ECB College Unit 8 Business Strategy – HND Assignment

Task 2: Formulating a new strategy

Conduct an environmental audit for EasyJet

The Environment audit of a firm is done to understand the environment in which an organisation works and it helps in formulating the strategies by gaining better understanding of the business (Rothaermel, 2013). Organisational audit can be done by conducting SWOT analysis which is discussed in detail as follows: –


1. The flight’s main destinations are whole Europe which makes it an effective and attractive choice for flying (Rothaermel, 2013).

2. The company follow a single model which results in reduction in training and supervisory costs.

3. The company is first among introducing e-tailing which directly eliminates distribution costs (Rothaermel, 2013).


1. The company does not come in the category of having a frequent flier programs.

2. Due to no frill strategy, the customer is highly sensitive to any additional taxes or charges (Rothaermel, 2013).

3. Large dependency on two suppliers which can be a risky affair.


1. The academy opened by EasyJet can be a major source of income.

2. Brand awareness can also be increase by giving more emphasis on EasyJet hotels and EasyJet holidays.

3. Various other and new fleets can be leased out especially during the time of low season (Rothaermel, 2013).


1. The government policies are strict especially in aviation regulations.

2. The customer has a high bargaining power (Rothaermel, 2013).

3. Many major players are also entering into the business (Rothaermel, 2013).

PESTLE is very effective technique to understand the customer and the market. Various benefits of this technique are discussed in detail as follows: –

  1. Political: government influence and their interference in the economy and decision of various businesses are political factors (Rothaermel, 2013). The company success is largely dependent on the fact that the how liberal the government policies are in a country and on the basis of which the company performance can be easily calculated (Rothaermel, 2013). In EasyJet, the government policies are more related to the factors which affect airlines business as the company believes in the free competition and minimal roadblocks leads to betterment of functions and also ensures smooth transactions in this industry (Rothaermel, 2013).
  2. Economic: the economy of any country is very crucial for the smooth functioning of the smooth functioning of the business. The overall performance of the economy of a country directly impacts the organisations performance working in it (Hrebiniak, 2013). Various economic situations like inflation, recession and many more are also impact the company way of determining the prices of the product or services. The economic factors can be inflation rate, interest rate and foreign exchange rates. EasyJet is located in British which are based in London Luton airport (Rothaermel, 2013). The company is claimed to be one of largest airline company in the country. As far as economy of the country is concerned, it is strong enough to make EasyJet a successful company (Rothaermel, 2013).
  3. Social: social factors are more related with the factors which influence the cultural environment of the business (Hrebiniak, 2013). The features which impact the social environment are cultural trends, demographics, population analysis, changing attitude and behaviour of the consumer etc. In British the social factors are quite strong and working in favour of EasyJet. This is why the company is flourishing and the company is in demand (Rothaermel, 2013).
  4. Technological: technological factors basically promote vast innovation and creativity by introducing new technology and techniques to do things more efficiently. Regular technological advancement helps in improving and upgrading the business functions to the next level. All this also helps in taking the business to new heights (Rothaermel, 2013). New technology affects the operations of the company and sometimes even change the way the company functions. It is very significant for every company to invest time and money in introducing new technologies (De Vries, 2011). That is why EasyJet is also investing a lot in improving their technologies so that they can further improve the effectiveness and efficiency of the business and make the function more cost effective (Rothaermel, 2013).
  5. Legal: sound legal system is very important for every kind firm as it helps in addressing the issues easily and efficiently (De Vries, 2011). Events like discrimination on the basis of various grounds can be easily avoided if the company have proper legal system at place. The legal laws and regulation cover various points which work in favour of the business like consumer law, labour law and health and safety laws (De Vries, 2011).
  6. Environmental: these days it has become very important to give take environmental factors into account and make the business eco-friendly (De Vries, 2011). These factors play a pivotal role in the industries like tourism, agriculture or any type of farming (De Vries, 2011).

Evaluate the significance of stakeholder analysis in the formulation of new strategies.

A business is mostly affected by the stakeholder that is why it is very important to have a stakeholder analysis from time to time (De Vries, 2011). The stakeholder should be given extremely important place in business because it is because of them that a business reaches its fate (Yang et al, 2011). All the strategies should be formulated keeping in mind the interest of the stakeholder and which works for the benefit of the stakeholders. Below is the detailed discussion of significance of stakeholder analysis which contributes in the success of the business: –

  1. Marketing Strategies: – stakeholders are the centre point on the basis of which a strategy is formulated and executed. Every company should take stakeholder in consideration in every decision making (De Vries, 2011). In fact strategy formulation starts at a pint where the company conduct a survey to understand the taste and preferences of the consumer and decide all the strategies on the basis of that. All the function are executed right from product development to marketing and promotion, and finally to selling are dependent on the stakeholder as these function largely dependent on the finding of the market research (Yang et al, 2011).
  2. Motivating employees: – stakeholders are also employees who are very significant part of any business because they are the one who conduct any function and utilises other resources as well (De Vries, 2011). Analysing the role and function of employees is extremely important as it helps in understanding the mind-set of the employees (Yang et al, 2011). For effective result it is very important that the employees working for the company are extremely satisfied and happy. The company should everything to make employees happy and to reduce the rate of turnover and also to avoid poor working conditions (De Vries, 2011).
  3. Corporate citizenship: – every organisation works in a society and it is essential that while working in the society the management keep in mind the betterment of the community in which they are functioning (De Vries, 2011). Working with integration and extreme honesty is very important to succeed in a business (Yang et al, 2011). It is also important to maintain a good image in the mind of the people and for this a company has to work for the betterment of the people and deals with the society issues sensitively (De Vries, 2011).
  4. Formal partnership: – the company is made of various functions which require support system from various other companies or suppliers. Suppliers are extremely important as they contribute in making the final product which goes in front of customer (Yang et al, 2011). For the wide acceptance of the product, it is very important to understand that the every function big or small is crucial and important for the company (De Vries, 2011).Order Now

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