PESTLE and SWOT Analysis for Airline Industry

This document discusses the PESTLE and SWOT analysis for the airline industry, focusing on the chosen airline. It examines how changes in PESTEL factors have affected opportunities and threats. It also compares different leadership styles and recommends the most suitable style for the chosen airline.

Context of business

Table of Contents
MAIN BODY.............................................................................................................................3
Discuss PESTLE AND SWOT analysis for chosen airline....................................................3
Critically examine and evaluate how changes in PESTEL have affected opportunities &
threats. Briefly describe how airline is addressing strength to negate threats & weakness
affecting opportunities............................................................................................................5
Compare and contrast the different styles of leadership. Comment on the appropriate
leadership and management style at the chosen airline.........................................................7
Explain corporate social responsibility in process.................................................................9
CONCLUSION........................................................................................................................11
REFERENCES.........................................................................................................................12
Books & Journal:..................................................................................................................12

INTRODUCTION
Business is wider and broader which is also changing and rapid scale due to higher
flexibility of market situation. (Al Khajeh, 2018). Changes in businesses activities occur due
to both external and internal factors. Strategies are being implemented through which it is
easier to take decision. Airline industry has been evolving with the time period and changing
their services. Main purpose of this report is to critically understand the different context of
business in this contemporary environment. Ryanair, which is low cost airline headquartered
in Dublin Ireland. It has many subsidiaries such as Malta Air, Ryan Air UK, etc. They also
have many competitors in the field like Lufthansa Group, Wizz Air and many more. This
report comprises of different types of frameworks like SWOT and PESTLE analysis,
provides analysis on influencing opportunities and threats.
MAIN BODY
Discuss PESTLE AND SWOT analysis for chosen airline
Airline Industry has been affected by different number of factors which are important
to be considered because these industries perform at larger level and provide wide range of
services to people. This is essential for Ryanair to conduct a detail market as well as research
analysis through which they are capable of focusing towards business activities and
implementation of strategies efficiently.
PESTEL Analysis
It is a type of a framework which is used by organisation with purpose of
understanding market situation and external factors which affect organisational structure and
wider context. It is a time consuming process because to conduct this framework company
requires reliable and effective information (Efthymiou, 2021).
 Political factor- It is the first element a framework in which it focuses towards
factors like environmental law, labour Law, etc. In consideration of selected company
which is Ryanair, this is analysed that they have been affected by impact of brexit as
because due to this uncertain situation, it is not easy for them to carry out their
business in many countries.
 Economic factor- It is also another factor in which it focuses on inflation and
deflation rates, tariff and non-tariff, etc. In reference of selected company oil prices in
Europe changes frequently which effect Margin and sale profit of business. Another
impact is that due to covid 19 pandemic situation on economy it is not easier for
Ryanair expand their activities because of low profit.

 Social- Social factor is also essential which include behaviour, taste, attitude
preferences etc. It is also necessary for chosen firm to consider these factors so that
they are able to take effective decisions. For example consumer preferences of
reaching to destination with the short haul routes (Gheorghe, 2017).
 Technological element- This include and involve factors such as use of advanced
software hardware tools and technologies. Every individual is becoming dependent on
technology and uses social media for example Facebook, Instagram, YouTube and
remains active. In context of chosen entity, this is examine to that they are also
expanding their activities with the help of digital platforms and ecommerce website to
generate more profit and improve customer experience. They are also implementing a
new management system through which it will be easier for them to deal with
customer problems and solve use accordingly in systematic procedure on daily basis.
 Environment- Environmental factor focuses on elements like waste management,
utilisation of resources etc. Each and every individual is becoming concerned about
environment safety so it is necessary for every organisation to follow all rules and
regulations properly to secure environment. In relation of chosen Enterprise, they
have been affected by this factor because due to European regulation of admission for
airlines have increased the cost for firm.
 Legal- It is also the last aspect of framework in which it focuses on following rules,
regulations legislations etc. In business it is crucial to carry out every activity and
procedure by following rules and regulations. In viewpoint of chosen firm. They are
affected by legal factors at larger level because Brexit might require Ryanair to
comply with the UK as well as European regulations which is a difficult process
(Ghotge, 2020). Legal department of company has a proper eye on changing
regulations and rules of government authorities and accordingly they manage and
adopt the changes in their business activities.
So, it has been examined that airline industry is being affected by external factor at larger
scale which makes it necessary for Company to make decisions and execute their functions or
operations. With proper use of this analysis it is easier for enterprise to determine external
factor which impact upon company's business.
SWOT Analysis
It is another important framework which is ready to be properly considered by
selected enterprise because it is defined as a framework through which it become easier for
enterprise to access their internal capabilities by accessing to strengths weaknesses,
opportunities and threats. With the help of this framework, Ryanair is capable of making
improvements within their business context.
STRENGTH WEAKNESS

 Main strength of Ryanair is that
established their business in European
market with more than 200
destinations and with over 2000
routes which make it easy for them to
operate worldwide.
 Strength of enterprises that they have
a strong balance sheet due to regular
rate of return among shareholder
which reflect their strong financial
condition (Junior, 2018).
 As they operate at low cost based
strategy they are able to achieve easy
competitive advantage in market and
have wide range of customers and
users.
 Due to change in labour relations and
employee compensation it can
directly impact upon selected
business profit as well as sale ratio.
 Another weakness is that due to this
on-going pandemic situation of covid-
19 it is not easy for them to generate
higher profit as because of low
demand and government regulations.
OPPORTUNITY
 Selected organisation has an
opportunity of increasing customer
experience by improving and
developing always getting better
program which it become easier for
them to understand customer
changing needs and behaviour.
 They also have the opportunity of
introducing new flight segment for
new target audience through which
expansion is possible.
THREAT
 Due to regular changes of
government rules relations direct
impact on enterprise profitability as
well as sale of services.
 Another threat is that there are many
other competition from different
regional centre which provide low
cost services to customers with higher
discounts (Maulina, 2018).
From explained framework it is seen that Airline Company needs to have a proper
knowledge about their weak areas which require proper improvement for business to
implement strategies as well as accomplish their goals within effective way.
Critically examine and evaluate how changes in PESTEL have affected opportunities &
threats. Briefly describe how airline is addressing strength to negate threats & weakness
affecting opportunities
PESTEL analysis is a wider frame works which effective opportunities as well as
threat of a business in airline industry because factors involved in this framework changes
rapidly with time period. This is also analysed that it is duty of a HR manager to have a deep
knowledge about these changes so that decisions and studies are undertaken with appropriate
manner. So, changes in this framework on both opportunities and threats are discussed as
below-
PESTEL changes effect on opportunities

Political and economic factor changes directly impact upon on opportunities because
political factors like brexit make significant for Ryan Air to expand their business services
and diversify their products into different segments due to involvement of lot of paperwork
and processes. In economic factor, due to changing of prices in fuel selected organisation is
unable to fix with their prices for services. Furthermore, it is to examine that social factor also
changes and effect opportunities because needs and preferences of customers changes
frequently due to which company is unable to implement effective strategy to achieve
benefits.
Threats
This is also impact upon its because components like technological and environmental
factor act as a threat to this and also reduce the threat from others for example technology is
becoming important nowadays without which organisation cannot implement their activities
and it reduces threat of increased competition as well as changing market situation. Also
environment and legislation also reduces threat to business For example undertaken company
is capable of increasing living standard of people by properly following environmental rules
and regulation which also help business to establish a positive relationship with public that
leads to increase in goodwill (Park, 2019).
Airline addressing strength to reduce effect of threat & weakness on opportunities
Airline industry is developing and improving their services with providing better
experience to customers. This is also seen that Ryan Air is using their strength with purpose
of reducing effect of threat as well as weakness on opportunities so that it is easier to carry
out all activities and other business operations appropriately.
 Ryan Air is managing and maintaining their balance sheet and financial statement up
to date through which it becomes easy for them to analyse and determine statistics
about their financial performance in market and on the basis of which implement
strategies which reduces there threat of competitors.
 Another one is that they are located worldwide and have presence of their services
across 200 destinations and they uses online social media channels through which
they are capable of engaging with the target audience easily which increased their
opportunity scale (Tallman, 2018).
 Furthermore is that they are using low cost basis strategy as a strength through which
they find it easy to reduce the threat of changing prices on fuel by government
because they have a large customer ratio.
 They also uses their strength which is their skilled employees who have a deep
knowledge of customer changing taste and preference is and on the basis of which
they are now expanding their business many Asian countries which leads to a new
scope.

Therefore after a deep analysis of reflected matter, it has been analysed changes important
in businesses which are also needed to be adopted and determined so that cooperation is able
to deal with all kinds of factors which impact upon business opportunities.
Compare and contrast the different styles of leadership. Comment on the appropriate
leadership and management style at the chosen airline
In every business both leaders as well as managers are important for managing control
over employees and work without which enterprise cannot accomplish their set objectives.
Leadership styles are being used by the doors on the basis of which they engage with
employees and solve problems which are faced by both employees and subordinates at
workplace (Theodoulidis, 2017).
There are different types of leadership styles which are preferred by businesses and
leaders through which workplace and work are executed. Different type of leadership styles
are given below-
Styles Meaning Focus
Authoritarian leadership
style
It is defined as a type of a
leadership style in which
leaders mostly focuses
towards company guiding
and managing team
members. Also team
members are nervous in this
style.
Main focus is on maintaining
discipline in between team
members and team.
Participative leadership It is another style which
refers to kind of a style in
which leaders and employees
both participate in which
region making process and
employees also get chance to
participate in decision
making process (Turnbull,
2020).
Main focus is to improve the
employee motivation level in
order to complete given
assignment and task on time
Delegated leadership It is another type of a style in
which leaders assign
responsibility and power too
low authorised power
employee who that manages
all given projects and reports
to leader.
Main objective is to have a
control over team and their
work with established
positive work environment.
Transactional Transactional style is one in
which leaders have values
and what according to the
Objective is to increase the
productivity level with
employee motivation so that

systematic proper order as
well as structure. Which type
of leadership style is mostly
adopted when business
operations and activities are
being carried out at larger
level
benefits are achieved at all
aspects.
Transformational This is defined as a
leadership style in which
leaders have a vision and
motivate as well as give
power to achieve those goals.
Main benefit of this style is
that leaders act as a role
model in a the eye of
Management and employees
Main purpose is to establish a
positive relationship and
decrease the employee
turnover rate.
From the above explain the paragraph It is seen that the most appropriate style which
is used by leader of Cosmos is that participative leadership style because in this covid-19
pandemic situation it is essential for organisation to work with employees through mutual
understanding so that turnover rate does not increases and work is being executed smoothly.
It is also most important for HR manager to use leadership and management style with proper
consideration and analysis it become easy for Ryanair to manage and maintain their
relationship with the employees as well as customers in effective manner why properly using
leadership style through leaders.
With use of Management and leadership style, selected enterprise is capable of
dealing with uncertain situation and increase employee motivation level which is beneficial
for growth and development of business in market (Zhiyong, 2017).
Recommend a suitable leadership style that will help them meet their business objective
Leadership styles are important for both leaders and employees and employers
because without these it is not possible to execute organisational activities in market. So, the
most suitable leadership style is further explained as follows-
Participative style- It is a type of leadership style in which it is defined as style in
which leaders involve employees within their decision between process and ideas are
generated as well as selected in mutual purpose. Benefit of this style is that it leads to
increase in subordinate motivation and moral also they easily engage with superiors of
company. In reference of Ryanair, it is examined that they need to adopt this leadership style
which will help them to engage with employees and other management staff.
This will also meet their business objective because with the help of participative
leadership style leaders will be able to understand the point of view and changing needs of

customers as well as employees. This will help them and HR manager to implement strategies
appropriately.
Therefore it is critically stated that leaders need to be aware about internal and
external analysis so that accordingly projectile is being adapted and business objectives are
achieved at all aspects.
Explain corporate social responsibility in process
Corporate social responsibility is an important part and process of business which is
to be adopted by every organisation because it helps in execution of business activities
legally and ethically. It is also seen that it is defined as a process of integrating social and
coming activities together to achieve business activities. In context of chosen firm, this is
analysed that it is critically important for them to adopt and focus on corporate social
responsibility because by integration and fulfilling environmental needs as well as
responsibilities model of a brand increases in the eye of public and customers (Al Khajeh,
2018).
In Perspective of airline industry, It is seen that corporate social responsibility is being
reflected as a priority component with their business because they uses most fuel and which
have a deep impact on in environment and sustainability of people. Process of fulfilling the
responsibility of CSR is a time consuming but is effective and is required to be regulated on
daily basis so that benefits are accomplished accordingly for example adopted company has
hired many environmental practitioners through which they are able to follow all rules as
well as regulations towards process (Efthymiou, 2021). Main benefit of CSR is that
companies capable of increasing their Goodwill in market, reduces chances of conflict
between Government and brand, helps in increasing sustainability period for both public as
well as company which results in higher growth and development. CSR is similar to
environmental, social, and corporate governance (ESG) principles. The leading difference is
that CSR is an internal function, while ESG is an external one. With CSR programs, it's up to
those inside the company to measure the success. They decide which programs to continue
and rework those that aren't performing as well and could change. This is stated that Human
resource department need to have a proper awareness about whether this is activities are
being executed in legal and ethical manner or not. Also, it is duty of HR manager to make
ensure that so corporate social responsibility are being fulfilled at all aspects so that all goals
are accomplished within a time interval without facing any problem.

CONCLUSION
After a brief analysis of discussed report, it is totally stated that HR of a company
need to implement strategies with proper consideration of market situation so that benefits are
achieved accordingly. So, discussions have been made about different types of PESTLE,
SWOT, analysis on factors and recommendations with brief overview about corporate social
responsibility. This is evaluated that wide range of research is required to implement
strategies with an organisation. Moreover, it has been also specify that it is responsibility of a
Human resource department to gather all necessary information which helps them to achieve
competitive advantages.

REFERENCES
Books & Journal:
Al Khajeh, 2018. Impact of leadership styles on organizational performance. Journal of
Human Resources Management Research, 2018, pp.1-10.
Efthymiou, 2021. The factors influencing entry level airline pilot retention: An empirical
study of Ryanair. Journal of Air Transport Management, 91, p.101997.
Gheorghe, 2017. Exploring The Role Of Alliances, Agreements And Partnerships In The
Airline Industry; The Case Of Apg Network Within The Romanian Market. Annals-
Economy Series, 4, pp.161-168.
Ghotge, 2020, January. A Global Analysis on Microgrids through the PESTEL Framework.
In 2020 IEEE International Conference on Power Electronics, Smart Grid and
Renewable Energy (PESGRE2020) (pp. 1-5). IEEE.
Junior, 2018. Effect of the coaches' leadership style perceived by athletes on team cohesion
among elite Brazilian futsal players. Cuadernos de psicología del deporte, 18(3),
pp.252-267.
Maulina, 2018. SWOT analysis for business strategies: a case of Virage Awi in the bamboo
craft industries, Bandung, Indonesia. Review of Integrative Business and Economics
Research, 7, pp.213-224.
Park, 2019. Common Ownership and Product Market Competition: Evidence from the US
Airline Industry. Korean Journal of Financial Studies, 48(5), pp.617-640.
Tallman, 2018. Business models in global competition. Global Strategy Journal, 8(4),
pp.517-535.
Theodoulidis, 2017. Exploring corporate social responsibility and financial performance
through stakeholder theory in the tourism industries. Tourism Management, 62,
pp.173-188.

Turnbull, 2020. Ricardo Flies Ryanair: Strategic Human Resource Management and
Competitive Advantage in a Single European Aviation Market (SEAM). Human
Resource Management Journal.
Zhiyong, 2017, August. PESTEL model analysis and legal guarantee of tourism
environmental protection in China. In IOP Conference Series: Earth and
Environmental Science (Vol. 81, No. 1, p. 012092). IOP Publishing.