SWOT and PESTEL Analysis of Ryanair

This document provides a SWOT and PESTEL analysis of Ryanair, one of the leading European airline organizations. It discusses the strengths, weaknesses, opportunities, and threats faced by the company, as well as the political, economic, social, technological, environmental, and legal factors that influence its business activities. The document also highlights the major problems faced by Ryanair and suggests various management concepts and theories that can be applied to address these issues.

ASSIGNMENT

TASK 1
SWOT AND PESTEL ANALYSIS OF RYANAIR
Ryanair is one of the leading and well established European airline organisation. Company was
formed in 1984 and its headquarters situated in Dublin, Ireland. It is one of largest European
budget airline cause it known for its fare and successful application of low cost business model.
Organisation owns and run approx 300 bowing aircrafts and has more than 12000+ employees.
Company has earned brand image and reputation as it offers low fares to its consumers and give
fierce competition to others in aviation industry. Presently, firm is facing various challenges due
to increase in cost, Brexit uncertainties, poor staffing issues, negative media coverage and so on.
Company management can make use of SWOT and PESTEL in order to understand dynamic and
changing nature of business activities of Ryanair.
SWOT ANALYSIS model or framework is utilise to determine or assess those different forces
which are generating negative or positive impact over Ryanair operations and working functions
as well as influence aviation industry at large (Gheibiand et. al., 2018).
 Strengths: this strategic analysis depicts key successful factors which enables firm to
achieve its all targets and objectives. It includes low cost fare services which attracts
large customers, innovation in terms of leadership. Moreover, company has established
its business in European market which covers almost 200 destinations and 1800 routes.
Ryanair runs flights for short distance locations also. All these positive forces enables
firm to sustain its competitive edge.
 Weakness: there are some areas in which Ryanair is somehow weak which creates
obstacle in company’s growth. Such are improper labour relations and employee
compensation creates situations of conflicts and disputes. Moreover, company has poor
customer services, unfair pricing that sometimes leads customers in wrong direction. Less
diversification is big issue.
 Opportunities: there are immense opportunities present in aviation industry for Ryanair.
Such as massive aircrafts orders that might strengthen company’s market position in
Europ. Company can work on improvising customer services which helps in enhancing
quality of passengers satisfaction (Haluzová, 2016).

 Threats: there are various negative factors which make adverse impact on Ryanair
growth expansion. Such threats are fluctuations in fuel prices, rivalry from other low cost
airlines some of them are Wizz Air, EasyJet and many others.
PESTLE ANALYSIS is a mechanism which generally used to determine and understand affect
of external forces that influence overall business activities of Ryanair company.
 Political factors which affects company operations are UK government has imposes
policies of charging high tax associated with commercial air travel internationally on
those passengers who are flying from UK. This brings negative impact on profits of
company as customers are unwilling to take short flights. Further, due to Brexit
referendum in which Britain voted to leave EU is result in enormous fluctuation in
political and economic uncertainties. It influence company operations as it disrupt EU-
UK flights. Also, this result in reduction of EU airlines access to UK market (Sarsby,
2016).
 Economical: due to Brexit, there is occurrence of unavoidable recession in UK after its
separation from EU this leads to reduction in profit earnings of Ryanair. Brexit put
pressure on fare prices and oil prices of aviation industry.
 Social: UK has diversified culture and population which is beneficial for growth of
Ryanair as it is a low cost airlines which is favourable for middle class passengers.
Although, changing lifestyle bring positive impact on company as new generation
consumers prefer to take and inclined towards short trips.
 Technological: these factors are favourable for Ryanair growth expansion due to
increase and enhancements in digital platforms which create an opportunities to provide
better customers experience and post services. With help of Panasonic upgrade with
biometric technology enables firm to offer secured payment authorization on board to its
guests.
 Environmental: company required to look after these factors as EU laws and regulations
associated with emissions emerging from airlines may affects operations of Ryanair.
Company required to emphasize on taking environmental initiatives to reduce heat waves
and modify its operations strategy in order to adjust with change climate (Zahari and
Romli, 2019).

 Legal: these factors are making adverse impact on company operations due to Brexit
refrendrum. Due to unstable political and economic uncertainty, future aviation laws are
unknown to Ryanair. Company might required to follow both UK-EU regulations.
TASK 2
MAJOR PROBLEMS FACING BY RYANAIR
From above analysis, it is understandable that number of problems which are arises for
Ryanair is due to EU-UK separation that is Brexit. Due to Brexit, company is facing many
problems that are associated with fluctuation in aviation laws, increase in government taxation
policies, increase in cost expenditure all these conditions are affecting productivity and
profitability of company. Company required to focus on these areas as it can enhance its
organisation structure by introducing new operational strategies so that company can adapt these
changes easily.
Due Brexit uncertainties, company is facing other issues which related to staff issues such
as disputes in employee relations because of weak management and remuneration facilities. This
result in poor customer services which leads to negative passengers experience and adverse
media coverage. In such case, company required to pay attention on this situation as it make
adverse impact on goodwill and reputation of Ryanair.
Organisation is facing problem of higher fuel costs, increasing wages and strikes
organises by its pilots and regional air traffic controllers because of which firm’s profit is fall
down to 20%. Due to such reasons, Airline management decided to cancel over 2500 flights in
first quarter. Company required to focus on its policies and strategies to enhance and motivate
its workforces and provide them growth related opportunities so that they can utilise their skills
and improvise their performance. If company implement such leadership and innovative
management practices then it will definitely resolve others problems. If company has healthy
working relations with its labour and employees then it enables firm to provide effective
customer experience and pre as well as post sales services to its guest passengers. Through this
company will increase level of customer satisfaction and increase its customer base. This leads
to raise in profits and revenue of company.
Moreover, company can satisfy its employees and workers in terms of better
remuneration packages and incentives. Company required to emphasise on better promotional

activities to reduce negative impact of media as it slow down its growth and provide negative
impact on its competitive edge. Organisation must focus on effective publicity in order to
improve its public relations. Due to negative media coverage leads to decrease in market share
and company can face difficulty in organising other projects. Moreover company required to
formulate and implement such influential strategies which enhance its public image and provide
better insights to media. Company has an advantage of regulating its business operation in large
European market due to which it has loyal large customer base. Ryanair must look forward for
better opportunities so that it may offer effective and innovative aviation services to its
passengers. This enables firm to be pioneer and give compatible competition to its rivalry firms.
Organisation must emphasise on these problems in order to sustain its competitive
advantage in its target market and for growth expansion. Airline required to recognise and take
care of its staff and must provide them better facilities to grow. This can be done through
cultivating healthy and harmonise environment. This reduce pilot victimization issue and build
happy and satisfied workforce. Also, airline must provide better pay and compensation wagesto
its cabin crew to keep them heightened and motivated.
TASK 3
VARIOUS MANAGEMENT CONCEPTS AND THEORIES
There are different number of management concepts and theories which can be
undertake4n by Ryanair management in order to keep activities effectively planned, organised,
coordinated, controlled. Through these effective frameworks company can formulate better
policies and strategies for purpose of carrying out its business operations and functions.
Management concepts encompasses of various activities in order to allocate its limited resources
such as human, finance and other in better way through implementing various managerial
functions. These functions are associated with planning, organising, directing and controlling. If
Ryanair airlines make use of effective management concepts then it enables company to
accomplish its mission objectives effectively and efficiently. Moreover, it can resolve its
problems and face challenges with more efficacy. With help of such management framework,
company can able to produce innovative flying solutions to consumers and also enhance its staff
efficiency by organising training and development programs. Moreover, it enables airline to
build and preserve coordination in its business activitries (Vintilăand et. al., 2017).

Along with management concept there are various theories and frameworks which can be
implemented by Ryanair in order to handle technical processes, employees, workers, information
and other operational as well as managerial duties. Furthermore, these helps firm to formulate
strategies regarding how to motivate its workforce and foster team spirit. Such theories involve
system theory, administrative management theory, scientific management, human relations,
classical management theory etc. some of them are explained below:
1. Administrative Management Theory: this management framework was proposed by
Hanry Fayol. Administrative theory is based on assumption of departmentalization. This
specify that there are numerous different activities which are required to be perform by
organisation management in order to accomplish its mission objectives, these activities
are identified and categorised in various distinct teams as well as departments. This
theory focuses on human and behavioural forces present in management. This
framework is used and applied by organisation in order to improvise efficiency level of
management so that technical processes can be unified and enhance operational level of
each worker (Hibbert and Cunliffe, 2015). This theory explains various principles and
guidelines which are implemented by firm in order to structured organisation effectively.
Also, look after how efficiently employees are organised while accomplishing activities.
This management theory implies various 14 principles such as division of work, authority
and responsibility, discipline, unity of command, unity of direction, subordination of
individual to general interest, fair remuneration, scalar chain, centralization, order, equity,
stability of tenure, initiative, esprit de Corps.
Application of theory in Ryanair
Through implementation of this particular theory, Ryanair management can improvise its
policies and strategies by building effective organisation structure. This theory enables firm to
establish effective as well as talented workforce. Through this framework company can foster
and promote team work spirit so that all goals will be achieved effectively and efficiently. If
company has a powerful administrative structure than it can be able to fight with external forces
and uncertainties. This theory helps firm in resolving issue of unfair wages, company can
motivates and keep it workforce satisfy by providing fair compensation for which they are
contributing their valuable efforts. This theory is highly beneficial for sustainable growth of
company (Halldórsson, Hsuanand Kotzab, 2015).

2. Human relation Theory: this management model was proposed by Elton Mayo.
According to this framework, management refer as a study of human behaviour at
workplace. This theory focuses and states that employees and workers are valuable
assets for an organisation. This framework helps management to understand importance
of relationships between different social factors and productivity. Before this model
introduced, productivity of employees was highly related with their working capacity and
wages that they are getting. But this study suggested that productivity is of workers is
highly reliable on their satisfaction level at workplace conditions. Under such theory ,
Howthrone Experiments were undertaken by various behavioural scientists. This reveals
different variants of disciplines such as psychology, sociology, philosophy and last
anthropology (Rosenberg, Hansen and Ferlie, 2016). All these disciplines are carried out
by organisation in order to determine behaviour of people at workplace. This particular
theory provides various organisational methods and processes in business enterprise in
order to understand various factors such as conflicts, motivation needs, relationship.
These forces influence behaviour of individual within organisation. This theory states
various guidelines that required to carried out by company’s management. Firstly,
manager required to have a full knowledge of its workforce needs and desires as what
motivates them most. This is necessary because each worker has its own perception
towards work and want to satisfy all it needs at first place. Secondly, manager must build
an effective interpersonal relations between individuals within organisation. This will
foster coordination and cooperation among people. Third, company must impose various
motivational techniques for purpose of getting inclined and talented workforce. These
principles and guidelines helps firm to achieve its visionary and missionary goals
efficiently. This theory of human relations justify that employees are not machines as
they have psychological motivational needs, different working style, attitude, knowledge,
skills. All these components affects their performance within organisation. Human
relations framework justify that individual or teams expect that they must be recognise as
a valuable part of organisation which helps in their growth development. Moreover,
employees wants that they must get respect by other people at workplace. In addition to
this, they desire to get appraise for their performance and encouraged to take participation
in various activities (Berry, Broadbent and Otley, 2016).

Application of this theory in Ryanair
By implementing this management theory, company can resolve problem of improper
labour relations, employee disputes and conflicts. With help of this framework, firm can easily
understand the behaviour and attitude of its cabin crew members, pilots, other technical staff.
This helps them to determine needs and demands of its workforce which enables them to
formulate policies to satisfy them same. This theory enables firm to keep satisfied productivity
level of employees (Parker, Parsons and Isharyanto, 2015).
TASK 4
I have experienced and gather information regarding enormous things from above
research report. During conducting study, I have gain fruitful knowledge associated with given
organisation called Raynair and how its operations get affected by its internal and external
environmental factors. I have learnt that how company is dealing with different challenges and
what strategies as well as policies in order to deal with same. In addition to this, I have
experience and learnt about background of company as what type of services that it offers to its
customers, when it was established, what are its mission and vision goals. Further, I have gain
immense information related to various management theories and concepts that are useful for
firms to ascertain various objectives and their competitive advantage. Also, I have learnt
regarding different frameworks which are utilise in assessment of internal and external
environment in which organisation operates its business functions. Although during this research
project, I have to face number of challenges while searching about topic. I had a lot of trouble in
collecting reliable sources from internet. Due to various unwanted sources, it was getting so
time-consuming for taking down relevant and fruitful information regarding research project.
Lastly, I have to conclude that through this projects I have acquired positive knowledge
regarding business environment and management philosophies. This research report is highly
helpful in enhancing my academic abilities, knowledge, skills and also will guide me in my
future career path.

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