Issues Faced by Ryanair due to Brexit and Management Strategies for Resolution

This report discusses the issues faced by Ryanair, a low-cost Irish airline, due to Brexit. It analyzes the impact of political, economic, social, technological, legal, and environmental factors on the company. The report also explores management concepts and theories for resolving these issues, including motivation of employees and continuous improvement approach. It provides insights into strategies that Ryanair can adopt to overcome challenges and maintain its market position.

CONTEXT OF
BUSINESS

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. SWOT & PESTEL analysis for Ryanair............................................................................3
2. The main issues faced by Ryanair which requires immediate attention............................6
3. Management concepts & theories for resolving the issues................................................7
4. Short report on experience in writing the report................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Business is a set of activities that is performed for earning money by offering goods and
services to an individual which demand for it in return of money. The failure or success of a
business is basically rely on the strategies that an entity used for performing operations in a
proper manner (Camargo Fiorini, 2018). In order to gain higher growth and development, it is
essential for managers of an entity to analyse market trends and customers as it leads to product
acceptance and product success at marketplace. The report is based on the case study of Ryanair
which face many issues or problems due to Brexit. It is a low cost Irish airlines and its head
office is situated in Dublin. Ryanair was established in the year 1985 and at present it has high
market share. The company gained success in recent years because of low cost business model
and quality service. Ryanair operates more than 180 aircrafts on an around 730 routes throughout
North Africa and Europe. The report covers WOT and PESTLE framework that assist in
determining the problems faced by Ryanair. In addition to this, various management concept and
theories is discuss which include solution of the problems. In the last, a summary is cover which
show the experience while writing this present report.
MAIN BODY
1. SWOT & PESTEL analysis for Ryanair
Ryanair is a low cost Irish airlines and an international brand which faces tough
competition and issues in the airline industry. For determining the problems, it is essential to
perform external as well as internal analysis as it help in gaining insight about actual position of
Ryanair within the market. In order to perform external analysis, PESTLE framework can be
adopt by managers of company. This analysis identify the impact of macro environmental factors
on business activities and performance of an organisation. In addition to this, it also identifies the
threats and opportunities prevailing at market place. The PESTLE analysis is given below in
context to company:
Political:- This include factors such as political relation of government to other countries
and alteration in political framework. The political stability of United Kingdom is better that
ensure smooth as well as proper functioning of Ryanair in country according to the present
policies. For instance, When Irish airline warned for grounded till new method or framework is
agreed among EU and Britain, Ryanair airlines applied for air operating British license for

domestic route that get agreed by the government of UK and assist the company in balancing or
marinating its revenue level.
Economic factor: - The United Kingdom stand as 5th largest economy globally in terms
of GDP& is also undertaken as famous destination for foreign direct investment. Due to Brexit,
the whole economy shakes and inflation rate of country is increases (Berry, Broadbent and Otley,
2019). Because of this, Ryanair face big challenge as it provide service at lower prices. This, the
profit which is gained from United Kingdom is getting decrease and the cost of managing
operations was getting higher of Ryanair.
Social factor:- It include factors such as perception, beliefs, value, opinions of people
that they have towards company as it directly impact of the market position of the organisation.
Because of Brexit, the inflation rate of country get higher and the willingness to spent amount of
UK people decline that effect on the overall performance and productivity of Ryanair. At the
time, the citizens of United Kingdom are looking for airlines which offer affordable price and
rate. It arise an opportunity for Ryanair as it can maintain activities and operations by offering
services at lower prices.
Technological factor: - Nowadays, change in technology take place rapidly and impact
on the overall processes and performance of an organisation. Ryanair is mainly a technologically
evolving entity that provide online service to customers for booking their tickets and also to
solve their queries (Crane, 2019). It is an opportunity for company as Lindon is a technological
hub and their citizens prefer to use those services that is operated technically. In addition to this,
it is a big chance for Ryanair to manage activities and operations properly by using advanced
technology in a proper manner.
Legal factor: - It include laws & regulations that is required to follow by companies in
order to smoothly and properly carry out operations as well as activities. Ryanair faced many
legal issues in industry which as a result increases the operation cost of company. It is consider
as a big challenge for company as the rules and regulations of government is strict in the airline
industry. The past history of Ryanair lads to keeping eyes of managers on every activity and
operation performed by it.
Environmental factor: - It include factors which directly contribute towards secure and
safe environment. The government of United Kingdom is strict for security and safety of
environment. Along with this, its citizen’s prefer to consume those services which do not harm

the environment and protect it. For this, the company take action that is reduce newspaper, free
food and beverages supported in declining the wastage of goods from the organisation fleet. By
the assistance of this action, Ryanair is able to develop positive mind set of people which has
direct impact on its overall performance as well as profitability.
SWOT analysis
It is a framework that is adopted by companies in order to identify its internal
capabilities. In addition to this, it determines weaknesses and strength along with threats and
opportunities prevailing in external environment. The SWOT analysis is discussed below with
relation to Ryanair:
Strength Weakness
 One of the major strength of company
is its low price strategy which help
them to attract more number of people
towards it services that leads to raise in
profitability of Ryanair.
 Ryanair has string brand image in
market along with this it has high
bargaining power that assist in dealing
effectively and properly.
 The weakness of Ryanair is it facing
issue due to Brexit. The inflation rate of
country is increases that leads to raise
in operation cost of company and
decline in profitability.
 Negative publicity of Ryanair by press
media impact of its market reputation in
a negative manner.
Opportunity Threat
 The action taken by Ryanair towards
making improvement in customer
service by addition features such as fast
lane service, booking flexibility, single
fee structure and many more. This will
help company to enhance its customer
base level that directly impact on its
profit and revenue level.
 The company is planning to add on
more than 100 Boeing 737 MAX200
The competition is getting increased from large
airline and low fare airlines is consider as
threat for Ryanair as it impact on its overall
market position in a negative manner (Myers,
2019).
 EU is planning to stop low fare airlines
that is undertaken as one of the big
threat for company as Ryanair offers
service at low prices and provide
maximum benefit to WU countries.

aircraft that will be an opportunity to
decline noise pollution & raise fuel
efficiency of airplane.
2. The main issues faced by Ryanair which requires immediate attention
Ryanair was the first airline in EU that provide services at lower prices globally. It is one
of the reason of getting success as large number of people get attracted towards its services. The
customer give pay low price and enjoy maximum benefits as it assist Ryanair to strengthen its
market position. By the assistance of this strategy, the company expand or enhance its operation
globally in an effective manner (Hirschmeier and Yui, 2018). At this time, the company started
facing problems as its profit margin was getting declined and also company bear losses at the
same time.
By performing PESTLE and SWOT analysis, it is determined that Ryanair expansion in
United Kingdom is getting cited with the raising in fuel cost and poor market conditions. This all
take place due to Brexit as it shaken up the whole economy along with this, it impact negatively
on the regular income level of the company. The inflation rate is increased due to which the
buying capacity of UK citizen is declined and impact on the overall performance of Ryanair.
Thus, the raise in cost of company has become big problem for Ryanair as it impact on the profit
margin of company. Due to Brexit, the other issue that is faced by Ryanair is double the charges
of airport & decline the winter demand as compare to earlier capacity. This is continuously
raising the management as well as operational cost of company that has a high impact on revenue
and profit level of Ryanair. In order to provide service at lower price, the company was stated
offering minimum service to customer. This as a result decline the customer base of company as
premium services is cut down by the company and shifting of people take place. In addition to
this, it changes the mind set of customers and they approach other brand which is also a reason
for decline in profitability of Ryanair.
Thus, it is important for higher authorities of Ryanair to emphasise on developing
strategies which support in recovering the expenses and again increases market position of
company. The company offer service at low price due to which profit generation is lower which
is not enough to cover the cost and expenses of Ryanair. In addition to this, raise in inflation rate
because of Brexit is also enhance the airport rates which is difficult for Ryanair to manage its

services in proper and cost effective manner. In order to survive in market for longer time period
and gain success, it is essential for company to develop effective strategies and manage it in a
proper as well as effective manner. The increase in cost and expenses of Ryanair require to
manage effectively in order to gain growth and development in market and to avoid loss that
occur to company (Ho, 2018). Therefore, it is important for managers and higher authorities of
Ryanair to develop a strategic plan so that they can easily deal with such issues and rebuild their
position in market efficiently as well as effectively.
3. Management concepts & theories for resolving the issues
It is important for Ryanair to resolve issues quickly as it not only impact on its market
position but also effect on its profitability level as the cost of operation is higher as compare to
the income earned by the company. The main issues that is faced by Ryanair currently is increase
in airport cost, operational cost, fuel cost and many more. All these issues lower down the
performance and profitability level of Ryanair which make it difficult to operate in United
Kingdom and cover all such expenses properly. The reason behind development of issues is
economic effect that is get misbalanced because of Brexit that further leads to increase in
inflation rate of country.
Thus, it is difficult for company to decline this problems as all these are based on the
economic conditions of the country but Ryanair can decline the impact of these issues on the
organisation. For this, its higher authorities need to emphasise on decreasing operational cist that
take places by reducing the level of errors take place at the time of operation. It assist company
to cover operational cost as through saving it by internal business practices. By the assistance of
this, the fund or income earned by Ryanair from offering services can be undertaken as a profit
of the company. In addition to this, the company can emphasise on improving operational
efficiency which can be take place by improving performance of all the staff members.
Moreover, the company can also give training to its customer service team so that quality and on
time service is given to customers. Ryanair must emphasise towards executing two management
concepts that is continuous improvement approach and the one is employees motivation which
hep in improving productivity and operational efficiency of company.
Motivation in employees: - One of the most important factor to gain success is keep on
motivating employees so that they can work with full potential for meeting targets and achieving
objectives within stipulated time frame. The higher authorities of Ryanair can keep encouraging

employees by fulfilling their requirements as it directly impact on their productivity level and
they implement activities in a best as well as effective manner. In order to motivate staff
members, Ryanair can use Herzberg two factor theory that determine both the extrinsic as well as
intrinsic factors which are associated with the job satisfaction and dissatisfaction (Quinlan, Carr
and Griffin, 2019). By the assistance of this, company will be able to provide positive
environment to employees that directly effect on their efficiency level in a positive manner.
 Motivation factor: - There are many factors that directly leads to job satisfaction such as
recognition, advancement, achievement, responsibility and so on. This, the higher
authorities of Ryanair must emphasise towards providing training and development
session to staff members so that they are willing to perform well and gain achievement,
recognition, awards and so on. By the assistance of this, the employees get motivated
towards their work that leads to increase in operational efficiency of company in a proper
manner.
 Hygiene factor: - There are many factors which are prevailing in the company & impact
the performance of staff members that directly leads to job dissatisfaction. It arise due to
rules and policies, working conditions, co-worker relationship and so on. It is important
for higher authorities of Ryanair to emphasise on providing positive environment at
workplace to employees so that they can perform activities in an appropriate and
comfortable manner.
This approach will assist company to improve operational efficiency and maintain
profitability and revenue level. In addition to this, motivating the employees help Ryanair
to decline the level of errors that leads to decrease in expenses of company. It also help in
meeting targets and attaining objectives within stipulated time frame.
Continuous improvement approach: - In this approach, the company is emphasising on
making improvements in operations in a continuous manner. Ryanair can provide training to the
staff members that leads to increase in knowledge, competencies and skill of staff members due
to which they can give high quality and on time service to customers. In addition to this, it
improves operational efficiency of company and help in retaining customer align with services
for longer time period. Due to this, the performance and productivity of Ryanair improves in a
proper manner. The managers of Ryanair can adopt change model which involves three stages:

 Unfreeze: - In order to bring changes in current operational efficiency, it is essential for
higher authorities of Ryanair to unfreeze staff members from current pattern as well as
knowledge they adopt for performing operations. It assist employees to accept changes
that take place in improving operational efficiency of company.
 Change: - This stage take place after the staff members get unfreeze with current
practices. The next step is to make alterations in their working with an aim to decline the
additional cost of Ryanair (Nonaka, Nishihara and Kawada, 2018). Fir this, training
session is given to staff members so that they can cope up with the changes rapidly. In
addition to this, the higher authorities of Ryanair can evaluate performance of employees
on continuous basis so that decline in errors take place from the current process in a
proper manner.
 Freeze: - Another step is to freeze changes in the working performance of employees as
it help in declining overall operational cost. In addition to this, it help in fulfilling
requirements of customers and providing quality service to them which directly leads to
increase in productivity as well as profitability of Ryanair.
4. Short report on experience in writing the report
The experience while performing this report was good as I gained knowledge about the
several factors which impact on performance of company. While studying, I learnt about
challenges and issues that is faced by Ryanair in performing operations and in earning profits. At
the time, when I was start the project I get nervous as I have no idea about how to start project
and from where to gain knowledge about particular topic. Then, I noted down all the activities to
perform along with the schedule so that I can implement it and complete the project on time
period. In addition to this, I improved my research skills by searching about Ryanair from
various sources as it help me in performing report in a proper and effective manner. Moreover, I
learnt about time management skills, critical thinking skills, problem solving skills that is going
to help me in my future projects also. I gained an insight regarding management concept and
theories that is adopted by companies for improving performance and productivity level.
CONCLUSION
From the above study, it has been analysed that businesses faced many problems while
performing operations in a proper manner. They face issues due to change in external factors as

well as internal factors such as political conditions, technology, economic conditions and many
more. All this factors effect on the performance as well as profitability of the organisation. It is
essential for an entity to provide training to employees so that they can cope up with the changes
and work with full potential towards attainment of objectives or gaols within given time frame.
PESTLE analysis and SWOT analysis is adopt by companies in order to determine the factors
that has impact on performance of the organisation.

REFERENCES
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Online
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