Solutions for Ryanair's Problems

This report discusses the main problems faced by Ryanair, such as cost increase, Brexit uncertainties, staffing problems, negative media coverage, and more. It also suggests using management concepts like system theory, situational theory, contingency theory, coordination, and controlling to solve these problems.

Context of Business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. SWOT or PESTEL Analysis....................................................................................................3
2. Identify the main problem which Ryanair facing and required immediate attention..............5
3. Use at least two management concepts as solution for the identified problems......................7
4. Write short report about personal experience of writing this report........................................8
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
Business context refer to the factors which affect the entire organization and its process
which further influence decision making process of the managers. It includes the strategic
decisions which helps in improving productivity as well as profitability (Berlanga and Nebot,
2015). Ryanair selected for this report which helps in provide better understanding of entire
concepts. It is an budget airline which founded in 1984 and its headquarter situated in Dublin
Airport, Ireland. This report cover various topics such as SWOT or PESTEL analysis of selected
organization, identify some problems which required immediate attention and resolve it by using
appropriate management concepts. In addition, it includes the short report which is based on
personal experience at the time of writing report.
MAIN BODY
1. SWOT or PESTEL Analysis
Strength Weakness
Ryanair being low cost carrier company attract
diverse income group people which help
company to maximise profitably by switching
to Rynair's aircraft or use flights to cover short
haul rather than using public transportation
modes.
To improve the operations and bring out
innovation Ryanair company has taken
significant orders from the well known
supplier such as Boeing. Successful orders of
Boeing 727MAX aircraft has helped company
to gain competitive advantage.
The major earning of Ryanair company is
highly based on seasonality factor like during
peak season company gain immense amount of
revenue but this figure deeply drop down
during off-season.
Usually low cost carrier does not have any
loyal customer because they just avail services
to cover shorter distance. However, larger
distances are less likely covered by Ryanair.
Company also face the issues regarding
staffing which impact their operational
performance.
Threat Opportunity
Ryanair need to constantly upgrade its service
in terms to accommodate the requirement of
Ryanair company can improve the customer
services by investing in digital media tools

passenger as it faces immense pressure of the
existing rivalries and their innovative
technique (Cheng, Yang and Sheu, 2014).
Increasing complainant of customer regarding
service is again a threat for company in terms
to loose their existing customer or passengers.
which include spreading brand awareness
through social media and SEO. Along with that
website needs to be modified and effectively
handle the query of people.
To offer significant experience to customer
Ryanair company has successfully launched
traveller products which involves flexibility in
booking and cancelling the orders, choices of
reservation, checked bags, quality food
services etc.
PESTEL Analysis:
Political factor: This factor include various factors which can influence Ryanair and its
operational performance such as failure of agreement between UK and EU for the restriction free
flights. It will reduce the access of EU airlines in the UK market which affect Ryanair
profitability (PESTEL analysis of Ryanair company, 2019). In addition, due to unfavourable
Brexit outcomes will impact Ryanair operations but only this airline they affect other low cost
airlines which operated in the UK market. Along with this, UK's government charge high tax for
commercial air travellers and from last 24 months tax rate increases three times which negatively
affect or impact the profitability of airlines such as Ryanair.
Economic factors: In this factor organization affected due to inflation, interest rate,
Brexit uncertainty, labour cost etc. Potential of low cost earning airlines will reduces because
recession period in UK market. Uncertainty of Brexit is the major economic factor which impact
UK's airline industry because it will increase the cost of travelling. Increase in oil prices also
expected to increase fair which influence overall profit or airline sector of UK.
Social factors: It includes the lifestyle, class structure, attitude of populations etc. all are
play major role in the market of airline industry. There is one issues which Ryanair company
faces and that is negative media coverage which influence people and their decisions to travel
with Ryanair airlines. Increase in the cost of travelling will affect the company because
consumers wanted to spend high on their travelling if ticket cost is low. Basically Ryanair should

focus on increases in the cost because it become problem which reduces the overall revenue of
the company.
Technological factors: Use of technology will totally change the experience of flight
travelling. In order to make improve customer experience, Ryanair should focus on providing
digital platform to resolve their customer issues. Such as improve mobile application or websites
for better customer experience (Dreyer and et.al., 2017). In order to survive in the market,
airlines should continuous adopt social trends and technology. Lack of technical improvement
decline the demand of Ryanair airlines among the consumers because other competitors adopt
Alexa skills which developed by WPP that allow consumers to know which movie they wanted
to watch at the time of travelling.
Environmental factors: In context of Ryanair company, emission of airlines can
increase the cost for this airline because of EU regulations. These organizations should focus on
environmental initiatives such as heat waves because raise in the temperature of aircraft will
maximise the ground level temperature that is environmental not beneficial. Airline
organizations such as Ryanair should focus on climate change and modify their strategies
accordingly and also use fuel efficient aircraft fleet which helps in minimising contribution of
carbon emission.
Legal factors: EU airlines already face the legal complications which also impact
Ryanair company. In context of Brexit, due to restriction flights between EU or UK will affect
the demand of air flights travellers. In result, UK and EU marketers unable to resolve this issues
and it affect the airline industry as well as people who wants to travel between UK and EU.
2. Identify the main problem which Ryanair facing and required immediate attention
By using above mention analysis such as SWOT or PESTEL helps the organizations to
identify problems which Ryanair currently facing and it further impact operational performances.
There are various problems where company need to take immediate attention to resolve it and it
very important to focus on that, otherwise if negatively impact the Ryanair airlines and unable
them to recover. All the problems are as follow:
Increase in the cost: It is one of the major issues which Ryanair airlines currently face
because raise in the price of oil and other material will increases overall cost. It further raise
ticket prices of airway travelling which reduces demand. Management of Ryanair airlines need to
focus on minimise their operational cost because it further essential to increase revenue of the

organization (Jazdi, 2014). Managers of Ryanair should implement effective strategies which
helps in minimising overall cost and further proceed their actions accordingly.
Brexit uncertainties: Due to Brexit airline industry of UK faces lot of challenges which
include the increase price of fuel & carbon costs. There was a letter which issues by EU’s
recently where they decided to exclude UK airlines from involvement in the Emissions Trading
Scheme. These issues affect the profitability of UK's airlines and Ryanair in one of them which
affected by this decision. Because of this, current trading and future chance also affected because
both countries and the organizations which operate there. Uncertainties in Brexit affect the
Ryanair airlines and management should take necessary steps to resolve it, otherwise it become
the reason of failure of company.
Staffing issues: In context of Ryanair, organization currently face the staffing issue
where it can be related to the poor screening process where HR manager hire unskilled people
who unable to perform their task properly. Uneven hiring structure also generate issues regarding
staffing because company have option to hire full or part time workers as per requirements.
Management of Ryanair company need to pay attention on this issues because it directly impact
performance of company. HR managers need to evaluate their staffing process again and done
some modification according which helps in minimising this problems.
Negative media coverage: Ryanair has to cancel their 1900 flights on immediate basis
due to administrative problem in their organization. It is one of the biggest challenges which
company face that how they improve their negative image among people because media will
contiguously gives negative coverage which affect their productivity and reduce demand among
consumers (Kaidalova, 2014). Management of Ryanair need to done some actions for customer
welfare which make them realise that organization also think about them as well as worry for the
situations which they create.
Employees relations and disputes: In the organization, it is very essential to maintain
good employee relation because it helps in reducing disputes and conflicts among people who
working there. Ryanair airline currently face this issues because employees has lot of issues with
each other which create conflicts and it further reduce individual productivity which become
problem for the organization.
Customer services: It is the another issues which Ryanair faces because of ineffective
customer services. Company should focus on this problems immediate because airline industry is

consumer focused so they need to make them satisfy and for this, they need to provide effective
services. Initially management of Ryanair should identify the issues which consumer face and try
to find root cause of it. They need to provide proper customer service number to resolve their
queries and hire sufficient staff who can understand their problems and further proceed
accordingly.
Above mention all the problems required immediate attention because it affect the brand
value of Ryanair airlines because negative media coverage. Along with this, theses issues affect
the productivity of airline which automagically reduces profitability of the company.
3. Use at least two management concepts as solution for the identified problems
In order to provide solutions to problems which Ryanair airlines currently faces,
organization implement some management theories or concepts because it required immediate
attention. Currently Ryanair faces lot of problems which affect their production as well as profit
margin (Karakowsky and Guriel, 2015. So they need to implement such theories and
management concepts to resolve these issues and all are mentioned follow:
System theory: In this theory, organization have to follow proper system according to
law or standards of business. Ryanair is service based organization which offer their services to
satisfy consumers. They need to provide effective customer services which helps in resolving
consumer issues related to their travelling. In addition, Ryanair also face the problem regarding
staffing which can also resolve if management follow proper recruitment or selection process
and identify the requirement of their business process. Managers of Ryanair should focus or
evaluate their entire system because it already has lot of issues which generate many problems.
They need to determine all issues which required to resolve for the growth of company and
helps in increasing productivity as well as profitability.
Situational theory: This theory refer to the leadership where leader of the organization
adopt different theories as per situations. Basically individuals have to perform different role
according to the situations they face. In order to make employees relation good or minimise
disputes they need to increase employees engagement and conduct such programs which helps in
increasing workers interaction and it automatically try to reduce conflicts among people.
Managers of Ryanair also need to face Brexit uncertainty which affect the company and entire
process as well.

Contingency theory: Management of Ryanair should follow this theory to face
contingent situations where cost increases) (Lankoski, 2016). Company is low cost based but
currently they face issues where high cost minimise the profit margin of Ryanair airlines. In
addition, company face the staffing issues as well, so they can use this theory to resolve this
problems and make sure that it will not generate in the future.
Coordination: It is one of the essential management concept which Ryanair should
follow to maintain coordination among their employees. It also helps in making employees
relation strong which further can minimise any kind of disputes or conflicts. This concept helps
the organization to make people together or perform their task effectively. Basically it is used in
group activity where team members have different perspective which create disputes.
Management should focus on this problems and resolve it on immediate basis.
Controlling: In order to maintain control over internal process or operations, manager of
Ryanair should follow this management concept or maintain their operational cost to maintain
price of their tickets. In addition, they have to done such program which helps in minimising
negative media coverage in the market (Lubinski, 2014). Manager have to maintain control over
every activity of the organization because it will affect the individual performance which can
leads to generate issues. Ryanair should maintain control over administration part because it will
generate issues and media find the topic to criticise.
Above mention management concepts and theories will helps the Ryanair airlines to take
immediate action to resolve identified problems. Managers need to build effective strategies and
make sure that it will not repeat again.
4. Write short report about personal experience of writing this report
At the time of writing this report, I am totally unaware about this topics or organization
but I was start searching information on internet to complete this report. When I am doing my
assignment, no one was there to guide me or help me to complete this report. I am individually
done this assignment and face lot of positive as well as negative experiences. Positive experience
is that, it will enhance my understanding regarding airline industry and the issues which they
currently face (Rekik, Boukadi and Ben-Abdallah, 2017). Along with this, I was facing
difficulties to search about Brexit uncertainty because I am still confused with the condition of it.
With the help of SWOT or PESTEL analysis, I am able to enhance my knowledge and it
provides me new learning which always with me. But it can say that, overall experience was

good because sometimes it create pressure on me that how I am bale to complete this report
before deadline but it encourage me too, to perform my task before time.
CONCLUSION
From the above discussion it has been concluded that, a business should focus on their
operational activities and timely monitor the progress. By using PESTEL or SWOT analysis,
management able to understand various factors which can positively as well as negatively
influence the organization and business process. In addition, this analysis used to evaluate
company's strengths, weakness, opportunities and threats. Management build further strategies
accordingly and done such appropriate actions to resolve identified problems. By using
management concepts or theories such as system or situational theory will helps in eliminating
these problems.

REFERENCES
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Online
PESTEL analysis of Ryanair company. 2019. [Online]. Available Through:
<https://businessteacher.org.uk/pestel/ryanair.php>