Business organizations operate solely with an intention of satisfying customers through products and services they offer while aiming to make profits in the process. Their efforts are geared towards meeting market demands while utilizing possible openings to maximize profits. There are many organizations involved in satisfying market demand in the service industry with one of it being Easyjet Airline Company that is based in UK (Meyer 2007, p.209).
Company background of Easyjet Airline
Easyjet Airline Company was established in the year nineteen ninety-five by Sir Stelios and it started operating as a paper airline where it had legal contracts with one British airline for its flight and maintenance. It started with its Boeing 737s, which was the model airline for the U.S.’s low cost Southwest Airline. It found the provision of airline pilots from many companies including the Monarch Airline. It started at Luton Airport in London that was a low cost airport. The same airport acts as its capital in the out scats of the busy city of London. This was part of its initial strategy of using airports out of town or secondary airports as a way of reducing costs (Rainbird 2004, p.134).
The company started its first links between London, Edinburgh and Glasgow in the same year it was established. After majorly establishing itself in Europe and finding its major competitors to be KLM and the British Airlines, it soon ventured its business into short-haul routes. The airline company operates on more than five hundred routes where it handles both local and international scheduled services. The routes are majorly in Europe, North Africa and some Asian airports especially the western part of the Asian market. The airline operates in the transport sector where it carries passengers to different destinations and for different purposes. The company specializes in routes for holidays and vacation. On the contrary, the airlines’ legal status concerning the awarding of contracts bases its employment solely on British terms and conditions. People initially were employed to work fully in Britain and thereafter seconded to other parts of Europe. Concerning the key financial data and its availability, Easyjet Airline has stood out differently. It provides relevant information concerning audits and financial data, the information provided is always clear, readable and transparent (Harvey 2007, p.135).
The Organization Structure adopted by Easyjet Company
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. Here, the company’s departments were made depending on their functions. This means that all information technology technicians work together while maintenance technicians work together as a department. Every department is therefore active to the required limit as only people with same functional capabilities are grouped together. In addition, the categorization of departments by function has helped the organization capitalize on the capabilities of the ICT department to an extent of having all its office work and duties carried out online or using ICT formalities. The company has largely increased its performance and maximized profits while satisfying customers to required standards (Thompson 2010, p.120).
The functional structure has made it easy for the company to adopt e-marketing that has led to increased profits over a few years. Good communication is witnessed among the departments as departmental heads report directly to the chief executive officer with clear-cut chain of command. This is because the company has one superior office, which is the office of the chief executive officer who is the final person to be sought for in times of crisis. This clear-cut line of authority has ensured that there is solidarity among employees and the management as a whole (Belobaba 2009, p.102).
The Approach to Management by the Easyjet Airline Company
The management approach adopted by the chief executive officer of Easyjet is that of partly autocratic and most of the time being democratic since the decisions are made involving all members in each department (Warnaby & Woodruffe 1995, p.261). From departments down to individuals, once orders are issued, they are to be followed to the latter in every department. The autocratic leadership has been seen in practice since the adoption of wearing orange t-shirts and simple jeans (Belobaba 2009, p.75). Once the orders were issued, employees were expected to follow them to the last command. Therefore, not all employees were allowed to put on official attires except the chief executive officer. On the other hand, employees were given freedom to exercise their power by being responsible for their daily duties (Thompson 2010, p.62).
This provision was through the adoption of the democratic kind of leadership by the chief executive officer of the company. Here, important decisions concerning daily activities and working of employees were made while employees participated in the program. This made employees to feel part of the company’s decisions process and this propelled employees to work responsibly. This important factor enabled the company to move on well with its slogans and key strategies of good customer care. The good customer care program or strategy was successful as every worker got involved and was responsible for ensuring the customers got the good customer care without any other compromising issue (Doole 2008, p.92).
The competitors had established themselves well in the marketplace and competing with them seemed almost impossible. However, the management soon decided to change its plans and adopt new ones. These new plans involved the use of secondary airports and short-haul routes. This change put the airline in a good spot to handle the competition well. Another thing is the use of paperless offices, the change was adopted very well and all its employees got along with it without any problem (Yip 2004, p.20).
The high use of IT technology has been fully accepted and embraced in a way that costs have ultimately been cut over the years the technology has been in use. Another thing is the change that is adopted in selling of the tickets. The idea of using the IT technology did not stop at operations in the office only but it has got along way down to the selling of tickets. This great idea change has propelled the company to higher levels as most of its customers use the airlines’ website to inquire any information including the seat reservation plan. The company sells almost all of its tickets online and through this plan, the airline has made tremendous profits (Harvey 2007, p.142).
Easyjet Airline Company Marketing Strategy
To begin with, Easyjet airline has put in place a marketing strategy that will help it counter the competition both international and locally. As part of the marketing strategy, Easyjet airline has adopted a more comprehensive marketing strategy. The airline began by adopting the use of secondary airports, the first of this kind being Luton airport, which also serves as its headquarter (Reynolds & Holwell 2010, p.83). This has gone along way further whereby the airline uses same secondary airports in small cities it operates in. This effect has reduced costs on revenues for paying up airport usage. The company has put in place a complete adoption plan for IT technology as part of its marketing strategy, all office work is done basing on the technology and this goes in line with the complete way of marketing and selling of tickets online (Thompson 2010, p.411).
Furthermore, the company has a plan that ensures only seats that are available on the plane are given the reservation. This reduces the rate of returned tickets and makes customers to be very confident with the company’s ticketing process. The company offers some free seats as a way of improving customer attraction plans. In addition, the company has no charges on changing of booking arrangements by their customers. This effect has made customers rely on the airline for all of their travel needs. Due to its policy, customers need not to worry when they delay or miss their flight due to some personal circumstances that forces them to rearrange their flight plans (Doole 2008, p.95).
The target market for Easyjet airline comprises of both business category and people on vacation. This idea has helped Easyjet cope with the market competition even when the prevailing market condition does not favor the firm. This plan or strategy has made Easyjet lead in the provision of services to all categories of its target market. The favorable marketing strategy of Easyjet has been seen suitable for the business category of passengers. This feeling has led to the growth of business for Easyjet airline. In the end, Easyjet Airline Company’s marketing strategy has resulted into more profits and confidence to its customers who heavily rely on the firm for daily business deals and duties (Elmer 2007, p.79).
The marketing mix is just the combination of marketing activities that Easyjet has engaged in to meet the demands and needs of the market it targets. The seven Ps of the marketing mix for Easyjet Airline Company comprise more or less the normal marketing mix. To begin with, Easyjet airline offers promotions through free seats that act as its way of pulling customers together on its side. This move also seems manageable in terms of costs incurred while doing this. This is because the advertising or plans to carry out the promotion are handled within the company’s capabilities (McDonald 2006, p.211).
Secondly, Easyjet airline uses its plans and strategies well when it employees its low cost strategy. Here, it all begins when the airline uses low cost airports that enable them to offer reservation at minimal cost that even those people who did not intend to board a plane van begin doing so. The low costs offered by Easyjet Airline Company, has worked well for both the company itself and majority of its customers who are the business people. Furthermore, it is this low costs that have made Easyjet airline company’s target market seem more promising and flourishing even when all other airlines are experiencing low seasons. Concerning the place as part of Easyjet Airline Company’s marketing mix, the airline has chosen secondary airports as part of its plans to reduce costs and maximize profits in the midst of competition. This idea has helped Easyjet airline to get more revenue that enables it to focus on other plans and strategies including customer promotion and more importantly employees’ benefits (Ghamdi 2005, p.381).
The other thing to note is the provision of customer service by the Easyjet Airline customer care staffs. Here through the creation of the website that has seen the diversion of booking services to e-booking operations that has helped a lot. Only pressing needs or enquiries are pushed to the customer care’s desk that are very ready and always seeking to satisfy the needs of customers in simple or easy terms as per the company’s slogan (Elmers 2007, p.56). The customer care department is active throughout to ensure all customers receive all their demands on time. All complains are looked into keenly with the interest of the customers put in front line. The process of handling customer needs and reservations is simplified with the use of e-commerce that makes it possible for the company to sell over ninety percent of its tickets online. Finally, the physical layout of the company is of great importance. This achievement is with the use of modern day airlines that are more convenient and reliable (Belobaba 2009, p.115).
How Easyjet Airline Company approaches Human Resource Management in recruitment, Staff Reward and Training and Development
New staffs are recruited after advertisements of vacancies have been made on the official website and other advertising channels. This is followed by interview arrangements where successful candidates or applicants are informed on the dates of the interview. The airline has over the years been involved in a number of ways of ensuring successful recruitment is achieved (Collier 2008, p.101). Through this plans and strategies, the company has introduced an online ability testing system and benchmarking that has enabled it to handle high volumes of recruitments, which ensures that all the applicants are given equal chances and fare selection. The idea also has enabled the company to concentrate on other issues concerning the recruitment processes. The human resources management department has allowed all online applications and where successful candidates are enrolled on the training program that is aimed at helping successful candidates adapt fast to working at Easyjet Airline Company (Doole 2008, p.99).
The training process is normally sponsored by Easyjet airline and works for the advantage of both the trainees and the company at large as the key beneficiary. Employees are rewarded basing on their performance, this including hard working, teamwork and proper or good communication. The individuals who show these characteristics are rewarded as a way of motivating them. Among the motivation plans, Easyjet offers various prizes for its outstanding employees ranging from free tickets for air travels to promotions at work. On development of employees, the management at Easyjet airline has given out provisions for ensuring that employees further their training and increase their skills and capabilities throughout their working time or periods (Harvey 2007, p.143).
Easyjet Airline Company Supply Chain Management
Easyjet airline supplies its services or products through e marketing where only seat reservation details are emailed to the potential customers and no other processes are done. This increases the company’s competence as no more time and resources are wasted on processing documents. This issue increases the time and speed of handling customers. The target market is reached through the company’s official website and other forms of media available. It supplies its products using its modern day airbuses and the Boeing jet fleets (Lawton 2008, p.23). This provides the comfort ability that is required by most of its customers across the board. The channel advancement and improvement is easily achieved as all the businesses of Easyjet are conducted basing on IT technology, which is well embraced at Easyjet Airline Company for many successful years. Easyjet airline is on the verge of technology whereby all its activities are handled online or employing the IT system. The airline however relies mostly on low traffic airports to handle its freights within the required time limit while meeting customer needs and demands. The low cost airports are usually operated at low costs. Most of Easyjet operations and business embraces technology in all categories (Thompson 2010, p.78).
Summary and Conclusion
From the discussion, it is quite evident that Easyjet Airline Company has been the pioneer aircraft company to embrace technology in all aspects. This starts form all office work that depends on the IT technology to the e marketing that has made the company to successfully make almost all its sells online after the launch of its official website. To this end, the airline conducts its recruitments online and this has reduced the time needed to handle the applications and increased the number or volume of applications handled by the company at any given time. The company embraces a good leadership style that is supported by the functional organizational strategy. The company has a good marketing strategy that utilizes the seven Ps as a way of strengthening its moves to success. The supply chain of its services is enhanced through the intensive use of the IT technology (Belobaba 2009, p.119).
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