Challenges Faced by Ryan Air: Solutions using Management Concepts and Theories

This report examines the challenges faced by Ryan Air, including Brexit and EU policies. It explores the use of PESTEL and SWOT analysis to analyze the external factors affecting the business. The report also presents solutions to these challenges using management concepts and theories such as problem management, system theory, and contingency theory.

RYAN AIR

Table of Contents
TASKS..................................................................................................................................................3
1. Examining PESTEL & SWOT Analysis ................................................................................3
2. Analyse challenges faced by Ryan Air.........................................................................................5
3. Present solution for the analysed problem by using management concept and theories.............6
4. Present short summary on the written report...............................................................................8
CONCLUSION....................................................................................................................................9
REFERENCES ..................................................................................................................................10
Books & Journal:...........................................................................................................................10

INTRODUCTION
Business environment and management are essential for organisation and which require
time and skills to understand the concept. It is important to focus on factors of business
environment which drives the entity to achieve objectives in proper manner. Management is wider
& broader which include theories, models etc. Ryan Air, headquartered in Dublin is a leading airline
in the country which is operating its activities and subsidiaries across the globe. Strategies as well
as tactics are used by firm to overcome with challenges/ threats to survive in competitive market.
Entuty also has competitors like Virgin Atlantic, British Airlines etc. The R.Air firm provide
services and products at affordable to the cusomers so that business is able to carry out activties for
longer period of time. Firm operate its operations and earning profit by goodwill as well as
credatibility of the entity. This report includes PESTEL, SWOT Analysis, problem analysing of
firm, solution of the issues by using management theories and a short report.
TASKS
1. Examining PESTEL & SWOT Analysis
Every organisation wants to run business for longer period of time and survive in market for
operating functions and operations. So, new theories and models are applied in proper manner to
analyse the market activities and situations. PESTEL is used by Ryan Air which is discussed below-
PESTEL Analysis is framework used by organisation to identify the factors (external) which
affect the enterprise business at wider level. This tool helps firms to overcome with consequences
and issues which are faced by companies during marketing activities. This analysis has been
mentioned below-
 Political factors- There two types of factors which are involved in business which are
controllable and non-controllable by government factors. This political force is not
controllable by government and it comprises of environmental law, tax and trade policy etc.
In context to Ryan Air, organisation follows political policies of the country in appropriate
manner so that continuity of business stays for long period. Also, Brexit affected the
business at deep level due to its uncertain activities in the country.(Cepel, 2018).
 Economic Factors- Further come the economic factors which include inflation& deflation
trade, governmental activities, tax rates etc. Involvement of government is wider and it is
important to have proper awareness and knowledge of such factors so that firm carry out
their activities in appropriate manner. In relation with Ryan Air, the aviation industry was
affected a lot and cost of production increases which results in decrease in profit share.

(Hamilton, 2018).
 Social Factors- In this, it involves buying habits, size, taste, lifestyle, etc. These variables
are crucial in business so that market is examined properly and right marketing concept is
carried out effectively. Ryan Air focuses on these factors so that total satisfaction is given to
customers. Such as customers demand on high speed of airlines with short routes and this is
done only by proper considering market research where there is need as well as requirement
for the change. By examining these factors, it become easy for the firm to identify the
customers switching behaviour and their need as well as requirement.
 Technological Factors- In this factor, it comprises of advance use of tools and technology,
Adopting Artificial Intelligence etc. Yes, technology is essential for society and business as
well but due to excess use resources are touching the scale of scarcity. In context to Ryan
Air, they are enhancing their digital platform such as E-booking via websites and apps. It is
crucial for entities to improve their digital platform base so that there is ease of access to
national as well as international market. Degeree of exploring opprtunity will be enhanced
and acquisition of customers increases at rapid level.
 Environmental Factors- Another external factor which affect the organisation is
environmental factors in which temperature, pollution, weather etc. take place. In relation
with Ryan Air, they are affected by these forces and properly follow rules and regulation of
EU policy (Tóth, 2020).
 Legal Factors- In business, it is essential to keep eye on legal activities inside as well as
outside the firm. Laws, legislations drive the activities of business in appropriate manner so
that conflicts and errors do not arise. In context to Ryan Air, firm may has to follow rules
and regulations from both EU and UK due to Brexit. It is important to maintain these legal
factors so that business performs its functions and operations in proper manner.
SWOT Analysis
Every organisation wish to take competitive advantage in market to survive in this era of
competition. Market is expanding at rapid level and ample number of factors are involved which
affect the business growth. Enterprise use techniques and frameworks to analyse those factors
which are has impact on development and expansion (Trigkas,2020). SWOT Analysis is framework
used by Ryan Air to track and identify the strength, weakness, opportunity and threats. It is used by
entity as instrument tool so that market situation and uncertain activities are known. This
framework act as strategic planning tool and require skills as well as expertise knowledge. Degree
of competition is also analysed when SWOT is used by firm. It also track rivals and competitors

tactics so that preventive measures are taken whenever the difficult situations arises.
SWOT ANALYSIS
STRENGTH
 Ryan Air main strength is that they
provide services at affordable rate which
results in high profit share growth.
 Firm operate in European countries and
covering approx. 300-400 destinations
which depicts larger market area.
 Loyalty of customers has increased the
brand value in market (Büyüközkan,
2019).
WEAKNESS
 Labour law, wages and compensation
might affect the functioning of business.
 Flights of Ryan Air flew at more than
stated/ high altitude which may cause a
problem for organisation.
 Firm cannot increase their services rate
due to increase in competition from other
aviation industries in market.
OPPORTUNITY
 More new regions and countries can be
covered by myRyan Air and business can
be expanded at both national as well as
international level.
 Chances of rise in skilled staff and
employees due to effective policies and
procedures of HR department.
THREATS
 Due to fuel prices and fluctuating market
situations, organisation structure is
affected at broad level and may hold up
the sales revenue for period of time.
 Ample number of carriers are available in
market which leads to high competition
and distraction from core operations.
After brief analysis of above matter, it is stated that internal capabilities of organisation are
important to overcome with challenges and threats appropriately. By analysing these internal
capabilities of firm effective strategies and tactics are formulated so that objectives are achieved in
properly (Niranjanamurthy, 2019).This framework is times consuming and require focus so that
entity area able to examine the situation of market. New methodology can be used to expand
business and its activities. SWOT Analysis is used by organisation to identify capabilities of firm so
that resources are used efficiently and effectively. Manpower efforts are also used at wider level
where the improvement is required. Thus, decision making is done wisely.

2. Analyse challenges faced by Ryan Air
In market, there are many forces which affect the business and its activities at wider level. It
is important to identify and deal with issues and consequences so that all the functions and
operations are performed proper manner. Different types of tools and techniques are used by
marketers to analyse the problems so that effective decision making is done in organisation. In
context to Ryan Air, firm with help of research and development team is able to deal with such
issues which slow down the growth as well as development of business. PESTEL and SWOT
Analysis has been used to examine the enterprise issues. After a brief study of these frameworks, it
is seen that main challenges which are faced entity are Brexit and EU policy. It is necessary for
organisation to focus on these two sectors so that business structure and management does not get
affected.
Brexit might force Ryan Air to adopt and follow both policies UK and EU too. This can
affect the profitability and higher taxes lead to low generating profit as well as sales revenue. Also
EU policy’s rules and regulations might change the structure of business and this has deep impact
on employees and labours (Pan, 2019). These issues can be solved by adopting laws and legislations
and by proper monitoring the governmental activities with help of legal team of the company.
Immediate attention is required on such consequences to be prepared for future perspective. Market
research and deep understanding is required so that EU policies are followed and maintained by
entity effectively. It is also stated that involvement of government is wider in UK in business sector,
so positive relationship is to be maintained by enterprise which helps in achieving the goals and
objectives properly. Ryan Air, can deal with this issue by improving HR department and
implementing new strategies as well as tactics within the enterprise.
Brexit slow down the growth of business and also creates problems for small and large
manufacturers by implementing trade policies and transportation cost high. Due to this,
organisations lower the product cost to maintain the stability of business. In relation with Ryan Air,
they provide services to customers at affordable rate but involvement of (Brx) might affect their
brand value in market ( Kara, 2018).
3. Present solution for the analysed problem by using management concept and
theories
In management there are ample number of concepts and theories which are used by
organisations in proper manner whenever there is need and requirement. Skills, knowledge and
expertise are required to understand so that effective decision making is done in the firm. These are
essential for business because they help in identifying and analysing problems, preparing solution

for the issues and adopting preventive measures to be prepared for future perspectives. In context to
Ryan Air, they use these theories and concepts so that business is able to achieve its mission &
vision in appropriate manner. Discipline and structure is maintained in the management when these
are adopted by entities. Marketing team of Ryan Air is well organised and which assist them in
preparing solution for challenges properly. One of the concept which is used by firm for handling
the problem is problem management and which is discussed below-
Concept
Problem management-
It is the process or method of identifying and monitoring the problems which occur during
the business activities. With help of this concept, Ryan Air is able to make effective decisions
regarding the issues and challenges which are faced by entity. This process is time consuming and
requires resources and information to deal with the problems. It contain various stages which are
mentioned below-
Problem and knowledge management- In this aspect, it depicts the relationship between
problem & knowledge because solution is only possible when there is skills and knowledge of
particular area. Thus, it helps in making effective strategies at faster speed. In relation with Ryan
Air, their staff and employees perform their roles & responsibilities in proper manner by applying
their knowledge effectively. But as there are many fluctuations in Brexit, market research is used by
firm so that entity remains aware about the policies (Homburg, 2017).
Pm and Change management- In organisation, business is dynamic in nature and change is
necessary to achieve goals and objectives in proper manner. In change management, it states that
changes in the firm are to be done in the entity without disturbing the employees and management.
Ryan Air may change the structure of business because of following and adopting EU policy in near
future.
Theory-
Theories are important for management so that business operates in proper manner and to
overcome the problems and issues in enterprise. In relation with Ryan Air, firm uses system
management theory to solve the problems in proper manner. This theory has been explained below-
System theory helps organisation to work as well organised structure so that all the
activities, functions and operations are performed in appropriate manner. It also provide
understanding and thinking of entity as a whole. It has various elements such as input, output,

throughput and feedback. Different types of systems take place such as open and closed. In open,
environment is being countered by firm continuously and this result. Ryan Air uses this system so
that changing and trends about Brexit are known easily. Closed system are those in which
environment is not countered by firm.
Main benefit of this theory is that it assists entities to deal with challenges and threats in
appropriate manner. Also, Ryan Air uses this theory so that changes by EU policy can be handled in
proper way by interacting with environment and awareness in the market using sources and market
research. EU policy’s, rules and regulations affected the aviation industry at deeper level. It is
essential for enterprise to adopt this theory so that effective measures are taken and Brexit as well as
Policies are maintained and managed in the management effectively ( Akpor, 2018).
Another theory which is useful for providing the solution of problem is Contingency
Theory which states that in a firm as well as market there are numerous factors ways to deal with
situations by using different methods. With help of this theory, new ideas and thoughts are
developed as well as used in the organisation. In context to Ryan Air, they use this theory so that
situations and problems are managed and handled in proper manner. Large and small,
manufacturers are affected by Brexit and this issue can be solved by using effective leadership skills
so that personnel in entity are able to understand the system of policies and procedures. Also, EU
policies influence’s the aviation industry to extend their business into their country so that economy
increases at rapid level. Using this theory, Ryan Air through proper market research is able to deal
with consequences and such issues (Cepel, 2018).
After a brief analysis of above matter it is stated that theories and concepts are essential for
management so that vision as well as mission are clear. Organisation uses them so that there is well
organised structure and discipline is maintained within the firm. Problems are difficult situations are
meant to be occur in business and they are solved within time period by use of these concepts as
well as theories. So, for proper functioning of business, it is important to adopt these two so that
conflicts and errors are minimised and reduced in the operations.
4. Present short summary on the written report
Organisation performs numerous numbers of functions and operations and which are
maintained and managed in appropriate manner. Internal and external factors affect the business at
wider level. So, entity uses various frameworks such as PESTEL Analysis has been used to analyse
the external factors. To examine the internal capabilities SWOT is taken as important tool. While
preparing this report, I have analysed that without proper understanding of management and
business it is not possible to achieve the goals and objectives. So, concepts and theories has been

used to solve the issues and problems and which results in implementation of effective strategies
and tactics. Also, rules as well as regulations are being considered carefully to avoid the conflicts
and errors in future perspectives. Time and knowledge are involved in the report and which leads to
gathering of reliable information and data (Hamilton, 2018).

CONCLUSION
In corporate world, business environment is crucial as much as other activities. With help of
business environment entities are able to increase employee motivation and morale and which
results in higher productivity. Concepts and theories play vital role in management and in decision
making. Also, to stabilised the business and survive in market it is essential to analyse the both
external and internal factors & their impact on functions as well as operations. So, high level of
expertise are required so that well organised management is established within the firm. Proper
understanding of business and knowledge is important so that development and expansion of
enterprise is done effectively.

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