Factors Affecting Business Organizations: A Case Study of Ryanair

This report discusses the factors that affect business organizations, using Ryanair as a case study. It includes a PESTLE and SWOT analysis of the company, identifies the main problems faced by Ryanair, proposes solutions using theories and concepts, and provides a short report on the writing experience.

Context of Business

ABSTRACT
Business organizations perform their operations in an environment that encompass
different types of factors. All the factors directly or indirectly affect business organization
functioning. In this, it is essential for entities to have proper understanding related to all the
factors in order to gain strategic edge. This will not maximize organizational profitability but
also increase market share of company. In this report formative discussion has been made on
Ryanair. Entity operates their services as low cost Irish airline industry in Europe. In addition to
this, it has been evaluated that company provide different types of low cost services to their
customers. This makes entity to ensure large market share holding in respective industrial sector.
Present report includes SWOT and PESTLE analysis of company with the assistance of which
entity can able to evaluate its strength and weakness. Along with this report also involves issues
that are being facing by entity along with its solutions.
Contents
INTRODUCTION.......................................................................................................................................3
TASKS........................................................................................................................................................3
1. PESTLE and SWOT analysis for Ryanair...........................................................................................3
2. Main problems facing by Ryanair that needs immediate attention and why........................................5
3. Purpose a solution to the issue by using 2 theories and concepts.........................................................6
4. Short report on the basis of experience towards report........................................................................7
CONCLUSION...........................................................................................................................................9

REFERENCES..........................................................................................................................................10
INTRODUCTION
Business can be identified as the firm or enterprising entity which is mainly engaged in
industrial, commercial as well as proficient activities. On the other side, business can be for non-
profit or profit organizations that function to accomplish generous mission as well as further
foundation. Thus, the term of business refers to the organizational effort along with activities of
people to produce or sell of product and services in order to achieve profit. Additionally, this
report is based on case study of Ryanair which is known as Irish budget airlines was established
in 1984 by Christopher Ryan, Tony Ryan and Liam Lonergan. Moreover, there are lots of issues
facing by this firm will get covered in this report (Dobson and Piga, 2013).

TASKS
1. PESTLE and SWOT analysis for Ryanair
PESTLE analysis–
PESTLE refers to the particular framework in order to identify key factors like political,
economic, social, technological, legal and environmental. All these sorts of factors have direct
impact on firm’s operating functions within both negative and positive way. Along with this
analysis also provide few concepts for firm by which they can operate their business
successfully. There are several factors in regards with Ryanair, those are mentioned in beneath:
Political factor:Changes in government policies as well as passenger tax rates from
present low rate have direct negative impact on the sales of ticket through air. During this kind of
problem consumers are not able to take travel facilities along with follow other modes of
transportation. This will directly reduce the profit outcomes of Ryanair. Additionally if firm is
able to take political stability advantages then they can expend their business by holding
effective market share (Abeyratne, 2014).
Economic factor:It includes so many factors like inflation rates, taxation rates, currency
rates and many more. In the context of Ryanair, pound weakening strong have negative impact
of benefits within this firm. On the other side, with the proper utilization of economic
opportunities such as fall within oil cost strategies respective firm is able to maximize its profit at
marketplace.
Social factor:According to this factor this can be said that, there are large numbers of
people in Britain who have huge interest among travelling. In relation with Ryanair it can be
considered as important opportunity for them to provide their best services to people so that they
can attain its profitable goals within short time. Similarly, it is essential for them to engage with
such kind of research processes in order to know accurate travelling pattern of consumers. If firm
is not able to follow this process properly, it can have negative impact on them (Myro, Légidos
and Hernández, 2013).
Technological factor:Advancement of technology within the travelling by air it is
essential for air firm to grow rapidly by which they cans survive at marketplace for long period

of time. In regards with Ryanair, they are having huge facilities through social marketing so they
they can easily attract large customer’s base in an effective manner. In the other words, Ryanair
they are needed to ensures that online ticket via internet connection will be more secured so that
customers are not needed to any risk regarding any payment method. Thus, it will influence
overall sector of business entity.
Legal factor:There are different types of laws and legislation within the UK which all
are imposed by government (Angelopoulos and Leivo, 2013). For performing every business
activity in a perfect way it is necessary for Ryanair to comply with all legal legislations so that
they can overcome issues of penalties and legal obligations.
Environmental factor:In regards with Ryanair, it is necessary for them to act their
profitable business as there are so many restrictions. Along with this, they need to give assurance
towards those strategies who are taken by them are necessary for attainment of targeted goals.
SWOT analysis –
It refers to the strategically framework which allows entity to determine their strength,
weakness, opportunities and threats. Furthermore, it allows firm to develop several measures so
that they can reduce weakness and able to achieve their targeted goals from future opportunities.
In regards with Ryanair, SWOT analysis has been specified below:
Strength:Ryanair refers to the low coast airline services across the globe in the term of
each seat along with based on per kilometers cost of customers (Abeyratne, 2014). Moreover,
having low pricing strategy cost for consumers they can easily reduce competition within Europe
which is the main strength of this firm. Along with this, Ryanair have numerous short-haul
networks by which they can provide 1600 routes within 30 countries having so many great
services.
Weakness:Within the changes into employees compensation in regards with labour
arrangements is the main weakness of this respective firm that directly impact on functions of
Ryanair. Thus, brand perception of company is weak so that they perform poorly and not able to
achieve their targeted goals (Ferro, 2018).

Opportunities:Through maximizing strong interaction with lots of consumers are the
biggest opportunities for Ryanair. With the help of this they can bring few modifications within
its system and able to survive at marketplace for long period of time. Apartfrom these, taking
initiativesby offering numerous features like selection of reserved seating, online booking facility
can formulate more advantages for them (Naletina, Damić and Jabučar, 2019).
Threats:Ryanair organization is facing threat from Brexit and changes within fuel costs.
Additionally, shortage of ATC staff is also is one of the major weaknesses for this business.
Thus, it has been analyzed that, main threat of this firm is fluctuations within pricing strategies.
2. Main problems facing by Ryanair that needs immediate attention and why
From the above mentioned PESTLE and SWOT analysis this can be said that, Ryanair is
facing so many issues which require instant attention. The major issue which is faced by this
airline firm is reducing profit via entire sales of their services. Along with this there are so many
different issues faced by them like staffing, less ATC staff that have direct impact on overall
profitable goals of an organization (Abdi, Elliot and Edalat, 2016). Moreover, this business also has
been faced Brexit issues as they face hard times during procurement of their services that
automatically leads shortage of workforce at workplace. Thus, as per the given discussion it has
been that concluded that Ryanair should take immediate action towards several services in order
to overcome those factors from firm that develop negativity around the work. With the help of
focusing of these assorted functions they can make them attractive and achieve their profitable
goals.
3. Purpose a solution to the issue by using 2 theories and concepts
In the context of Ryanair, it is one of the best Irish budget airlines that provide its
services globally. This airline industry was founded in 1984 which is headquartering in Dublin.
This business provides numerous services to their consumers with affordable pricing strategies.
Moreover, it also can be said that Ryanair is known as largest European budget airline in this
world. At the same time this industry has been face ample number of issues which all are relates
to cost maximization due to Brexit. Along with this firm face media coverage negatively on its
employees as there are so many disputes during offering customers services at marketplace. For
overcome all these assorted issues there are so many strategies which all are implements by
respective entity within a short period of time in order to attain business goals.

In order to reduce issues or problems in regards with staffing as firm is needed to have
best staff members and cabin crew in order to get desired results. For this, they are applying
effective hiring and selection process of candidates so that they can get highly skilled or
knowledgeable person for their work (Abdi, Elliot and Edalat, 2016). Along with this, they are
needed to ensure applying these strategies will not affect any working operation of firm so that
they can attain its advantages goals. Furthermore, having diversity in nature this firm able to
increase their practices of transferable skills for giving huge motivation to its employees for the
future benefits. For betterment of future this firm is needed to have great educational facilities by
which they can overcome negativity and achieve goals. There are two types of theories have
been applied by Ryanair, those are as follows:
Development of communication method: It is one of the best ways to see clear picture of
respective airline that what is going on inside this world’s most profitable organization. With the
help of applying this theory it can be said that, if firm is able to bring proper communication
within workplace than they are able to present their value to its employees so that they can
understand them properly and work in a frequent manner (Smircich, 2017). On the other side,
employees will able to get accurate information in regards with any changes at workplace so that
they can get confidence towards their work and achieve targeted goals on time. It will increase
huge profit for the firm by which they can sustain in a most possible way. Apart from this, poor
customer services and high turnover of employees can create issues for this firm. But on the
same side applying strong communication method they can overcome these kinds of problems at
reach their objectives successfully. Thus, it is important for them to apply such type of theory for
better outcomes.
Expectancy theory:This theory states tendency and intensity to perform in a specific way which
is mainly based on intensity as expectation which is necessary to perform for achievement of
best desired goals. So according to this theory tendency of working hard as well as perform in a
well manner with the aim of achieving of possible results and rewards. Herein, expectation of
something as per the hard works done if employees did not get any kind of demotivation at
workplace. Therefore, it has been applied by Ryanair in order to motivates its employees as well
as workforce so that they can achieve more results that directly increase firm’s value and demand
in front of their customers (Angelopoulos and Leivo, 2013). Sometimes, employees of this airline

industry are underpaid and does not treated as valuable part of the firm which makes them unable
to focus and stressed on work which also results within the turnover, poor services to customers,
strikes and many more. But applying this theory as it is clearly said that needs of employees
considered as source of motivation by which firm can easily motivates them and able to become
largest motivator for them that directly helps them to achieve desired goals without facing any
issue or trouble at workplace. Thus, it increases the expectancy of employees from firm that
always motivates them along with encourage them towards great work.
Thus, from the above specified theories or concepts this can be said that, Ryanair is
facing so many issues towards employees satisfaction along with motivation. But from the
applying different theories and tools they are able to give huge satisfaction and motivation to
their employees that encourage them all the time so that they can present or perform their better
performance in firm along with it is always necessary for them to applying concepts for
betterment of future goals. Thus, it is the main purpose of respective airline industry to follow
different types of method and theories so that they can enhance its profitability and productivity
at marketplace (Buttle and Maklan, 2019).
4. Short report on the basis of experience towards report
If talk about experience while writing this report it has been analyzed that there are so
many problems or issues faced by me. Likewise, from the very first stage this project or report
has lots of data, method, tools and techniques which were difficult for me to gather on single
time. Along with I have been effectively determined strength, weakness, opportunities and threat
of Ryanair in order to get proper information towards this organization. Apart from, there are
numerous factors are known as PESTLE analysis conducted by me to evaluate political,
economic, social, technological, legal and environmental effect on business (Noeand et. al, 2015).
Thus, conducting this report in a proper way I have been used lots of websites as well as journals
by which I was able to gain accurate information or data. There are so many types of statistical
or pictorial data has been specified by me in order to gain proper knowledge about several
functional activities of firm. But at the same time there are so many difficulties faced by me
while writing this assignment. Thus, it is hard to gain proper knowledge in a short time but
through getting some great points of this study I take advantage to read different types of books,
website, journals as well as firm’s page it takes huge time. On the other side, it can be

determined as the best experience ever as I have been improved my writing skills through
conducting so many analysis towards firm (Shieldsand et. al., 2015). It will go to be fruitful for me
within future aspects by which I can get better results. Additionally, getting huge information
towards firm will further help me in futures that automatically increase growth and opportunities
for me in my professional life. Therefore, it was essential for me to writing this report for
developing my knowledgeable skills in a proper mode.
CONCLUSION
As per the above specified case study of Ryanair it has been identified that, firm always
perform their do many functions within the business environment in which there are lots of
factor that affect them in negative or positive both ways. Therefore, it is essential to measure all
factors in order to achieve targeted goals and strategically goals by which they can overcome
negative influence from firm. Apart from this SWOT and PESTLE analysis also plays crucial
role within every business entity as they create opportunities for business within competitive

scenario. It further helps firm to develop more innovative tools and techniques in order to run
their business successfully and they also able to sustain for long time within business sector.
REFERENCES
Books and Journals
Dobson, P.W. and Piga, C.A., 2013. The Impact of Mergers on Fares Structure: Evidence from
European Low‐Cost Airlines. Economic Inquiry, 51(2), pp.1196-1217.
Abeyratne, R., 2014. Market Based Measures. In Aviation and Climate Change (pp. 69-81).
Springer, Cham.
Myro, S., Légidos, B.R. and Hernández, P.I., 2013.Effect of low cost airline companies on
international tourism in Spain. EstudiosTurísticos, (198), pp.61-79.
Abeyratne, R., 2014. The Challenge Faced by ICAO. In Aviation and Climate Change (pp. 83-
105). Springer, Cham.

Angelopoulos, P. and Leivo, P., 2013. Drivers and barriers for relocation of freight operators to
smaller airports-A case study at Jönköping airport (Axamo).
Naletina, D., Damić, M. and Jabučar, A., 2019.Customer Satisfaction with Services of Low-Cost
Carriers at Pula and Zadar Airports. InterEULawEast: journal for the international and
european law, economics and market integrations, 6(2), pp.71-97.
Ferro, F.I.V., 2018. Equity research-Ryanair Holding PLC (Doctoral dissertation, Instituto
Superior de Economia e Gestão).
Abdi, M.R., Elliot, L. and Edalat, F.D., 2016. Strategic Business Plan Based on Total Quality
Management for Property-Marketing Small Enterprises in UK.In Handbook of Research on
Entrepreneurship in the Contemporary Knowledge-Based Global Economy (pp. 509-
527).IGI Global.
Smircich, L., 2017. Concepts of culture and organizational analysis.In The Anthropology of
Organisations (pp. 255-274).Routledge.
Shields, J., and et. al., 2015. Managing employee performance & reward: Concepts, practices,
strategies. Cambridge University Press.
Buttle, F. and Maklan, S., 2019. Customer relationship management: concepts and technologies.
Routledge.
Noe, R.A.,and et. al, 2015. Human resource management. Gaining a Competitive.