Business Context: Analysis and Strategies for Ryanair Airlines

This report analyzes the internal and external business environment factors influencing the business expansion of Ryanair Airlines. It also explores various management theories and innovative concepts that can be applied to increase revenue margins and long-term profitability.

Context of Business

TABLE OF CONTENT
INTRODUCTION..................................................................................3
Swot analysis...........................................................................................................................................3
Pestle analysis:........................................................................................................................................4
TASK 2....................................................................................................6
TASK 3....................................................................................................7
System Approach....................................................................................................................................7
Lewins change theory..............................................................................................................................8
TASK 4....................................................................................................9
CONCLUSION.....................................................................................10
REFERENCES.....................................................................................11

INTRODUCTION
Business context can be understood as an analysis and understanding on factors
impacting the business scenario from various perspectives, the various decisions which are
internally made for progressive expansion in external environment. Ryanair is Irish airline
company with main operational headquarters at Dublin and United Kingdom, being one of the
largest Airline it has gone under various changes in recent dynamic business world. This report
explains internal and external business environment factors influencing business expansion of
company, the problems it is facing currently which has slowed revenue margins. Report also
analyses various management theories and innovative concepts which can be applied for
increasing revenue margins by various margins for enabling long term profitability and goodwill
among people.( Phadermrod, Crowder and Wills, 2019).

TASK 1
Swot analysis
o Swot analysis refers to internal environment factors analysis which enable management to focus
on building internal strengths and weaknesses through which they can gain opportunities being
present in external environment. Ryanair Airline Company by operating through internal
structure with high efficiency and maintaining parameters of high growth within their own
functioning units gain high goodwill among consumers, leverage high profitability margins and
strong stability within airline industry.
 Strengths: Ryanair is the single biggest airline transporting people in Europe than any other
company which gives firm competent place in whole region and also the strength of stable
financial position is big strength of company. There has been long legacy of company goodwill
among people which is also an internal factor making it different and strong from other
companies and brands (Büyüközkan and Ilıcak, 2019).
 Weaknesses: Ryanair weakness can be accessed by the fact that there has been significant loss in
company reputation due to slow customer satisfaction services and less integration of advanced
technology integration within machinery and promotional units. The airline company has been
slow in bringing change of innovation in its services and there has been slow productivity due to
these factors due to which the demand of customers also has affected variably.
 Opportunities: The various growth factors and opportunities to diversify and expand in market
share of customers rely with up-gradation of promotional services with advanced technology
factors and high scale production cycle. The internal opportunity to train employees and
management staff also has important opportunity through which they can increase productivity
factors and goodwill among customers around the world. Opportunity to diversify its strengths
rely by investing in new technology standards and leveraging resources which can be used
highly to upscale its services through various online platforms (Srinivas,2019).
 Threats: The internal threats can be assessed by the fact that there is immense competition of
new airline companies and brands coming up in industry, where there is strong preference for
high quality customer oriented services and travelers desire to have lavish travel experiences is
also an important factor. Ryanair threats has also increased due to less potential promotional
services which have diminished overall brand image and also potential to increase within
revenue sectors. The company was less efficient in all production activities and diversification

which lowered its goodwill among customers, slow captivity among world airlines industry is
an increasing threat.
Pestle analysis:
The external forces of macro environment are strong competitive arenas where Raynair
has been lacking due to various factors, low revenue margins and slow productivity factors has
diminished its growth in airlines industry. Pestle analysis is external force analysis which gives
detail factors on various regions which enable us to gain knowledge on areas where company
needs to gain strength for becoming competitive.
 Political factors: Ryanair airline business revenue has faced decline due to unstable political
scenario of country and the Brexit decisions which has lowered percentage of travelers coming
from Europe and travelling to. The company is facing repressions and slow productivity due to
changing political conditions, increased fair prices and slow disposable incomes among
consumers to vitally choose airways for travelling.
 Economical factors: High taxes and unstable economic situations in economy of UK has
affected people disposable income factors through various margins, which explain it is
impacting Ryanair revenue margins negatively. The economic slowdown has diminished people
preference for choosing airways as travel medium which is highly important macro factor
affecting long term stability in industry and the goodwill among consumers around world
(David,Creek and David, 2019).
 Social factors: The preferences of customers are evolving within various sectors of airways and
most travelers look forward to high class innovation and creativity while they attend airways.
The changing external social scenario implies as threat for Ryanair which has been lagging
behind in bringing innovation and high class customer’s satisfaction services. Demographically
people are evolving within world whose preference for high class services and technology
integration makes it imperatively important for companies to increase investment margins and
promote its services effectively.
 Technology factors: Ryanair is facing tough competition of technology factors used by other
companies and airline brands where technology factors and innovative machinery makes the
innovation strength high. Companies who are competitively strong and are technologically
efficient are able to get strong goodwill among customers due to instant services and high class

machinery equipped in machines also impact their strength to enhance travel experience for
people around the world.
 Legal factors: The Brexit decision has made it difficult for Ryanair to comply with regulations
imposed by UK and Europe airways industry which has impacted its revenue scale through
various margins. Company is facing difficulty in operating business at low cost strategy while
serving customers and also regulates efficiency within their regulatory operations. Legal factors
are imperatively important to follow by Airlines Company in industry as it improves overall
brand image globally and brings legacy within customer’s choice to choose airways for their
travelling.
 Environmental factors: The changing environmental situations have also affected Ryanair
business strategy formulations for stabilizing competitive place among other companies and
brands in industry. Carbon Footprint has been increasing rapidly within globe which has
become major area of concern for companies to regulate their functions efficiently. For coping
up with environmental changes Ryanair shall invest in CSR activities and largely involve in
partnerships with companies and charitable organizations, to be ethically responsible towards
society and climate issues (Corban, Cavanaugh and Yamamoto, 2019).
TASK 2
The main problems Ryanair is facing due to high dynamic business world and the various
external forces which have impacted airlines revenue from business services and long term
profitability range, goodwill among consumers worldwide can be analyzed as follows:
 The high technology integration in all machinery and equipments by other competitor companies
and brands have affected on Ryanair business, as the company has been unable in bringing
new innovation in its services through various margins. Airlines in industry have been coming
with latest technological standards , high creative business models in bringing out services for
customer satisfaction which have given tough competition to Ryanair. Customers are largely
demanding innovation and fast services when they look for travelling with airways, and due to
slow productivity factor Ryanair has been facing decline in reputation worldwide. Major
revenue margins and profitability factors have hit Ryanair operations negatively, which has

stopped its expansion and diversification sustainability (Walsh,Bhagavatheeswaran, and
Roma,2019).
 Travellers and businessman are often looking for high quality leisure services while they are
travelling within airlines where they have strong demands of efficiency in quality services,
legally the operations are as per customized structure by clients. Ryanair has been lacking in
offering such high class travel experience to its customers and there is only limited choice for
them to choose from. Such problems have increased management troubles and there is high
instability within internal management as well, which has also minimized its business
capacities largely. Employees working in company are not given enough training and
development opportunities, which have lowered their morale by large margins for serving the
customers while they opt for Ryanair as their travel airlines (Yano and Furukawa,2019).
 Ryanair is facing external policy change factor and uncertainty within their airline services due
to Brexit and departing from EU union, which has lowered the customer’s choice to travel
with airlines. There has been high decline in profitability factors also due to pressure of
competitive external forces of other airlines company and customers preferences of choosing
the least and affordable price structure compay. These factors have made difficult for Ryanair
to be effective in structuring its position of high goodwill among consumers and there has been
lowered share revenue from customers within country and European regions. Airlines
company have to focus on maintaining cooperation within legal frameworks, ethical laws
compliance and also perform its services as per the customers desire to stabilize its position in
industry .
 Ryanair has been highly dependent on low cost travelling segments and the diversification
factors of business are completely lacking due to which creativity and innovation has highly
diminished within its services. The company has huge external risks from changing economic
scenario of world and within regions, which has lowered its revenue and people preference for
leisure services has also been largely unmet by airlines company. These factors have affected
customers choice to choose Raynair as their travel company, the revenue and profitability cycle
been largely hit through external forces whose implications can only be lowered by
implementing creative and innovative business models.

TASK 3
Ryanair airlines can enrich its productivity of operations and cycle of revenues with
various business expansion strategies through which integration of innovation and creativity will
be developed. The management theories enables us to analyze the various importance of
principles and determinants which needs to be incorporated within company to combat woth
external and internal threats.
System Approach
This approach elaborately explains interrelation of resources with various parts in
management to produce high quality outcomes and revenue margins of innovative productivity.
An open system approach recognizes dynamic interrelation with external and internal
environment, through which Raynair will be able to inculcate various innovative creative
business services. Airlines by pooling down investment funds as inputs for implementing new
technology standards and high quality business services, can vitally frame its input resources for
getting competitive position among other competitors. Another step of this theory is
transformation which inspires , motivates employees in company working to use the resources
skillfully for bringing out strong output services. Transformation will functionally make the
process of putting in resources worth fully success by connecting with employees and working
towards bringing high quality outputs. Raynair needs to inculcate high quality business services
and diversify its potentiality within various sectors to gain goodwill among customers. Later the
final steps of theory is Feedback at which customers feedbacks on new products and services
which have been brought up by Raynair will be evaluated, the promotion of company on online
web services and websites can be analyzed. The final step will promote business services on
various platforms globally and enable its reach among various new segments of customers. The
system management theory can be applied in company for bringing high revenue margins and
strong profitability of goodwill.
Lewins change theory
Lewin change theory is one of the most innovative business theory by which Ryanair will
be able to bring huge change of high creativity and business revenue of high profitability, there
are 3 steps in this theory by which the management can bring diversification and high scale
productivity within internal and external revenue scales.

 Unfreezing: This is the initial step of Lewins change model by which management can analyze
the key function areas within company which needs to be changed and new technology needs
be implemented. This step will research out all key scenarios which needs to be enhanced and
diversified with innovation and creativity, to reach expectations of customers around the world
and gain new segments of customers who can be vitally used as high potential market share.
Investment funds and the various training sessions by leaders can be taken under planning,
which can be figured out for further progressive steps and strategies. Unfreezing will enable
Ryanair to remove all old technology usage which were less efficient in delivering quality
services to consumers and the modification can be planned at all levels (Petronio and Child,
2020).
 Freezing: This step of freezing at Lewins change Model will implement high quality integration
and detailed explanation of all new innovation built up in company business models among
employees and all management levels. Freezing step will enable company to reach out to
optimum levels and train all employees working in various departments. This step will
acknowledge all important steps which have been taken to improve quality standards in
aircrafts, promotional steps which will reach out to various corners pof world. Employees
training sessions will motivate them to be optimum at their services and it will also have
impact on their retaining power at company.
 Refreezing: This step will recheck all the steps and models of change which have been
implemented within company structure, and make sure the steps have reinforced with strong
efficiency to maintain perfect balance between inputs and outputs. Refreezing will highly
promote business goals of Ryaniar to new business expansion, and bring all over strong
goodwill among people in competitive environment. At this step management will check long
term relativity of set targets with company changed services, seek for customers acceptance
criteria and the various parameters which will enable to analyze the complete scenario. At this
step company can get an overview on the various paradigms which have been built within
scenario for high performance growth, take records and surveys of customers to check their
response factors (Unceta, Castro and Wintjes, 2019).

TASK 4
While completing this project I gained detailed knowledge on various aspects of
management principles and business expansion strategies which have helped me in gaining
strong rapport for my professional career and academic success. I went through challenge of
structuring my report which I changed with formal structure reporting guidance by my teachers,
and enlarged my vision of management theories. While completing this project I was able to
construct my views on the working operations of Raynair, its productivity levels and the
problems it has been facing in recent years. The report gave me important learning on various
paradigms which will help Ryanair in exploring new creativity and innovation in its business
services. I was determined to complete my project with high efficiency and clarity of my data
collected from reliable sources of internet. This report helped me in visioning high performance
in my career as principles of management is strongly important for getting competitive skills. I
was able to work with high efficiency while discussing projects with my fellow friends, as my
professor guided me to improve my interpersonal skills while completing my project. This
project helped me in gaining various arenas knowledge and proficiency within my academic
career, which will highly help in building strong skills. The report not only made me
productively resourced on various management concept, researching skills but also made by
function with strong writing skills which will also help me in further projects and assignments at
my university. I gained advance writing skills and academic writing on various research topics,
which helped me in reaching new heights of my career and also on various themes, business
models and theories (Lindroos, Munro and Pintassilgo, 2020).
CONCLUSION
This report can be concluded by the explanation on context of business where there are
various factors affecting company decisions for expansion and diversification in various sectors
for gaining strong competitive position in industry. This report concludes Ryanair airlines
business performance on parameters of internal and external environment factors which deeply
explains that due to less advanced technology and low class of quality in services, company
goodwill has declined in recent years. This report concludes high scale investment funds of

capital resource as an internal strength which can be vitally used for gaining opportunity in the
dynamic business world. This report also explains external forces of economic changes, rates of
taxes and brexit have negatively impacted Ryanair company revenue through various margins. It
concludes the other problems of low productivity and decline in goodwill among consumers due
to which it has been unable to captivate strong position in industry. It also analyses how system
theory and lewin change theory of management will help company to bring creativity, diversity
and efficiency within company structure. Ryanair by focusing on building these skills and
competency in strength reach new heights and diversify its business activities, with high
functional operations efficiency and productivity with which they can reach new segments of
customers worldwide.

REFERENCES
Books and Journals
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relations. Kybernetes.
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using PESTLE.
David, F. R., Creek, S. A. and David, F. R., 2019. What Is the Key to Effective SWOT Analysis,
Including AQCD Factors. SAM Advanced Management Journal. 84(1). p.25.
Lindroos, M., Munro, G. and Pintassilgo, P., 2020. Game Theory and Fisheries
Management. Springer Books.
Petronio, S. and Child, J. T., 2020. Conceptualization and operationalization: utility of
communication privacy management theory. Current Opinion in
Psychology. 31.pp.76-82.
Phadermrod, B., Crowder, R. M. and Wills, G. B., 2019. Importance-performance analysis based
SWOT analysis. International Journal of Information Management. 44. pp.194-
203.
Srinivas, D., 2019. A Swot Analysis Based Business Process Management System. International
Journal of Control and Automation. 12(6).pp.397-404.
Unceta, A.,Castro, J. and Wintjes, R., 2019. Social Innovation Regime: an integrated approach to
measure social innovation. European Planning Studies, pp.1-19.
Walsh, K., Bhagavatheeswaran, L. and Roma, E., 2019. E-learning in healthcare professional
education: an analysis of political, economic, social, technological, legal and
environmental (PESTLE) factors. MedEdPublish, 8.
Yano, M. and Furukawa, Y., 2019. Two-dimensional constrained chaos and time in innovation:
An analysis of industrial revolution cycles. RIETI Discussion Paper Series 19-E-
008.