Corporate Social Responsibility

Corporate social responsibility is understood as an organizational philosophy that helps the organization to find special activities and admit it to reduce the social impact in the smooth business operation in the firm. The practice and study of the social responsibility can be terraced back to the decade of the 1950s. Now the theory regarding the social responsibility use and practice has helped the business organization for the positive business growth along with the strong brand values. The main motto for practicing corporate social responsibility by the firms is for the betterment of the society due to the organizational activities. Besides, it helps to create great impact on the brand value and the brand reputation of the company. CSR helps to foster the internal and external business environment. The basic components of the corporate social responsibility pay high value for the organizational involvement in the local communities activities including corporate philanthropy. To gain the competitive business advantage the customer must focus on the customer service, customer loyalty, increase the customers repurchasing intentions and behaviors, their interest to pay the prices for the company. Thus, the corporate social responsibility plays an influential role in earning the loyal customer to the company through its great influential power. Customers always keeps an eye on the organizational activities, and the practice of corporate social responsibility in the firm is the great way to attract the customers. People are willing to support for that organization that supports for the peoples, societies and the environmental protect. In this sense, we can identify that corporate social responsibility and the brand value of the organization are dependent on each other. It has become difficult to increase the brand image of the company without performing the duties towards the people and the society of where the company is existing. CSR has become the best attempt for the management of the marketing strategy of the company that is most essential factor for the business growth in the competitive global business market. The business company should never undermine that the customer are the valuable assets for the organization and the CSR helps to influence both the people and the society. Customer’s desires about company performing its social responsibility rather than only making the business profit. Positive relation management is the great attempt through the functioning of corporate social responsibility. Internal or the external stakeholders for the company has the great expectation regarding the corporate social responsibility of the company. Therefore, the business company that fulfills its customer’s expectation are successful for earning the great brand value of the company. 

Comparative Analysis

CRITICAL EVALUATION OF THE CURRENT CORPORATE STRATEGY

Corporate strategy is defined as the scope and direction of a corporation focusing on the company’s mission and core values. The corporate stagey under helps to facilitate in achieving the overall goal of the company. It provides the clear direction to meet the expectations of the stakeholders and enhancing shareholders value. In general, there are three types of the corporate strategy they are: growth, stability, and renewal strategies. Growth strategy is the strategy that enhances the market expansion and product differentiation. The growth strategy is implemented either through the current businesses or through the new businesses. The application of the growth strategy helps to increase the revenue in the new marketplace or excel in the current marketplace through the product expansion. A stability strategy is strategy that does not bring any changes in the business current operations. It does not bring any changes in the products that has been offered. It offers the same product to the same customer. As the company doesn’t gain high profit or loss but maintains the current financial position of the business. Such types of business neither grows not fall. The renewal strategy is used in the business when the business faces the trouble. Therefore, for resolving the problem a renewal strategies are designed. Major two types of renewal strategies are found: retrenchment and turnaround strategies. Corporate strategies are important strategies for the business to secure profit and sustainability issues. It helps to provide pertinent guidance for the company to earn the valuable profit and ensuring high shareholders value.
Both of the companies Easy Jet and Ryanair Ltd operate within the airline industry. But, they don’t hold the alike corporate strategy as their mission and goals are different from each other. The current corporate stagey of the company are different as they have their distinct organizational culture, values, and norms. Both airlines have unique attributes and they have different areas of expertise. The current corporate strategy of the company varies from each other. The current corporate strategy of the company are described below:
The Easy Jet PLC incorporates the cost leadership strategy where services offered to the customers are highly lower than their competitors. They hold notion to make the travel easy and affordable to the customers. The main aim of the business is to provide market leading returns to the shareholders through keeping a leading European network at primary airports. The vision of the company is delivering amicable and efficient services at a very low cost. The company mainly focused on the safety measures, simplicity, integrity, passion, and pioneering. The company believes on high degree of competitive advantages by providing the lowest cost services. They are inclined to provide the low fares to enhance the operational efficiencies. Major focus is placed upon the customer services to retain the loyal customers. The goal of the business is to become the Europe’s most preferred short-haul airline providing market leading returns. The company’s current corporate strategy is to expand the business across the Europe. The current corporate strategy of the airline is to capture the market shares and become the number one short-haul airlines. The company has put all of its efforts to increase number of routes to attract more customers across the Europe. The company four main objectives are to build robust number one and two market positions, to maintain the cost advantages, disciplined use of capital, drive demand and airlines expansion across the Europe. The company implements the marketing strategy for gaining the benefits from the competitive advantages as well as the product differentiation across the Europe. The overall goal of the company is supported by the company’s current corporate strategy. It tries to achieve the corporate strategy through placing high importance on the cost focus strategy and providing the best airline services as the cheapest cost. Their current corporate strategy is based on low cost high services and to expand its business across the Europe. Since, the airline is the UK’s largest airlines  but it tries to enter into different marketplace of the Europe to expand business and operations.
The Ryan air Ltd holds the objective to establish itself as the Europe’s foremost low-fare passenger airlines. It intends to achieve the objective through the continuous improvement by offering the best low-fares services to the customers worldwide. Although, the company has the goal to offer services at the lowest price it tries to increase its sales volume to excel in operating efficiencies. The company has the mission to provide the best quality services at the lowest cost prices. The mission statement states that the company aspires to become the most profitable airline company of Europe and higher degree of customer retention as well. It focused on the three major things:  producing high profits, low cost services, and become the leaders in the airline industry. The company also put special attention in enhancing their sales volume by increasing the number of new and loyal customer’s. The company competes with other conventional and low-cost airlines but provides the unique services. The current corporate strategy of the company is to offer the lowest fares to the customer’s based on cost focus strategy. The company focus on the low fares to increase the demand focusing on the fare- conscious and business travelers. The sets fares are based on the demand for a particular flight and sold on a one-way basis. Along with it, the company focuses on the customer services to provide the best quality customers services. The overall strategy of the company is to offer the lowest operating costs and focused on the criteria for growth. The company undertakes the manageable growth plan targeting the different specific markets. The corporate strategy of the company is creating the superior value for their customers and delivering superior value-adding activities in the most efficient manner.
Easy Jet and Ryanair Ltd both carried the different corporate strategies to gain the objective they have set up. Easy Jet is the biggest airlines and Ryanair Ltd is also a prominent airline company. Easy Jet offers low priced airbfares but, Ryanair Ltd offers the lowest air fares. Their current corporate strategy seem alike however, Easy Jet Company is more focused on product differentiation strategy and Ryanair Ltd is more focused on cost focus strategy. Therefore, the ultimate goal of both companies is to expand their business across the Europe. But, to reach at the ultimate goal they carry different corporate strategy. The product differentiation strategy incorporated by the Easy Jet believes for wider customers approach and the next believes that cost focus strategy helps to hold loyal customers offering the lowest cost. Both companies have wider and divergent corporative strategy that makes them highly unique in terms of service qualities and brand. Hence, both companies current corporate strategy aligns with the overall objective including their vision and mission as well. The companies are expertise in their business operations providing the best quality airline services at the most affordable costs.

EVALUATION OF FUTURE PROSPECTS

Both companies’ financial performances are robust. They are financially very viable and profitable as well. The Easy Jet financial performance was measured through the calculation of the three major ratio: net profit, current ratio, and EPS. The calculated net profit margin of the company was 0.1 that shows that it remain financially viable in the future days as the sales revenue is big. Similarly, the calculated current ratio was 0.08 that shows that the company need to add more current assets in the future days to pay all of the short term liabilities. The current liabilities of the company was higher than its current assets. That suggests that the company can face difficulties in paying the short term liabilities. Likewise, the calculated EPS was positive. Therefore, the company can increase the number of shareholders and generate huge capital from the shareholders investments. The calculated ratios to determine the financial performance of the Ryanair Ltd was found strong. The company’s operating income, net income, total assets, and total equity all were higher than the Easy Jet. The net profit and current ratio was determined as 0.15 and 1.55 respectively. The results shows that the company holds strong financial performance and it is financially viable. The company bigger sales revenue suggests that the company can generate more net profit in the coming days. The company can easily meet all of its short term liabilities because the current assets of the company is huge than its current liabilities. The company has got positive EPS that indicates the company is able to generate capital as the shareholders will be attracted to invest into the company. Therefore, in the future days the financial performance of the company will increase along with the growth in the net income, current assets, and EPS .Hence, the company is able to remain financially viable.

The corporate strategies undertaken by the both companies are both need based approach. The corporate strategies incorporated such as product differentiation strategy and cost focus strategy are highly pertinent in the current context. Both undertaken corporate strategies complement with their respective mission and vision. Therefore, the strategy will be highly useful to enhance their sales volume and retention of loyal customers. The current corporate strategy are designed considering the current needs and demands. As a result, the company is able to remain sustainable and profitable in the coming days. The corporate strategies undertaken are helpful to operate its business operations smoothly and to expand the market share of the company. The corporate strategies aid to achieve the overall objective of the company efficiently and effectively. The corporate strategies guides the company to achieve its ends results. Therefore, the current corporate strategies aids in the further growth and development. The strategies not only provides the company growth but, it helps to generate long term benefits for all shareholders. The shareholder values also increases with the effective execution of the corporate strategies.

Analysis of financial performance

The financial performances of the company are analyzed to determine the financial position of the business. The financial performances are measured with the help of the various financial ratios.  Although, the financial ratio calculation depends on the different factors as one type of business varies significantly with the other types of the business. Therefore, financial ratios are also under criticisms. The financial performance determines how well a business can use assets through primary mode of business and produce revenues. The financial ratios are used as one of the best tool to determine the financial position of the business. The basic forms of the financial ratio are: profitability sustainability ratios, operational efficiency ratios, liquidity ratios, and leverage ratios. The ratios used help to provide the current financial performance of the business.  The reliable results of the financial ratio helps to provide accurate financial information and the information on the performance of companies referring to different period of time. It is also useful to make pertinent comparison of internal benchmarks and goals. The major financial ratios calculated for both companies are the profitability ratios, liquidity ratios, and investment ratios. The other types of financial ratios are also available but, only these three major ratios are undertaken to analyze the financial performance of Easy Jet and Ryanair Ltd. The financial ratios are calculated on the information accessed through the annual reports of the both companies for 2014.

Competitive Business Environment

A competitive business environment is the dynamic outward system in which a business contests and operates. The competitive business is high in the context where there are numerous sellers of an alike product or services. Since, abundant number of airline companies are profound in UK so, competitive business environment is highly prevalent. There are multiple choices present for people to choose between airline services. Therefore, both Easy Jet and Ryanair Ltd are delivering their services in a highly competitive business environment. The internal and external environmental factors pose serious threat on the airline industry. The competitive business environment is determined on the basis of the market size, scope of competitive rivalry, customers, technology and innovation, product differentiation, and economies of scale. The drivers for change are the internal and external business environment. Specially, the drivers for change are rivalry among airline services provider, potential new entrants, substitute products, supplier bargaining power, and buyer bargaining power. Similarly, the major driver for change are: the growth of the internet economy, globalization, and low-cost competition. Both companies’ functions are hindered by the changes in its external environment. The political, economic, social, technological, environment, and legal factors directly impact on the airline operations. Thus, both of the companies are aware of the impact of these factors. They acquire various external environment analysis tools such as SWOT analysis and PESTEL analysis. The usages of these external environmental helps to get proper information about the competitive business environment. So, various coping strategies can be developed to reduce the negative implications of these external environmental factors. The airlines companies formulate various coping strategies to ensure that the environmental factors are understood properly through formulating the appropriate strategic plans. The airline industry exist in the perfect market competition. Therefore, there is high competitive business among the airlines companies of UK.

Importantance customer service


Customer service is important to the customer to hospitality management because it helps to contact the customer. Customers are vital to any hospitality sector. No matter how a person is traveling the level of customer service they receive to determine whether they come back for another visit or not. A customer always wants to get acknowledged. The success and failure of hospitality service depend upon the service provided. No matter whatever is the size of the business customer service plays a crucial role in hospitality management. Although customer service can be a costly process as it requires extra energy, time and money, it helps to generate good word of mouth that is again beneficial to the service provider itself.
For Milestone hotel, customer service is extremely important. The main goal of the hotel is to provide best hotel experience to its customer. The hotel has made an extra effort for considering the customer service. The staff of the hotel treat its customers amazingly. Milestone hotel is giving the feeling of luxurious home away from home to the customer. The team of the hotel are giving extra effort for the improvement of the customer service as the hotel believes it is the customers who have enhanced their business.

Quality of customer service and loyalty of the customer

Quality of customer service

The quality of customer service is one of the important factors that determines the position of the service provider. It is the key differentiation between good and bad service provider. Good customer service makes the customer come back. The bad customer drives the customers away. Good quality service to the customer gives tough competition to competitors in the market. A satisfied customer stays longer to the service provider. In hospitality sectors have tough competitions. It is very necessary to provide quality service to the customers to stay ahead in the competitions.
The quality of service provided by the Milestone Hotel is excellent. The hotel constantly conducts surveys to keep up with the preference of customers. Customer can experience best services and facilities in the hotel. The hotel provides the best service to the customers. The visitors of the hotel get a chance to experience one of the best services all over the United Kingdom.

Loyalty of the customer

The loyalty of the customer is one of the dominant factors in a business of hospitality industry. Customer loyalty helps to translate to more opportunities through word of mouth. Customers will always remain committed if they believe they have established a genuine and mutually benefitted relationship. Customer loyalty is the result of positive emotional experience and satisfaction in the service received. To increase the customer loyalty, the management have to blend the physical, emotional and value element in the service provided to the customers. Happy customers are loyal. It is necessary to provide stellar service to them. The customer service is on track to keep up with the trend that customer follows.

 The customer visiting the milestone hotel are satisfied with the service provided by the hotel. The hotel offers numbers of the customer. The hotel can make a good impression on its customers. The hotel can maintain good relation with its customer that has increased the number of loyal customers. 

What is customer service

Customer service is the most important component of the hospitality industry. Hospitality sector will function well when it can provide the best service to its customers. Hospitality sector must always give its customer priority. Customer service is a service provided to the customer on behalf of using the service of the certain company. Customer service is very crucial to attaining the goal. For the establishment of a relationship with the customer it is necessary to make them feel safe, the customer should hear the opinion of the customer. Many companies fail to understand the importance of the customers and hence fails to achieve its ultimate goals. Bad customer can lead to complaints and can result in a loss. Good customer service involves developing a bond with the customers. It creates an advantage for both customer and the service provider. Customers are benefited by the services.
Customer service is the priority of milestone hotel. The hotel offers all 24-hours service in the front guest. The hotel is located in easily accessible place.

Quality of customer service

The quality of customer service is one of the important factors that determines the position of the service provider. It is the key differentiation between good and bad service provider. Good customer service makes the customer come back. The bad customer drives the customers away. Good quality service to the customer gives tough competition to competitors in the market. A satisfied customer stays longer to the service provider. In hospitality sectors have tough competitions. It is very necessary to provide quality service to the customers to stay ahead in the competitions.

The quality of service provided by the Milestone Hotel is excellent. The hotel constantly conducts surveys to keep up with the preference of customers. Customer can experience best services and facilities in the hotel. The hotel provides the best service to the customers. The visitors of the hotel get a chance to experience one of the best services all over the United Kingdom.