Table of Contents INTRODUCTION...........................................................................................................................1 MAIN BODY...................................................................................................................................1 SWOT and PESTEL analysis for Ryanair..................................................................................1 Evaluate how PESTEL factors has influenced the Opportunities and Threats of the Ryanair and how the Ryanair is addressing their Strengths to negate Threats and Weakness affecting their Opportunities......................................................................................................................4 Strengths......................................................................................................................................4 Examine the different styles of leadership and the appropriate leadership style of Ryanair......5 Recommendations which suitable leadership style is for Ryanair that will help them meet their business objectives......................................................................................................................6 Examine Ryanair's Responsibility, Response and Obligations in their Ethics and Social Responsibilities..........................................................................................................................7 Reflection....................................................................................................................................8 CONCLUSION................................................................................................................................9 References:.......................................................................................................................................9
INTRODUCTION Business is an occupation or profession to run the commercial activities while providing goods and service in return for profits. For long term run of the business there must be proper leadership and management(Xie and et. al.,2018). In business, leadership is motivating and directingtheemployeestoachievecompany'stargetprofitablyandManagementisthe combination of various activities like planning, controlling, directing, staffing and organising to achieve the goals of business without any hurdles(Abdel-Basset, Mohamed and Smarandache, 2018). In this framework, the report is about the “Ryanair”, Ryanair is the low cost airline founded in the year 1984. It is the largest European budget airline operates on a low cost, scheduled-passenger airline serving short- haul, point-to-point routes mostly within Europe. Report contains the SWOT and PESTLE analysis of Ryanair and how PESTLE factors influence the opportunities and threats of business. Management and leadership style of Ryanair are examined in the report and leadership style is recommended to achieve the objective of Ryanair. Responsibility, Response and Obligations in Ryanair Ethics and Social Responsibilities are researched and explained. MAIN BODY SWOT and PESTEL analysis for Ryanair SWOT Analysis SWOT Analysis of the Ryanair is the framework to examine the internal and external factor that create an impact on the business of the Ryanair and airline industry. These factors include: Strength, Weakness, Opportunities and Threats. StrengthsWeaknesses RyanairofferstheEuropeanmarket with more than 1800 routes and 200 destinations which is approx 65% more than its competitors routes. Thecompanyishavingastrongest balancesheetintheairlineindustry with maximum profit of 1 billion Euros RefundpolicyofRyanairisthe weakness to company as customers are furious about the 5% of refund claim as per legal policy and also upset about the time based brochures rather than refund. Due to change in price of fuel Ryanair 1
at the year end. ď‚·In Irish stock exchange Ryanair's stocks are consistent and safest stocks to buy with the rating of 83. ď‚·Business model of the Ryanair is the core strength, keeping the low cost base has given the company a benefit of reputation as low cost airline. ď‚·Frequent point to point flights on short hauldistanceisRyanairstrategyto offerthenonstopfastserviceto customersbyavoidingunnecessary costs to passengers. hastogroundeditsfleetsinheavy number which in turn resultsin the downfallinthefinancialrecordsof Ryanair. ď‚·Ryanair has aggressively expanded the fleetswhichmightresultin overcapacity in future. ď‚·Company is in bad reputation due to lower employee rating as company has lay-offmanyemployeesinlasttwo years. OpportunitiesThreats ď‚·The COVID-19 has caused recession and unemployment in Europe but this has given opportunity to Ryanair, to grow the network, use lower airport and expand fleet. ď‚·Low cost airline model is opportunity for Ryanair to survive from COVID-19 crisisandgaincostleadershipfrom other airlines. ď‚·With delivery of Boeing Ryanair has opportunitytoofferthehighest employmentinEuropeairlineswith talented and skilled cabin crews and pilots. ď‚·Adverse complications have arise due tonodealBrexitandalsocaused weaker GBP and a pressure on the fare. ď‚·COVID-19crisis and impacts arethe great threat to airline industry as many companies are now bankrupt andcut thepassengersnumbersbyapprox 60%. ď‚·fluctuations in fuel and oil prices has becomethethreattoRyanairas maintenance cost, staff cost, fuel cost of Ryanair is increased. ď‚·Ryanair also has threat of competitor's, as Easy jet is also working on low cost model for its airline business. 2
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
PESTLE Analysis PESTLE analysis is the framework to analyse the impact of external factors at macro levelonthebusinessoftheRyanair.Thesefactorsinclude:Political,economic,social, technological, legal and environmental.ď‚·Political:Policy by government, political issue in country or political crisis of company defines the political background of the company and there impact on company's growth (Amankwah-Amoah, 2020). Brexit has created a political instability between the UK and EU which has adversetrading impactonRyanair business environment. Frequent terrorist attacks have lower the demand of airline which will affect the Ryanair business. COVID related government measures and policy has restricted the Ryanair smooth functioning. Hence, to lower the impact of Brexit Ryanair should more focus on trading in European countries.ď‚·Economic:Fuel prices, customer rating, air traffic, exchange rates, unemployment rates defines the economic growth and deficit of the Ryanair's and airline industry. Last year increase in fuel price has impact on Ryanair's fuel budget butt this year fall in fuel has given Ryanair a benefit of margin. Due to COVID-19 there was severe impact on economic growth of Ryanair and country as well. Brexit will also put pressure on the Ryanair financial growth. Restriction on international flights has created downfall in passengers with decline in revenue. Foreign exchange rate gap in US Dollar and Euro is causing Ryanair the economic loss. therefore low cost airline concept is most beneficial to Ryanair to grow its business financially.ď‚·Social:Age, Salary, Geographical areas, population growth and society trends defines the impact of social factors on the profitability of the company. In aviation sectorafter COVID geographical area are playing a major role aspassengers are not travelling to different locations due to safety measures of COVID(Crane, Matten and Spence, 2019). Low cost airline are benefited with society of middle class. In European countries holidays to travel have become the society trend which is beneficial to Ryanair. Ryanair is also planning in improving the gender ratio in its employee staff mostly pilots.ď‚·Technological:Innovation,technologicalsecuritymeasures,automation,artificial intelligence are the factors to define the technological stability in the aviation sector (Western, 2019). Ryanair has very well adopted the technological factors as due to cyber 3
security issue of booking tickets on websites and mobile applications. Additionally to resolve the issue Ryanair secure the website with 'Payment Card Industry Data Security Standard'. Ryanair also using the latest technology Boeing 737-800 “ next generation aircraft. Ryanair is strategy are also based on taking advantage of the internet.Legal:Ethics, CSR, corruption, anti-bribery and corruption, law and regulations of country all are the legal factors mandatory to followed by the organisations(Efthymiou and et. al., 2021). Ryanair as a leading low cost airline firm has its own business code of conduct and ethics and anti corruption and bribery law. Ryanair has European corporate governance code to follow within the group. Ryanair has commission aviation regulation license to operate its airline services. Ryanair also has its antitrust or competition law. Environmental:sustainability,CSR,environmentalpolicies,pollutioncontroland factors like these which helps in reducing the harmful impact on environment by various business are compulsory for organisation to utilize(Ferro, 2018). Ryanair is the Europe's greenest and cleanest airline group with its carbon dioxide emission policies. Ryanair has low noise latest Boeing-737. Ryanair has its environment website with various CO2 projects and is free from non recyclable plastics from last 5 years. Evaluate how PESTEL factors has influenced the Opportunities and Threats of the Ryanair and how the Ryanair is addressing their Strengths to negate Threats and Weakness affecting their Opportunities. Strengths, weaknesses, opportunities and threats are analysed from the above PESTLE analysis of Ryanair which will help the company ingaining competitive advantage of those opportunities and strengths and coping up with the weaknesses and threats to avoid the bad impact on Ryanair's profitability and productivity. Strengths Environmental factors of Ryanair are the biggest strengths to the firm as this has made the Ryanair the Europe's cleanest and greenest airline group with ten winning formulas. Company's technological factors acts as a strength to firm in protecting the informational data of employees and passengers and secure the firms website. Ryanair legal laws and legislations give the firm strength of transparency and socially ethical in market. Weaknesses: 4
ď‚·Autocratic style:This leadership style is also known as authoritarian leadership as the leader takes the full authority and responsibility for its decision making. In this the leader leadstheemployeesunderclosesupervisionanddecisionaremadewithoutany discussion from employees(Kollmann, 2019).The advantage of this leadership is that it canclearlystrengthenthecommandchainsystemanddisadvantageisitreduces employees innovation and creativity skills.ď‚·Laissez-faire leadership:A Delegation leadership which allows the employees to take responsibility in making decisions and leader shows less interest in administration. Advantageofthisleadershipisemployeesaremoreexperienced,creativeand competencewhilethedisadvantageisemployeelacksinguidanceandcommand responsibility(Phadermrod, Crowder and Wills, 2019).ď‚·Transformational leadership:This leadership tends to focuses on fostering employees skills and talent and always trying to bring them out there comfort zone. The advantage of this leadership is it provide high vision and motivation to employees and disadvantage is employees are sometimes mislead and pressured(Trevino and Nelson, 2021). ď‚·Democratic leadership:A participative form of leadership where leader involve there fellow team member and subordinates in several decision making, hence making the employee feel motivated, encouraged and included. The advantage of this leadership is strong team work and productivity is high and disadvantage is time consuming decision making as well as communication errors(Racz and et. al., 2018). Hence, the CEO of Ryanair feels that success requires various leadership style. Ryanair has autocratic leadership style where don't compromise any interference in there decision making and take whole responsibility of there decisions. Ryanair is developing the leadership pipelines by implementing task oriented leadership where they mix both task and employees attributes together to reach the success. But this leadership style sometimes create a problem in loyalty of employee towards firm and developing talent within the organisation. Recommendations which suitable leadership style is for Ryanair that will help them meet their business objectives It is considered from the above discussion of leadership styles that Ryanair is lacking in somefactorsduetoitsleadershipstyle.Therefore,Ryanairshouldbringintousethe transformational leadership style in its organisation so that they can improve the skills of there 6
crew and also motivate them with the skills development and training programs. This leadership style will bring the vision and more creativity in employees work and will also motivate the employeestowardtheorganisation.Transformationalleadershipnotonlytransformthe employees behaviour and attitude towards the firm but also transform the organisation working environment in positive manner(Temirkhanova, 2020). This leadership style will help the Ryanair in shaping he future of the firm. This will improve the communication in Ryanair premises and will also reduce employees turnover. Another leadership style that Ryanair should consider in its leadership is Democratic leadership this will bring the sense of belonging to employees in firm and employee will more firm- centric rather than people-centric. Democratic leadership in Ryanair will bring more transparency and honesty with crew members, pilots, and other staff of the firm. This leadership in firm will boost there decision power with combine skills of leaders and people both. Creativity, innovation and experience of employees and leaders will grant Ryanair with effective solutions of problem, better decisions, and high productivity. Implementation of Democratic and transformational leadership style in Ryanair will enhance the profitability and productivity of the organisation. ExamineRyanair'sResponsibility,ResponseandObligationsintheirEthicsandSocial Responsibilities Ryanair is the largest airline industry and Europe's greenest and cleanest airline group. Ryanair offers the secured and hygienic travel facilities to customer's and healthy working environment to it's employees. Ryanairis well versed with its CSR and ethical duties and perform them efficiently in the organisation. There are various environmental, social and ethical activities performed by Ryanair are discussed below:ď‚·Always Getting Better(AGB) program:This programme was organised by Ryanair to improve its customer experience. Through this program the company created a EU261 customer service team in Madrid to improve the operational conducts and give best experience to guest by lowering its price. In this programme Ryanair promises the low fair, safe, fun and relaxing experience, transparent, simple and reliable travelling.ď‚·Greenest and cleanest airline:Ryanair has independently become the Europe's greenest and cleanest airline group. Ryanair has 5 year environmental plan of plastic free organisation and also maximise the uses recyclable products, solar power plants in 7
premises. Ryanair uses digitalization and e tickets format to reduce the paper usage in the firm.ď‚·Social responsibilities:Ryanair believes and is equally devoted in providing the jobs on the basis of skills and talent rather gender, sex, disability, age, martial status or any political or religious beliefs. Ryanair also conduct Ryanair foundation toserve the various charitable institutions and also help in there education in Europe. Ryanair always supports the various charitable trusts and make donations.ď‚·Energy efficiency programme:Ryanair has invested heavy amount in the buying low noiseand fuel efficient aircraft and engine technology to save the environment from noise pollution and to save the fuel for the surroundings. Ryanair also invested in Carbon emission project which offers the customers to donate there carbon dioxide to offset the carbon emission. ď‚·Ethics and transparency:Ryanair is highly devoted to run the organisation ethically and with transparency and accompanied by proper laws and legislations. 'Ryanair's business code of conduct' brief about the principles which are followed in the organisation. The CEO and the audit committee assures the consistency of the code in Ryanair. Reflection From this research I have felt that Ryanair is the leading airline firm in Europe with its large number of employees and customers. Ryanair has well known brand image as it is most popular low cost airline and want to grow its business in this format only. It is noticed that company's CEO and management has effective autocratic and transformational leadership style to manage the crew and other staff and give a succeeding path to firm.But it is also seen that Ryanair is facing various challenges and threats in the raising the company's growth and values. For which I have suggested the strategy to the company to gain competitive advantage by increasing its revenue from serving ancillary services.This firm has made me realized that one should adopt values, ethics and also take care of the environment around you to grow in life. From the above research I have learnt that a effective leadership is required at various phases of life as well as to overcoming bad conditions of life like the Ryanair is overcoming so positively and effectively from COVID-19 crisis. Ryanair's company life has taught me various skills, strategies and leadership styles to develop my personality and overall future career growth. 8
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser