Easy Jet Airlines - Essay Example

Easy Jet Airlines Introduction to Easy Jet Airlines Easy Jet airlines was launched in November 1995 and became the Europe’s leading low cost airlines by adopting an efficiency-driven operational model, creating brand awareness and maintaining high level of customer satisfaction. Stelios, founder and CEO of easyJet Airlines, was known for Commitment; fundamental coaching skills, ability to delegate tasks, Effective communication: influence and negotiation, Unanimous decision that the individual is a leader (projected by followers), Visionary and commences follower loyalty in accepting and achieving vision, Exceptional decision making and problem solving skills (including correct analysis, comparison of alternatives, and selecting best alternative), Value driven; possesses qualities of honesty and integrity, Takes initiative and plans accordingly (includes planning, organizational, and time and conflict management skills), Holds accountability for actions, Knowledge in given field, Observant and reacts to employee/customer needs, Effectively assumes responsibility and rewards/punishes accordingly, Promotes team-building and relationship building. Problem Definition: Stelios, founder and CEO of easyJet Airlines, want to offer low cost airlines to its customer & to become leader in airline industries. He believed that in order to be successful, it was important to be first to market and to saturate the geographic market. The main issue with the easyJet is that due to monopoly of European Airline Industry, it is very difficult to become the global leader in Airline Industry. Justification for Problem Definition Due to monopoly of European airlines, easyJet airlines are not able to enter in to the European countries. For that Stelios had done a lot of efforts to attract passengers towards easyJet. He offered low cost tickets, easy ticketing procedure through internet or phone call, and also he purchase some front seat tickets of an European airlines and send his employee in a uniform that is advertising for Easy Jet. It means some passengers traveling in an European airlines are advertising for Easyjet Airlines. SWOT ANALYSIS The SWOT Analysis below provides an overview of EasyJet positioning in its’ industry. STRENGTHS WEAKNESSES One of the leading airways in the world Low Cost Air line, offering lower air fare Effective turnaround in leadership, management, productivity and profitability; “restructuring of organization” Major Focus on Customer Satisfaction Offering free services to attract customers Air planes flying 11.5 Per Day Team Work : Employees of Easy jet are very motivated and they work in a team. New Industry started in 1995 No one was aware of Easy Jet High competition Customer satisfaction Employee Motivation Easyjet offers no imbursement for missed flights Time management of flights. Outsourced activities are not up to the mark. OPPORTUNITY THREATS Easyjet promoted it self in a very strong methods by using all possible ways for communication. Offer to employee to take shares of the company Easy jet is having good back ground in financial position. Increase communication with the contractors for outsourcing different activities Reward system related to performance, functionality and accountability European Major Carriers European monopoly Competition in cost Competition in service Corporate culture Fear and uncertainty; job insecurity; possibility of resulting in low employee morale, productivity, and loyalty Financial losses: need to further cut finances affecting employee morale & commitment Alternative Courses of Action: To succeed successfully in the airline industry, a company must be led by a visionary leader with good decision making skills. The leader must be in-line with the organizational culture, promoting a favorable internal environment. In order to become the global leader, Stelios, founder & CEO of jet Airlines tries his hand in other business in 1999. Among his pet projects was the creation of a cyber café business called easyEverything café. easyEverything will provide internet at lower cost (Less than a phone call in London). Stelios also considered entering the rental car business and starting up an internet based bank. Stelios was also known as risk taking CEO. Selection decision Criteria Leader Ship Criteria Easy Jet Airlines EasyEverything Cyber Cafe Rental Car Business Internet based Banking Resource Availability All the Resources available for easyJet Airlines were adequate & easily controlled Resources for EasyEverything Cyber café are need to be found and to arrange Resources for Rental car business are available but can not be controlled Resources & infrastructures need to be re align and control on the resource is quit difficult Service capability EasyJet Provides quality service to its customers EasyEverything cyber cafe Provides quality service to its customers Rental Car Business can provide good quality services to customers but control is quite difficult Internet based banking can provide good services but they require the faith of the customers Lower Cost Service Easy Jet Provide lower cost services to customers EasyEverything cyber cafe Provides Low Cost service to its customers Rental Car Business provides optimal cost of the services to the customers Internet based banking provide services at minimum cost Location EasyJet is suffering in deciding the location of its services due to regulation of European Airlines EasyEverything cyber cafe Can easily defined is service location in European country Rental Car Business Can easily defined is service location in European country Internet based Banking Can easily defined is service location in European country Use of latest Techniques Easy Jet is using the latest technology in airlines Used of latest technology and good speed of internet Use of latest model & new car Providing various feature in internet banking like Pay Bill online, Shopping through internet banking Customer satisfaction High Customer satisfaction High Customer satisfaction Low Customer Satisfaction Low Customer satisfaction Team Work Easy Jet Shown good team work No Team work in place No Team work in place No team work in place Decision making Strong decision making and dynamic decision making Fast decision making process Low decision making process Decision making is a slow process Evaluate the Alternatives The scorecard is evaluated on a scale of 10. Rating Scale: 0 Poor 5 Medium 10 Superb Leader Ship Criteria Easy Jet Airlines EasyEverything Cyber Cafe Rental Car Business Internet based Banking Resource Availability 10 5 5 5 Service capability 10 10 5 5 Lower Cost Service 5 5 5 10 Location 5 10 10 10 Use of latest Techniques 10 10 10 10 Customer satisfaction 10 10 5 5 Team Work 10 0 0 0 Decision making 10 10 5 5 Total 70 60 45 50 The assessment of different business option & their requirements can define the leadership in a particular business. Conclusions, Recommendations/Decisions: As per the analysis result it is clear that it easyJet Airlines should be only one of the option on which Stelios has to work on. Though Stelios wants to become the global leader he has to first focus on one activity that is easyJet Airlines. Stelios has to work on the strategy on how to spread its airlines in European countries by keeping low fare. Stelios need to more focus on customer satisfaction and customer attraction. He has to understand the customer needs and motivate his team, so that his team should also focus on customer satisfaction. Though quality comes it all the employees are performing their work. Alone Stelios can not produce quality services. Stelios is a quality leader; he knows how to manage the problem coming into the way of his success. Follow Up and Evaluation: Stelios should focus on cost cutting in his airlines by not providing meals to the customer. He also proposed that meals can be offer on nominal rate so that customer should be happy. Stelios need to work on the flight schedule, he should plan for maximum flights a day, so that maximum passengers can move from one place to another and it also affects publicity & advertisement of the airline. He should take customer feedback from time to time and find out the problems faced by the customer. He should analyze the problem and after evaluation he should immediately take an action for satisfying customer need. So instead to planning for other business Stelios should focus on the airline business. He should have control on the subcontractors. Reference: 1) IMD_EasyJet_part2.pdf 2) IMD_EasyJet_part1.pdf Read More