EasyJet‘s principal activity is to offer international air transportation services on a low cost basis. The company is a subsidiary of easyGroup Holdings Ltd, which owns the “easy“ brand and licenses it to the airline and to other companies. The subsidiaries owned by easyGroup IP Ltd include: easyCar, easyHotel, easyCruise, easyMobile and others. EasyJet plc acquised Go Airlines Ltd. on 16 May, 2002 and GB Airways Ltd. on 25 October, 2007 to continue its expansion throughout Europe. (easyJet.co.uk, 2009)
The airline focuses on low cost, financial strengths and on high efficiency. EasyJet plc is present in 27 European and North African countries with 380 different routes, operates on 100 airports all over Europe and carried 51.9 million passengers in 2008. EasyJet plc made a profit of £ 2,3 million in the financial year of 2007/08 and is listed at the London Stock Exchange. (easyJet.co.uk, 2009)
Table of Contents
- Introduction
- Company Profile
- EasyJet's Legal Form and its Impact on the Interaction with Stakeholders
- Legal Form
- Advantages and Disadvantages of a plc
- The Shareholders
- The Memorandum and Articles of Association
- Corporate Personality
- Financial Analysis and Proposing Strategy
- General Analysis
- Profitability and Efficiency
- SWOT Analysis
- Proposed Strategy
- Implementing Strategy
- Budgeting
- The Balanced Scorecard
- Application of the Balanced Scorecard
- Organisational Structures
- Conclusion
Objectives and Key Themes
This assignment aims to deconstruct easyJet plc, analyzing its legal structure, financial performance, and strategic approaches. The analysis will explore the implications of easyJet's legal form as a public limited company (plc) on its interactions with stakeholders and its overall business strategy.
- EasyJet's business model and its competitive advantages.
- The impact of easyJet's legal structure (plc) on its operations and stakeholder relationships.
- Financial performance and profitability analysis of easyJet.
- Strategic planning and implementation within easyJet.
- The role of shareholders and corporate governance in easyJet's success.
Chapter Summaries
Company Profile: This chapter introduces easyJet plc, highlighting its principal activity as a low-cost international air transportation service. It emphasizes the company's financial strength, high efficiency, and significant presence across Europe and North Africa, mentioning its acquisition of Go Airlines and GB Airways to fuel expansion. The chapter also underscores easyJet's connection to easyGroup Holdings Ltd and its position within the broader "easy" brand portfolio. Its success is portrayed through impressive passenger numbers and profitability figures, establishing a foundation for further analysis of the company's structure and strategies.
EasyJet's Legal Form and its Impact on the Interaction with Stakeholders: This section delves into the legal framework governing easyJet as a public limited company (plc). It contrasts the plc structure with other company types, emphasizing the implications of limited liability for shareholders. The advantages and disadvantages of a plc structure are discussed, weighing the benefits of readily available capital against the potential dilution of control. The role of shareholders, the importance of the annual general meeting, and the functions of the Board of Directors are explored. The chapter also examines the memorandum and articles of association, outlining their regulatory importance and content requirements. Finally, the significance of corporate personality and its implications for easyJet's legal actions and responsibilities are detailed.
Keywords
easyJet plc, low-cost airline, public limited company (plc), corporate governance, stakeholder relationships, financial analysis, SWOT analysis, strategic management, budgeting, balanced scorecard, organizational structure, shareholder value, limited liability.
EasyJet plc Analysis: Frequently Asked Questions
What is the purpose of this document?
This document provides a comprehensive preview of an academic analysis of easyJet plc. It includes the table of contents, objectives, key themes, chapter summaries, and keywords.
What topics are covered in the analysis of easyJet plc?
The analysis covers easyJet's legal structure as a public limited company (plc), its financial performance, and its strategic approaches. It explores the impact of its legal form on stakeholder interactions and overall business strategy, examining its business model, competitive advantages, financial profitability, strategic planning and implementation, and the role of shareholders and corporate governance.
What is the legal structure of easyJet, and what are its implications?
easyJet is a public limited company (plc). The analysis explores the advantages and disadvantages of this structure, including limited liability for shareholders, access to capital, and potential dilution of control. It also examines the roles of shareholders, the board of directors, the memorandum and articles of association, and the concept of corporate personality.
How is easyJet's financial performance analyzed?
The analysis includes a general financial analysis, assessment of profitability and efficiency, and a SWOT analysis. This helps to evaluate easyJet's financial health and inform strategic recommendations.
What strategic approaches are discussed in relation to easyJet?
The analysis covers strategic planning and implementation, including budgeting and the application of a balanced scorecard to monitor and manage performance. It also considers the impact of organizational structure on strategy execution.
What are the key stakeholders in easyJet, and how does the company interact with them?
The analysis examines easyJet's interactions with its key stakeholders, including shareholders, employees, customers, and potentially government regulatory bodies. The impact of the company's legal structure on these relationships is a key focus.
What is the role of shareholders in easyJet?
The analysis details the role of shareholders in easyJet's governance, including their participation in the annual general meeting and their influence on the company's strategic direction. The implications of shareholder value and the structure of ownership are considered.
What are the key chapters of the easyJet analysis?
The analysis is structured into chapters covering an introduction, company profile, easyJet's legal form and stakeholder interactions, financial analysis and strategy proposal, strategy implementation, and a conclusion. Each chapter focuses on a specific aspect of easyJet’s business.
What are the key terms and concepts used in the easyJet analysis?
Key terms include: easyJet plc, low-cost airline, public limited company (plc), corporate governance, stakeholder relationships, financial analysis, SWOT analysis, strategic management, budgeting, balanced scorecard, organizational structure, shareholder value, and limited liability.
- Quote paper
- Sven Elmers (Author), 2009, Assignment in Business Deconstructed - Financial analysis and proposing strategy, Munich, GRIN Verlag, https://www.grin.com/document/181277
