Analyzing Performance and Leadership Styles at Ryanair Airline

This report analyzes the performance and leadership styles at Ryanair Airline, including a SWOT and PESTEL analysis. It evaluates the impact of external factors on business opportunities and threats, and recommends suitable leadership styles for achieving business objectives.

Business
Environment

Executive Summary
This report is based on Rynair Airlines, company wants to analyse their performance and
measure success rate by adopting some approach. Company perform PESTLE and SWOT
analysis to examine the internal and external factors which are impact upon business. They
examine how external factors are influenced company's performance and profitability.
Leadership and management styles are important to analyse to perform business task and lead
entire staff towards right direction.

Table of Contents
Executive Summary ........................................................................................................................2
INTRODUCTION...........................................................................................................................5
Introduction............................................................................................................................5
MAIN BODY...................................................................................................................................5
Perform a SWOT and PESTEL analysis for Ryanair Airline...............................................5
Evaluate how changes in PESTEL factors has influenced the opportunities and threats
business and how Ryanair is identify their strengths to negate threats and weakness which
affecting company's opportunities..........................................................................................7
Compare and contrast the various leadership styles of leadership and evaluate the suitable
leadership and management style at Ryanair.........................................................................9
Recommendation of leadership style that will help Ryanair to reach their business objectives
..............................................................................................................................................10
Review on responsibility, response and obligations in company ethics and social
responsibilities......................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business environment is refers to the gathering of all external and internal factors such as
technology innovation, trends in society, demand and supply, owners, suppliers, policies by
government, changes in economy, management, consumer's expectations and needs, human
resources or workforce and many other. These factors impact the organisation's function and how
industry perform indirectly or directly. The quality of these factors influence the firm or
workplace situation and environment. Business environment helps in measure resources,
opportunities for business, helps in planning and controlling, improvement in performance,
business success, productivity and profitability of organisation. It is essential aspect for business
and the forces that is constitute the environment of business are its; media, consumers,
government, conditions of economy, investors, competitors, suppliers and other enterprises
performing externally. The below report includes the SWOT and PESTEL analysis of this
airline, how effect of strength on threat and opportunities of Ryanair. Comparison between
various leadership styles and recommendation a appropriate leadership style which helps in
achieving objectives. Ethics and social responsibilities of airline (Hamilton and Webster, 2018).
Introduction
Ryanair Airline, it Irish budget friendly airline founded in 1984 and it is based in Swords,
Dublin in Europe. The founder of this airline is Mr. Tony Ryan and they operate 300 plus Boeing
737-800 aircraft. Ryanair's route serves network in 40 countries in Europe, north and middle
east. It is largest budget friendly airline in Europe.
MAIN BODY
Perform a SWOT and PESTEL analysis for Ryanair Airline
SWOT Analysis
It is planning of strategies and it states the strength, weaknesses, opportunities and
Threats. Through this organisation can identify various challenges, issues and explore more
market it will helps in avoid unpredictable problems and get more opportunities to increasing
growth or success.
Strength: The Ryanair's strength carry internal factors dynamical growth. Initially they
started with 15 seater with small plane but in current scenario they have 470 aircraft (Khajeheian,

Friedrichsen and Mödinger, 2018) . They have strong business model such as during pandemic
airlines companies cut down their cost and Ryanair offer tickets and services at lower cost as
much as possible. They offer 1831 routes which shows the highest position in world and also
have strong balance sheet, they generate 3.8 billions euros and from Ryanair projects they
generate 1 billion euros.
Weakness: This carry internal factors which is slowing down performance. Easy-jet
airline is biggest competitor apart from this customers are not happy with their refund policy
because they provide vouchers not a cash refund and they claim 5 % of total cost. In survey 7901
people are rate very less they have bad reputation in market. employees are not satisfied with
their working condition
Opportunity: It is external factors promoting enlargement. Company work with skilled
ground staffs, pilots, cabin crew and they hire among people with best talent. Ryanair is among
53 companies standing to advantages from the bank of England's covid corporate financing
facility. Through this company taken 800 million euros in bring.
Threat: In this external factors are blocking the development. Company has no control
on rules and regulation framed by government. Mostly company conduct their meeting with
clients and external businessmen through online platform or video confessing it affect the
revenue stream from business travellers (Gaganis, Pasiouras and Voulgari, 2019).
There is stable business model of Ryanair but business model creates challenges in employees
and customers relations. They generate revenue at good level so future outlook of Ryanair is in
positive manner.
PESTEL Analysis
It is a framework of key factors analysing such as political, economical, sociological,
technological, environmental and legal. It is generally on external based that affect the company
directly or indirectly.
Political factor: The government of United Kingdom is increase the tax rate more than
three times from last 24 years, they increase tax for both distance short or long journey. From
this policy tourist are not happy and for short journey customers choose alternative path such as
trains or buses, this affect the Ryanair profitability in negative manner (Crane, Matten and
Spence, 2019).

Economical factor: The oil prices are on hike level from previous year but in current
scenario price starting falling again, this will provide extra marginal advantage to company.
Currently Ryanair focus on success of short haul abilities which will enhance the air traffic in
moving years. The profit margin for this year fall down as investment went for growth capacity.
Sociological factor: British society have become much more interested in travelling in
holiday than before. The habit changing of British public will influence short and long distance
travelling. It will helps in increment in sales , less price flights are generally preferred by United
Kingdom people.
Technological factor: In current scenario public are very close towards the internet
mostly social media platforms. This facility helps in reach more people and attract towards
company services. With increasing E-banking system will allow to people to book their tickets
through online application and make payment through net-banking or E- wallets. This factor
helps in company's performance and productivity.
Environmental factor: Now days carbon footprint become major issue for environment.
It creates many issues to operation conducting for Ryanair airline. This will also affect the
productivity of industry (Uluskan and Godfrey, 2018).
Legal factor: For Brexit war, Ryanair need to comply with both rules and regulations
imposed by United Kingdom and Europe. It will creates many issues and difficulties for this
industry to run business in less cost strategy. This affect the business growth and revenue in
negative manner.
Evaluate how changes in PESTEL factors has influenced the opportunities and threats business
and how Ryanair is identify their strengths to negate threats and weakness which affecting
company's opportunities
PESTEL affect the Ryanair's opportunity and threat; the UK government increase the tax
rate on air line industry on both distance long as well as short, so people are scared and they
choose other options for travelling, this affect the sales and profitability of Ryanair, this is
threaten for the company. In previous year the oil cost is on high level but recently cost fall down
again, it provide extra benefits in terms of profit, this will provide more opportunity because
they save cost and they can invest on other. In current scenario British people are more attracts
towards holiday travelling and they want to explore more is greatest opportunity for Ryanair
airline this will helps in increasing sales and generating more revenue profit and also impact on

country's growth or GDP in positive manner. It will create brand values in market. Now days
people are more attracted towards various internet platforms and social media is most popular
because it provide various benefits to achieving company's target objective or goals and also
helps in better operations and in different functions (Chukhray and Mrykhina, 2018). Social
media platforms makes easy in reaching various kind of people from different areas or countries.
Currently E-banking or E- wallets are very popular among people it make easy to confirm their
tickets and pay amount through digital methods so customers no need visit airports or any other
cyber cafes. Recent technology increase the performance at workplace and offer different
discounts and coupons so customers feel happy and brand image increase in their eyes. Adopting
technology is providing best opportunity in market. Now days the carbon footprint is main
problems for industries and this affect the Ryanair airline to running their operations, it create
bad image of organisation and it is threat for business. Carbon footprint is harmful for
environment. Brexit war also threaten for company because due to this rules, policies and
regulations are change according to their country such as UK and Europe change and make rules
and policies as per their suitability, this affect the internal and external environment of
organisation, in internal the functions are affected and in external it is biggest challenge or
difficulty to run business at low price with accepting different policies (Rosenbach, 2018).
Identifying organisation's strength to negate threats: Ryanair biggest threat is to not
following rules and regulation in effective manner and meeting conduction on online platforms
such as video confessing it affect the revenue flow from business travellers, so company can
convert their threat into strength or get opportunity, industry can make a separate department
with minimum members one or two who handle the rules, policies and regulation framed by the
government, this strategy will helpful for following all rules and regulation in effective way and
it makes easy to monitor the outcomes that rules are strictly following or not at workplace. And
for video confessing, it not possible to conduct meeting in face to face because of covid situation
they can make strategy for conduction meeting through online as well as it will not affect the
revenue flow. Company can make effective and attracted content for meeting or presentation so
meeting gonna successful and it maintain the flow of revenue.
Weakness affecting the opportunities of Ryanair: easy Jet airline is competitor of
Ryanair, it affect the growth of Ryanair airline because some time the cost of tickets high or
people not happy with services so they were choose alternate option and select competitor's

services, this weakness is blocking the opportunity of holding customers for long time and also
reaching new people. Some people are not happy with their refund policy so this is affecting the
performance and loosing old and loyal customers (Western, 2019).
Compare and contrast the various leadership styles of leadership and evaluate the suitable
leadership and management style at Ryanair
Leadership is art of inspire or encouraging to employees at workplace for achieving
common business goals. In setting of business this can refer directing employees and co-workers
with a effective strategy to reach the organisation's needs and expectation (Glatthorn and et. al.,
2018).
Democratic leadership: It is also known as participative leadership and in this people of
group take part role in the process of decision making. Where company can openly ask the
suggestion from each staff members. In airline industry there are various topics which needs
different suggestions. Through this employees participation also increase.
Strategic leadership: This style refers to the capabilities to influence others to
voluntarily make decisions that increasing the chance for the company's long term growth while
managing short term stability of financing. Leaders plan strategy so they can achieve business
objective, they identify things between growth opportunities and operations. In airline industry
effective strategy is needed for hold the customers for long time and reaching more people,
building loyal relationship with people is also important (Moon and Knudsen, 2018).
Bureaucratic leadership: IN this there are certain rules and regulation framed by the top
level authority in industry and also leaders set rules, regulation an policies in company. Leaders
fix workforce official responsibilities and duties at company. In Ryanair airline industry the
leaders offer extra benefits and facilities, also fulfil needs and expectation of employees but they
frame regulations and rules for workforce in terms of purchasing services in this company.
Bureaucratic leaders prepare structure of rules and polices which follow by every employees.
Coach style leadership: In this style leaders identify workforce performance as per to
performance leaders monitor strength and weakness, then they improve and enhance staff
skills accordingly . In Ryanair airline industry the HR department offer training to workforce
and enhance their skills. If employees face any problems with technology procedure then firm
offer them paid training (Eacott, 2018).

Laissez-Faire: It used to explain an Laissez-Fare political and economics policy, It is
utilize on regular basis in business industries to explain styles of leadership. In this leaders let
their workforce utilize their resources, creativity and experience to assist them to meet goals. In
context to Rynair, leaders use optimum resources for their business and create more ideas for
better growth.
Current leadership style at Ryanair Airline
Transformational leadership: It is leadership style where leaders are motivate and
encourage the workforce to create and innovate the changes that will helpful in growth and give
proper shape to future success of organisation. Ryanair use this style to inspire the employees to
improve the performance or achieve common goals of business. They have very skilled staff and
in airline industry it is very important to encourage staff more so they can focus more.
Autocratic leadership: In this style where top level management take decisions as per
staff or employees suggestion also. The managers take care that in decision making there is
employees involvement or not. Because in airline industry employees involvement is must, so
staff also feel special and motivated. Ryanair industry always involve employees in their
decisions making process through this company also get different ideas and suggestions for
better effective performance and strategies (Tortorella and et. al., 2018).
Recommendation of leadership style that will help Ryanair to reach their business objectives
Bureaucratic leadership style: It is recommended the Bureaucratic leadership style because is
most appropriate from which must be adopted in organisation. In current scenario the Ryanair
industry working on transformational and autocratic cycle of leadership style. Although it was
the reason of Ryanair success but on the other hand they are facing so much challenges. So to
reduce or avoid challenges and manage the success flow it is very essential to change and adopt
other leadership style also of the business. Bureaucratic leadership style is found to suitable for
this airline industry because it will help the business in criticism or unpredictable challenges
reduction and can be reason of growth of company. The reason behind selecting this style of
leadership is that it is a some kind of similar to autocratic leadership style both are not same.
This states it can minimum the various challenges or criticism and can lead the path of success.
This leaderships style refers that organisation must follow norms, rules, procedure, process,
regulations and policies which is framed by government and set by the top authority by industry.
This forms the command chain from high scale to low scale operations management and vice

versa. It is strict form of leadership style but lower than autocratic, it was all in support of
workforce that's why they faced challenges and criticism, all process of decision making is under
the top level authority only and workforce requires to accept all decisions at any condition.
Adoption of bureaucratic style company can avoid this or in airlines industry there are very strict
decision and some time they take biased based decisions that are not good for company as well
as employees. Through this management can maintain the level and it will better performance
and self-fulfilment of employees satisfaction. After adopting this leadership style there is no
found favouritism and unbiased between employees and top level authority (Koo and Park, 2018)
.
Review on responsibility, response and obligations in company ethics and social responsibilities
Ethics and social responsibility towards society
Cost friendly tickets: In society every one cannot afford airline tickets due to their
income scale so Ryanair airline industry offer tickets at very low cost or which is on budget for
people. Ryanair is well known industry because of their cost or budget friendly services and
tickets (Lonati, 2020).
Carbon projects: Company regularly take part in this kind of projects to contribute in
reduction the carbon footprints because it create bad image in society and loose connections with
customers. In society there are different families available who are using gas stove with coal
system and gas stoves are very harmful for people's heath so they contribute subsidies and
provide some fund. It increase the brand image of company in society.
Cost effective tickets and carbon based projects both create good image of Rynair
company, most of people can not afford higher rate of tickets company create a positive values in
their mind. Due to increasing pollution, Rynair company focus on eco friendly resources and
carbon projects, they reduce carbon foot print.
Ethics and social responsibility towards environment
Fuel and noise emission reduction: Both are harmful for environment so they
continuously work on this issues and try to reduce the fuel emission and noise emission. In 2019
company to be one of the lowest emitters of CO2 in country, at that time industry accounted for
approximately 8% of 2019 in country traffic. The team was responsible for lower than 4% of
total CO2 emission produced.

Carbon contribution: Ryanair start its consumers voluntary carbon scheme on offset.
Euro 2.5 has been increased more than 2% of their consumers have donated to date, favour
different projects for their partners in environmental. Mostly projects that they were invested in
reach the verified standard of carbon and standard of gold (Advantage, 2020).
In current scenario pollution increasing day by day and Rynair focus on fuel and noise
emission reduction and contribution of carbon to avoid any environmental harm and create a
positive image in market of company.
Ethics and social responsibility towards workforce
Training and development: Ryanair airline industry offer training programs and more
development for employees. They provide separate class training which is huge recognised as
leading the industry. They invested in four training institutes in Europe and also provide skills
and technology knowledge which are using in aircraft.
Graduate programs: This company offer graduate programs and internship programs
for 12 to 24 months at various locations. After completing internship they also offer a job as per
their skills and talents.
For any new employee, training and development is most important to enhance their
work and performance for future success. Rynair company provide paid training so employee get
more motivation to retain in this company for long period of time.
CONCLUSION
It is concluded that identify external and internal factors are very essential for the
company to measure the success rate and avoid unpredictable challenges. Through SWOT and
PESTEL analysis business can explore more and get more opportunities in market. Making
effective strategies can helps in converting weakness into opportunities and threats into strength.
Pestle affect the opportunity of company but to avoid negative impact company adopt different
leadership style. Company already work in two leadership cycle but changing leadership style
helps in more improvement and achieving common goals of business. Thorough ethics and social
responsibilities towards society, environment and employees company's brand values and image
also increase and build loyal relationship with more people. Overall it helps in better
management.

REFERENCES
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