Case Study of Ryanair: Issues, Management Concepts, and Solutions

This report is a case study of Ryanair, focusing on the issues faced by the company and the management concepts and theories that can be used to address them. It includes a SWOT and PESTEL analysis of Ryanair, as well as solutions to the problems identified. The report provides insights into the internal and external analysis of the company and offers recommendations for achieving competitive advantage in the airline industry.

Context of Business

Abstract
This report is based on case study of Ryanair, which is a Irish airline. Project describe
about various issues that company is facing such as uncertainties of external environment,
staffing issues, negative media coverage and many more. Different concepts and theories of
management that can be use by company in order to deal with these issues is all consist in
present report. In addition to this, internal and external analysis of company is also included in
this.

Table of Contents
Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
1) SWOT and PESTEL analysis of Ryanair..........................................................................1
2) Problem faced by Ryanair.......................................................................................................4
3) Various solutions of a problem using management concepts and theories.............................5
4 Experience while writing this report.........................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The business environment in which company carry out its operation is regarded as dynamic and
the role of management is to adapt the changes by hiring efficient and skilled workforce, using
new and innovative technology so as to combat the threats and weaknesses of a firm (Decker,
2016). There is changes in taste and preferences among the customers or products or services and
many more so it is essential to monitor and san the environment so as to gain a positive
reputation across the globe. This report is based on firm Ryanair which is renowned firm and
provide low cost fare and uses advanced technology so as to achieve maximum customer
satisfaction within the confine sector of airline industry. This report comprises of SWOT and
PESTEL analysis by assessing the availability of resources and assist the firm in decision making
so as to achieve competitive advantage within the market. Also, this report covers various
problems that are been faced by the manager and cover effective solutions through management
theories and concepts. At the end, this report contains a short experience while writing this
report.
1) SWOT and PESTEL analysis of Ryanair
The internal and external analysis is conducted so as to know the accessibility of resources and
help to gain competitive position (Gummesson, 2017). The SWOT and PESTEL analysis are
presented below:
Swot of Ryanair: This analysis is conducted to identify the positives and negatives of an
industry so as to gain a competitive position within the market. The main focus is to identify the
weaknesses by combatting threats and grabbing opportunities that provide future growth aspects
and therefore gain an important position within the confine sector of airline industry (Schuetz
and Schrefl, 2017). With reference to Ryanair, the SWOT analysis is described as follows:
Strengths:
Low cost: One of the major strengths is that Ryanair provide efficient and low cost as
compared to its competitors in the world. This helps to attract large number of passengers
from different parts of the country and thus gain positive reputation at a global level.
Advancement in Technology: The respective firm provide the facility of new and
innovative technology like online booking and payments facilities; automated bag drops
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and so on in order to provide greater ease of convenience among the large group of
customers.
Fleet: Ryanair is operating at a single fleet that enjoy greater economies of scale and also
has greater financial position and it also provide cost advantage as compared to its
competitors.
Weakness
Seasonal in nature: the profits of Ryanair during winter season declines which reduce
the growth opportunities and decline the productivity of a firm.
Brand Insight: the perception of customers regarding this firm is not caring that has a
direct impact on the sales and thus the profitability of a firm reduces.
Opportunities
Increase in share: Ryanair aims to deliver low unit cost in relation to its competitors that
provide positive reputation across the globe.
Excellent customer service: the concerned firm provides best and efficient services to
their passengers by using innovative technology and low-cost fare as it builds positive
reputation across the globe.
Threats
External factors: these includes increase in prices of fuel, changes in rates of currency
that possess a greater threat in case of Ryanair.
Competitors: Ryanair has large number of competitors such as Wizz Air, Norwegian Air,
Easy jet and so on that charges low cost fare within the confine sector of airline industry.
PESTEL analysis of Ryanair: This frame work aids environmentalists to monitor and
scan the external factors and provide various resources and also help in decision making of a
business. This analysis consists of various components such as political, economic, social
and technological and legal elements so as to gain a competitive position across the globe. In
the context of Ryanair, the same is described beneath:
Political factors: these consist of various factors such as corruption, foreign trade,
taxation policies and many more. Ireland has the major political strength in all over the
world. The exit of Britain from European Union, namely Brexit has adverse impact on the
political stability of the country in several ways. The consequences such as strikes specially
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during the peak season which results into huge losses of a firm. The government in UK has
rises the prices of taxes more than three times that decline the profit margin of Ryanair.
Economic Factors: These comprises of several aspects such as level of competition,
employment, inflation rates and economic stability. Ireland is regarded as the 33rd giant
economy in terms of GDP across the globe. The rise in prices of fuel and fluctuations in rates
of currency create an unimaginable chaos and negatively affect the economy within the
confines sector of airline industry. The economic crises result in downfall in number of
passengers and affect the growth of a company.
Social factors: these includes elements such as changes in lifestyle and taste and
preference of customers with new technology and age distribution and population growth
(Caputo, and Borbely, 2016). The large number of people in Ireland are like to spend the time in
travelling that lead to increase in sales and profits of the company. The major focus of firm is to
deliver excellent service to their clients by providing various efficient services like polite and
calm behaviour of air hostess and also provide the facility low cost charges and therefore
enhance the future growth at a global level. This develop positive reputation and brand
recognition in an around the world.
Technological factors: These comprises of various elements such as level o innovation,
advancement and awareness of technological brands and research and development activity (Liu,
2018). Ireland is considered as the advancement of technologically in the world that emphasise
on rendering good quality as well as multi lingual talent at a global level. The respective firm
provide fast and efficient services to their clients like allowing passengers to book their tickets
online and quick payment facilities and other details related to time and fare charges in their
respective websites. Furthermore, it also provides the facility of LCD screens to listen songs and
movies to provide a greater ease of convenience among the group of customers as it also saves
time and money within the airline industry.
Environmental Factors: these consist of various elements such as climate, weather,
environmental policies and so on. By looking into awareness among the environmental
aspects, the manager reduces the greenhouse gases from carbon emission that results in a
positive consequence and also emphasise is to decrease the carbon footprints so as to provide
protection towards the environment and also provide sustainable development. In this
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relation, the heat waves have become a common phenomenon and also change in sudden
climatic change cause a serious concern towards the growth of a company.
Legal factors: These includes various components such as antitrust laws, copyright laws
and various health and safety laws and so on (Haynes, Nunnington, and Eccles, 2017). The
Irish government is very particular about the rules and regulations and follow all terms and
conditions in a great manner. Due to exit from European Union, that is Brexit, it results in
various restrictions and decrease the demand of air travel between the nation. The senior
authority of Ryanair requires to abide all the rules and legislations pertaining at a global level
so as to provide effective and smooth operations of a business. European Union has issued
new guidelines and regulations so as to provide systematic and get access to rights to their
passenger’s.
2) Problem faced by Ryanair
The vote for Brexit, that means Britain separated from European Union has created lot of
uncertainties and chaos all over the economy as it creates a negative impact at a global level
(Kreutzer, 2019). The major problem faced by Ryanair is increase in fuel prices that results to
rise in cost of tickets and thus reduces the profit margin of the company. This leads to upsurge in
overall cost of company and thus allows to shift the preferences of customers among the other
airline companies. This create a major impact on the profits and fastly decline the rate of
consumers from different parts of the country. Ryanair has giant number of competitors such as
easyJet, Wizz Air, Norwegian Air and many more that provide low fare charges and possess a
big threat within the confine sector of airline industry. Due to such reasons, the manager of
respective firm refuses to pay salary to their staff which results in high employee turnover and
thus create an unimaginable adversities and chaos all over the world. There is change in minds
and preferences of customers that become undesirable like money grabbing that leads to decline
in sales and reduce the overall productivity of the company. Another problem faced by Ryanair
is improper hierarchical structure which create imbalance and reduce the coordination within the
airline industry. This affect the efficiency and combatting growth opportunities of a business
and also reduces the staff as it provides lower job satisfaction and reduce the morale of
employees. Therefore, the brand image has affected badly due to range of polls and surveys and
awards for many years as it creates a negative image in the minds of large number of passengers
from different parts of the country.
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Also, the manager does not emphasise on providing rewards and compensation benefits and is
associated with poor customer service and unfair pricing practice results in vulnerable and does
not provide success and proper cooperation within an organisation (Barrow, 2016). Other
negative aspect is that Ryanair has expanded its operations in different segments of the country
which provide the outcome of exposure to low cost volatility. Also, there is lack of
communication strategy from top level management to staff as it creates confusion and
misunderstanding among them and results in conflicts among them. This create an uneven
atmosphere in a workplace and decline the overall performance and productivity at a global
level.
Ryanair faces other issue such as negative media coverage that give rise of misleading
information through newspapers, radios and social networking websites such as twitter,
Facebook and Instagram which create a adverse impact on a firm and thus hamper the growth
opportunities and affect the brand image within the confine sector for airline industry. Therefore,
it results in less customer satisfaction and reduces the overall profit margin and efficiency.
3) Various solutions of a problem using management concepts and theories
The manager performs various functions such as planning, organising, directing and
controlling and monitoring the activities so as to facilitate proper coordination and also aids in
accomplishment of task in a proper period of time (Nechkoska, 2020). There are various
management concepts and theories that provide an effective solution to their clients in an
efficient manner. The major role of manager is to assign duties and responsibilities among the
staff so that they could work with greater zeal and confidence. In the context of Ryanair, the
management concepts are given as follows:
Achievement of goals: the first step is to create a goal in order to ensure future growth
and success of a firm. The manager of Ryanair through an appropriate planning decides a course
of action among the various alternatives available so as to ensure systematic and proper working
within an organisation.
Excellent communication skills: this is only possible when an individual have good
listening skills as it helps in avoiding confusion and misunderstanding and develop a sense of
trust among the subordinates. The senior authority of Ryanair ensures the proper role and divide
the work among the staff in according to their specialised skills as it aids in completing the task
in a short span of time.
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Proper usage of resources: People are regarded as the most important asset and other
resources such as material, machine, money and so on should be used judiciously as the manager
focus on eliminating the wastage and this also save time and money. The top manager of Ryanair
emphasises on avoiding duplication of activities and facilitate smooth operation of a business.
This bring efficiency and facilitate free flow of activities so as to develop a proper working
culture and atmosphere in a workplace.
Skilled Employees: The HR manager has the major role to hire the right candidates for a
right job so as to facilitate proper coordination and cooperation in a workplace and also allow
them to achieve the task in a limited period of time. The manager of Ryanair provides training
and development of employees in order to increase their skills and knowledge base of employees
so as to promote growth and provide various opportunities like promotion and compensation
benefits and also provide great contribution in their career path.
Coordination: The manager of a concerned firm facilitates proper coordination by
assigning the roles through strategic planning so that they could work with greater efficiency and
zeal. They emphasise to bring smooth flow of activities through excellent communication skills
as it develops positive attitude and inculcate confidence skills among them.
Management theories: These are defined as set of rules and regulations that aims to
provide guidance to the managers in order to develop proper management practice within an
organisation. In relation to this, there are several theories and practices such as democratic,
situational and so on that help to ensure success and prosperity within a workplace. In the
context of Ryanair, these are given below:
Democratic: In this theory of management, the focus is to consult the opinions and
suggestions of subordinates so that they could feel that their presence is important in an
organisation. This also aids in taking decisions with high level of accuracy and increase the
efficiency and productivity at a workplace. It also encourages and motivate the behaviour of staff
as it ensures success and proper coordination and thus accelerates the creativity of employees.
The top manager of Ryanair has used this theory to promote a sense of team spirit and develop a
positive culture in an organisation. thus, it also follows the principle of unity of command and
also provide enormous growth opportunities and facilitate the smooth operation within the
confine sector of airline industry. This style of leadership encourages the ideas and suggestions
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and also aims to provide effective solutions to problems so that everything is working in an
efficient and effective manner.
Situational: In this theory, the manager behaves differently in according to the situation
so that it provides assistance in meeting the needs of individual and organisational objectives.
The manager should assign the roles and duties that matches the talent and skills so that they
could work with confidence and zeal. Furthermore, the senior authority adapts to choose an
appropriate style in accordance to skill depending upon the task and nature of group so as to
ensure productivity within a workplace. One of the advantages of situational style of leadership
is that it allows the manager of Ryanair to adapt the changes in a dynamic environment and also
focuses on providing a comfortable working environment to their staff in order to bring positive
outcome among the workers. This also promote a sense of team culture and also it emphasises on
providing efficient training to their staff so that they could feel confident in handling
sophisticated machines in an effective and efficient manner.
Contingency theory: This is a management theory that provide the ability of the leader
depend on the success and prosperity of a firm that relates to various factors such as work
environment, employees and the culture of company. A leader is regarded as the most effective
when its capabilities and features match with the current situation or environment in an
organisation. The manager of Ryanair help in taking fast decisions and provide vast growth
opportunities by involving the ideas and opinions of subordinates but at the same time this style
of management become more complex to handle adverse situations as it is reactive in nature.
4 Experience while writing this report
It was an amazing experience because I have learnt lots of new things while writing this
report as it consists of internal and external analysis that assist the firm in gaining a competitive
position across the globe. It also includes various theories and concepts of management and the
effective solutions to the problems faced by the management of Ryanair. The effective
management play a significant role to promote a sense of team spirit and develop positive
environment by inviting the ideas and suggestions of subordinates so that they could work with
greater efficiency and trust.
In a business environment, it is essential for the manager to cope up with changes and
challenges so as to facilitate smooth operation of a business in a coordinated and efficient
manner (Kew and Stredwick, 2016). Also, the manager should emphasise on rendering efficient
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training to their subordinates so that they could handle sophisticated machines and also inculcate
self confidence and trust in them so that they could work with greater zeal. The senior authority
of Ryanair could emphasise on rendering excellent services to their clients by charging low fare
so as to gain large exposure and thus generate positive reputation in different parts of the
country.
The most important thing is that the manager handle each and every solution of the
problem with calm and patience so as to generate positive reputation at a global level (Kreutzer,
2019). The top management provide rewards and recognition in order to retain employees for a
long period of time and also provide a sense of motivation and self determination among them.
CONCLUSION
From the above furnished information, it can be summarised that management play an
important role in bringing proper coordination and cooperation and also facilitate the smooth
operation of a business in an effective and efficient manner. It has been analysed that
management also aids in taking fast and accuracy of decisions by completing the task in a proper
period of time. Also, it has been ascertained through various management concepts and theories
help in bringing proper functioning and systematic procedure so as to avoid confusion by
developing proper planning and excellent communication skills so as to ensure transparency in a
workplace.
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REFERENCES
Books and Journals
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Management (pp. 89-142). Springer, Cham.
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Page Publishers.
Barrow, C., 2016. The 30 day MBA in international business: Your fast track guide to business
success. Kogan Page Publishers.
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in Complexity (pp. 1-26). Springer, Cham.
Liu, H., 2018. A Strategic Analysis of Chinese Airline Industry under Online Environment: In the
Case of China Southern Airlines. Scientific Research Publishing, Inc. USA.
Kreutzer, R.T., 2019. Tools for the Strategic Analysis. In Toolbox for Marketing and
Management (pp. 89-142). Springer, Cham.
Haynes, B., Nunnington, N. and Eccles, T., 2017. Corporate real estate asset management:
strategy and implementation. Taylor & Francis.
Caputo, A. and Borbely, A., 2016. When strategy meets negotiation: the negotiation capability of
Ryanair. In Academy of Management Proceedings (Vol. 2016, No. 1, p. 13571). Briarcliff
Manor, NY 10510: Academy of Management.
Gummesson, E., 2017. Case theory in business and management: reinventing case study
research. Sage.
Decker, A., 2016. Ryanair and the Danish Model (Case study contribution to textbook).
In Economics for Business. Palgrave Macmillan.
Schuetz, C.G. and Schrefl, M., 2017, November. Towards formal strategy analysis with goal
models and semantic web technologies. In International Conference on Conceptual
Modeling (pp. 144-153). Springer, Cham.
Schuetz, C.G., Mair, E. and Schrefl, M., 2018, October. PESTEL Modeler: Strategy analysis
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Enterprise Distributed Object Computing Workshop (EDOCW) (pp. 216-219). IEEE.
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