Context of Business

Context of Business

Table of Contents
Context of Business.....................................................................................................................1
INTRODUCTION.......................................................................................................................3
PESTLE and SWOT analysis for Ryanair..........................................................................3
Main problems being faced by Ryanair..............................................................................6
Solution of the problem .....................................................................................................7
Reflection ..........................................................................................................................8
Conclusion ..................................................................................................................................9
REFERANCES..........................................................................................................................10

INTRODUCTION
This study includes discussion over problems which are being faced by Ryanair, this is
Irish budget airline company. Ryanair was founded in 1984 and is headquartered at,Swords,
Dublin Ireland. This report includes the problems which are problems related to increasing
cost, uncertainties which have occurred because of Brexit. These problems have become worst
because of negative media coverage on its customer service, employee relations and disputes.
Discussion over such issues includes PESTLE and SWOT analysis of the airline. Later on the
basis of PESTLE and SWOT solutions for the problems have been proposed in the report.
Later short report of the experience while making assignment have also been included in this
report.
PESTLE and SWOT analysis for Ryanair
PESTLE analysis includes analysing and evaluating impact of external factors of the
organization. The recent economic depression that can shook all the airlines and industries as
the fluctuations of the economic, the airlines also has performed well as it has also experiences
an average growth of around 5 %. There are several challenges that can be faced by the firm
that includes regulatory frameworks,operational costs as well as demanding clientele. Pestle
analysis is a method where airlines firms can focuses on all the external factors that
impacting business.
Political
This includes impact of political factors of the country. In this decisions which are
made by political leaders of the country which affect business are included. One factor which
is political and affect Ryanair is uncertainties which have occurred because of Brexit (Buchan,
2017). In this UK is not a part of European Union. Government of UK have also increased its
tax on long and short distance journey which this also affect business of airline.
Economical
Economic factors that have a deep impact on the airline industry. The recessions made
both the economy as well as premium travelling declined. They also deals with the price of the
fuel as Price of oil for a budget airline is really a threat to its profitability. This factor also
gets affected from the expenditure of passengers and increasing expenditure of people on
leisure and travel is a positive factor for the airline. Thus airlines also struggled with

enhancing the demands regarding labour from the past of their staff members. All of above
factors also resulted in enhanced bankruptcies of the major airline firms.
Social
This factor is related with passengers who travel with Ryanair. This includes their taste
and preference. This is a budget airline which most of its passengers can afford but this is
unable to attract people who like to travel from luxury and high priced flights (Zahari and
Romli, 2019). Increasing tendency of people for holiday and travelling is a positive side of this
factor and people of UK also shows interest towards short haul distance which also a good
impact on the airline.
Technological
Technology has become very important element when companies want to succeed and
increase their customers and profitability. Ryanair also uses advanced technology. Increasing
interest of people for social media and internet have a very good opportunity for Ryanair so
that it can attract more people towards itself. Airline also offers facility of online booking so
passengers can book their tickets online and get all the updates from the website of the flight.
Legal
The significances of the technological can be focused on the use of the heavy
technology within industry airlines.This includes various rules and regulations which are made
to govern the airline. Rules related to safety of passengers, and being a airline there are various
other restrictions which Ryanair have to adhere to (Gupta, Gupta and Gupta, 2019).
Sometimes it is difficult for low cost airline to follow all the rules.
Environmental
This is the factors which is related with natural environment. Airlines have to consider
their impact on environment and as well as impact of environment on their operations. Carbon
footprint of the companies have become an alarming point and airline needs to find the ways
through which it can reduce carbon footprint. Countries and various organization pose
restrictions on carbon footprint and this may create difficulty for the airline to operate.
SWOT Analysis of Ryanair
This analysis help in analysing internal strength and weaknesses which may affect
opportunities and threats of company which exist in external environment.
Strength

 Its main and key strength is its low cost strategy.
 Low fares are also a strength of the company.
 Size, Ryanair is the largest short haul network in the Europe.
Weaknesses
 Ryanair for many years have performed poorly in polls and surveys (Leiber, Stensaker
and Harvey, 2018). This is because of the perception of people for a low cost airline to
perform good and ensures safe air travel at low fare and high punctuality.
 Seasonality of business performance and profitability. This also a weakness of the
Ryanair this is because its profitability is dependent on season in particular from July
to September.
 Employee Relations.
Opportunities
 Improves service of its customers.
 Increasing number of business travellers.
 New Aircraft and technological improvement.
 Apart from the Brexit Ryanair also focuses on various opportunities regarding its
growth. The huge amount of the aircraft orders also focuses on the Ryanair to
strengthen its positions of within Europe while decreasing its environmental impact as
well as fuel consumption by the use of the state to the aircraft. It also suggests that the
demands enhances within future as currently its markets is dominated through
traditional airlines accompanied by a high cost structure. Ryanair has applied the
program to enhances the consumer services as well as perceptions that can be
considered as another opportunity within enhance the low airline industry in all over
the Europe.
Threats
 Loss of Focus
 Increasing price of fuel.
 Misrepresentation because of media coverage.

Main problems being faced by Ryanair
On the basis of above analysis of the company and its environment main problem of
the Ryanair which requires immediate attention by the company is negative media coverage
(Barrett, 2016). There are negative media coverage about cost and charges of the company and
in this one subject of news also became confusing fares of Ryanair. Along with this company
is also facing negative media coverage because of its customers service and employment
relations of the company. This factors both are important factors and negative media coverage
can lead to reduce in customers and their loyalty for the company and airline and in relations
with negative media coverage on employment relations it should be noted that employees and
talent one of the key contributor of success of the firm and this situation can make it difficult
for the company to find competent and talented employees. There are various factors and
strength of the company which make it worth success. Factors like low fares allow passengers
to travel at less price and people can afford air travel because of low fares of the airline. This
is not just a strategy of the company for profit earning but also a favour to its customers.
Along with low fares airline also ensures safe travel and punctuality of the flights, this is
another important factor related to air travel which customers seek to have.
After this media is negatively affecting image and goodwill of the company. This is serious
issue and company needs to provide immediate attention to this problem. This is because
media presently is very powerful factor which can affect image and goodwill of the
organization and perception of people and customers are easily affected by the media and their
coverage. This requires that company pay attention to this problem and resist media to affect
perceptions of its customers and potential customers.
For this Ryanair needs to take strong action against media channels which are making negative
coverage of airline and its operations (Papatheodorou, 2016). Through media airline promote
itself so that it can attract more customers and in case media negatively impact perception of
people chances are really high that airline may lose its existing customers.
Negative coverage by media can also strengthen its competitors and weakens its competitive
position and may restrict it to take competitive advantage on the basis of its low price and low
cost strategy.
Another main problem of the Ryanair is under environmental factor of the airline.
Increasing concern of people for environment and increasing emphasis of the governments and

various other organizations to reduce the carbon footprint (Tran, 2019). This is because carbon
footprint be business organizations are really high and airlines also contribute significantly in
that. This requires Ryanair to find the ways in which it can reduce its carbon footprint and
contribute for environment sustainability.
Some other problems which are being faced by Ryanair are uncertainties because of Brexit,
staffing issues and increasing cost of the company. All these issues are serious as increase in
cost either requires that company reduce its profit or increase its fares and it cannot increase its
fares because of its low price policy then it can reduce its profitability. Brexit uncertainties
may impact its international business in Europe. Staffing issues are also important that
competent and talented employees contribute in success of the firm in case companies does
not have them it may negatively affect operations and functioning of the company.
Solution of the problem
The Corporate social responsibility focuses on both responsibility to interact ethically as well
as responsibility to make money accompanied surrounding community and secondly ,CSR is
also particular conception regarding responsibility to profit playing within a role within a
wider question of the welfare of the community. It focuses on the economic responsibility to
make the money as it needed through simple economies as the obligations to consider as the
best versions of the survival of the human (Țigu. and Stoenescu, 2017)
. Firms are unable to make profits within a market economy. Non – profit firms are also makes
money as well as private hybrids that able to operates without turning a profit. Here are some
cities as trash collection is also handled through firms.
Also the legal responsibility to focus all rules as well as regulations as all the responsibility is
not controversial. It also focuses to understand proactive duty as these laws are not consider as
boundaries.
There are the approaches followed such as Triple Bottom line
It is a form of the corporate social responsibility that focuses on incorporates three dimensions
regarding performance such as social, financial and environmental. It can differs from
traditional frameworks that involves ecological as well as social measures that can be
considered as a difficult to delegate the means of measurement (Țigu. and Stoenescu, 2017) .

Or in simple words it is one of the main system that can be used through business to acess
profits that are making by their corporate sustainability. It is one of the best markers that how
sustainable business a person have as well as how profitable it is.
Social sustainability
It measures the profits within human capital involves the position in local society. It is
increased through having fair as well as beneficial labour practices as by the involvement of
the corporate community (Țigu. and Stoenescu, 2017)
. It also measured with the influences of business actions on the local economy. According to
the social bottom line it focuses on the sustainability which is long term of the business human
capital.
Economic sustainability
It focuses on the approach of the sustainability that takes view the smaller influences the
business and also has the fewer as well as environmental natural resources that can be
consume as the longer it will be, longer the business could be. To control the environment
bottom line means that it can manages,reporting as well as monitoring consumptions as well
as waste as well as emissions (Zhang, Yang. and Wang, 2017). This types of the typical work
of the EHS department as it can be considered as the most sustainable business models as it
cam also make green polices corporate -wide values and waste reduction all over the levels
of the management. A committee of sustainability also needs to communicate the sustainable
goals all across several departments. Reporting as well as measuring the environmental bottom
line though depending on various sizes of the business, also it can be considered as time-
consuming.
Economic sustainability- It focuses on how much an influences on the business and on its
economic environment.
Stakeholder theory
The definition focuses on the stakeholder within any group or a person that can impact
through business firms. This theory deals with several discussion and a greater responsibility
towards the shareholders as well as also how they are able to complete their responsibilities.
The aim if the firm is underneath this theory so that it can maximizes profit with profit defined
and also maximizes the profit within a collective bottom not for the money but also for the
welfare of the human (Zhang, Yang. and Wang, 2017). It is considered as a collective bottom

line that consider as the total effect of the actions of the firm on the stakeholders. The
managers of the Ryanair that means ,it focuses primarily on the stakeholders request. While
on the other hands they spend other part of the day discussing and taking with other
stakeholders that what are the current plans that can boosts their interest (Bordelon, 2016).
Reflection
From the above I came to learn that problems which are problems related to increasing
cost, uncertainties which have occurred because of Brexit. Discussion over such issues
includes PESTLE and SWOT analysis of the airline includes analysing and evaluating impact
of external factors (Bordelon, 2016). Pestle focuses on several challenges includes regulatory
frameworks,operational costs as well as demanding clientele as airlines firms can focuses on
all the external factors that impacting business. I also learn that Low fares are also a strength
while firm also needs Improves service of its customers. Increasing price of fuel is a threat of
the firm as it increases the fair of the airlines which ultimately decline the consumers to travel
on airline. After that I also learn like low fares allow passengers to travel at less price, ensures
safe travel and punctuality of the flights, this is another important factor related to air travel
which customers seek to have. I also got to learn that media plays both positive and negative
roles to attract more customers and also to lose its existing customers. main problem of the
Ryanair is under environmental factor of the airlin reduce its carbon footprint Corporate social
responsibility focuses on both responsibility to interact ethically as well as responsibility to
make money accompanied surrounding community and secondly ,CSR is focuses on the
economic responsibility to make the money such as Triple Bottom line through business to
access profits that are making by their corporate sustainability Social sustainability increased
through having fair as well as beneficial labour practices as by the involvement of the
corporate community. I also learn theory so that it can maximize profit with profit defined and
also maximizes the profit within a collective bottom not for the money but also for the welfare
of the human (Bordelon, 2016).
Conclusion
From the above it had been concluded that pestle as well as swot analysis as it focuses
on Political includes impact of political factors increased its tax on long and short distance
journey which this also affect business of airline enhancing the demands regarding labour
Social factors such as related with passengers who like to travel from luxury and high priced

flights. Ryanair also uses advanced technology offers facility of online booking so passengers
can book their tickets online and get all the updates from the website of the flight.

REFERANCES
Books and Journals
Barrett, S.D., 2016. Ryanair and the Low-cost Revolution. In Air Transport in the 21st
Century. (pp. 163-178). Routledge.
Buchan, J., 2017. Lessons from Ryanair. Nursing Standard (2014+). 32(11). p.28.
Gupta, A., Gupta, N. and Gupta, M., 2019. British Airways-A SWOT and PESTLE Analysis-
The impact of Europe 2020 policy. NOLEGEIN-Journal of Corporate & Business
Laws. pp.1-11.
Leiber, T., Stensaker, B. and Harvey, L.C., 2018. Bridging theory and practice of impact
evaluation of quality management in higher education institutions: a SWOT analysis.
European Journal of Higher Education. 8(3). pp.351-365.
Tran, Y., 2019. Challenges the airline industry faces at present(Doctoral dissertation).
Zahari, A.R. and Romli, F.I., 2019. Analysis of suborbital flight operation using PESTLE.
Journal of Atmospheric and Solar-Terrestrial Physics. 192. p.104901.
Zhang, Q., Yang, H. and Wang, Q., 2017. Impact of high-speed rail on China’s Big Three
airlines. Transportation Research Part A: Policy and Practice, 98, pp.77-85.
Bordelon, B.M., 2016. To travel or not to travel: exploring food allergy policy in the tourism
and hospitality industry.
Țigu, G. and Stoenescu, C., 2017. Stopover Tourism–connecting airlines, airports and tourism
organizations. Knowledge Horizons–Economics, 9(2), pp.54-58.
Papatheodorou, A., 2016. Airlines and tourism: interrelations and trends. In Air Transport in
the 21st Century (pp. 247-260). Routledge.