Business Context: SWOT and PESTLE Analysis of Ryanair

This report provides a comprehensive analysis of the business context of Ryanair, including SWOT and PESTLE analysis. It identifies the main problems faced by the company and proposes management concepts and theories to address them.

Context Of Business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. SWOT and PESTLE analysis for Ryanair..............................................................................1
2. Identify main problem of Ryanair...........................................................................................3
3. Management concept and theories..........................................................................................4
4. Experience of this report.........................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
The business context encompasses an understanding of the factors influencing the
business from different perspectives where involves how decision are taken and business is
ultimately trying to obtain. The business context is used by IT to recognise key applications for
the execution of its strategic initiatives (Bates and Robb, 2016). This report is based on the
Ryanair which is famous Irish budget airlines founded by Christopher Ryan, Liam Lonergan and
Tony Ryan in the year of 1984. In present time company face the problem of Brexit
uncertainties, staffing problem and increasing costs. In this report contains SWOT and PESTEL
analysis and identify the main problem of business through analysis. Along with propose a
solution of problem through management concepts and theories like contingency, situation
system and concepts controlling and coordination and in the end write experience about the
report.
MAIN BODY
1. SWOT and PESTLE analysis for Ryanair
SWOT Analysis: It is a set framework which is utilising to analysing the performance of
company and identify company's competitive position and to develop strategic planning. There is
conducted SWOT analysis of Ryanair airline to identify internal issues that impact on the
organisational performance: Strength: The main strength of this business that it is established in the European market
where cover about the 200 destination and 1800 routes. Due to have its large size of
business is able to achievement economies of scale and help keep ticket pricing is low.
Ryanair airline provide facility of online ticket reservation system by which customer
could manage their travel plan without relying through any travel agent. The another
strength of business that stable financial performance that helps to get growth in the
market and get rid of competition by the predatory pricing. The strategic decision policy
is strength for business that shows positive impact and number of clients has increased
due to prefer to neglect agency and to check, compare and purchase ticket them selves
(Beaverstock, Derudder and Faulconbridge, 2016). Weakness: Recently company face the weakness of increase cost of tickets that impact on
the customer perception and Brexit uncertainties that direct impact on business abilities.
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Along with its reputation is far from being favourable of its market served. The company
face the problem of poor customer service, difficult service agreements to enhance
profitability of business. The Ryanair airline has covered large market in UK that disclose
the airline in regard of Brexit risks and impact on the growth away from UK market to
concentrate on continental Europe to combat this weakness. The Ryanair focus on price
does not services as a result it create problem of less customer services and disappointed
with this. Opportunity: The strong market position in Europe provide opportunity to get growth and
success in business. At the same time deducting its environmental impact and fuel
consumption by proper utilisation of state of the art aircraft. Due to good design of
aircraft company get more orders from another countries which is helping to increase
profitability. Recently, Ryanair has implemented in a broad manner programme to
provide effective customer service and expectation which is another opportunity to
outperform rival films in the increasing competition (Burgstaller, Steiner and Schrefl,
2016).
 Threat: The company face the threat of increase charges of Airport and navigation at
AENA airports and ATC increase at Italy. Along with air travel taxes represent a higher
percentage of the price and currency movements related with it. Additionally in present
time company face the problem of negative media coverage in regard of customer
services, employee relations and disputes.
PESTLE Analysis: It is a framework which is utilised to understand the impact of
external factors that direct impact on the performance of business. There are identified all factors
which impact on the Ryanair airline in direct manner such as:
Political: The UK government charges the highest taxes from the air line industry
globally on passengers flying from UK both on short and long travelling. The airline of Ryanair
is registered in Ireland but mainly work conducted from the UK. Thus, unfavourable Brexit
results impact in negative manner not just on Ryanair but also on other airlines in the United
kingdom. EU has directive for proscription to set up to airline and playing fields and the
approach has been shown in the political developments in context of various nations.
Economical: The instability in the fuel is main problem of airline industry. After the
Brexit create problem of recession in the UK and people do not favour to travel by the flight. In
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present time air line industry face the problem of down fall in passenger travel that shows
negative impact on the profitability. The economic recession analysed by the airline industry
and face reduction in growth and success (Child and et.al., 2017).
Social: This factor is mainly characterized through demographic trends, ageing
population and changes in customer perception. It is difficult to analysis the habit of people
because some people like to short and long distance travelling. Ryanair face the problem of the
changing social trends in regard of travelling. It is a Irish airline where all the members are polite
and hospitable. British people have interested to go for travelling in holidays so changing habit
of people will impact on business activities. Thus, this will contribute for sales increment step by
step as the low cost flights are mainly preferred by UK passengers.
Technological: The growth of internet and improvement in the technological creation has
developed new changes in airline industry. It provides different facilities to people mainly
businessmen to continue their work at flight. The technology advancement has been become
reason of success for Ryan air. There is identifying some aspects that will help only airline to
integrate with digital channels into circulation and marketing approaches.
Legal: The main legal challenge face by the European airline industry go around the
Brexit referendum. Additionally, political and economic doubt of UK in regard of future aviation
laws conducting in between united kingdom flights. The Ryanair airline face the problem of
ownership because these airports are govern by government and fully privatized. EU has recently
introduce some legislation in regard of the airline industry which is not easy to follow by the
Ryanair and sufficient rights to passengers, who travel from EU countries (Davis, 2017)
(Dörndorfer and Seel, 2017).
Environmental: The most recent circumstances face by the air line industry of changing
weather in UK and face heat waves in frequent manner. Even Ryanair is using a modern and
effective designing based aircraft fleet. The company have virtually network with other countries
so it is more undependable for all environmental laws & legislation.
2. Identify main problem of Ryanair
There are conducting SWOT and PESTLE analysis of Ryanair airline in order to identify
the problems that impact on the business performance in negative manner. On these problem
require to business focus attention and analysing the reason of origin this problem. There are
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identifying the main problem in the busies of increasing cost of tickets, Brexit uncertainties,
customer services, employee relation and disputes.
Increasing costs: The Ryanair company always provide their services in low cost but due
to increasing price of fuel and apply some legislation that increase the cost of business. As a
result business increase the cost that impact in negative manner because it reduce no of travellers
of a business. The company mainly famous for low cost and mostly people prefer to travelling
through other transportation (Kupec, 2016).
Brexit uncertainties: The activities of Brexit on UK and EU airline industry because
they are changing their own rules and regulation of this industry. It creates recession in UK that
impact on the income level and do not prefer to travel by the flight. Thus, it is directly impact on
the revenues and loss their worth. So for this require to company arrange fund for future
activities and prepare some strategies to face these problems effectively.
Customer service: The customer of Ryan air industry do not satisfied with the customer
services because they are not fulfilling all the requirements on time. As a luxury airlines they are
not offering advanced facilities to people and in business class require to good facilities that was
not provided by the business. The company must focus in this problem because customer
satisfaction is most important to conduct business activities otherwise it reduce number of
passengers.
Employee relation and disputes: To operate business effectively require to maintain
good relation with the staff members and try to ignore conflicts that arise among staff members.
For this require to arrange games and events where they meet with each other and understand the
style of work.
Staffing issues: In present time company face the problem of less staff and remaining are
not working properly due to lack of direction. It impact on the profitability as adverse manner. It
is required to sort out this problem effectively other wise it become big problem for the business
(Meyer and Peng, 2016).
3. Management concept and theories
There is conducting SWOT and PESTLE analysis to identify the problem that impact on
the business organisation. For this apply different management theory such as:
System management theory: This theory is believes that a system is a collection of
different parts that carry out together to achieve specific goals and objectives. This system
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continuants interact with environmental activities and support business to sort out the problem in
effective manner. Such as Ryan air apply this theory and apply system in open and close manner.
The close system has been not affected by the external activities but a open system affected
environmental system. There is identified the problem of customer services, employee relation
which is revolved through this theory because in Ryan air conduct all the activities in systematic
manner and management of business consist of observing inputs, throughputs, feedback loops
and apply all the require changes that impact in positive manner on the system of business. When
company follow all the rules so deduct the problem of customer services effectively (Shi, Li and
Bigdeli, 2016) . Situation management theory: This theory apply by the management to tackle different
situation that arise in the organisation any time and solve through only this theory. The
Ryan air face the problem of Brexit Uncertainties that impact on the business activities. It
is not predetermined by the company so for this apply the situation management theory.
It is effective way of administration due to adapts to the team's requirement and set a
advantageous balance for the overall business. Many time company face the problem of
different situation that require to sort out that time otherwise it is not good for the
business.
 Contingency management theory: This theory of management is mainly depended on the
contingent, dependent upon the interplay in between the application of management
behaviours and particular consequences. When in the Ryan air arise any contingent
situation the time apply this theory. There are identified that problem of increasing cost
whether company famous for the low cost so arrange this problem apply the this theory.
It supports to sort out these circumstances and effectively run their business activities in
proper manner (Susomrith and Suseno, 2017).
Management concept: There is applied two management concept that helps to Ryan air
to sort out the problem effectively that are mentioned below:
1. Coordination: To set up effective relation with the staff members require to Coordination
with each other that helps to know their personal professional problems. According to
that company prepare effective strategies and provide supports for their work in proper
manner. There is identified the all the staff members are not open with employer as a
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result create problem of satisfaction and they leave job. So conduct meeting and
coordinate with each department where meet with each other and help in their work.
2. Controlling: According to this concept require to control on those activities that shows
adverse impact on the business. For this require to control cost that shows negative effect.
There is identified some problems of increasing cost due to increase price of fuel so for
this deduct unnecessary amount then take right decision ion context of business (Torres
and Sidorova, 2019).
4. Experience of this report
Herein I can share my experience to prepare of this report which is some times is good
and some times is bad. At the starting of this report conduct research to analysis internal
activities of business and identify all weakness and threats that impact on the business
performance in negative manner. After analysis I identify that how to these problems are arising
in the business and impact on the performance. There are identifying the problem of Staffing
issues, customer services, increasing cost and many others. To identify these problems face many
problems because for this require to collect information from internal sources. Many people did
not corporate with me and many people doubt on me. So for this I can join this company and
collect all the information that helps me to prepare this report. After internal analysis require to
analysis all the external factors that impact on the business efficiency in positive as well as
negative manner. The political condition of UK is changeable because it effect by the Brexit so
company change their rules & regulations effectively. For this research require a team who have
knowledge about different factors. So for this find those person and lead them. Every person give
a particular factor and conduct research to find that which activities impact on business
performance in positive and negative way. I can collect all the information and identify different
threats that majorly impact on business and require to sort out these problems with the help of
different tools. So for this I can apply different management concepts and theories that helps me
to tackle these problems effectively.
CONCLUSION
From the above report it has been concluded that all the activities of business conducted
as per the requirement of business. To analysis the internal and external activities require to
apply SWOT analysis that helps to identify which factors impact on the internal performance of
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business ad through PESTLE analysis identify that which external factor impact on the business
in direct manner. Through both analysis identify the problem in business of Brexit uncertainties
and increasing cost that impact on the performance of an organisation. To resolve these problems
apply the theory of scientific management, system and situational theory. With the help of
managing concept sort out the problem of increasing cost through controlling and employee
relation and dispute resolve by the coordination in business.
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REFERENCES
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