EasyJet is offering shareholders 31 new shares for every 47 already held, at a price of 410p. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. 725 Words; 3 Pages . As argued by Sharma & Starik (12) a stake holder is that which is affected by the operation of an organization entirely or can affect the organization directly. [10 marks] b) Explain the positioning of each stakeholder and the strategic implications for EasyJet. Southwest Airlines Table of Content Stakeholder theory. 1. [40], In April 2020, EasyJet became involved in a dispute with its owner and largest shareholder, Stelios Haji-Ioannou. . Total revenue ( million) 2,362.8 1,797.2 31.5%. In 2017, EasyJet Plc flew 80.2 million passengers on flights that carried 86.7 million seats. Easyjet is one of the FTSE250 companies and 3rd largest airlines ranked among 10 IATA listed airlines in terms of passengers carried [Ref.11, 12, FTSE, IATA (2010)]. Customer, Airline Assignment Southwest Airlines. A Market Leader As Europes fourth largest airline car- rying more than 68 million passengers annually, easyJet has been highly suc- cessful in an increasingly competitive European travel market. Johan Lundgren. Collect and evaluate economic factors which might influence EasyJet general business environment. The airline modernised the building and painted it orange. An example of this is when ''Go'' a budget airline owned by British Airways was taken over by EasyJet in 2002. The international standard providing guidance on social responsibility, called ISO 26000, defines a stakeholder as an "individual or group that has an interest in any decision or activity of an organization." Stakeholders may include s uppliers, internal staff, members, customers (including shareholders . First choice brand and increasing customer loyalty. [22][100] Since then, all orders have been from the Airbus A320 family, and the Boeings have been phased out. Originally the company ran its operations absolutely on direct phone sales. Stakeholder analysis [85], EasyJet serves 136 destinations (as of February 2019). Table of Contents external stakeholders are from outside of the company but, Free Porter Five Forces Analysis is a strategic management tool to analyze industry and understand underlying levers of profitability in a given industry. Brand British Airways In terms of cost leadership, easyJet takes the second position after Ryan. [50], Initially, EasyJet's employment strategy was to maintain control with minimal union involvement. This was the first codeshare agreement for EasyJet; it was terminated when Transaero Airlines ceased to operate in October 2015. and Pricing.In competing against legacy carriers, easyJet's main advantage is its price structure, which sees its average fares somewhere around 50% lower than those of the major carriers on short haul routes and 20% to 40% below those of most other lower cost competitors. To produce a set of recommendations in a written document about how McDonalds PLC can reduce its carbon footprint through the management of key stakeholder relationships. Political Factors Trade union Strategic management, Stakeholders The space saved by having smaller galleys allowed for the installation of 156 seats. Easyjet Plc managers can use Porter Five Forces to understand how the five competitive forces influence profitability and develop a strategy for enhancing Easyjet Plc competitive . Good Essays. [16] This came after the company had flown 650 'rescue flights', taking 45,000 people back home. The level of stakeholders depends on the political economic and social environment. This gives a load factor of 92.6%. Since 2012, all passengers are allocated numbered seats before boarding commences, as it was found that this does not slow down boarding times and could earn more revenue than Speedy Boarding. Consequently, easyJet announced a partnership with Airbus on a joint research project into zero-emission hydrogen aircraft. What we do. 's total fleet comprises entirely Airbus aircraft. [60][61] Speaking at the time, EasyJet chief executive Andy Harrison commented that: "We have not developed a new concept. EasyJet shareholders put it on the red list on Thursday morning after the airline announced it had landed itself a post-pandemic war chest, with a plan to raise 1.2bn in a rights issue.This knocked a tenth off its share price on Thursday morning. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. Once Haji-Ioannou saw the results, he changed his mind and an e-commerce website capable of offering real-time online booking went live in April 1998; this was the first such website for a low-cost carrier in Europe. 2.6.2.1 Employee protection laws (discrimination and health and safety) Easyjet Plc. [18] EasyJet initially operated a pair of wet leased Boeing 737-200 aircraft, capable of seating 130 passengers. [18][19], In 1995, EasyJet was established by Stelios, being the first company in what would later become the easyGroup conglomerate. Which stakeholders are critical to the business? [22], On 5 November 2000, EasyJet was floated on the London Stock Exchange. The first "upstream" category includes everyone who must contribute to or approve the activities required to design, build, and bring the product to market. Stake holders are tenet to the development and performance of the organization without which the organization either cease or collapse completely. Strategic Management Essays, Term Papers & Presentations . Memmingen or "Munich West", which is about 1.5 hours west of Munich to be precise). These cookies ensure basic functionalities and security features of the website, anonymously. The two strategic choices offered include 1) expanding into new market segments and 2) modernization of brand image. A shareholder, though, is someone who has invested in a corporation. This was then followed by "[.] by easyJet", with "Europe by easyJet" and "business by easyJet" being the most widely used. Airline, INTRODUCTIONS TABLE CONTENT ii Some examples of key stakeholders are creditors directors employees government (and its agencies) owners (shareholders) suppliers unions and the community from which the business draws its resources. easyJet Plc engages in the provision of passenger airline and carrier services. (Coauthor(s): Premium Strategic management, Stakeholders of marks and spencer and their influence. Offsetting can however only be an interim solution, while the zero-emissions technology that we need is developed to reinvent aviation. Equally, EasyJet strives to maintain the same standard of fundamental human rights in respect of its customers and is committed to the responsibility of the equal treatment of all passengers regardless of their personal characteristics or social status. The facility, located in Essex, around 50km east of the UK capital, announced a pre-tax loss of 21.5m for the year ending February 28, 2022. Shareholders European Countries Collaboration and good relationship making EU politically stable. Thu 28 May 2020 04.59 EDT. Easyjet offers a reliable, on-time travel service with value-added features. Letter to shareholders from the Chairman of easyJet plc. Internal stakeholders are, as the name suggests, stakeholders that exist inside a business. Popular books for Law and Public Services . 2 Brief history of KLM 3 easyJet's Strengths. Stakeholders are individuals (or groups) that can either impact the success and execution or are impacted by a product. The marketing decisions of the industry are to an extent based on political decisions. EasyJet plc is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. Carbon dioxide, organization. The organisation mainly expands through acquisitions 4. It was a shaky start but one that would grow into a stable foundation. The company sells its own tickets directly to the user trough the Internet, Premium Management Identify the key stakeholders of EasyJet and their strategic influence in two steps: a) Map the key stakeholders of EasyJet in terms of their power and interest using an appropriate framework. Easyjet Plc. [22] The specific color that EasyJet uses closely resembles that of the telecommunications corporation Orange and was a subject of dispute between the two companies in 2004 when easyGroup launched a mobile phone subsidiary, easyMobile. To achieve this, the EcoJet was described as using propfan engines, as well as being constructed with extensive use of carbon fibre composite material. 1. EasyJet confirms, "The airline, along with subsidiary airline easyJet Switzerland, now operates over 200 aircrafts, mostly Airbus A319 5 ". Low-cost carrier Harrison claimed that the EcoJet, combined with other improvements in the industry, would enable a 50% reduction in greenhouse gas emissions within eight years. The figures used were not based on emissions produced by an EasyJet aircraft or emissions produced by the airline overall as the advertisement implied, and ASA declared that the airline had broken advertising rules. Lets take a closer look at, Premium Passengers occasionally had to wait longer for reimbursement of their expenses. Free EasyJet Essay Topic Generator. As a result the low-cost airlines (LCA) are flourished. Environmental impacts 9 Its principal activities include airline operations and aircraft trading and leasing. but lacking of traditional service. Its people management strategy has contributed to customer loyalty which is another great strength of easyJet (easyJet, 2022). [18] Despite commercial pressure from the emergent no-frills sector, traditional airlines have been unable to directly adopt similar practices to EasyJet due to vigorous protection of existing employee privileges by unions. [25 marks] Within a year, over 50% of bookings were made using the website; by April 2004, the figure had reportedly jumped to 98%. Southwest Airlines Low-cost carrier Easyjet stakeholders. [80], On 27 August 2020, the airline was sued by a woman over discriminatory concerns. Airline Stelios and his family members are the highest stakeholders in EasyJet and own about 34% of shares, which are calculated worth 6.8bn as of 2015 . Easyjet has benefits from low price just . Previously EasyJet had only operated from Berlin-Schnefeld Airport and Berlin-Tegel Airport, where EasyJet had taken over some of Air Berlin's old services. Easyjet stakeholders. EasyJet focus its value proposition to business travelers around time savings. 2.6.2 Legal factors that influence Easyjet Plc. Its pilot training scheme was the subject of another ITV television series, easyJet: Inside the Cockpit, which premiered in August 2017. Easyjet Plc's mission statement is also realistic, which makes it able to achieve various set goals and targets. [22], EasyJet's aircraft cabins are configured in a single class, high density layout. Economical impacts 6 [104], On 19 November 2019 EasyJet ordered an additional 12 A320neo, taking the total neo orders, including the A321neo, to 159. Low-cost carrier (2020) call for research investigating how specific stakeholders get unvalued during the pandemic. 3 Marketing Mix (7Ps) 4 This cookie is set by GDPR Cookie Consent plugin. [72][73], EasyJet has campaigned for the UK to replace air passenger duty (APD) with a new tax that would vary depending on distance travelled and aircraft type. Easyjet was founded in 1995 by Sir Stelious Haji-Ioannou, it's a private limited company owned by Easy Group and it's also listed on the London Stock Exchange. Henderson, L. Neasham . This problem has been solved! Kyoto Protocol [111] Internet bookings were priced cheaper than booking by telephone to reflect the reduced call centre costs; as a further means of encouraging the use of the website, aircraft were repainted with the web address. To achieve this we will develop our people and establish lasting relationships with our suppliers, Premium 1 Brief history of Easyjet 3 The easyJet Marketing Channels TV Advertising conveys a message that easyJet is the consumers friend and raises brand awareness. Airlines which fail to comply with strict, Premium 3.5 Process 9 3.1.4 Payment period 5 1.1 Introduction. Due to this seating arrangement, to satisfy safety requirements the airline's Airbus A319 aircraft have two pairs of overwing exits, instead of the standard one-pair configuration found on most Airbus A319 aircraft. Corporate Social Responsibility (SCR) Decisions should be made in a way that takes into account all stakeholders' interests. Flexi Fare[119] is a type of ticket that is usually more expensive than the regular fare and comparable to a business ticket with other airlines. easyJet is one of the world's most successful low-cost airlines. access_time21 junio, 2022. person. Stakeholder EasyJet the company is a low cost airline looking to undercut traditional carriers that were already known and established in the industry. During the 2000s, the airline adopted a different approach, deciding to make accommodations for unions. Customer service In two years it was widely regarded as the model low-cost European airline and a strong competitor to ag carriers. The UK alone is a 13bn market and has grown by 6% annually," according to a company spokesperson. Stakeholder analysis, Stakeholder Relationships Thomas Reynaert, Managing Director, Airlines for Europe (A4E) Aviation is a strategically important sector making a vital contribution to Europe's overall economy and employment. for only $11.00 $9.35/page. Britain S0263-2373 (98)00059-0 0263-2373/99 $19.00 0.00 Case Study easyJet's $500 Million Gamble DON SULL London Business School and Commentators Constantinos Markides Walter Kuemmerle Luis Cabral. Air France Global Politics A. Heywood. This report will consist of an analysis of EasyJet's macro and micro marketing environment. Germany [94], EasyJet has a reward miles sharing agreement with Emirates. [15 marks] The cookie is used to store the user consent for the cookies in the category "Performance".