Ryanair Case Study

RYANAIR CASE STUDY

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.
Strength Weaknesses
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.