Business Management and Strategic Management

Running head: BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
Business management and strategic management
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1BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
Executive summary
The study that will be represented in the report is a study based on Ryanair airline, which is the
largest budget airline in the Europe. Ryanair is the first budget airline in Europe that is holding its
position at the top with the help of its implementation of its strategic business model. The study
does the strategic analysis of the company, and evaluate its strategies and business model through-
SWOT analysis and Twos analysis, VRIO analysis, Kurt’s change management model and
conclude required strategic recommendations to improve low cost model.

2BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
Table of Contents
Introduction..........................................................................................................................................3
Section 1..............................................................................................................................................3
VRIO Analysis of the Ryanair.........................................................................................................3
Financial Calculations:....................................................................................................................5
SWOT Analysis of Ryanair:................................................................................................................7
TOWS Analysis.................................................................................................................................10
Kurt Lewis Change Management Model:..........................................................................................13
Recommendations on above analysis................................................................................................14
Suitability, Feasibility, Acceptability of Recommendations:............................................................14
Conclusions........................................................................................................................................16
Reference...........................................................................................................................................17

3BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
Introduction
Ryanair is the first and also the largest budget airline in Europe (Creaton 2014), and holding
its position at the top with the help of its implementation of its strategic business model
(Burghouwt2016). However, Ryanair have its own and unique low cost strategic model, where
Ryanair uses its resources to lower its cost of production and hence could provide services and
products at low fares (Barrett 2016). However, when another company EasyJet took over British
airline’s budget airlines, it exceeded the value of Ryanair airlines (Cattaneo et al. 2016). Somehow,
with its improved strategies, Ryanair managed to retain its position later, but with a slight
difference (Pereira and Caetano 2015). The main objective of the analysis presented below is to
analyse the market place and strategic management of the entity with the help of various models-
VRIO analysis of Ryanair, SWOT and TWOS analysis and Kurt Lewis’ change management
model, to identify the mistakes in Ryanair’s strategy and its low cost model, and also some
necessary strategic recommendations are provided for Ryanair strategy development.
Section 1
VRIO Analysis of the Ryanair
Value – Ryanair, being the first and largest budget airline, have managed to create and maintain its
value. The management strategies of the airline company have successfully able to use its resources
to meet the needs and expectations and so as to retrieve its value. Ryanair is able to maintain and
deliver the lowest price to its customer with the help of various strategies and factors such as,
airport charge reductions, government subsidies and its low-price business model and thus the
resources are deployed accordingly to meet the value (Barrett 2016).
Rarity – Government subsidies and airport charge reductions are generally very rare and in the
budget airline business, Ryanair is the only company to have airport charge reductions and
government subsidies (Cattaneo et al. 2016). Hence this is the rarest resources of Ryanair which