Business Context: Analysis of SWOT, PESTLE, Leadership Styles, and CSR at Ryanair UK

This report discusses the business context of Ryanair UK, including SWOT and PESTLE analysis, different leadership styles, and CSR activities. It evaluates how changes in PESTLE factors influence opportunities and threats, and how the airline addresses its strengths to overcome weaknesses and seize opportunities.

CONTEXT OF
BUSINESS
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EXECUTIVE SUMMARY
The preset report includes various concepts of business along with an analysis of SWOT,
PESTLE, different leadership styles and Corporate Social Responsibility of a company. The term
business context refers to an understanding of various factors or forces that creates an impact on
business firm from different angles such as on decision making, objectives, other strategic
planning and many others. Ryanair UK is an airline service company based in UK which
provides low cost services at international level. In this present report various leadership and
management styles are being studied along with an explanation of most suitable style in
organisation. The report also includes various CSR activities done by company in order to fulfil
its response, responsibility and obligation.
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Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION ..........................................................................................................................4
TASK ..............................................................................................................................................4
Performing a SWOT and PESTEL analysis...........................................................................4
Evaluation of how the changes in PESTEL factors has influenced the Opportunities and
Threats of business. Critical comment on how the airline is addressing their Strengths to
negate Threats and Weakness affecting their Opportunities..................................................6
Comparison and contrast different styles of leadership. Views on the appropriate leadership
and management style at Ryanair UK....................................................................................8
Recommendation of a suitable leadership style that will help company in meeting their
business objectives. Justification with appropriate literature.................................................9
Commenting on the Responsibility, Response and Obligations in their Ethics and Social
Responsibilities in the processes using evidence.................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
The term business context refers to an understanding of various factors or forces that
creates an impact on business firm from different angles such as on decision making, objectives,
other strategic planning and many others (Battal and Polat, 2020). Manager of an organisation
applies purpose driven method in order to make, measure and monitor the certain context of his
company prior introducing any initiative related to business strategies. Such initiatives are
required to fulfil stakeholders demands and requirements. In the present report context of
business is being discussed for Ryanair UK which is an airline company headquartered in United
Kingdom. Under the report SWOT and PESTLE is done for the company along with comparison
of certain leadership styles and management styles being applied in Ryanair UK. Further some
ethical and social responsibilities considered by company is also discussed.
TASK
Performing a SWOT and PESTEL analysis.
Ryanair UK is a airline company which offer its flight services based upon London,
United Kingdom being founded in 1985 under the name of Dawndell Limited. In November
1995 the company changed it name and started operating as Ryanair UK Limited.
SWOT refers to an company's analysis in terms of its Strengths, Weaknesses,
Opportunities and Threats which every company looks in order to enhance its existing skills and
take certain steps to overcome its weaknesses along with a preparation to face threats (Torres and
Sidorova, 2019).
The term PESTLE is an analysis of company's external macro environment that creates
an impact on business operations (Belanova and Kuznetsova, 2020). It is an acronym that stands
for Political, Economical, Social,Technological, Legal and Economical factors.
SWOT and PESTLE analysis for Ryanair UK is done below:
SWOT ANALYSIS
Strengths
 Ryanair UK established its operations
in European markets that offers its
Weaknesses
 Changes or Modifications in labour
relations and arrangements of
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services for more than 200 landing
places covering more than 1800
journey rounds.
 Company provides strong and
continuous returns in a form of
dividend to its shareholders and also
maintains a powerful balance sheet.
 Ryanair UK is cost effective airline that
reduces its cost via providing less
important services in a form of add-one
to its passengers. A company Ryanair UK always brings
a series of innovation which makes it
different from other airline firms.
employee's compensation impacts
Ryanair UK in a form of its weakness.
 Expansion in fleet aggressively can take
company in experiencing overcapacity
in coming time.
 Company has its weakness in a form of
refunds made to customers who cancels
the booking. Ryanair UK issues only 5
percent claim form refund.
 A company was unable to stop strike
done by its pilots for 48 hours which
was related to company's working
condition and payment issue.
Opportunities
 Company looks for an opportunity
through its myRyanair app in terms of
raising its ancillary profits.
 Ryanair looks to focus in providing
better customer experience by
implication of Always Getting Better
program.
 Company has an opportunity to gain
incentives from government in the
category of COVID Corporate
Financing Facility. Ryanair UK has an option to hire
skilled pilots, cabin crews, engineers
and ground staff for its company.
Threats
 Changes in flight fuel rates effects
company's profitability and decisions.
 Raise in corporation tax by Irish
government can impact business
negatively through reduction in its
profit margin.
 Company is having threat from Italy
government as it threatened for
suspension of its operations in national
airport of Italy in violation of COVID-
19 rules.
 Ryanair UK faces inconsistency from
various measures taken by countries
which are different from other nation
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and cannot determine the next step
what can be taken.
PESTLE ANALYSIS
 Political environment: It refers to certain forces being implied by political government
of a country in his nation (Bhattacharyya, 2020). For Ryanair UK political factor does not
proved helpful as government has changed certain policies after the happening of Brexit
which has brought many challenges for the company. The political factor has also
impacted negatively on company due to COVID-19 restrictions sand various preventive
measures taken by them which affected its business.
 Economical environment: This refers to economic condition of a country and issues
related to it such as GDP. GNP, inflation or deflation rate, and more (Rissanen and et.
al., 2020). In context of Ryanair UK economical environment has a negative influence
due to weak GBP after Brexit issue that pressurised company to lower down its prices.
Another effect arises when flight fuel prices reaches to $50 per barrel which reduces
company's profit margin due to increase in fuel expenses. Company has suffered a loss in
its sale of ticket due to ban on flights running during COVID-19 that has occurred loss
and due to which company has applied a concept of furlough for 3000 jobs in company.
 Social environment: This environmental factor talks about issues related to society and
their preferences (Brunk, 2020). It comprises forces such as ethics and
morality,acceptance, respect and feeling, etc. under Ryanair UK the society people
prefers using rail transport instead of airways for short journey which reduces sale of its
tickets. Social factor has an positive influence for Ryanair UK as people from Britain
prefers to go on vacation and maximum of them books flight tickets which helps
company in generating revenue from its sale.
 Technological environment: This environment forces company to modify its operations
based on technological change prevailing or emerging in market (Manzoor, Müllern and
Berndt, 2018). This factor helped Ryanair UK as the company is already having its own
website and mobile app which is being prefers by market in order to book their tickets
and also helps company to attract more customers review and experience. The
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technological enhancement in respect of internet and mobile banking attracts passengers
to book their tickets at early via internet or mobile banking payment services that creates
positive impact on Ryanair UK sales.
 Legal environment: The environment talks about operating by following certain legal
laws in company which are made for the benefit of workers as well as society people by
court of law (Darawong, 2020). Ryanair UK is required to follow two different laws in
its operations after happening of Brexit that is Law of United Kingdom as well as of
Europe. Ryanair UK faced actions from court in the year 2018 and year 2019 which was
due to complaint made by company's labour which affected negatively to the business of
Ryanair UK.
 Environmental factor: The factor talks about safety and healthy environmental;
conditions such as pollution free, zero carbon emission production, and many others
(Kumar and Reinartz, 2018). Environmental factor creates a negative impact on profits
and revenues of Ryanair UK as Europe has a rule for adopting less emission airlines
which becomes costly for company and reduces its profit ratio. On the other hand
Ryanair UK pays its attention to bring some initiatives that support environment in
making it a healthy one. Company adopts a policy of eliminating some non recyclable
plastics substances from its all flights by the year 2023.
Evaluation of how the changes in PESTEL factors has influenced the Opportunities and Threats
of business. Critical comment on how the airline is addressing their Strengths to negate
Threats and Weakness affecting their Opportunities.
Evaluation of changes in PESTLE factor that influenced the Opportunities and Threats of
business along with addressing its strengths to negate threats and weaknesses affecting its
opportunities is done below:
Political environment: The political factor brings a threat for company in order to adopt
new policies being changed by government because this may not be in favour of Ryanair UK
which will hinder company's operations and weakens its strategies in order to achieve set targets.
Ryanair UK can overcome this threat by proper scanning political environment of UK as well as
EU government so that sudden change would not effect company's operations to much extent
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and firm can adopt those changing policy easily into consideration in order to have less negative
impact on its performance and market image.
Economical environment: This factor in relation to Ryanair UK provides grater
opportunity for the firm in order to bring some innovation so to reduce fuel expenses which
lowers down its profit margin. Innovate technique to save fuel cost will attract more customers
towards services of Ryanair UK that can increase its customer segment and will lead to
generation of high revenue along with competitive advantage in market.
Social environment: Ryanair UK under this category bears a threat of loosing customers
for short journey who prefers to go via rail transportation. Company can use this as its
opportunity and can offer short journey via airways or can start its operations in offering rail
services for shorter journey. This will allow Ryanair UK to retain its customers and market
position.
Technological environment: Technological factor for Ryanair UK is its strength
because what market is looking or preferring the company is already having its operations in that
area. This encouraged Ryanair UK to bring more technological up-gradation before its
competitor brings which will act as an opportunity for the firm to gain competitive advantage in
industry.
Legal environment: The effect of legal environment on Ryanair UK is a kind of strength
for a company because it need to abide by the rules of two different regions such as UK and EU
which will bring sustainable business if laws are implement carefully and will face no problem
while offering its services in both areas. Along with this Ryanair UK can take this as an
opportunity by operating in two regions which will open large market for the company to run its
business and allows company to earn high revenues as compared to its rival firms.
Environmental factor: The environmental factor for Ryanair UK acts as its strength due
to certain initiatives taken by company in regards to environmental concern. The business also
has a scope of opportunity by offering zero or low carbon emission flights to its clients that can
bring a competitive advantage to Ryanair UK which will attract more and more customers along
with strong brand image and loyalty towards environment.
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Comparison and contrast different styles of leadership. Views on the appropriate leadership and
management style at Ryanair UK.
Leadership style refers to a form of leadership that every leader follows in his respective
organisation in order to motivate, encourage, and enhance employees skills which they currently
posses into the tasks allotted to them (Dinh, Karmakar and Kamruzzaman, 2020). No company
survives without any leader and no leader perform his tasks without adopting any leadership
quality. There are three types of leadership styles which any leader in-builds in his job role.
These are Autocratic, Democratic, Laissez faire, Transformational and Affiliative style of
leadership. Each form of leadership is discussed below:
Autocratic Leadership Style
Autocratic leadership style says that employees of an organisation are required to follow
instructions and direction which are circulated by their leader in course of business (Dobruszkes
and Wang, 2019). Under this style of leadership no employee is authorised to present their
suggestion or give their views for certain decisions or to draw conclusions for any kind of change
or development in organisation. Policies or regulations formulated by a leader is required to be
strictly followed by his team members whether they like it or not.
Democratic Leadership Style
Democratic leadership style says that a leader should invite suggestions and views of his
team members who are company's employees and real doers of tasks that are structured to
achieve organizational goals (Hutchins and et. al., 2019). Under this style of leadership before
getting upon some conclusion or making any decision leader asks for employees viewpoints and
analyses them in order to know which is best suitable for discussed task to make it effective and
successful. Leader here thinks that employees or team members are one who actually works on
real ground and knows each aspect of such activity so their suggestions should be respected and
each employee would be called in making decisions.
Laissez Faire Leadership Style
Laissez Faire leadership style says that a leaders role is to guide and motivate his team
members and intervene when these is a necessary otherwise employees should be enough free to
take decisions for activities allotted to them in an organisation (Hwang and Lyu, 2020). Under
such leadership style leaders provides freedom to his team members in order to perform their
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tasks according to them. Laissez faire style can only be adopted when company has experienced
and highly skilled employees to work.
Transformational Leadership Style
Transformational leadership style refers to such in which a leader communicates actively
about any kind of modification to his team in a motivational manner. Leader through this style
encourages employees to adopt and work upon those changes which are made by top level
management team. Such kind of leaders are very loyal and supportive for his team members in
an organisation.
Affiliative Leadership Style
Affiliative leadership style refers to an approach in which leader gets personal with its
team members and assists them by providing emotional support within a team at work place.
Under such style a leader forms collaborative relations within his team and maintains harmony
there.
Comparison of different leadership style:
Basis of Comparison Autocratic Style Democratic style Laissez faire Style
Freedom to employees No freedom is
provided to employees
Employees are free to
provide their views in
decision making.
Full freedom is
provided for tasks.
Delegation of
Authority
No authority is being
delegated to team
members
Little authority is
being allows to team
members
Team members are
allowed full authority
to indulge in their
targets.
Communication flow Only leader will
communicate policies
and rules.
Two way
communication while
making decision.
Team members are
free to communicate
when they feel for
requirements.
Applicable This type of leadership
style is applicable
This is applicable
when company feels to
This style is applicable
when company is
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when company is
having less skilled
employees
fulfil employees
esteem need.
having enough skilled
and experienced
workers.
Leader of Ryanair UK applies Autocratic style of leadership in his organisation as per the
requirement of situation in order to get success and effective achievement of objective. At the
time of having fast decisions it is very helpful for company to work with Autocratic style of
leadership that does not involves much time in making conclusions. Top level management
through autocratic style can manage contingent crises in effective manner.
Recommendation of a suitable leadership style that will help company in meeting their business
objectives. Justification with appropriate literature.
Leadership style is not something else but it is generally a presence of characteristic and
certain traits which allows an individual to behave and act like a leader in organisation. Leader is
required to motivate, encourage and support his team members in a business who all are working
hard to achieve organisational goal in effective and productive manner. There are several
leadership style and traits which can be applied by any individual in organisation but is treated as
successful and efficient only when it helps organisation to achieve success and growth.
It is recommended to Ryanair UK to apply democratic as well as Laissez faire style of
leadership in its organisation so that better success can be achieved in industry and market. This
will help leader and business to take certain effective decision related to activities which are
allotted to company's employees in terms of fulfilling its business purpose.
The reason behind use of Democratic style of leadership in Ryanair UK is that
democratic style includes company's employees in making certain decision or while taking any
step for the development of business. This provides numerous suggestions and view points from
various aspects that opens a wide scope and perspective form each angle of point (Koç and et.
al., 2018). Such kind of suggestions allows company to think form different outlook and draw
some effective conclusion along with a effective decision. This involves viewpoints of those who
are actual doers of task tom whom every side of coin is known for the allotted task so can present
real views.
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The reason for adopting Laissez faire style of leadership in Ryanair UK is that sometimes
it is necessary for the company to provide freedom to its employees for taking quick decisions or
steps related to some tasks. This is essential when company wants to grow and involve some
innovation into their offerings (Krawczyk-Sokolowska, Pierscieniak and Caputa, 2019).
Application of such leadership style also motivates employees to feel belongingness that
increases their productivity and enhances their existing skills that is beneficial for company to
achieve success in more effective manner. Giving freedom to actual does at the time of high load
always proves fruitful for business because it saves time and does not makes any kind of delay
while reacting quick to certain situations in an organisation that requires instant action.
Commenting on the Responsibility, Response and Obligations in their Ethics and Social
Responsibilities in the processes using evidence.
Ethical and social responsibility refers to an obligation of every business organisation to
follow and apply in their respective company so to have some kind of respect for society people.
Every business firm operates in society and uses its resources to fulfil and satisfy its purpose of
existence so it is a responsibility of every business firm to give society something in return for
exploiting their resources.
The various ethical and social responsibility being adopted by Ryanair UK are mentioned
below:
Ryanair UK is very much concerned about its social and ethical responsibility and for this
has done many initiatives for the society. Company has taken initiative by investing some funds
in getting new aircraft latest technological engine in order to achieve environment sustainability
with an aim to offer clean airline flight services to people. This activity by Ryanair UK has done
in a form of its responsibility towards environment as keeping our surrounding safe is a
responsibility of each individual or business who operates within an environment.
Ryanair UK has launched a Always Getting Better charter for its customers which has
raised company's focus towards digital technology via its mobile app and website content. The
company tries to reduce emissions and noise via its policy named “One Engine Taxi-Ing” which
follows strict compliance along with recommendation of Cost Index Flight Planning through
optimising speed in its every flight and increases efficiency in fuel.
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In the year 2019, Ryanair UK has introduced a charity in partnership at international
level with Irish charity partner and European Pequeno Deseo charity partner. Other than this the
company has also introduced some Environmental partnership with First Climate, the Irish
Whale, Renature Monchique and with Dolphin group with the help of carbon offset donations
from its customers. This CSR activity is being conducted by Ryanair UK as its obligation to give
something return to the society within which and by using whose resources company operates
and makes its profit.
CONCLUSION
From the above report it can be concluded that SWOT and PESTLE analysis is very
helpful in analysing business context that helps firm in experiencing development. There are
certain leadership style which every company involves in their organisation in order to enhance
and motivate employees skills and competencies which results in increase in productivity.
Leadership style comprises of Autocratic, Democratic and Laissez faire style which leader
posses in his leadership job role. It is also concluded that it is every company's responsibility
towards ethics and society. Each organisation has an obligation for contributing something for
the society and society people every year because companies gets its resources from society only
such as employees,land, capital, infrastructure, etc. in against of using which company is
required to pay something in form of social responsibility.
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