Contemporary Developments in Business and Management

This report explores the contemporary developments in business and management, focusing on external factors, Porter's Five Forces Model, and customer relationship management. It discusses the influence of political, economic, social, technological, environmental, and legal factors on the functionality of a business entity. The report also analyzes the relevance of customer relationship management to Ryanair, an airline company, and its impact on policies and decision-making. It highlights the importance of building positive customer experiences and loyalty for business success.

Contemporary
Developments in
Business and
Management

INTRODUCTION...............................................................................................................................3
TASK 1.................................................................................................................................................3
External Factors which influences the company functionality as well as its importance...................3
Porters Five forces Model..................................................................................................................6
TASK 2.................................................................................................................................................7
i. Analyse its relevance to your chosen organization and how it influences policies and decision-
making within your chosen organization or industry-sector..............................................................8
ii. Critically evaluate the effectiveness of the organization’s response............................................10
iii. (If possible and appropriate) demonstrate some areas for improvement in the response of the
organization.....................................................................................................................................11
CONCLUSION..................................................................................................................................12
REFERENCES..................................................................................................................................13

INTRODUCTION
In the present competitive environment, it is said that large number of business
organizations operate there functions in order to gain success and competitive advantage at
the marketplace. For this, there need to some contemporary business practices which needs to
be adopt by the managers so they can effectively implement all the business activities at
workplace in an effective manner (Alvarez, 2016). Organisations operates their business
functions across the global level which assist them in order to enhance their overall
profitability and revenue. Hence, it can easily be understood that contemporary business
practices help a business managers in order to gain knowledge related to the culture of a
country so they can gain competitive advantage at the marketplace. In the present report,
Ryanair is selected as the basic business entity which is an airline services along with its
subsidiaries which are in Malta air, Lauda, Ryanair United Kingdom. The airline company
was established in the year 1984 by Michael O'Leary and its head office is located in Dublin,
Ireland. The present report includes various elements which consist of the external factors
which influences the effectiveness of a business entity and its performance. Along with this,
it includes discussions about customer relationship management which assist in maintaining
goodwill of the company and its policies which affect the overall functionality of the
business. At the end of this, suggestions are also going to be discussed in order to improve
the overall performance of the company.
TASK 1
External Factors which influences the company functionality as well as its importance
Business environment includes both internal and external environment which have the
capability to influence overall performance and functionality of the organization in both
positive as well as negative manner. External elements highly influence the overall ability of
the businesses which directly affect the decision related to the attainment of organisational
goals along with predefined targets (Katsitadze and Tushishvili, 2020). In the present
business context, Ryanair is chosen as the base company which is an airline company which
was established in 1984 where the headquarter is located in Ireland coined by Michael
O'Leary. The management team of the company decides to know the influence of external
elements which affect the overall business functioning. For this, PESTLE analysis is used by
the management team which are going to be discussed in detail linked with Ryanair airlines:
PESTEL analysis

This is one of the most effective framework used by large number of business
organizations in order to understand the impact of external factors on the business activities
before starting their operations. This method includes various factors such as political,
technological, legal, social, environmental which have their own affect. Managers of Ryanair
airlines conduct PESTLE analysis for the company which are discussed as follows:
Political factors:
These are the factors which includes interference of government while developing
policies and strategies of the company. It consist of the factors which are political stability,
taxation policies, trade policies, trade tariffs and so on. In the present context of Ryanair
airlines, the main earning of the organization is gain from United Kingdom where they grab
huge market share and strong customer base at the marketplace of UK. In addition to this, it
has also been said that entry of Brexit at the marketplace of UK, highly affect the economic
system of the nation in a negative manner which affects the overall performance of Ryanai.
Along with this, it has also been identified that due to this, overall profitability of the
company reduces. Furthermore, political stability within UK is good which assist the
management team of Ryanair in order to expand their business easily which leads to enhance
the profitability along with market share of the company.
Economic factors:
It includes factors like exchange rate, interest rate, currency rate, employment rates
and many more which have huge role in the success of a business entity at market area. In
reference to the present organization Ryanair airlines, it is said that recession in the
marketplace of UK negatively influence the overall earning of the airlines. Due to financial
crisis there is a decline of growth and development of Ryanair airlines within EU countries.
Along with this, it has also been said that raise in the fuel prices force management team to
increase their charges which as a result decline the customer base of the company within
airline industry.
Social factors:
It consist of all those components which are of value system, beliefs, culture,
traditions, norms, opinions and many more. All these people highly affect the overall
functionality of the business entity at the competitive marketplace (Axelsson, 2018). In
reference to Ryanair airlines, it is said that the low cost strategy raises the overall level of the

middle class individuals which as a result increases the demand in going for such trips more.
It has been identified that the airlines have strong market position and operates in around 320
routes. Therefore, management team of the company consider the needs and preferences of
customers so they can retain them for a longer period of time.
Technological factors:
It is one of the most effective element which have their own impact on the business
functions. It is said that in the present world, almost every person need highly advanced and
innovative services as they pay more for them and demand satisfaction. It has also been said
that due to rapidly changes in technology each and every organization requires technological
advancements so they can competitive edge (Barrett, 2016). In the present context of Ryanair
airlines, the higher authorities of the business entity adopt digital communication techniques
in order to reach their target audiences in a systematic manner. Also it helps in understanding
the behaviour of customers by examining the customer's data provided by them on their
online platforms. Apart from this, it has also been analysed that by adopting highly advanced
technologies assist in attracting more and more customers towards them.
Environmental factors:
It consist of all those factors that influence the overall environment such as weather,
climate, environmental offsets, global changes & so on. Along with this, it has also been said
that people in present era are highly concerned towards the healthy environment. In relation
to the present context of Ryanair airlines, the business entity uses innovative aircraft which
consumes less fuel and secure the overall environment of the country in a positive manner.
Along with this, it has also been said that as per the CSR report, the airline company follow
each and every laws and legislations related to the safety environment.
Legal factors:
It consist of all those legislations which needs to be adopted and followed by each and
every business organisation so they can legally perform all the functions in an effective
manner. In addition to this due to exit of UK from EU fully changes the legal policies of
United Kingdom. As a result there is a burden arise on the company which as a result reduces
the overall efficiency of the company in an adverse manner (Grefen and Turetken, 2020).
Furthermore, due to restrictions among EU & UK there is a decline in the demand of
organization as well as reduces the overall sales of the airlines Industry.

Porters Five forces Model
This is the another model used by management team of Ryanair airlines in order to
understand the competitive position of the company at the marketplace of within the sector.
Main elements of this model are going to be discussed as follows in context of an airline
company:
Threat of new entrants: It has been said that for entering into the airline industry, huge
amount of investment is required which is one of the most difficult task. In reference to
Ryanair it is one of the well known company in context of their services and low cost from
year 1985. In this case, threat of new entrants is quite low as it needs huge investment, high
maintenance cost, survival cost, regular innovation expenses and many more (Shet, 2020).
Along with this, if talking about Ryanair company having strong market position as they
promote their services on various methods such as online websites, newspaper, television and
on social media. Therefore, it becomes very difficult for the business organisation to enter in
this industry hence, company having competitive advantage at the marketplace.
Competitive Rivalry: The competition among rivalry organisations within airline
industry is high due to large number of competitors firm available at the marketplace. Major
competitors like Easy Jet reduces the overall sales of the company as they provide similar
sort of services to their customers. For this, Ryanair airlines adopt low-fare policies in order
to attracts large and large number of people towards them. Along with this, they also
emphasize on developing marketing strategies which assist them in order to maintain positive
market position of the company.
Threat of Substitute: It refers to the strategy where large number of substitutes are
present at the marketplace which affect the overall profitability of the company. There are
large number of people who choose different mode of transportation according to the budget
as well as price of the individual person. People choose low budget transportation such as
buses and trains according to their requirements (Prasetyo, Setyadharma and Kistanti, 2020).
Along with this, customers chose other airlines services who provide high quality service as
compare to them. Therefore, it has been concluded that there are large number of substitutes
available at the marketplace.
Bargaining power of suppliers: In the present context of airlines sector, it is said that
the bargaining power of suppliers is high as there are very few suppliers available at the
marketplace. In reference to the present airline organisation Ryanair, the business entity have

a contract with Boeing business entity who mainly deals in supplying technical support tools,
spare parts, and products to Ryanair. It has also been said that the higher authorities of the
business entity maintain positive and strong relationship with their suppliers. This will help
them in order to give all the required services on time which as a result leads towards the
attainment of organizational goals.
Bargaining power of Buyers: In The current competitive environment, customers are
the king of business world as they are highly aware with the prices as well as about the
competitors before they take services from the company. As a results this forces the airlines
Industry to lower down their cost as compare to their rivalry business entity (Brewster, 2019).
In the present context of Ryanair, the airline company tries to reduce the customers
bargaining power by providing them high quality and best services within limited or
affordable price. Along with this, they also provide various sort of offers to their customers
such as discount vouchers on special occasions so they can retain them for a longer period of
time. This as a result assist them in order to strengthen their customers base at the
competitive marketplace.
TASK 2
Customer relationship management is related to the principles, practices as well as
guidelines which an business firm follows while interacting with customers. As per the
viewpoint of business firm, overall customer relationship is encompassing directly with
interaction among customers like sales and service-related procedures, forecasting as well as
analysing customer trends and behaviour. Thus, it can be said that customer relationship
management service is related to enhance overall customer experience. In addition to thus,
elements related to customer relationship management is range from website of company and
emails to mass mailing and telephone calls (Cui and Li, 2017). Moreover, social media is the
way that an busines firm cam adopt to trends which result in benefit their bottom line. Overall
aim of customer relationship management is to build positive experience with customer for
keep them coming back so that business firm will able to create growing base of returning
customers. Along with this, an business firm utilizes different correspondence medium so as
to make great associations, for example, phone, sites, live visit, web based life, email and
some more. By the assistance of this strategy, the supervisors find out about the necessities
and prerequisites of their clients and addition more information about objective and possible
crowds. Organizations utilizes CRM programming so as to gather and keep up information

about its client's and arrive at current and likely clients. Additionally, they dissect the
information to improve their administrations and products according to the detail of their
clients.
i. Analyse its relevance to your chosen organization and how it influences policies and
decision-making within your chosen organization or industry-sector.
Customer relationship management is related to the principles, practices as well as
guidelines which an business firm follows while interacting with customers. Overall aim of
customer relationship management is to build positive experience with customer for keep
them coming back so that business firm will able to create growing base of returning
customers. For better understanding of overall concept Ryanair has been selected which is
Irish Budget airline founded in 1984. It is headquarter at Swords, Dublin but its primary
operations are bases at Dublin and London Stansted airports. Respective organisation was
founded in 1984 on 29th November as well as commenced in 1985. Along with this, Rayanair
is using customer relationship management approach for making good relation with customer
as well as for gaining their loyalty also which is primary motive of an business firm. In
addition to this, respective organisation provide high quality services to their customers so
they will able to gain good experience form its services as well as remain loyal to respective
company. In addition to this, implementation and execution of customer relationship
approach will result in enhancing profitability of Ryanair in effective manner. Moreover,
company will develop such services that provide advantages to both customers as well as
company in effective manner. Although, higher level authority of Ryanair found it relevant
that customer relation management will provide them assistance in engaging their customer,
stakeholders, employees, society and several people who are related to company benefits.
Customers – Within airline sector, it is essential foe business firm to provide best
experience to customers. Because long term survival of company is totally depended on
customers. In relation of Ryanair, they provide personalized services to customers so they
will be able to enjoy as well as feel comfortable while using services. The supervisory group
of the organization takes input from the clients with the goal that they can improve its
administrations which further prompts productivity (Lawton, 2017). They send Thanking
mail to clients so as to cause them to feel extraordinary and esteemed. For example, A lady
drop and guaranteed organization to discount its sum because of her mom died, the
organization discount the sum with in an hour with delicate and kind words. It shows that
Ryanair thinks about its clients issue and invests amounts of energy in keeping up great

relations with the clients. Notwithstanding this, they comprehend the conditions just as
circumstances of clients. along with this, Ryanair have team which provide 24 hour online
services to customer as well as resolve their issues. Thus, it will help business firm in
fulfilling customers demand within required time so they will be able to utilise services and
remain loyal with company.
In some situation, customers get frustrated when issues arise while making payment
and then they change their decision and prefer to travel with other flights. Thus, for resolving
this issues company used path analysis that allow them to identify medium which customer
use for making payment. So manager of respective company add some other mode of
payment also so that their customer will not face difficulty while doing payment. Moreover,
company also focusing on their boarding process, check-in process as well as booking
procedure so they will be able to offer good services to their customers. In addition to this,
offering club membership by Ryanair to their customers in that they will get exclusive offers
as well as services while booking flight with Ryanair. This strategy will provide assistance to
respective company in attracting more customers to purchase services that automatically
result in enhancing level of sales. Moreover, company conduct survey as well as research
within market so that they will be able to get knowledge related to latest trends as well as
taste and preferences of customers and many other so that it ill assist me in making customers
satisfy within effective manner. Along with this, company give personalised message on note
cards for making them feel valuable part of company. From the above mentioned, it has been
expressed that organization utilizes various systems and invests additional amounts of energy
in keeping up great relations with clients. The organization is consistently be on chance that
is they can lose clients whenever. So as to decrease the degree of hazard, the organization
should meet the desires for clients which is useful for both organizations just as clients.
Investors – They are the one who invest within company as well as source funds. It
play important role in organisation for increasing as well as decreasing share of company in
their hand. Along with this, they analysed that higher-level authority plan high role in
customer relation management of company. Along with this, investors of company have
knowledge related to company targets and goals. In addition to this, customer relationship
management provide assistance in making customer satisfy which result in enhancing
revenue of company and this directly affect investors and they invest more in company. With
assistance of this, Ryanair will able to get high market share and reputation within market
area.

Competitors – They are the one who affect sales as well as profitability level of
company. Competitors have power of changing business scale in both positive and negative
manner. In relation of Ryanair, manager of company do planning related to elective
marketing strategy for strengthen relation with customer. Moreover, customer relationship
management approach provide assistance to company in building good relation within
customer so they will not switch to another brand and remain as loyal part of organisation. It
also provides assistance in gaining competitive advantages as well as building high market
position. Along with this, CRM help business firm in enhancing customer base in comparison
of their competitor’s which every business firm want to for long term sustainability within
market area.
Public – At present people prefer online services in comparison of offline because it
save time of customers and help in conducting operations easily. In relation of Ryanair,
marketing team of company advertise related to their offerings on several social media
channels like Instagram, Facebook, Twitter, LinkedIn and several others. In addition to this,
communication channel provide assistance to business firm in giving services to customers
on time as well as resolve their issues in faster manner. Strength of Ryanair is to strengthen
relationship with customers for long term.
ii. Critically evaluate the effectiveness of the organization’s response.
Customer relationship management have potential impact on Ryanair Airlines as
customers are important assets of company as well as major reason behind their survival in
market area. Thus, CRM play important part because for company because for them
customers always matters a lot. CRM help organizations in building great relations with its
objective just as possible clients. Client relationship the executives drives client steadfastness
for long haul which is advantageous for both organization and buyers. It helps in overseeing
and recognizing the necessities and inclinations of clients and along these lines improve the
administrations according to their clients prerequisites. With this, the promoting group who
uses and lead this methodology make the information and fellows of intrigued clients which
an organization can change over into genuine client in future and in this manner builds its
deals. By thusly, they chop down their time and cost also. Through CRM exercises, Ryanair
gathers the criticism of its clients which help them in coordinating the desires for clients and
improving the administrations which they offer in the market. The positive part of CRM is it
fabricates solid relations which further solid the situation of organization in showcase. CRM
instruments, for example, Twitter, Facebook, LinkedIn reachability is wide that builds the

client base and offer of organization. Cooperating with clients on ceaseless premise and
remain contact with them feel client's esteemed and unique which further helps organization
in keeping up inspirational attitude of customer. By the assistance of CRM approach, Ryanair
handles the issue and issues of clients adequately or in a suitable way.
Along with this, client relationship the executives have negative viewpoints moreover.
Utilizing new advances in causing associations with individuals here and there to happen
significant expense for the organization which legitimately decay the income of the
organization. In giving the administrations to individuals, the organization needs a group who
allows administrations 24 hours and this may happen significant expense for the organization.
On the off chance that the association not ready to satisfy the guarantees that had finished
with the clients makes the negative outlook of clients towards the organization. Helpless
correspondence and administration aptitudes additionally influences the organization picture
in market and therefore organizations didn't manufacture great relations with representatives.
Organizations utilizes CRM programming in keeping up the information of client's builds the
expense of the organization. For this, organization charge high sum from clients which
straightforwardly decay the degree of deals of Ryanair.
iii. (If possible and appropriate) demonstrate some areas for improvement in the response of
the organization.
Ryanair is offering airline services as well as it is well known for their high quality
offerings within low fare. Respective organisation adopts effectual strategies for long term
sustainability and success within their respective industry. But there are some area which
required to be work by Ryanair so they will be able to enhance customer base as well as
improve market position. Moreover, it is important foe respective business firm to follow
each and every legislation related to their industry so that they will not waste time by
engaging in any legal considerations. Along with this, it also results in decreasing financial
burden that positively have wide impact on pay scale of employees. With this, the
organization need to concentrate more on ensuring the earth by embracing the ecological
agreeable innovation. What's more, the organization can spend sum in CSR exercises so as to
improve the expectations for everyday comforts of individuals of society. It will help Ryanair
in making solid associations with the individuals of society. So as to use the assets ideally
and proficiently. In addition to this, HR manager of company must have to hire talented as
well as educated employees who will help company in enhancing their productivity. With
this, the organization offers openings for work in the market that can improve the financial

conditions too. Moreover, the organization considers the procedures of its rivals while
making arrangements for improvement with the goal that innovative and compelling system
can be assembled which prompts increment in the degree of benefits. It likewise help
organization in making position in market and addition upper hand. Finally, the
administrations or mechanism of correspondence with clients can be improve so as to
increase steadfast clients and building connections in the market.
CONCLUSION
With the assistant of above stated information, it is concluded that an organization is
highly surrounded by various external factors which influences the overall functionality and
operations of the organization in both positive and negative way. For this, PESTLE analysis
is conducted in this report which help in identifying the factors and their influence on the
growth of business organisation at the competitive marketplace. It has been concluded that
with the effectiveness of marketing strategies a business organisation can gain more
profitability by attracting large number of customers towards them. This is one of the most
effective and fruitful strategy which help in raising the customer base of the business entity
which as a result leads towards the attainment of organizational targets and objectives in an
effective way. In the present context of Ryanair, the top management authorities of the
business entity emphasize on developing strategies which assist in maintaining relationship
with customers in long run. Customer relationship management help business organisation in
order to improve their relationship with potential and loyal customers.

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