Consideration of the Macro Environment

Running head: BUSINESS STRATEGY
Business Strategy for Aerlingus
Name of the Student
Name of the University
Author’s Note:

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BUSINESS STRATEGY
Table of Contents
1. Introduction..................................................................................................................................2
2. Discussion....................................................................................................................................2
2.1 Brief Description of the Organization of Aerlingus..............................................................2
2.2 Consideration of the Macro Environment of the Company with different trends.................3
2.3 Consideration of the Effect of each of the Porter’s Five Competitive Forces within the
Firm’s Industry............................................................................................................................3
2.4 Identification and Description of the Internal Analysis of the Industry and Strategic Groups
in the Industry..............................................................................................................................5
2.5 Analysis of the Capabilities of the Firm of Aerlingus...........................................................9
3. Conclusion...................................................................................................................................9
4. Recommendations......................................................................................................................10
References......................................................................................................................................11

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BUSINESS STRATEGY
1. Introduction
A business strategy could be referred to as the set of different competitive movements or
actions, which a specific business utilizes for attracting clients, competing successfully,
strengthening overall performance and also obtaining organizational objectives (Akter et al.
2016). This type of strategy could be eventually understood as a distinct course of action or the
collection of different decisions that provide assistance to the entrepreneurs for gaining business
goals. It is referred to as the scheme for corporate intent as well as action that is eventually
planned and designed with the main purpose of achieving efficiency, meeting various challenges
or threats and securing a beneficial position. Different competitive actions and moves are being
analyzed properly and hence the company is able to eradicate all types of complexities and issues
under every circumstance (Higgins, Omer and Phillips 2015). This report will be outlining a brief
description on business strategy and environment analysis of the popular and significant aircraft
organization in Ireland, Aerlingus with relevant details.
2. Discussion
2.1 Brief Description of the Organization of Aerlingus
Aerlingus is one of the significant and noteworthy aircraft organization in Ireland and the
2nd largest airline within the entire country after Ryanair. It was eventually found in the year of
1936 by the government of Ireland and it was being privatized within the years of 2006 and 2015
and is now a completely owned subsidiary of the International Airlines Group or IAG
(Aerlingus. 2020). The organization’s head office is over the ground of Dublin Airport in Dublin
and they have been doing high business within last few years. More than 4000 employees are
working currently in this organization and the total revenue is 2.2 billion Euros.

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BUSINESS STRATEGY
2.2 Consideration of the Macro Environment of the Company with different trends
The organization of Aerlingus is doing business for several years and as a result, they
have an excellent chance of implementing new ideas and ideologies for the business. They have
even moved towards a lower costs carrier model for ensuring that better effectiveness and
efficiency is being gained without much complexity (Johnson 2016). They are ongoing with their
present strategy as well as position of being within between an ultra-low cost carrier as well as
complete service flag carrier within Europe and hence adopting the lower costs model over
transatlantic flight; hence charging for the auxiliary service and incrementing the seating
capacity over their flights by proper reduction in the total number of business class seat and
increment in the economy seat number (Thompson, Strickland and Gamble 2015).
After analysis of the macro environment of the organization, they have to compete with
Ryanair for maintaining a significant position in the market. As a result, the efficiency levels is
lowered and the business gets a better chance for business analysis. Hence, they should continue
with their low cost approach for ensuring that a new market is accessed and the overall
profitability is improved (Lawton 2017). The present economic trend of the country of Ireland
has a direct impact over the aircraft industry. The individuals, who have lesser disposable income
are suffering majorly for the Dublin airport. Major growth has reached out to different countries
that have been dealing with major aspects and features related to the organizational development.
2.3 Consideration of the Effect of each of the Porter’s Five Competitive Forces within the
Firm’s Industry
The organization belongs to the industry of aircraft in Ireland. Porter’s five forces
analyses of the aircraft industry are described in the following paragraphs: