Ryanair's Corporate Governance: Action Plan and Analysis Report

This report provides an in-depth analysis of Ryanair's corporate governance, focusing on the issues it faces, such as shareholder accountability, risk management, ineffective compensation policies, and poor working conditions. The report outlines a detailed action plan, encompassing problem determination, assessment of roles, developing strategies, implementation, and monitoring. The action plan aims to mitigate negative impacts, improve market image, and maintain stability. The report also identifies key management theories applicable to Ryanair and includes a timeline of tasks completed. The report also provides literature used in the case study. The objective is to provide recommendations to improve the company's performance and address its corporate governance challenges.

Corporate
Governance

INTRODUCTION
Action Plan for the company
Action plan is the process through which Ryanair takes corrective plan in order to
mitigate the negative activities. Present action plan based on the company issues of corporate
governance. Corporate governance is the set of rules and regulation on which they look upon and
work for getting good returns (Abdullah, Ismail, and Nachum, 2016). For that, company needs to
adopt plans to maintain the good relationship with the different stakeholders. There are given
action plan in order to maintain the stability in the market researcher analyse the effective action
plan for the company in order to minimize the issues of the company.
The reasons why Ryanair was concern for this case study are as follows.
 Ryanair falling their image in the market due to adopting less effective strategies or
plans.
 Ryanair exemplifies the necessity for internal controls and risk management.
 Due to ineffective sources and planning they fail to adopt effective planning
resources.
These are the reasons to make action plan.
Case summary and corporate governance issues.
There are various corporate governance issues facing by the Ryanair such as shareholder
accountability, risk management, performance evaluation of directors etc. overall the summary
of the case study is that Ryanair is facing many issues due to which they lost his market image
and facing low profit making company. Some issues are ineffective compensation policies,
corporate governance, working conditions, conflict of interest.
These are the steps of action plan.
 Determine problems that is ineffective employment policies according to the company
issues. In order to get the best results and making the best action plan. Researcher needs
to analyse the issues and problems due to which company faces the conflicts. Due to this
issues company faces the problems. along with that, in the first step of the action plan is
to determine the issues. Such as with Ryanair company they having issues are unfair
trading policies, conflict of interest, ineffective compensation policies, working
conditions are poor. Overall these kinds of issues facing by the company through which
they cannot earn enough amount of profit margin (Abdullah, Ismail, and Nachum, 2016).
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This is the first step on which company determine the issues and follows the corrective
action plan in order to mitigate the negative impacts on the business. In the first step
Ryanair determine their major issues on which they need to work. In this stage
investigator analyse the various issues that. Company fails to treat the employees in
effective manner due to which they facing less productive work. On the other side they
fail to provide enough dividend to their shareholders due to which they reducing their
good relationship with the stakeholders. Company focus on the reducing the cost for that
they reducing their services and getting low profit. On the other side it makes negative
impact on the market due to which they need to concern about the company issues in
order to minimize them. On the basis of action plan gain the effectiveness in the
functioning of the company (Armstrong, Blouin, and Larcker, 2015).
 Assessment of rules and roles of company: after determining the issues and conflicts
which faces by the company. Another step of the company is to take the opportunity. In
this next step of the action plan next step would have taken by the company that is to
protect the company from negative plans. In this step company delegate the roles and
responsibilities to the employees in order state the work according to minimize the issues.
Along with that, all employees and workers applies the action plan in order to maintain
the company position and stability. Moreover, Another main concern of the company is
to make image in the market in order to implement good changes. Company give roles
and duties as per the employee capabilities and performances. Besides, with the help of
this step employees get know who they need to perform to achieve the final target.
 Developing action: In the another step of action plan is to make planning and making
strategies to achieve the final objectives. This is the important concepts to stable the
company position (Berger, Imbierowicz and Rauch, 2016). In this process company must
giving training and developing session to the staff in order to enhance the employees'
productivity. With the help of this process employee get motivated and happy with the
environment of the organisation. This process helps to reduce the risk and problem of the
company. Training and staff learning is the most important thing for the company to
reduce the uncertain events. This process helps to enhance working position of the
employers so that they help company to make new growth plan. Through this process
company many get help to reduce the issues they facing (Boreiko and Murgia, 2016).
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 Implementation of plan: in this another process of action plan. Is in which company
implement the plan and strategies they planned so far. This is the most important step in
order to implement the plan and wait for the changes. Ryanair applies the same action
plan which they made. They need to implement that plan in very much effective manner.
So that, they try to reduce the company issues and conflicts. In this process. Company
make sure that all workers and employees understand what they need to do in the plan so
they come over the issues of the company. This is the important factor which need to
look upon. In this process company implement the plan which they making for reducing
the issues such as less effective working, unfair trade practises, conflict of interest,
ineffective compensation, policies. These are the concern which gives negative impact on
the company performance. In this plan company also need to perform better task in order
to achieve the final target (Breitbarth and et.al., 2015).
 Monitoring and controlling: in this last action plan process at the time company ensure
the whole activity done by the company to minimize the issues. In this process company
monitor the implementation plans and check the effects of changes. Along with that this
step provides the actual position of the company in order to make changes. This is the
important process which company set up been doing good or not weather their results are
favourable or not (Coffee Jr and Palia, 2016). They also check the improvement level
Where the improvement is needed. Besides, company make sure that if in this process
properly implemented or not. This overall process helps to make the new changes and
check the overall results. Moreover, the next step is to measure the changes and
requirement if it is needed. In this process company also get to determine the individual
performance level. This process of the organisation. Overall, the process needs to be
monitor in very perfection. Ryanair applies all changes to make sure the final objectives.
Likewise, the process of action plan must be according to the plan. On which the whole
process has been done. Moreover, company takes action for their further development
plan.
Main theories applicable to Ryanair airline company.
In accordance with the case study the best theory of making good plans. With the help of
subsequent analysis company can easily discuss the impacts of the company in better manner.
Ryanair also apply management theories in order to make effective management skills.
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Task to be completed time table
Week Beginning Tasks to be
Completed
29th March Write up introduction and the corporate governance issues already
discovered
5th April Compare actions of Ryanair to the main theories and accademic
commentary
and write up section
12th April From research into the investigation report write up the response of
the company and analyse its successfulness
17th April Compare Japanese Corporate Governance to the UK’s and
Analyse the situation in light of the UK code.
27th April Write up final paragraphs and calculate ratios to determine
investment potential
3rd May Fix referencing and proof read case study
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Key literature pertinent to case
Literature that will be used within this case study includes:
Abdullah, S. N., Ismail, K. N. I. K. and Nachum, L., 2016. Does having women on boards create
value? The impact of societal perceptions and corporate governance in emerging
markets. Strategic Management Journal. 37(3). pp.466-476.
Agrawal, A. and Cooper, T., 2017. Corporate governance consequences of accounting scandals:
Evidence from top management, CFO and auditor turnover. Quarterly Journal of
Finance. 7(01). p.1650014.
Armstrong, C. S., Blouin, J. L and Larcker, D. F., 2015. Corporate governance, incentives, and
tax avoidance. Journal of Accounting and Economics. 60(1). pp.1-17.
Berger, A. N., Imbierowicz, B. and Rauch, C., 2016. The roles of corporate governance in bank
failures during the recent financial crisis. Journal of Money, Credit and Banking. 48(4).
pp.729-770.
Boreiko, D. and Murgia, M., 2016. Corporate Governance and Restructuring Through Spin-Offs:
European Evidence. In The Financial Crisis (pp. 7-47). Springer, Cham.
Breitbarth, T., Walzel, S., Anagnostopoulos, C. and van Eekeren, F., 2015. Corporate social
responsibility and governance in sport:“Oh, the things you can find, if you don’t stay
behind!”. Corporate Governance. 15(2). pp.254-273.
Coffee Jr, J. C. and Palia, D., 2016. The wolf at the door: The impact of hedge fund activism on
corporate governance. Annals of Corporate Governance. 1(1). pp.1-94.
Dalwai, T. A. R., Basiruddin, R. and Abdul Rasid, S.Z., 2015. A critical review of relationship
between corporate governance and firm performance: GCC banking sector perspective.
Corporate Governance. 15(1). pp.18-30.
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