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These show that the business has achieved a sustained increase of growth, both in terms of revenue increases, from 931.8 million in 2003 to 1,797.2 million in 2008. Gehani, R. R. (2016). A Model to align the organizational culture to Lean. The strategy has four strategic priorities that will build on easyJet's structural advantages in the European aviation market, helping easyJet move closer towards its destination of being Europe's most loved airline, winning for customers, shareholders and . Both these dimensions emphasize over the ethics and integrity, and inclination towards one dimension dimension. In this section, two of these methods will be used to help with understanding of easyJets strategic position. between the task and employee orientation is attained by: The overall analysis suggests that these individual cultural dimensions also interact with each other. Although the programme was a good marketing move for the company it did also allow for poor areas to be noticed by the watching potential customers. Apple. To achieve this we will develop our people and establish lasting relationships with our suppliers. EasyJet plc (styled as easyJet) is a British multinational low-cost airline group headquartered at London Luton Airport. An organization with a clear employee orientation reflects the managements philosophy of putting the When easyJet was launched with a party in London's Planet Hollywood two years earlier, no one had predicted the company's rapid growth. response to the changing customer needs, the top management openly communicates the importance of adopting an The easyJet management team includes Johan Lundgren (Chief Executive Officer), Eric Mai (Head of Digital Product), and John Leighton (Customer Service Director) . We are a low-cost European point-to-point airline. The guide includes several organizational structure diagrams (or "org charts"), templates for you . Organizational culture and organizational development: A competing We will write a custom Essay on EasyJet Company: Strategic Management and Business Policy specifically for you. whittier union high school district superintendent. The strong social control Transatlantic projects between STAR and Skyteam alliance members give the way for a reduction of internal rivalry as some companies team up to work together. President, Emirates Airline. identify these dimensions. Best Essays. Journal of The Easyjet Plc management truly understands the value of its human capital, and hence prioritizes the employee The s172 statements for easyJet plc and the subsidiaries that meet the relevant criteria are located in the Strategic Report section of each companys Annual Report and Accounts, available below: easyJet Airline Company Limited Registered in England with Registered number 3034606; subsidiary of easyJet plc Registered in England with registered number 3959649 Registered Office: Hangar 89, London Luton Airport, Luton, Bedfordshire LU2 9PF, Additional ESG information - Financial Year 2021, Directors' interests and substantial interests, Terms of reference for the Finance Committee, Terms of reference for the Remuneration Committee, Terms of reference for the Audit Committee, Terms of reference for the Nominations Committee, Terms of reference for the Safety & Operational Readiness Committee, Terms and conditions of appointment / reappointment of the non-executive directors, Policies on Non Audit Services and the Hiring of Former External Auditor Employees, Division of responsibilities of the Chairman and CEO, s430(2B) Statement - Julie Southern and Andreas Bierwirth. Organizational hierarchy. EasyJet could be a connection for Virgin over the European air zone which could save Virgin money and help easyJet gain more customers. Stephen joined the Board of easyJet as a Non-Executive Director and Chair Designate on 1 September 2021, and became Chair on 1 December 2021. . Within the near future it hopes to capture 10% (BBC, 2010). The cultural approach to the management of the international human resource: An analysis The authority to order is also low. Consequently, they adopt a more pragmatic rather ethical attitude. Prior to assuming this position Johan was the Managing Director for the Northern Region at TUI Travel PLC from 2007 until 2011. He has over 20 years experience in operations management built in a variety of roles across Europe. EasyJet is a British low-cost airline that was founded in 1995 by Greek businessman Stelios Haji-Ioannou. David was appointed Chief Operating Officer in November 2022, having served as interim COO from July 2022. 1.2. easyJet is an airline operating under the low-cost carrier model. Power Structure: As previously stated at (Above figure), Carolyn McCall has ultimate power in easyJet but is supported by an executive team who are influenced by other areas of the company. On the other hand, the companies with a strict work discipline tend to have strict hierarchies with high themselves with their profession or work content. <br><br>Led projects and programmes . He took on his first position as Managing Director in 1996 for a tour operator owned by SAS Airlines in Sweden before moving to Canada as President for Sunquest Vacations, Canadas second largest tour operator. In doing so, the author also hopes to . Queues could be created at checkpoints, especially if some fail. They do not desire to behave alike others and have an external In 1993, Johan pursued further studies at the Stockholm School of Economics and in 1996 he completed the Programme for Executive Development IMD, in Lausanne, Switzerland. Emerging technology that has been discussed involves identification (ID) cards and how much of an impact this may have on easyJets current strategy and how it will affect the responsibilities of the companys managers. To have more profit, Easyjet can increase the marketing and BA can reduce the cost of sales, like overheads. In A functional structure groups employees into different departments by work specialization. The equilibrium It cannot be solely left to a single company, it will take the participation of at least two who are willing to collaborate and create a solution to problems seen within the airport. 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. oriented culture emphasizes over the results and focus on what can be achieved. Garry has worked extensively with overseas governments in creating sustainable tourism policies to promote major economic growth and positive social change while minimising negative environmental impact. In an organization with highly internally driven organizational culture, the employees believe Organizational Structure of Businesses An organizational structure is the formal system of relationships that provides guidelines on how tasks will be conducted who makes important decisions and the reporting hierarchy.Organizational structures of businesses coordinate control and help motivate employees toward the organization's goals. Lime is a telecommunications company; their head office in Montego Bay is located at 23 Church Street Montego Bay St.James. 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. We conduct our business in accordance with best practice in corporate governance, and regularly review our policies and activities to ensure we maintain the highest standards. The authority to order is also low. dimension denotes the employees identification with either the boss/work unit or their profession. The relationship between hofstede Accordingly, we never encourage or endorse its direct submission, Buyers: Due to easyJet only operating short-haul flights then its customers are more specific. The formal organisational aspects include the structure, policies, and even standards that are deployed by an organisation to execute its business. All will provide higher profitability and higher returns for shareholders. On the opposite side, in companies with a high degree professional culture, the employees tend to identify guidance, and learning purposes. (e.g. offered the consistent results. Sir Tim joined our airline's founding team in 1985 as Head of Airline Planning, and became President in 2003. Low Fares Made Simple. Customers will always be happy when they are treated in the proper manner and that will only happen with a sufficient team of staff within the company. The impact of organizational culture on organizational effectiveness: Implication of Hofstede A row broke out between easyGroup and the board of easyJet which concluded in October 2010 following a High Court case. The Company operates domestic and international scheduled services. EasyJet will have plans in place for when flights do not run to schedule, for a period of time. By focusing on the mean orientation, Easyjet Plc ensures that the employees must adopt the ethical and Thomas joined easyJet in 2008 and has served as easyJets Group Markets Director since 2018. All organizations have a management structure that determines relationships between functions and positions and subdivides and delegates roles responsibilities and authority to carry out defined tasks. 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. culture according to Hofstede model on information technology acceptance in hospital environment. EasyJet might have to pay a huge initial cost to have these in place and have them maintained but could possibly attract even more people to fly. From 2003 until 2007, Johan was the Managing Director and CEO of TUI Nordic. In companies with a high degree local culture, the employees tend to identify themselves with their 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. (2011). Health Management, 17(1), 42-50. easyJet Airline Company Limited Registered in England with Registered number 3034606; subsidiary of easyJet plc Registered in England with registered number 3959649 Registered Office: Hangar 89, London Luton Airport, Luton, Bedfordshire LU2 9PF, Additional ESG information - Financial Year 2021, Directors' interests and substantial interests. It is owned by Phil Bently. The Result. And we're restless in our pursuit of creating better experiences for our customers, our colleagues, and each other. A results-driven self-starter with data analytics certification as well as supervisory experience in multidisciplinary and multicultural startup environments. The following report evaluates the business model, dynamics and structure of easyJet.com. Although this is a reasonably big gap, easyJet only scored 57% and this is low when compared to other European no-frill airlines Germanwings and Wizz Air who scored 79% and 69% respectively. climate. As revealed before, the formal management . EasyJet finds itself in a position that it is at the top end of the market it competes in and that is down to its innovative ideas, core competencies, values and a clear vision. organizational culture. Many passengers like to carry luggage onto the flight with them as a reasonable weight allowance is set by easyJet. He's been instrumental in the transformation of Emirates into the global giant it is today. We do believe in giving our team a human . This model may share only a loose relevancy to the changed business world. The largest mosque in the country, it is the key place of worship for daily prayers.A smaller replica of the grand mosque exists in the Indonesian city of Surakarta. revealed that easyJet beat its main rival, Ryanair, by over 10% for customer satisfaction. Over the years there have been major changes in management at easyJet, leading to the companys strategy being changed dramatically, so much so, that the founder has distanced himself from the company more in recent years. The Board has endorsed a set of principles, including an ethics policy, which establishes the framework for how the business operates. leadership. Another weakness for easyJet is it is concerned more with quick turnarounds at airports than making sure passengers make flights. In a functional structure, organizations are divided into specialized groups with specific roles and duties. organizations place high importance to the ethics and integrity, and they do not compromise over these values to Figure 2 clearly The deciding agents on TAP organizational structure are the depicts those entities and their geo-location. The role of organizational Organisational structure of Easy Jet: The company has a flat organizational structure. His long career in aviation has taken him around the world including Australia and the Middle East. It wants to give the customer good value; the company realises the needs of customers. Sources (Corporate.easyjet.com, 2015) Since the structure of the organization has a flat structure, the span of control is limited within a few hands. environment. Most recently he was appointed Managing Director of easyJet Europe, establishing the company's Austrian AOC - a key plank of its Brexit migration plan and managed the transition of 100 aircraft to . Assigning the challenging goals and offering rewards to maximize the task performance, Providing employees with necessary coaching, mentoring and guidance to accomplished the assigned goals. Organisation Structure. The organisation has a bureaucratic organisational structure. The organizational culture can also be classified as internally or externally driven. Previous roles in the airline include Head of Change Management and Customer Insight, with a background in customer insight working with a range of brands from Jaguar Land Rover to Mars, Unilever and Vodafone. A lot of the process for checking in will become automated and less human controlled. It operates domestic and international scheduled services on 927 routes in more than 34 countries via its affiliate airlines EasyJet UK, EasyJet Switzerland, and EasyJet Europe. Our model solutions and expert notes are purely intended for inspiration, for only $11.00 $9.35/page. In spite of the threats and risks associated with airline travel, this company should strive to accomplish its set objectives which will ensure that it thrives even amidst hostile environments (Ballesteros 2007). EasyJet.com is one of the top travel web sites on the Internet. This clearly indicates that no matter what changes occur or what strategy is being used, the company always sees itself with the same outcome. Economic profit is a key margin for the company but this is hopefully gained after gaining the trust from customers. Aug. 2022-Heute8 Monate. values approach. The Easyjet Plcs organizational culture is more internally than externally driven. 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. organizational purpose. Posted by Harry on A highly mean oriented organizational culture emphasizes over how the work is carried out, while, the goal Easyjet structure. As companies go bust or become weaker, easyJet and Ryanair gain their share of the market. It is the most common type of organizational structure. on WhatsApp for any queries. its highly diversified workforce. employees in such organization believe that meeting the customers demands is more important than business As easyJet provide a good value for money product, customers are unlikely to be annoyed when they have to carry out processes themselves. The executive team will consider opinions from other parts of the company before making key decisions. Luton, United Kingdom - Interim transformation role to increase performance, capabilities & reputation of TA function. 1. For this reason there is no risk from any emerging competitors for the foreseeable future (easyJet, 2009). Study for free with our range of university lectures! She earned her BA (Hons) in English Literature from the University of Bristol and her Masters Degree from the University of London. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. The company has a flat organizational structure, with decisions being made at the operational level rather than being centralized at the top. Organisational structure of Easy Jet: The company has a flat organizational structure. Furthermore, when looking at the activity capability, both companies should use their resource more efficiently and shorten their debt collection period. We believe in what we do. Some examples of the artefacts are- open door policy, authority from top to the bottom, and consequently, the organization will attain a new equilibrium between strict People in such organizations are generally exclusive and diversity is discouraged as only Prior to this she was Director of Scheduling for the airline, implementing systems and process improvements. Let's look into the seven types of organizational structure and pick the one that will strengthen your company. It is Employees may be grouped by their role or function, geography or . decision making authority, and directly controls the employees work behavior. The culture International Journal of Information Management, 21(3), 245-261. In terms of organizational structure, EasyJet operates as a decentralized company, with each of its subsidiaries operating as a standalone business. The company's mission statement is to provide customers with a safe, good value point-to-point air services. 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. organisational change, outplacement, assessment, projects, contact . Short flights, such as London to Manchester, are being challenged by rail companies as the travel times are decreasing and the frequency of the trains on these routes increase (easyJet, 2009). For its ambitious expansion plans - 95,000 available rooms operating in the UK and Germany by the end of 2020 - the hospitality brand Premier Inn has a solid foundation for growth with Personio. To better reproduce the operational control challenges faced by airline companies it uses real pre- and postoperational data containing scheduled flights, delay codes and aircraft, and crew . The internally driven organizational culture has enabled the 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. This can only be achieved by effort put in from easyJet staff which means that easyJet must keep its staff updated in how it will go forward as a company. Ella is a skilled Group HR Director with strong experience in the UK and internationally in lean and digital transformation, large-scale change as well as talent development and reward. the entities involved on airline operations. The artefacts are the tangible and There is also the possibility of human error within the check-in process. The level of competitiveness arises from the differentiation the company has over its competitors whether that be down to staff or the process methods used within the company. EasyJet have very little control over their fuel costs but can actually do more to minimise their maximum usage by refining the process at airports and in flights (easyJet, 2009). Use this vibrant simple organisation chart template to quickly identify your company's hierarchy of reporting relationships and categories of team members. The primary activities involve the inbound logistics, operations, outbound logistics, market and sales, and service. We will write a custom Essay on EasyJet Company's Strategic Analysis and Marketing specifically for you. It means the management withholds the EasyJet signs contracts ahead of time for aircraft replacement parts such as wheels and brakes, this contributes to predict its future expenses and minimize impact of inflation. important role in formulation of core values and visible behaviors. Available at: Easy Jet operates on 125 routes from 39 European airports. Tabibi, S. J., Nasiripour, A. Taherimashhadi, M., & Ribas, I. 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. Whilst at the same time easyJet is saving itself money by refining its workload and passing it onto the customer, this can be known as Lean process. Altaf, A. reproduction, or any misuse in any manner. Employees are not punished for sharing new ideas and taking risks. It is also not uncommon to find a passenger has forgotten their passport, only realising when they have reached the check-in desk. Sociocultural: EasyJet were the first airline company to start using the internet to advertise the company and allowed customers to purchase tickets online. Rivalry: EasyJets major competitor is Ryanair as both these companies are Europes leading budget airlines in the short-haul sector while the long-haul sector is mainly played amongst three major companies; Air France-KLM, Lufthansa and British Airways. this way, employees are encouraged to only promote the healthy competition. serious attitude. This system is hosted across two data centers in two distinct locations in order to offer higher resilience. the open side. 4. (2017). This shift will transfer some A weakness in easyJet is that it is a limited market that it operates within. Even if an organization is filled with great people, it can fall apart (or fail to operate efficiently) if the structure of the organization is weak. The new CEO is expected to come up with de-layering initiatives into the EasyJet organisational structure towards practices of cost cutting. They understand that a happy customer could be a repeated customer. When flights are cancelled for a prolonged period of time, it is hard for the company to get back to normality. This could take time to adjust but it would bring a solution to the problem of queues at the start of trips at airports, which involves the airports and the airlines, easyJet for example, working together. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! cultural model as organizational effectiveness model. By focusing on the goal orientation, Easyjet Plc encourages its employees to put their best efforts for If you have BIG dreams to score BIG, think out Functional structure. EasyJet has 50 executives. Looking for a flexible role? In this article, the organizational with the organization. The company has adopted a good functional organizational structure in which all strategies are set well and geared towards excellence concerning profits and customer satisfaction. The position on the mean and goal orientation continuum. In 2001 he became Managing Director of Mytravel Sweden before taking on the position at TUI Nordic. to contemporary era in which the human capital has gained the strategic importance. EasyJet plc operation structure and strategies are so well developed that no aspect of how the organisation works creates difficulty in understanding. Most recent surveys suggest that around 76 % students try professional Do you have a 2:1 degree or higher? 3.1 Artefacts of Easyjet Plc's organizational culture. The case of Google is explored to understand how companies use organizational theories to support employee performance and project management. Denison, D. R., & Spreitzer, G. M. (1991). These core values are accountability, diversity, quality, collaboration, passion, integrity and Moreover, the extremely . Stuart joined easyJet in November 2020, having spent five years as Director and Chief Information Officer at Heathrow Airport Ltd. welfare. visible aspects of the Easyjet Plcs organizational culture. 3532 Words; 15 Pages; Best Essays. 1. Global Journal of Business Research, 7(4), 61-70. The conclusion that is stated is that easyJet is at the top end of its market. Sophie joined easyJet in 2007 and prior to joining the AMB held the role of Customer Director. We'll also highlight the benefits and drawbacks of different structure types so you can evaluate which is the best option for your company, division, or team. Mar-19-2020. ethics. Structure 1.2.1. In the competitive environment, EasyJet has a great advantage of their price structure. It has now marketed itself to business passengers as easyJet flies to major cities throughout Europe and are frequent. Organizations with strong work easyJet is a low-cost airline to help customers manage airline trips, operating on routes across many countries. This means that all information . These activities added together will help create value but without the support activities of infrastructure, IT development and human resources; this would not be possible. He is a graduate of the Royal Military Academy Sandhurst. The chairman of Travel Counsellors, David Speakman states, Check-in is causing delays and airlines should address that. The Essay Writing ExpertsUK Essay Experts. Before joining TUI, Kenton was the Finance Director of Airtours Holidays and held a number of commercial finance roles at Adidas, prior to which he qualified as a chartered accountant with PwC. EasyJet plc is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. The Org Facebook Twitter The analysis of the Easyjet Plcs organizational culture shows that the company has a clear inclination towards A positive note for easyJet is that customers have not caused a fuss about online booking and the idea that people are willing to limit their baggage now for flights means they can take it onboard the aircraft thus less staff and time needed for easyJet to move luggage around the airports. EASYJET'S $500 MILLION GAMBLE the span of two years. integrate ways for accomplishing the assigned goals because it considers the integrity as its core value. The Easyjet Plc has successfully attained the right balance between the mean and goal orientation, as it The organizational culture can also be categorized into local versus the professional work culture. Watch this video if you want to understand organisational structures. The Organization Structure adopted by Easyjet Company. Easyjet Plc has a flatter organizational hierarchy that is supported by learning and progressive organizations. Both these factors are considered important by emphasis is put on maximizing the task performance, even if it comes at the cost of the broader employee Political: The government has taken a great interest in air travel over recent years as it points to this sector for being a main reason of global warming. The Easyjet Plcs core values are the shared goals, principles and The main areas easyJet target is the efficiency it has over other airlines such as British Airways, the ideal locations it has unlike Ryanair and the simple fact it has low cost flights and flies to where customers want to go. If you need help with something similar, From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. Sophie is easyJets business lead on Diversity & Inclusion, a qualified MindGym coach, business mentor, and a founding member of easyJets Womens Network. organizational culture plays an important role in gaining the competitive advantage. The Board has endorsed a set of principles, including an ethics policy, which establishes the framework for how the business operates. Management exerts the strong control and employees work in a disciplined work environment with The vision The mission statement of easyJet will be looked at in order to fully understand what the internal environment analysis means to the company. It operates domestic and international scheduled services on over 1,000 routes in more than 30 countries via its affiliate airlines EasyJet UK, EasyJet Switzerland, and EasyJet Europe. Industries. Discover current team members including executives, board members, and advisors.