Business and Strategic Management

Running head: BUSINESS AND STRATEGIC MANAGEMENT
BUSINESS AND STRATEGIC MANAGEMENT
Name of the Student
Name of the University
Authors Note

1BUSINESS AND STRATEGIC MANAGEMENT
Executive summary:
The following study is based on the case of Ryan air. The aim of the study is to analyse the
business of the Ryan air and prepare the strategy for the company. The main scope of the study is
that it explains about the resources of the company by using the VRIO model and analyse the
importance. The environment of the company has analysed based on the SWOT and prepare the
strategy by using the TOWS model. There also discusses about the implementation of
management change by using John P Kotter’s eight-step concept. The study has concluded that
that the Ryan company need to concern about the human resource management and the quality of
the service in addition to some major resources analysed in VRIO.

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Table of Contents
Introduction:....................................................................................................................................3
Discussion:.......................................................................................................................................3
Ratio Analysis:.............................................................................................................................3
VRIO analysis of RYANAIR:.....................................................................................................5
VRIO framework of RYANAIR:............................................................................................7
SWOT analysis of RYAN-AIR:..................................................................................................8
John P Kotter’s model of change management in Ryan air:.....................................................13
Strategic Recommendation:.......................................................................................................17
SAF strategic model:.................................................................................................................17
Conclusion:....................................................................................................................................18
References:....................................................................................................................................19

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Introduction:
Ryan air is the first budget airline, which has inspired by the U.S. budget airline. This
report is basing on the case study given by Elearon O’ Higgins. The report has analysed about
the strategies of the Ryan air Company. The report discusses about the resources of the Ryan air
and classified based on the VRIO model. The opportunity and threat of the company analysed
through SWOT analysis. To, determine how to compensate the threat and take the advantage
from the opportunity of the environment TOWS model has considered for the study. All the eight
steps of John P Kotter’s model has discussed for implementation of the management change in
the company. At the end of the discussion there is a couple of recommendation has given to the
management of company.
Discussion:
Ratio Analysis:
Interpretation:
The net profit margin shows a lower growth from 2010 to 2012 while the revenue shows
a significant growth this denotes that company has a lower control over the NPM. A rise in NPM

4BUSINESS AND STRATEGIC MANAGEMENT
shows that the firm has higher debt financed and maximum of the money flow out in term of
interest. The ratio of gross profit margin has addressed a positive result that shows that there is a
control over the pricing of the good and services.
Interpretation:
The current ratio of the Ryan air is more than the standard ratio that is 2:1 in 2012 while
in 2011 and 2010 it was less than the standard. The cash ration of the company also more than
that shows the company is able to meet the financial obligation.

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Interpretation:
In 2012, the company has given a less period as compare to the preceding years, which is
analysed from the above ration analysis. The asset turnover ratio has shows that the company is
fails to use asset in fully efficiently as it is less or equal to 0.50 in the year from 2012 to 2011.
Interpretation:
The debt ratio shows that around 45 percent of the assets has financed by long term or
short-term debts, which is under control for the last three years. In other hand, the company has a
good operating income that is able to meet the current liability of the company.
VRIO analysis of RYANAIR:
VRIO is a framework using for business analysis, which help the firm to establish the
firm’s largest strategic scheme. VIRO stands for valuable, rareness, imitability and organisation.
VIRO is the internal analysis of organisation but it main concern about the evaluation of the
resources of the firm, to identify the phase of it falls under (Kotler 2015). This strategic planning
tool helps the company to determine a effective business decision. The VRIO analysis address
about the different qualitative, quantities information and the interpretation of the information