Context of business

Context of Business

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
directing the employees to achieve company's target profitably and Management is the
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.
Strengths Weaknesses
 Ryanair offers the European market
with more than 1800 routes and 200
destinations which is approx 65% more
than its competitors routes.
 The company is having a strongest
balance sheet in the airline industry
with maximum profit of 1 billion Euros
 Refund policy of Ryanair is the
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
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at the year end.
 In Irish stock exchange Ryanair's stocks
are consistent and safest stocks to buy
with the rating of 83.
 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.
 Frequent point to point flights on short
haul distance is Ryanair strategy to
offer the non stop fast service to
customers by avoiding unnecessary
costs to passengers.
has to grounded its fleets in heavy
number which in turn results in the
downfall in the financial records of
Ryanair.
 Ryanair has aggressively expanded the
fleets which might result in
overcapacity in future.
 Company is in bad reputation due to
lower employee rating as company has
lay-off many employees in last two
years.
Opportunities Threats
 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.
 Low cost airline model is opportunity
for Ryanair to survive from COVID-19
crisis and gain cost leadership from
other airlines.
 With delivery of Boeing Ryanair has
opportunity to offer the highest
employment in Europe airlines with
talented and skilled cabin crews and
pilots.
 Adverse complications have arise due
to no deal Brexit and also caused
weaker GBP and a pressure on the fare.
 COVID-19 crisis and impacts are the
great threat to airline industry as many
companies are now bankrupt and cut
the passengers numbers by approx
60%.
 fluctuations in fuel and oil prices has
become the threat to Ryanair as
maintenance cost, staff cost, fuel cost of
Ryanair is increased.
 Ryanair also has threat of competitor's,
as Easy jet is also working on low cost
model for its airline business.
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