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EasyJet Pan-European Airline Company - PEST Analysis, the Value Chain Analysis - Research Paper Example

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The paper "EasyJet Pan-European Airline Company - PEST Analysis, the Value Chain Analysis " discusses that some sections of the value chain are weak resulting in reduced performances, such as procurement department needs to be looked into since most of the fleets’ parts are imported…
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EasyJet Pan-European Airline Company - PEST Analysis, the Value Chain Analysis
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Download file to see previous pages PEST analysis of the organisation is carried out to establish the macro-environmental impact on the firm. EasyJet operates in more than 30 countries that have do not have trade restrictions. This increases revenue since the firm can cover more areas. Due to the global terror threat, Germany, the United Kingdom, France, Israel, and Spain among other countries have put restrictions to ensure passenger safety. This has reduced travels to some extent. Governments have also put baggage restrictions for airlines along with passengers (Taneja, 2012, p.56; easyJet, 2013). The firm complies with various tax policies in its areas of operation. Most of the tax regulations are favourable to the firm, thus impacting positively on the flight operations. For example, the corporate tax policy in Europe is business-friendly. This has also enabled the process of optimisation in service delivery to meet the customer needs and requirements regardless of existing precedents and territories on implementing the system (Jones, 2012, p.34).
The reduction of fuel costs has made the firm increase its revenue due to reduced operational costs, thus reducing the cost of capital for the firm (easy Jet, 2014). The reduction in fuel costs has also increased competition in the aviation industry as various airlines have reduced the ticket prices, thus making more customers use service and also leading to price wars (Katie, 2013, p.123). Besides, globalisation is projected to boost air traffic in the long run. More people are projected to travel due to increased interconnection among people across the globe. In the same way, as Europe becomes integrated; the introduction of the single currency is expected to bring more business to easyJet (easyJet, 2014). The Euro is used in over 19 nations among the member states of the European Union. The financial report's evidence that the firm is improving economically. At the moment, the pound is against the euro with roughly one pound equals to 1.40 Euros. This may encourage the U.K travels to mainland Europe (Adrian Haberberg, 2013, p. 689; easyJet, 2013). ...Download file to see next pagesRead More
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