business strategy

Business Strategy

INTRODUCTION
Business is an entity which is entrusted with the role to earn maximum profit and
generate maximum income from the activities of business. It is important for companies to come
with strategies that can help them to take the competitive edge in the market. Business strategy is
referred to as the means through which the company can set its desired targets and work on to
achieve it. It is generally the long term planning of the business which consists of guiding
principles which helps in generating the pattern of the decision-making (Aluchna, 2018). The
organisation chosen for this report is Ryanair, an Irish airline which is headquartered in Swords,
Dublin. It has sister airlines, namely Ryanair UK, alta Air and Buzz. It was founded in the year
1984. This report shall cover the appropriate models for internal and external analysis, porters
five forces and business strategies using porters generic and bowman strategic clock.
TASK 1
P1 Applying appropriate frameworks analyse the impact and influence of the macro environment
on a given organisation and its strategies.
The external environment is a condition which exist in whole economy. It comprises of
the external factors which affect the working of business and influences its working. Business
strategy is the principles and techniques that is used by companies in order to achieve the brand
image in market. The company Ryanair is planning many business strategy so that it can ensure
smooth running of it by attaining the goals.
The mission statement of Ryanair is to offer the low fare so that increased passenger
traffic can be generated thereby continuously focusing on cost and efficiency operations.
The main objective of organisation is to set up itself as the leading low fare company in
Europe by continuous improvement and the expanded offering of low fare service.
Different strategic planning techniques
 Business analysis: It is a practice that helps the company in acknowledging its strength
and weakness and Ryanair can take right decisions by identifying its loopholes in
operations of business.
 Benchmarking: It is a practice where the company compare its competitors so that it can
establish the brand image in market. Ryanair can compare its growth with its competitor
so that it can also establish its brand image (Carlier and et. al., 2019).

Various analytical framework to acknowledge macro environment
PESTEL analysis
It is a framework which is used to analyse the key macro environmental factors which
influence the working of company from outside. In context to Ryanair, the PESTEL analysis is
narrated below- Political- It involves the extent to which the government intervene in economy. In
relation to Ryanair, when the passenger tax rate increases, it places negative impact on
sale of ticket. The government of UK has three times increased the rates of tax which
made the tourist scared thereby affecting the sales of company. Economic- It is concerned with the how business is done and how profitable it is. It
includes economic growth, exchange and interest rates, etc. In relation to Ryanair, the
price of pound began to weakened which created the strong barrier and affected the
company badly. UK experienced the squeeze on the spending power of passenger which
affected the profitability of Ryanair. Social- It involves shared attitude and belief of the population. In context to Ryanair,
recently the people of British have began to travel whereby this changing habit have
influenced the short and long distance travelling. This contributed in sales increments as
Ryanair provides low cost flights. Technological- It involves the changes in technological landscape and its impact in
market. In relation to Ryanair, the company can utilise the technological advancement in
providing enhanced service to its customers such as using mobile application to book
ticket, etc. Legal- It involves the compliance with legal norms and rules which helps in successful
trade for business. In context to Ryanair, it uses lost cost strategy which may be
problematic for company as after Brexit, it is required to comply with both UK and EU
laws (Kamesh and Jin, 2018). Environmental- It is concerned with the environmental changes which influence the
working of business. In context to Ryanair, the carbon footprint have been the alarming
point for company so it might affect the operations of airline industry.
Stakeholder analysis