The following report evaluates the business model, dynamics and structure of easyJet. It also outlines the factors responsible for the company's success including business focus, target market, corporate structure and e-business model. In doing so, the author also hopes to find out what are some of the important aspects of e-business that differentiate and benefit corporations in setting up e-commerce sites such as easyJet.
How can management accounting help EasyJet Introduction: During this essay, I will be discussing Management Accounting Practices, talking about how Easy Jet could adapt to these methods within their business.
In detail, I will be explaining the advantages of Management Accounting, and how I think it could contribute towards the success of Easy Jet. I will base my arguments around the information gathered during my research phase, from reliable and good quality sources. They have over routes and operate in over 32 countries.
On the same article it states that EasyJet carries over 62 Million passengers a year, and 12 Million of them are for business purposes.
This outstanding figure speaks for itself and emphasises how huge the business is, at the same time highlighting how successful it is.
EasyJet has an eco-friendly approach in the way that they run their business, and I believe this is vital as it can attract customer loyalty, due to the nature of being a sustainable company. This makes us acknowledge that EasyJet are not like any other airline, and they care about both, their customers and the environment.
This sends out a very positive vibe about the company, which I believe is essential in maintaining and expanding their customer base. Moving on, the recent financial information of EasyJet informs us of how they are expanding each year. In order to find approximately how much EasyJet has grown in terms of revenue, I researched the financial statements of yearsand the most recent.
These financial statements were release and published on the EasyJet website. Inthe Revenue for EasyJet was?? Moving forward tothe Revenue was?? Within the past 10 years, EasyJet have increased their revenue by fourfold. This figure is staggering, and really the volumes the success of the company.
EZJ currently 26th January stands at 1, Management Accounting is about looking forward and making decisions which would benefit your business in the future. Management Accounting has its benefits, such as: Reducing expenses, improve their cash-flow and help make business decisions.
However, in order to reap the benefits of Management Accounting, you need to have access to different types of information such as gearing ratio, which can show the long term financial position to the manager, as well as the funding being used within a business, and using this information, managers would be able to make a business decision.
In terms of EasyJet and Management Accounting, the Cash-flow statement would be a very useful piece of information which the Manager could use. Using the Cash-flow statement, the manager would be able to see the expenditures and revenue of the company, and use this as an aid when it comes to making decisions.
An example of this would be maybe using the statement of cash flow to see if the expenditure is higher than the revenue. If this was the case, then the manager would be able to make a decision of perhaps increasing ticket prices, and lowering expenditures, such as amount of fuel per plane, in order to increase revenues.
As I mentioned earlier, Management Accounting Information can come in the form of financial ratios, such as gearing. The purpose of Gearing is to make a comparison between equity and debt of a company. High gearing ratio means there is more debt than equity, and a low gearing ratio would represent a low proportion of debt to equity.
Using the gearing ratio would allow the manager of EasyJet to see whether he should lower or increase the gearing. In order to increase the gearing, he could issue more shares or repay the long term loans. On the other hand, to decrease, he could buy back the ordinary shares.
In order to work out the gearing ratio, the manager would need to get hold of the figures of long term liabilities and the capital employed.
Like every business, EasyJet faces competition from rival businesses, such as Emirates or British Airways.easyJet Airline Company Limited is an appointed representative of AWP Assistance (UK) Limited, which is authorised and regulated by the Financial Conduct Authority (FCA).
AWP Assistance (UK) Limited FCA registration number is FCA authorisation can be checked on the FCA website. EasyJet [Name] [Institution] [Instructor] [Course] EasyJet: Report on Strategic Competitiveness. Executive Summary.
Aim of the Project. The aim of this report is to evaluate the overall attractiveness of the budget airline sector in the context of business and competitive environment. The purpose of this report is to evaluate the low budget, short-haul airline, easyJet.
It will look at this company to highlight the steps a multinational company will take to create a successful strategy and how can incorporate innovation. A complex company such as easyJet, has to compete in a very. Sample of Financial Analysis - Easy Jet Essay (you can also order custom written Financial Analysis - Easy Jet essay).
Easyjet’s customer value proposition is based on providing low fares with customer orientated services using key resources and processes such as standardized fleets and online booking systems to maintain its cost structure which is a crucial component of its profit formula.
EasyJet Essay; EasyJet Essay. Words 3 Pages. EasyJet EasyJet has become the European leader in a no frills frenzy for low cost, cheap air travel. This market however has since the mid nineties gone from strength to strength and we have witnessed the arrival of a number of low cost airline companies which cater for the no frills approach.