SWOT and PESTLE Analysis of Ryanair: Key Issues and Solutions

This report provides a comprehensive analysis of the internal and external factors affecting Ryanair, including a SWOT analysis and PESTLE analysis. It identifies key issues faced by the company and offers solutions to address them.

Context of business

Table of Content
TASK 1............................................................................................................................................3
SWOT analysis............................................................................................................................3
Pestle analysis..............................................................................................................................5
TASK 2............................................................................................................................................7
Key issues of company management...........................................................................................7
TASK 3............................................................................................................................................8
Solutions to the problems............................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business managers and leaders have to focus on various factors related to internal and
external environment which affects company sales revenue and profit margins with high
variability factors. Raynair is one of the biggest airway company operating in UK and European
regions, with large customer base goodwill but in recent years company has been facing large
issues and financial losses. This report explains importance of internal and external business
environment and how company can focus on building interna;l strengths for gaining
opportunities in external environment. It also analyses the various key concern areas
management has been facing in company which has lowered sale revenues and reputation in
globe. The report also explains what key business strategies can be taken by leaders and
managers for enhancing its position among public in comparison among other companies and
global airways brands. It also elaborately analyses the key paradigms where leaders need to
motivate employees for gaining new competitive skills to improve their performance standards
and bring long term goodwill.
TASK 1
The SWOT analysis is internal framework analysis which enables business mangers to
deeply understand the various elements important for vitally increasing brand value in
competitive industry. SWOT analysis explain strengths, weaknesses, opportunities and threats of
internal working structure where company management lays high focus in delivering strong
focus on strengths and opportunities and make management strategies to work towards weakness
and threats (Phadermrod, Crowder and Wills, 2019).These factors help internal management of
company to enhance functional operations efficiency levels and reach high customers segments
goodwill. Internal management is highly responsible for bringing cost effectiveness in resources
and high retainment of employees.
SWOT analysis
STRNEGTHS:
 Low cost: Rayfair has the lowest costs of unit operations which enables low fares cost for
passengers for all customers on profitable basis, making it one of the cheapest airlines in
whole Europe. This factor gives company one of the biggest strengths enabling it big

difference from other competitors in industry. Low cost factor definitely enables
customers to choose the favorable option for travel as compared to other airways of high
prices in travel. The low cost travel fares and maintenance of cost effectiveness in
resources has highly helped company management to maintain its capuatl funds for using
in expansion business strategies. Rayair has been largely appreciated among people
worldwide for affordable price range in fairs, low costing which alos helps passengers tp
have comfortable travelling experience.
 Innovation: Raynair believes in delivering high innovation in business services through
smart innovative technology standards, for enabling customers’ satisfaction services.
Online booking services through internet and quick access to grievances and feedback
completion of customers through technology factors shows management focus. Raynair
believes in maintaining strong innovation parameters in engines of aircrafts and
machinery equipments through which they can gain large segments of customers in
market share (Durand, Gleason, Pavelsky and Frasson, 2019).
WEAKNESSES
 Brand perception: Raynair has performed poorly in reaching the set benchmarks of
goodwill as people expectations, it has been lacking to gain firm position in surveys, polls
among general public. This factor has become increasingly a weakness for company
reputation as it has lowered the sale revenues and profitability margins extensively. Low
goodwill among customers worldwide, and less efficiency in performance standards
delivery has impacted the barend image highly negatively.
 High competitive industry: Raynair has high competitive industry of new airways
company and brands coming in with strong innovative technology standards and efficient
machinery equipments used in aircrafts. Customers have high demand and preferences
for high quality comfortable travel experience where Raynair performance has been
lacking lately. There is high competievness in airways industry where customer
preferences have been variably increasing and there is strong demand for high quality
standards.
OPPORTUNITIES
 Improved customers satisfaction services: Raynair has the opportunity t gain revenue
growth and high profitability through enhanced customer feedback services which can be

achieved through training of employees and high technology usage in machinery. This
opportunity will enable company to gain competitive edge in industry and maintain
strong goodwill in world as a strong brand image. Training employees and management
to deliver high performance standards is great opportunity for Raynair as it is
imperatively important for management for reaching the set benchmarks of customers
preferences and goodwill standards. Websites services should deliver quick response to
feedback and grievances of customers.
 Business travelers: Ryanair by building competitive strength as an internal asset for
operational efficiency of management gain attraction of large number of business
travelers around the globe. This opportunity is vital to gain high profitability revenues
and maintain strong goodwill among people in world for choosing the airways for
travelling purposes.
THREATS
 High preferences of customers: The changing business development environment has
raised the expectations and preferences of customers worldwide and specially among
Europe where the main operation of company are working. Raynair has been lacking in
delivering high preferences of customers due to less technology factors, less trained
employees and low innovation factors (Achinas, Horjus,Achinas and Euverink, 2019).
 Innovative technology by competitors: Raynair has high threat of competitive airways
company and new brands coming up in world with innovative machinery equipments
used in engines for enabling strong experience for customers. The company is facing
increasing threat of competitor’s brands due to which the reputation has decreased by
high margins.
Pestle analysis
Macro environment has large impacts on working structure of company which business
managers have to strategically focus on for decision-making process. Pestle analysis lays
detailed emphasis on macro environment factors for enabling company to reach high revenue
profits and firm place in industry. Raynair top management has to focus on building external
strengths and opportunities for expansion into new countries and untapped economies market
area. External factors of environment have high impact on company sale revenues and stability

factors among public, the competition of new companies and brands has negatively lowered the
business revenue growths and profitability levels (Walsh, Bhagavatheeswaran and Roma, 2019).
Political factors: Raynair company for expansion into new countries have to built focus on
political stability factor of country, in recent period Brexit decisions has largely affected on
revenue from Europe countries and travellers from UK. The unstable political scenario has
largely affected the decision of top management to reach new counties and target new segments
of market share.
Economic factors: The increased taxation rates by UK government has largely impacted the
disposable income of people affecting their decisions to travel by airways. Economic scenario
stability has massive positive impact on sale revenues. Rayair for furthers expansion into new
countries have to maintain high focus on economical stability factors as key element of macro
environment. The weakening of currency has long termed effect on company determination to
reach new segments of customers worldwide; airlines have to focus on investment factors based
on economic patterns and customers disposable income (Gupta,Gupta and Gupta, 2019).
Social factors: The changing social factor have variably impacted the preferences of customers
to choose long distance or short distance travel based on the quality services airways companies
offer. Ryanair for increasing its segment into market share has to build high strength towards
changing social factors and bring new technology factors according to changing demands of
customers. The company needs to gain high qiualitative factors official standards according to
demands of public for having high innovation in business class travelling experience.
Technological factors: Ryanair for increasing profit margins and sales revenue by positioning
itself firm in the airways industry has to bring new technology factors, innovation in machinery
equipments. The highly competitive industry of new brands and airways company coming up can
be faced by Raynair with capital investment in advanced technology for functional operations
and promotional factors. It is an integral part of macro environment where technology strength of
other competitive companies in industry varies the functionality of Ryanair success by high
margins.
Legal factors: Ryanair for positioning itself as strong brand name on world level has to focus on
maintaining strong control on legal factors of counties the management is expanding the
functions into. Legal compliance factors of operations into European countries and UK due to

Brexit decisions has largely affected Raynair revenue margins also as the cost of legal
compliance has largely increased on various segments
Environmental factors: Carbon footprint and increasing global warming issues has affected
business decisions of Raynair as the company has to focus on maintaining global brand image
and conduct strong research for lowering the pollution levels. Environmental factors is an
integral part of macro environment which impacts company revenues by large margins and non-
compliance of environmental factors also disturbs global brand image.
TASK 2
The main problems faced by Ryanair airways company as analysed by internal and
external factors of business environment for positing firm place in competitive world can be
understood as follows :
Key issues of company management
Increasing costs: The high competitive environment of new airways companies and brands
coming up has given tough competitiveness to Ryanair brand image and reputation on world
platform, which has increased pressure in company management to invest in bringing new
technology and machinery. New increasing costs have affected the cost-effectiveness of
company revenues to reach the set profitability revenue margins and set benchmarks as per the
changing customer preferences. The capital investment in machines and technology has also
impacted in increasing cost of training employees, due to which management is facing large
economic losses.
Brexit's uncertainties: The changing economic and political scenario of UK and European
countries business trade due to Brexit decisions has affected Ryanair business expansion
decisions and profitability margins strongly. Customers are facing large issues due to increased
fair charges and high taxation rates, which has negatively brought down the company business
scale revenues. Brexit's decisions have increased monetary barriers for company profits which
has increased Ryanair management decisions to focus on building strong operational efficiency
(Snihur and Wiklund,2019).
Customer services: Changing customer preferences to bring in more innovative technology in
performance standards has affected company capital budgets by large margins. Reaching set
benchmarks of customer satisfaction services is of utmost important to beat competitiveness in
industry, and enhance the reach of customer segments and reach new percentage of customer

segments for expansion into market share. The employees in Raynair are lacking interpersonal
skills to establish strong communication with travellers in aircrafts, due to which goodwill of
company is impacted negatively on various levels.
Less skills among employees: The employees in Raynair do not posses advance technical skills
which affects their performance standards on various levels, impacting company reputation and
revenue margins. Due to inefficient employees in company the overall growth of company get
hampers negatively, it also reduces their retention in company due to less motivation and un-
satisfaction at work. Raynair has been unable to position itself as customer friendly company, die
to which there has been large decline in travellers choice to choose the company as their airways
for large purposes. Airhostesses and pilots need to be trained with strong technical skills and
interpersonal skills development sessions need to be conducted to enhance their performance and
harness creative working skills. The employees have been unable to serve quality services to
customers and travellers who choose Raynair aiways, due to which there is less revenue growth
and profitability factors.
Less quality standards: Raynair has low quality standards for people who look for lavish
experience in flights for travelling as the preferences for business class travellers are unmet and
the deilervery services by employees are also not up to mark. Raynair reputation has becomes
less in recent years due to less innovative services for travellers and passengers who have high
demands and expectations from company. It has been lacking majorly in establishing firm place
among worlds audience due to less quality standards and low functional operations efficiency
which highly lowers the goodwill (Chang, Wong and Chiu,2019).
TASK 3
Solutions to the problems
The various innovative solutions and business ideas which can be implemented to resolve
the issues arised with the above internal management and external environment analysis can be
understood through various management theories and concepts. Raynair needs to build
competitive strength in inner management and higher potentialities among employees which will
enable them to deliver higher growth in their performance.

 Raynair needs to bring new technology in all production equipments and machinery for
reaching competitive level in industry and to enhance its position among other companies
and brands. Innovation is strongly needed to reach new competency level of growth in
dynamic business world, as the changing preferences of customers are highly demanding
for high quality comfortable experience in their travels. High capital investment needs to
be done by top management in company as the growth is strongly relevant with further
expansion in services and innovative technology implementation.
 Raynair needs to train the employees working in various sectors of company management
for enhancing their services standards towards customers and travellers who choose
Raynair as their airways. The employees should be given interpersonal skills training and
technical knowledge of working efficiently under pressure. This will enable to gain
goodwill among customers and attract new segments of customers for reaching large
market share area.
 Raynair needs to build innovative promotion strategies for enabling large scale people
reach among globe and attract new segments of customers towards company services.
Global audience can only be reached with strong promotional services on digital media
and social media handles, on which company needs to upgrade its positioning for higher
profit revenues. The company can build partnerships with other brands to promote its
business services through large scale promotion services in untapped countries market
share by which it can target new segments of customers in market share.
 Contingent management theory explains the imperative needs and actions which leader
needs to integrate skills in employees and train them with innovative technology usage fir
building their competencies. Raynair by implementing contingency theory in company
performance level can enhance its performance standards largely, as the leaders should
have potentiality to build strong development standards in dynamic business world. The
global airways industry is extremely competitive where new technology and services are
giving tough competition to Raynair. Company needs to gain internal strengths of
management by skilling employees to perform better in delivering their services to
customers and travellers in aircrafts. Leaders should held training sessions of employees
and encourage brainstorming activities among team members which will also keep

management motivated and develop their diverse knowledge (Bustinza,Gomes, Vendrell‐
Herrero and Baines,2019).
 Henry Fayol Divison of work management theory is another innovative business
management theory which explains company top management by dividing expansion
descisons into various sectors and departments improve its competitiveness among other
airways company. The brand by division of work theory integrate new business scale
expansion by bringing innovation in research department, marketing managers can build
promotion divisions strategies. Company can expand the revenue growth cycle by
employing highly trained and experienced employees in diversified fields where they can
gain competive strength to enable Raynair gain high revenue profit and large goodwill
among consumers. Employees in customer satisfaction services department can deliver
strong quality services through social media handles and websites networks. Raynair by
divison of work management theory highly increase its performance standards towards
various parameters and horizons through which it can position itself firmly among people
in world.
TASK 4
Writing this report helped me in gaining deep knowledge on management theories
and concepts, reserch parameters helped me to enlighten my vision regarding what
sectors can be built for expansion of business scale.The research presentation helped me
in gaining varied knowledge of practical operational efficiency which builds company
competitive strength. I was able to learn about internal and external working environment
of business arenas in company which affect its positioning through various levels. I
gained detailed view of what business strategies an efficient leader or manager needs to
work towards for enabling strong position of company in industry. There are various
competitive forces in industry which highly impacts the revenue margins and customers
strengths to choose compelling company product or services (Szopinski,Schoormann,
John, Knackstedt and Kundisch,2019). Goodwill of company has high impact on long
term sustainability in industry and its reach among customers as there is massive role of
employees in company to build strong goodwill. I was able to enhance my research skills
through internet while conducting this project and my learning potentialities developed
massively. This project helped me in developing my writing skills and interpersonal

learning which massively increased my interests in business management. While
conducting the research of this project i gained practical experience of the high
competiveness among new brands and other companies in indusy, what are the key areas
managers need to focus on. This project helped me in highly developing my research
quest towards business management and the parameters business leaders need to focus on
for maintaining high efficiency of performance standards.
CONCLUSION
This report concludes that pestle analysis and swot analysis are the key fundamental
business research which enables business managers and leaders to build their decisions
based on internal and external working environment. It concludes for establishing firm place
in industry a company needs to focus on building internal strengths to gain opportunities in
external environment. This report concludes the various factors which affect company
performance standards due to high technology and innovation in machinery and strong
customer satisfaction services. It also concludes the solutions companies can integrate for
fighting the weaknesses and problems arising in future expansion and revenue growth. This
report concludes the parameters which define competiveness among other companies in
industry and the essentiality of having highly skilled workforce. It also concludes the
importance of promotion through various digital media services, social media handles which
help companies to expand into new segments of customers and reach out to diversification
of business scale for maintaining their long term goodwill.

REFERENCES
Books and Journals
Phadermrod, B., Crowder, R. M. and Wills, G. B., 2019. Importance-performance analysis
based SWOT analysis. International Journal of Information Management. 44. pp.194-
203.
Durand, M. T., Gleason, C. J., Pavelsky, T. and Frasson, R. P., 2019. Expected contribution of
SWOT to estimates of global river discharge. AGUFM, 2019, pp.H43N-2263.
Achinas, S., Horjus, J., Achinas, V. and Euverink, G.J.W., 2019. A PESTLE Analysis of
Biofuels Energy Industry in Europe. Sustainability. 11(21). p.5981.
Walsh, K., Bhagavatheeswaran, L. and Roma, E., 2019. E-learning in healthcare professional
education: an analysis of political, economic, social, technological, legal and
environmental (PESTLE) factors. MedEdPublish, 8.
Gupta, A., Gupta, N. and Gupta, M., 2019. British Airways-A SWOT and PESTLE Analysis-
The impact of Europe 2020 policy. NOLEGEIN-Journal of Corporate & Business Laws,
pp.1-11.
Snihur, Y. and Wiklund, J., 2019. Searching for innovation: Product, process, and business
model innovations and search behavior in established firms. Long Range Planning. 52(3).
pp.305-325.
Chang, H. H., Wong, K. H. and Chiu, W. S., 2019. The effects of business systems leveraging
on supply chain performance: Process innovation and uncertainty as
moderators. Information & Management. 56(6). p.103140.
Bustinza, O. F., Gomes, E., Vendrell‐Herrero, F. and Baines, T., 2019. Product–service
innovation and performance: the role of collaborative partnerships and R&D
intensity. R&D Management. 49(1). pp.33-45.
Szopinski, D., Schoormann, T., John, T., Knackstedt, R. and Kundisch, D., 2019. Software tools
for business model innovation: Current state and future challenges. Electronic Markets,
pp.1-26.

