Strategic Analysis of Ryanair: SWOT and PESTLE Analysis

Context of Business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
SWOT Analysis and PESTLE Analysis.................................................................................3
Evaluate the changes in PESTLE factors influencing SWOT of business.............................6
Different Types of Leadership and Management Styles........................................................8
Recommendation for Appropriate Leadership style...............................................................9
Corporate Social Responsibility (CSR)................................................................................10
CONCLUSION..............................................................................................................................11
REFERNCES.................................................................................................................................12

INTRODUCTION
The focus of effective management is to create successful business strategies in order to
achieve the organization's long-term objectives. In response to changing environmental
conditions and client behaviour, the approach is being developed. A smart business strategy can
help an organisation obtain a competitive advantage over its competitors. Profit maximisation is
the basic purpose of strategic management. The process includes setting goals, assessing
procedures, and assessing causes and trends in the external environment. Furthermore, Corporate
Social Responsibility (CSR) initiatives aids the company to improve brand image as well as gain
sustainability in the market. Strategic management assists a company in attaining its goals and
acquiring a competitive edge in the marketplace (Govender and Våland, 2021).
The report concentrates on the strategic analysis of one of the chosen airline company based
in Europe, which is Ryanair. The report's strategic analysis is backed up by business models like
SWOT analysis, which identifies strengths, weaknesses, opportunities, and threats, as well as
PESTLE analysis, which examines external aspects in the business environment. Moreover, the
report highlights the different leadership styles and management style accompanied by
appropriate recommendation on suitable leadership style in order to meet business objectives
effectively and efficiently. Even portrays CSR initiatives of the company using instances.
MAIN BODY
Ryanair is the Irish airline company which is headquartered in Dublin, Ireland. The
company is in the aviation business and specialized in short-haul flights, offering low-cost travel
throughout Europe to its passengers.
SWOT Analysis and PESTLE Analysis
SWOT Analysis
The SWOT analysis includes aspects that influence the company's internal and external
environments (Ryan, 2021). It aids in the identification of the company's strengths, weaknesses,
opportunities, and threats. According to anecdotal evidence, a company formulates its plans and
policies in order to boost its market presence.
Strengths
Some of the strengths are as follows:-
 The company has strong market share
Weakness
Negative factors are:-
 The company aggressive expansion

and financially sound along with
effective business model to maintain its
competitive position and sustainability
in the marketplace.
 One of its strength is that the airline
fares are cost effective which helps to
gain competitive advantage.
 The company has good brand image in
the minds of its passengers as well as it
is recognized as cleanest and greenest
airline of the European Union.
 The company has strong balance sheet
and further, Ryanair gained the profit of
one billion Euros.
 The company has safest stock which the
customers can buy in the airline
industry.
 The company offers 1831 routes which
the highest record and thus, makes
Ryanair pioneer and obtain dominant
lead over its competitors.
may led to overcapacity in the future.
 Ryanair convoluted pricing structure
which makes the customers suspicious
of hidden fees is one of the drawback
for its bad reputation (Müller and
Wrobel, 2021).
 The company remains in
controversies, recently its CEO stated
that ‘operating airline with social
distancing norm is stupid’.
 The union members of the company
expressed their dissatisfaction
regarding the pay and working
conditions.
 In accordance with the surpassing
performance of 2019, the company laid
off 15 percent of its workforce.
Opportunities
These are:-
 Many airlines company have shut down
or bankrupted. Thus, the crisis could be
beneficial for the company to prove its
resilience by eliminating its competitors
(Jiang, 2021).
 The company can provide skilled
workforce opportunity to hire best
human resources.
Threats
The threats in relation to the company are:-
 The company has no control over the
government regulations. Ryanair
violation of COVID- 19 norms could
be a threat.
 The pandemic may led to fluctuation in
prices and ultimately affecting the
company’s revenue and profit margins.
 Ryanair is up against competition from