Business Context: Ryanair Case Study

This case study focuses on Ryanair, a budgeted airline, and explores the business context, SWOT analysis, PESTLE analysis, main problems, and proposed solutions. It provides insights into the challenges faced by Ryanair and offers management concepts and theories to address these issues.

Context of Business
(Ryanair Case Study)

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Performing the SWOT analysis of Ryanair.................................................................................3
Performing the PESTLE analysis of Ryanair..............................................................................5
Highlighting the main problems that are faced by Ryanair that requires immediate attention
with appropriate reasoning..........................................................................................................6
Proposing solutions to the problem identified using at least TWO management concepts and
theories.........................................................................................................................................7
Writing a short reflection report on my experience while writing this report.............................8
REFERENCES..............................................................................................................................10

INTRODUCTION
The business context encompasses thorough understanding of several factors that are influencing
the business and its activities from various different perspectives that includes decision is and the
ultimate goal of a company (Juntunen, Ahokangas and Nguyen, 2018). The business context is
used by organisations to identify the implications of the strategies are executed for the strategic
initiatives. The report is developed on Ryanair which is an Irish budgeted airlines headquartered
in in Dublin Airport, Ireland. the company was founded in in 1984 and commenced its
operations in 1985. The organisation has number of subsidiaries which are Lauda based in
Australia, Buzz based in Warsaw, Malta air based in Malta which is a joint venture of Malta
Government and Ryanair and last but not the least Ryanair UK. The report is a case study of
Ryanair swot and pestle analysis is conducted in order to understand the business context and
different factors that are implicating use impact on the decision making and goal achievement of
company. Once the problems are identified then appropriate management concepts and theories
are applied in order to provide a appropriate solution. And at the end of the report a reflection
paragraph is written for highlighting the experience while conducting the research for the report.
MAIN BODY
Performing the SWOT analysis of Ryanair.
SWOT analysis is a tool or a framework which is provided by the researchers and used by
marketers of irrespective organisation with the main and very important objective of identifying
the internal strengths and weaknesses of a company and identifying respective opportunities
present in the external environment according to the strengths and weaknesses. The what is
basically an acronym for strengths weaknesses opportunities and threats. The swot analysis of
Ryanair is conducted in order to understand and determine the potential problems faced by
organisation which are influenced by the different perspectives present in the internal and
external business environment.
Table 1.1 SWOT of Ryanair.
STRENGTHS WEAKNESS
 In the United Kingdom Ryanair is the
first low cost airline business model
which was established and therefore,
 Despite the fact that the organisation is
one of the most successful low cost
airlines and the largest in the United

company has large amount of expertise
and accumulated knowledge in the
industry.
 Another strength of Ryanair is its large
customer base as it is one of the largest
airline in Europe transporting more
passenger on the regular basis than
other airlines present in the
marketplace and in the industry
(Siemieniako, 2018).
Kingdom and in the world still it faces
problem in relation with cost and other
series of events.
 Ryanair's another very big
disadvantage or weakness is the
company is not diversifed to any other
elementary segments of the aviation
industry such as maintenance or cargo.
Increases their exposure to low cost
travel demands volatility.
OPPORTUNITIES THREATS
 Ryanair possesses number of
opportunities in relation with its
sustenance and growth in the market.
The biggest opportunity which is
created for the organisation for
becoming more strengthen in the
European market is of massive aircraft
orders. Along with it it also reduces
their environmental impacts and the
fuel consumption as the company is
using the state-of-the-art aircraft.
 Another very potential opportunity
standing in front of Ryanair is of
diversification. as it is its weakness
that the company is not diversified it
can be changed into an opportunity as
the organisation has a lot of experience
in the industry and therefore it can
diversify into other divisions of airlines
aviation industry.
 Currently the greatest red which is very
harmful and influential exist in the
external environment of Ryanair as the
organisation is facing the uncertainty is
of BREXIT which recently took place
and that has changed the political
economical and legal structure of the
economy which has great impact on
Ryanair ambitious growth plan. The
external factors which are not
controllable and influential by the
organisation such as fuel prices
currency movements extra has the the
very significant impact on the cost
incurred by Ryanair.
 Another very influential and impactful
threat to the organisation is increasing
competition and lowering the support
of staff as the workforce is changing
into a rebellion against the organisation

along with it BREXIT is creating
several staffing issues as well.
Performing the PESTLE analysis of Ryanair.
The PESTLE framework is used for macro environmental analysis of the particular industry in
which an organisation is running. The PESTEL framework allows the entity to study six broad
areas which exist on the Macro level affecting the respective industry and the organisations
operating in it either in a positive or a negative manner (Crane, Matten and Spence, 2019).
Ryanair operates in more than one country which exposes it to more than one external
environment. The PESTLE Ryanair analysis of is as follows:
 Political- The political environment is very unstable in the United Kingdom the
government is insatiable which has a negative impact over the business and this is caused
due to initially took place BREXIT. Along with it government is increasing the tax rates
on the long distance and short distance journeys which is affecting the sales of ticket and
impacting Ryanair negatively.
 Economic- The economic environment of the United Kingdom is also unstable for the
very reason and uncertainty caused by BREXIT. The government is fluctuating their
rules and regulations and increasing taxes which has impacted the oil prices and they are
being hiked.
 Social- The environment of the United Kingdom is also rapidly changing and the tense in
the country are frequently evolving. The British people have become much more
interested in leisure travels and holiday travels than before. this change in the presence
and needs of the people will influence the long and short distance travelling schedules.
Therefore automatically contributes on the sales increment and this change will bring
significant change in the profit units of the company as gradually the low cost lies are
more referred by the passengers (Haghkhah, Rasoolimanesh and Asgari, 2020).
 Technological- The current population and the youth of country is very much attracted
with digitalization and updated technology. The people are becoming need of digital and
advanced tools and getting used to the internet specially with the social networking and
other social platforms. This technological factors have brought a positive impact for

Ryanair as the company now can make use of these updated technologies for several
different activities and most importantly for conducting their marketing operations.
 Legal- The legal environment have brought negative impact for the airlines as the
uncertainties of BREXIT have a negative impact the operations. After BREXIT now
Ryanair have to comply with the rules and regulations implied and imposed by the United
Kingdom and the European Union governments. this will change the scenario to be a
complex one for the airline company while doing business with the low cost strategy.
Along with it is also possible that there might be flight suspension from different places
in the European Union forcing Ryanair for closing down the operations in different
places (Okada and et. al., 2018).
 Environmental- The last but not the least is the environmental factor that can affect the
business negatively. Carbon footprint have became an alarming point which is causing
more pollution and global warming affecting the nature and the environment in the most
negative form. This can create where is restrictions on carbon emissions from the
European Union creating problems for the airline for conducting their operations in the
most effective manners.
Highlighting the main problems that are faced by Ryanair that requires immediate attention with
appropriate reasoning.
Ryanair is a budgeted airline which is established and considered as one of the largest airlines in
the United Kingdom which is operating with the low cost. Along with the organisation has an
advantage because it has the knowledge and the expertise in the aviation industry that brings a
competitive edge towards it. This competitive advantage and power from other competitors
keeps the organisation one step ahead of others in the market and makes it to grow further and
faster. The analysis conducted in context of the business encompassing internal external factors
have highlighted several problems that are being faced by the airlines which are required to be
immediately taken care of otherwise huge losses and failures can be the part of the company and
its objectives and strategic initiatives (Bell, Bryman and Harley, 2018). The Macro analysis
conducted with the help of pastel framework conclude that the company is political, economic
and legal environment in the united kingdoms is not favourable and imposes and negative impact
on the operations of Ryanair. The most potential and significant factor behind all the negative
impacts existing in the external environment of the airlines is BREXIT. There are several

uncertainties and negative impacts are being imposed by the outcomes and changes brought in
after BREXIT. The main problems which are very prominent and significant for Ryanair are as
follows which are being extracted from the macro and micro environmental research of the
organisation.
 Cost constraint- One of the weakness identified from the SWOT analysis of Ryanair is
after being the lowest cost provider in the air line segment organisation still faces several
problems while managing its costs and other related expenses to the business. This
weakness is created because of BREXIT and where the legal rules and regulations have
changed. The organisation have to follow the regulations of both United Kingdom and
European Union. A complex legal structure is the main element that is increasing the cost
incurred by the organisation while running their operations (Sousa and Rocha, 2019).
 Closure of Operations- Along with it another threat that is creating the problem for
Ryanair is that in Central regions of the European union they may have to close the
operations because of the restrictions and denial of the EU. In such cases for closure of
the operations use amount of money and other financial resources will be wasted
affecting the cost and profit of the airline.
Proposing solutions to the problem identified using at least TWO management concepts and
theories.
Management is a concept and a process of running the organisation smoothly and in a healthy
environment by efficiently looking over all the areas of the business and implementing strategic
processes for better running and effective performance of the company. management is basically
a process of keeping the organisation in order by performing several different functions such as
planning, organising, controlling, directing and at the end monitoring (Oldman and Tomkins,
2018). Management of an organisation is a complex process which is needed to be thoroughly
evaluated and every strategic step should be properly analysed before in order to be sure of the
results are the outcomes which the company is going to receive in return to their strategic
implementation of several plans for fulfilling strategic objectives. There are several problems
which exist in the external and in the internal environment of Ryanair. There are two most
important and influential problems are highlighted in the above section in relation with the
airline company for which the management of the organisation have to take appropriate
measures in order to manage those problems and running the company in the most productive

way. there are several management concepts and theories which can be applied by the
management and the top level executives of the airlines. To respective management theories
which are applicable for resolving the above problems and for reducing their impacts on the
operations of Ryanair are mentioned and elaborated underneath.
 Total quality management is a key operational management approach that is used by
several different organisations in order to keep their business running with the most
productive results (Fowler, Gajewska-De Mattos and Chapman, 2018). The total Quality
management approach will allow the managers and leaders of Ryanair to take the most
productive approach and steps while running the operations. This approach is useful for
eliminating and reducing all the errors from the operations that are existing in the
organisation making the most efficient and productive. This management approach will
allow the airlines to reduce their cost to a minimum level or even to reduce them to a
significant level which can be manageable by the company for or a shorter periods time
providing the executive more time to develop a better and the most efficient cost saving
strategy.
 System management is a Management theory that suggest and provides an alternative
approach for practice to the management for planning and managing the company.
According to the system Management theory there are several factors or elements on
which success of a company depends. These factors are the interdependence of the
operations from one another, the Synergy developed in the operations of the organisation
and at the end the interrelationship between various sub-systems. This management
approach will allow the organisation to take systematic practices under them while
managing few operations under European union which are under the threat of being
closed. The interrelationship and interdependence of the operations along with the
Synergy developed among them will allow the organisation to make their operations
more strengthening productive.
Writing a short reflection report on my experience while writing this report.
I am very pleased and appreciative that I got a chance to work on the business context case study
about Ryanair. There are several different areas of knowledge in which I gained a little bit of
more understanding along with gaining more critical information about the respective business
environment. At first I got to learn about the several different external factors that exist in a

external environment of an industry and which can have a very potential impact on a particular
business and their decision making. Along with it and got to learn about two most important
instruments for frameworks that help me in conducting my research about Ryanair that are
SWOT and PESTLE analysis. THESE TWO FRAMEWORKS ALLOWED ME TO
THOROUGHLY STUDY THE ENVIRONMENT OF THE AIRLINES IN THE UNITED
KINGDOMS AND THE POSITIVE OR NEGATIVE IMPACTS IT FACED WHILE BREXIT
TOOK PLACE. The problems which are identified from the analysis of these two tools and the
market are very good and shall I need to be concentrated by the management of Ryanair before it
gets too late. I developed a critical thinking skill once my research was completed because of the
the opportunity provided me to understand and gain knowledge about the internal capabilities of
the company along with the threats and weaknesses associated (Rinkinen and Harmaakorpi,
2018). The most important an essential area which I found most interesting is the opportunities
that are available to the organization even after BREXIT to place and several and securities are
being hindering the strategic objectives of Ryanair. after my research and identification of
potential problems which are faced by the airline company due to BREXIT I studied and
researched for the several management theories and concepts. Out of all those two most
important management concepts which are according to me the most potential and beneficial for
the organization for facing the current problems and for mitigating effects are suggested. The
total quality management approach can help the organization in managing their cause and for
time being reducing the cost incurred by them which is excess. In addition to it the organization
should undertake system Management theory which will allow them to work more systematically
and interrelated them so that any closure or failure of the operation will be impacting the whole
business objectives and the business to the minute level.

REFERENCES
Books and Journals
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