting, financial reporting, and risk management. This function plays a crucial role in ensuring the financial sustainability and profitability of the company (EasyJet, 2021)	The finance function works closely with other functions, such as marketing and operations, to ensure that financial resources are allocated effectively and efficiently. For example, marketing initiatives are evaluated based on their potential return on investment, and operational decisions are made with the aim of minimizing costs and maximizing revenue(Woods,2017)
Marketing	EasyJet's marketing function is responsible for promoting the company's services and brand to potential customers. This function plays a crucial role in generating demand and driving revenue growth for the company (Keller,2016).	The marketing function works closely with other functions, such as finance and operations, to ensure that marketing initiatives are aligned with the company's overall strategic objectives. For example, marketing campaigns are designed to target specific customer segments and drive sales, while also taking into account the company's financial resources and operational capabilities (Taylor, 2014)
HR	EasyJet's HR function is responsible for managing the company's human resources, including recruitment, training, performance management, and employee relations. This function plays a crucial role in ensuring that the company has a talented and motivated workforce that is aligned with the company's strategic objectives (Johnston, 2016).	The HR function works closely with other functions, such as operations and finance, to ensure that the company has the necessary human resources to meet its operational and financial objectives. For example, HR policies and practices are designed to support operational efficiency and financial sustainability, while also promoting employee engagement and satisfaction (Jones, 2017).
Operations	EasyJet's operations function is responsible for managing the company's flight operations, including scheduling, maintenance, and safety. This function plays a crucial role in ensuring that the company delivers high-quality services to its customers in a safe and reliable manner (Marshall, 2016)	The operations function works closely with other functions, such as finance and marketing, to ensure that flight operations are aligned with the company's overall strategic objectives. For example, flight schedules are designed to optimize revenue and minimize costs, while also taking into account customer demand and market conditions (Aquilano, 2018)
Sales	EasyJet's sales function is responsible for generating revenue for the company through ticket sales and ancillary services. This function plays a crucial role in ensuring that the company achieves its financial objectives and maintains its low-cost business model (Gupta, 2013)	The sales function works closely with other functions, such as marketing and finance, to ensure that revenue generation is aligned with the company's overall strategic objectives. For example, sales strategies are designed to target specific customer segments and generate revenue while minimizing costs (Render,2017).

In general, Easy Jet's success depends on how these roles interact with one another. Together, the functions make sure that the company's resources are used wisely and effectively, and that its operations are in line with its overarching strategic goals. This cooperative effort will enable EasyJet to fulfil its aim of offering customers in Europe safe, accessible, and inexpensive air travel.

Organisational culture

A group or organization's common ideas, values, practises, behaviours, and artefacts are referred to as its culture. It includes how individuals act, think, and communicate in a certain setting. Socialisation, the process through which people pick up the customs and values of their community or organisation, is how culture evolves over time. Language, symbols, tales, rituals, and other types of communication can all be used to impart it (Powell, 2017)

There are several forms of culture, such as:

1. Clan culture: Collaboration, cooperation, and employee participation are prioritised in clan cultures.
2. Adhocracy culture: Places a strong emphasis on entrepreneurship, innovation, and taking risks.
3. Market culture: Prioritises rivalry, achieving objectives, and consumer attention.
4. Hierarchy culture: Places a strong emphasis on control, predictability, and stability (Trott, 2017).

The attitudes, behaviours, and actions of workers are shaped by organisational culture, which is crucial to an organization's success. EasyJet's success in the fiercely competitive airline sector depends on its organisational culture. The flat organisational structure, casual work environment, and emphasis on effectiveness and efficiency define EasyJet's culture. This culture has helped the airline succeed in offering inexpensive flights to a variety of locations around Europe and beyond (Dubey, 2019) The emphasis on innovation and adaptation that EasyJet places on its employees is one of its core values. As a result, the airline has been able to adapt fast to shifting market circumstances, including the COVID-19 epidemic, and to create new strategies to fulfil client expectations. For instance, EasyJet moved swiftly to implement additional safety and health measures, including the requirement for face masks, improved cleaning practises, and social segregation on board, to reassure consumers and safeguard their health throughout the epidemic (Taylor, 2017). The emphasis on customer service is a key component of EasyJet's ethos. High customer satisfaction scores are a direct result of the airline's solid reputation for offering excellent customer service. This is made possible by a team of welcoming and helpful employees, effective service, and a dedication to satisfying customers' requirements(Laudon, 2016) The flat organisational structure of EasyJet also reflects the company's strong emphasis on teamwork and collaboration within its culture. This organisational structure promotes prompt decision-making and effective communication, helping to guarantee that the airline can swiftly adapt to market developments(Schilling,2014)

In the end, it can be said that the EasyJet's culture is a major factor in the airline sector success of the company. Millions of passengers each year benefit from the airline's economical flights and outstanding customer experiences thanks to its focus on innovation, flexibility, customer service, and cooperation. EasyJet has been able to remain ahead of its rivals and hold onto its position as a top airline in Europe and abroad by cultivating a culture of invention and cooperation.

SWOT Analysis

A SWOT analysis tool aids in properly analysing internal aspects that might have an impact on a firm.

Strengths	EasyJet's low-cost business strategy, which has allowed the airline to retain competitive fares while simultaneously being profitable, is one of its assets. This has made it easier for the airline to draw price-conscious consumers and to withstand the effects of outside forces like the COVID-19 epidemic and political unrest. Furthermore, EasyJet has been able to retain customer loyalty and swiftly adjust to shifting market conditions thanks to its strong emphasis on customer service and operational efficiency (Xiong,2021)
Weakness	EasyJet's substantial reliance on the European market, which leaves the airline exposed to political and economic unrest in the region, is one of its disadvantages. Additionally, the airline is less diverse than some of its rivals due to its emphasis on short-haul flights, which might limit its capacity to make money in emergency situations. Last but not least, EasyJet's low-cost business strategy could make it more difficult for it to invest in new technologies and innovation, which might hurt its long-term competitiveness (Mehdizadeh,2018).
Opportunities	The rising interest in low-emission airlines that has resulted from the need for eco-friendly travel is one of EasyJet's potentials. The airline may be able to capitalise on this trend and draw in environmentally concerned consumers thanks to EasyJet's dedication to minimising its environmental effect and investing in innovative technologies. Furthermore, Brexit and the present economic unpredictability may raise demand for domestic travel in the UK, which would be advantageous for EasyJet's short-haul business model (Pioch,2021).
Threats	The ongoing COVID-19 epidemic, which has had a considerable effect on the aviation sector, is one of the dangers facing EasyJet. Restrictions on travel and a decline in air travel demand have resulted in lower revenue and more financial strain on airlines, notably EasyJet. Additionally, fluctuations in fuel costs have a significant influence on airline profitability since the airline business is very sensitive to these changes. Finally, EasyJet's market share and profitability may be threatened by the likelihood of greater rivalry in the low-cost airline sector, particularly from new market entrants ( Parida,2018)

PESTLE Analysis

PESTLE analysis takes into account the overall environmental context that has an impact on the business as well as changes to this context.

Political: EasyJet's business operations may be significantly impacted by political considerations. Government assistance for the aviation sector, such as subsidies or tax incentives, may be considered a positive political influence. However, unfavourable political considerations might also include travel restrictions, changes to government rules or policies, and political instability in important markets. For UK-based airlines like EasyJet, for instance, Brexit has increased uncertainty and regulatory barriers, which might have an effect on the business' operations and profitability. Further affecting EasyJet's operations and income are the continuing COVID-19 pandemic's considerable government-imposed travel restrictions and border closures.

Economic: An important external aspect that might have a big influence on EasyJet's operations is the economic climate. Increased consumer confidence, economic expansion, and low interest rates are all positive economic variables that may boost demand for air travel. The operations, profitability, and financial performance of EasyJet can be adversely impacted by unfavourable economic variables such as inflation, currency fluctuations, and economic downturns. For instance, the continuing COVID-19 epidemic has significantly decreased demand for air travel, which has decreased EasyJet's earnings. Additionally, rising gasoline costs may raise the business's operating expenses, which may have an effect on profitability. To sustain its financial success, EasyJet must regularly analyse economic circumstances and modify its operations as necessary.

Social: The operations of EasyJet may also be significantly impacted by social variables. Favourable sociological variables may include altering demographics, greater leisure travel, and changing consumer tastes that boost demand for air travel. However, unfavourable societal factors like growing environmental consciousness and worries about the carbon footprint of air travel might harm the company's brand and demand. The need for air travel has also diminished as a result of altered consumer behaviour brought on by the COVID-19 pandemic, such as a desire for remote work and virtual meetings. Therefore, in order to preserve its competitive advantage and financial viability, EasyJet must adapt to shifting societal trends.

Technological: The aviation sector is significantly impacted by technological developments, and EasyJet is no exception. Improvements in engine efficiency and aircraft design are two examples of advantageous technology developments that may result in lower fuel expenditures and usage. Furthermore, the rising usage of digital technology like mobile applications and online reservation systems can enhance client involvement and experience. However, negative technology aspects like cyberthreats and the growing popularity of virtual meetings may cause the need for air travel to decline. Therefore, in order to stay competitive and adjust to shifting consumer tastes, EasyJet must invest in technical advances.

Environmental: Environmental aspects, including climate change and growing sustainability consciousness, are significantly affecting the aviation sector, especially EasyJet. For the airline to be relevant in a society that values the environment, it must reduce its carbon footprint and adopt sustainable practises.

Legal : Legal considerations that affect EasyJet include employment legislation, passenger rights, and aviation restrictions. The operations and profitability of the airline may be impacted by any changes to rules or compliance difficulties. To guarantee its seamless operation and prevent any legal repercussions, EasyJet must adhere to all the regulatory standards.

Conclusion

In conclusion, many internal and external variables affecting EasyJet's company operations have been discovered using the SWOT and PESTLE analyses. The airline's advantages include its solid reputation, low-cost business model, and emphasis on innovation. Threats come from the continuing epidemic, the struggling economy, and environmental issues. For EasyJet to succeed in the aviation sector, it must overcome these obstacles and seize possibilities.

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