Factors Affecting Business Organizations: A Case Study of Ryanair

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