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

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