This case study analyzes Ryanair, an Irish budget airline, including PESTEL analysis, SWOT analysis, and leadership and management theories. It explores the challenges faced by the airline and provides strategies for growth.
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RYANAIR CASE STUDY
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INTRODUCTION TASK 1 PESTEL analysis of Ryanair SWOT analysis of Ryanair TASK 2 Analyzing of those problems happened in PESETEL analysis This is a very important analyze as it helps in growth of organization. This also helps in identifying of those factors which can helps in faster development of organization. It has promoted understanding of external factors which can have both negative and positive effect upon an organization. It is also gives an idea of formation of strategies accordingly. Various problems that can be faced by the airline regarding different factors and they are explained below: TASK 3 Leadership and management theory in context to Ryanair OUTCOME CONCLUSION REFRENCES
INTRODUCTION Business environment is that kind of environment which involves both internal and external factors which can affect various aspects of company which plays major role in growth of an organization. Such environment involves employees, customer, management, supply and demand. All kinds of things which are important for growth of business come under business environment. In other words this environment is responsible for achieving goals and objectives of an organization. Scope of such environment is very wide that deals with technicalities of business and problem related to its growth. Ryanair is an Irish budget airline that was formed in the year 1984. It has its headquarters in Sword, Dublin. This airline also operates in London Stansted airport. In the following file things that are goin to be covered is SWOT and PESTEL analysis of Ryanair, leadership and management theories with problems to be faced by the company. TASK 1 PESTEL analysis of Ryanair PESTEL analysis is that kind of analysis which acts as framework which is used for understanding of those factors which is effects macro environment of company like Ryanair Barrett, S.D., 2016.. It consists of certain factor like political, economic, technological, legal and environment. Further these are explained below: Political Factor:These factor deals with intervention of government in economy. It involves those policies which are formed by government regarding different aspects of business. These policies are based on political stability of market, foreign trade policies and also tax policies. In order to deal with problems in market enactment done by government should be covering any of these factors. Economic Factor:Under this factor various things related to growth and profitability of organization is deal with. Also certain elements are included under this factor which is interest rate, unemployment,
inflation rate is there. Micro –economic factor includes how people spend their income or power of expenditure(Caputo. and Borbely, 2016) .Social Factor:They are known as socio-culture factors which deal with people living in society and their day to day lifestyle. It includes customs, trends and taste of people. These factors are responsible for creation of personal interest because and helps in understanding preferences of customers. Technological Factors:These are that kind of factors which are related to all advances that is taking place in terms of technology on regular basis. This factor is very important for smooth production. Such factor play major role in distribution of goods and services and develops new ways of targeting market. Environmental Factors:This factor is related to ecology and environment protection which is very important. Such factor also emphasis on optimum utilization of resources which can help in protecting environment. Organization are formed to deal with such emerging threat and its is duty of every organization to operate itself under laws related to environment. Legal Factors:These are those factors which are related to all laws existing within a country or society. It is very important to follow such rules by an organization in order to establish themselves legally. These factors play a major role in protecting company from legal issues. SWOT analysis of Ryanair This analysis is a framework that has been formed for evaluation of factors which create an impact on progress of airline industry. As business structure of this airline is very simple and focused upon providing better services to its customers. They have to face certain problems like poor services and decrease in percentage of customer. That is why this analysis is important because it helps in identifying of those factors that is creating negative impact over an organization. SWOT has help in identifying of those factors that is necessary in order to avoid such problems. So , this analysis has helped in analyzing of strength, weaknesses, opportunities and threats for Ryanair. StrengthWeaknesses One of the most important strength of this organization is its capability of covering market area in the present market situation. As this airline is set-up in European market and has cover about 200 destinations and 1800 routes. This coverage has played a major role in promoting and expansion of its business. Low cost base has also played major role in attracting customers. This has made an upliftment of airlines business as increase in customers’ percentage must have boosted profitability also. This has made airline to sustain itself in long run and establish itself as bigger entity. Change of behavior of labors working in the Ryanair has created negative impact over the growth of business because if labor is not going to be satisfied, then quality of service is going to be effected which is going to result into loss to this airline. Also wages of employee is going to impact the organization in a manner that loss of man force is going to be there. Due to which efficiency of operation is reduced. Growing in a fast manner is very essential but maintaining stability is also important. If it is not done then it is going to impact upon investment done by share holders. As no shareholder is going to invest in a unstable organization.
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OpportunitiesThreats Ryanair is having a opportunity to increase its revenue by making attractive schemes which is going to attract more customers in an company. This also promotes positive impact by generating profit in huge amount. Being a bigger entity in airline sector goodwill of company is there which promotes loyalty in customers and also there trust over brand. This leads to covering of market at larger scale. Due to the introduction of various new policies by the government in UK has increased rate of tickets. As change has been done in tax rate. This has lead to switch of customers to another airline. Also fluctuation in prices of petrol has affected companies profit in negative manner. Huge loss has been faced by the airline company. Competitor of this airline has made business of such company go down because they are giving better facilities and lot of customers are going to them. This ahs lead to loss of customer. TASK 2 Analyzing of those problems happened in PESETEL analysis This is a very important analyze as it helps in growth of organization. This also helps in identifying of those factors which can helps in faster development of organization. It has promoted understanding of external factors which can have both negative and positive effect upon an organization. It is also gives an idea of formation of strategies accordingly. Various problems that can be faced by the airline regarding different factors and they are explained below: Political Factor: These are those factors which are related to policy formed by government and it can make company face lot of challenges like if policies of tax are changed then price level is going to be effected of flights. This is going to make loss of customers. Such issue can be deal by arranging such discounts which is going to be customer friendly (Grant,, 2017). So, that loss is not faced by the airline company. Economical Factor: This factor is related to economic condition of the company which means that all finances decision is taken considering these facts. Such factors are very important to be deal with as soon as possible. Supposing rate of inflation is decreased and is impacting overall economy of airline. Under such condition business of airlines going to face loss because of decrease in inflation rate demand is not going to be there which eventually leads to loss in an organization. This problem can be solved through managing of revenue and using it in very appropriate way. Social Factor: This factor includes all the behavioral changes taking place within a customer and its preferences. It includes elements like trends, taste and needs. An airline company like Ryan air is going to be effected from such factor in negative way because it is going to make switch of customers to another airlines because of change in preferences. This problem can be solved by keeping track of
trending things in market and adapting them within Ryanair’s services. This is going to increase profit and growth of the company. Technological Factor: These factor deals with the advancement that is taking place in the field of technology on regular basis. Such advancement is very important for an organization like Rayanair. As it has to buy new and better equipment to make its flight safer for its customers. Problem that can arise is of older technology used within its fligh that reduces chances of safety. Solution for this kind of problem is to be updated with the latest technology present in the market. This is going to help in bring of new airpalnces and faster services is going to be provided. Legal Factors: They are related to development of laws which are present in society and have covered every aspect of society. Problem which can occur in an airline organization is that if not registered itself under the companies act then considered to be illegal which can lead to dissolve of company immediately. To avoid this the company has to get itself registered under incorporated company law under company law. Environmental Factors: These factors are related to environment and its protection. Ecological factors due to which raw materials are provided are covered under this only. Problems which can rise due to these factors are carbon emission from engines, pollution caused by any aircraft. Solutions to these problems can be solved by taking initiative for protecting environment and reducing carbon emission rate from vehicles and aircraft. All such decisions are taken by committees that are set-up for this purpose. Increase in cost because of reduction in emission is going take Airline Company to loss. TASK 3 Leadership and management theory in context to Ryanair Leadership is that form of thong which is important for the growth of an organization because these leaders are also responsible for providing vision to a company. Role of leader is very important to run a company. There are various theories that are related to an organization and its growth. Such theory is explained below in detail, they are: Transformational Leadership: These is one of the most important theory of leadership which says that team is required for identifying of challenges that is to be faced by organizations. Such challenges are required to deal with vision, creativeness and inspiration. In this approach change is caused within an individual and social system around him. This is an ideal form which is forming valuable and positive change in an organization. Elements presented in this theory is inspiration and motivation under which foundation of leadership is promoted of consistence over vision, mission, set of values. After this comes intellectual stimulation which means communications skills of employees are required to improve by making the giving speeches and promoting their innovative ideas in the company. This is going to be helpful for an organization like Ryanair in a way that it leaders are going to improve themselves and is going to motivate employees to performe faster and better which is going to make achieving of gaoals and objectives of organization easier and smoother manner. Also it ius going to create more of positive
environment for the worker and they are going to perform better within orahnization. Also leaders have to keep on discussing over finding better alternative of increasing communication skills of its employees. Management is that department which responsible of managing of everything in a company which is going to help in creating that environment and also optimum utilization of resources within an organization is management’s responsibility. Various theories are there which is going to help in identifying role of management in better way and it is explained as follows: Classic management Theory: This theory is one of the most famous theory of management under this theory physical needs of employees is identified. All this is done for making feel safer and better to an employee in baorganization. This theory is there to provide satisfaction to employees in terms of money. Eixtance of these theory is helpful for an employee to amngae himself and co up with the work. Manger under this theory is able to achieve certain objectives like profit maximization, labor specialization and handling of straemlizing operations. Also emphasis is paid over increasing of productivity. These becomes duty of mangers to manage such kind of things. Role of manger in this theory is very important and priority is required to be decided for incraesing performance of employees. This can be achieved through promoting the employees and giving them incentives with the salary and he manger under this tarries they are getting. Also manager has to check over certain elements which results into stability of organization. Certain principals are required to be followed by they are profit maximization, labor specializations, centralized leadership, streamlined operations, productivity emphasis, single- person and selected few for process of decision making and priority to follow the bottom line to achieve success. As, these seven principles are achieved into practices and then create an ideal work place for its employees. This theory promotes hierarchical structure, employee’s supplication, and financial rewards. Managers under these theory needs to identify its potential to promote all the above mentioned principal in its organization. This theory is help full in dealing with lot of challenges that is face upon day to day basis. If these problems are identified by the managers at earlier level than growth in the company is going to take place at higher level. This is going to be helpful to organization like Ryanair in a way that it is going to promote productivity in the organization which is going to provide better results and then by increasing salaries of employees is going to give them motivation of performing very fast and appropriate manner. Mangers of airlines have to seek towards new ways of promoting their business at huge level. Certain procedure is required by the mangers of the airlines to be followed they are related to physical needs of the customer and these customers . Airline company is going to be benifited from this theory in a positive manner which is going to promote efficiency in working and smoothness in production. Operations performance is going to be better. OUTCOME From the above understanding of various aspects of business environment. I have learned lot of basic things required for its growth. This report has taught me about strength , weakness , opportunities and threats. Also an airline company has been discussed in raelation to PESTEL. Both the analysis has
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given me knowledge about how internal and external factors are effected because of lot of elements. Then I have gained knowledge about theories of leadership and management which has taught me about how leaders can play an important role in improving viaon and give motivation to ita employees. Then in management theory I have learned that manger has an very important duty of promoting those productivity and smooth functioning of organization. All this is what I have leatmed from this report. CONCLUSION From the above file it is clear that an business environment consist of those factor which is important that is very important to be analyzed through PESETL and SWOT analysis which is going to help an organization like Rayanair to deal with external and internal factors which can be responsible for negative impact upon it. Also this organization has to improve its leadership skills that can be done through applying of theory. Also management needs to improve which is going to done by aplicanility of classic managmnet theory. This file has majorly emphasized over caovering of different aspect of business environment. REFRENCES Books and journals Barrett, S.D., 2016. Ryanair and the Low-cost Revolution. InAir Transport in the 21st Century(pp. 163-178). Routledge. Caputo, A. and Borbely, A., 2016. When strategy meets negotiation: the negotiation capability of Ryanair. InAcademy of Management Proceedings(Vol. 2016, No. 1, p. 13571). Briarcliff Manor, NY 10510: Academy of Management. Grant, R., 2017. Ryanair: matching the activity system to the strategy.The Business & Management Collection. Heo, C.Y., Blal, I. and Choi, M., 2019. What is happening in Paris? Airbnb, hotels, and the Parisian market: A case study.Tourism management,70, pp.78-88. Decker, A., 2016. Ryanair and the Danish Model (Case study contribution to textbook). InEconomics for Business. Palgrave Macmillan Asadi, S., 2019. Evolutionary fuzzification of RIPPER for regression: Case study of stock prediction.Neurocomputing,331, pp.121-137. Dobruszkes, F., Givoni, M. and Vowles, T., 2017. Hello major airports, goodbye regional airports? Recent changes in European and US low-cost airline airport choice.Journal of Air Transport Management.59, pp.50-62. Adapa, S. and Roy, S.K., 2017. Case Study 6: Malaysian Airlines Versus AirAsia: Customer Satisfaction, Service Quality and Service Branding. InServices Marketing Cases in Emerging Markets(pp. 67-75). Springer, Cham. Caputo, A. and Borbely, A., 2016. Ryanair’s negotiation capability and the firm’s strategy. Sharma, M.P. and Sharma, N., 2016, August. Performance impact of changing ICT environment: A case study of Indian hospitality and tourism sector. InInternational Conference on Smart Trends for Information Technology and Computer Communications(pp. 119-127). Springer, Singapore. Walker-Headon, N., 2016. Responsive Web Site Development at the Library, Institute of Technology Tallaght: A Case Study.Journal of Web Librarianshi.,10(4). pp.267-293.
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