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Business Environment of Ryanair: SWOT, PESTLE, and Porter's Five Forces Analysis

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Added on  2023/01/19

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This study analyzes the business environment of Ryanair through SWOT, PESTLE, and Porter's Five Forces analysis. It also discusses the impact of potential strategic solutions and provides recommendations for short, medium, and long-term goals.

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Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
MAIN BODY...................................................................................................................................3
Ryanair Business Environment...................................................................................................3
Impact of Potential Strategic Solution........................................................................................5
Recommendation.........................................................................................................................6
CONCLUSION................................................................................................................................6
PART 2 ...........................................................................................................................................8
INTRODUCTION...........................................................................................................................8
MAIN BODY...................................................................................................................................8
Learning Skills ...........................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Business environment is process by which will understand the internal and external
condition of the business. With the help of this method business communication process and
performance will improve.
Ryanair is an Irish airline which provide services to customers at the attractive price. The
company is established in 28 November 1984 and headquarter of the organization is in Swords,
Dublin, Ireland. In this study will include the business environment of Ryanair through Swot,
Pestle and Porter 5 five force model (Prajogo, 2016). In this study will also provide impact of
potential strategic solution and includes recommendation for short, medium and long term goals.
PART 1
MAIN BODY
Ryanair Business Environment
Ryanair is an Irish airline and it is established in 1982. Ryanair business environment
some time impacted by the some internal and external factors (Deasy and et.al., 2016). For
understand the business environment of Ryanair will use some tools and techniques through
which easily evaluate the environment of company. These methods are as follows:
SWOT analysis of Ryanair
Strengths: Company stronger in the European market because it covers almost 200 destinations
and 1800 routes. The another strength of the company is their strong record of balance sheet and
accordant shareholder return (Boissy and et.al., 2016). Ryanair is also had powerful image in the
market because the low cost of their services, and it provides company strong competitive
advantage. So, these are the major strength of the Ryanair.
Weakness: The weakness of the Ryanair is in their internal business environment. Because in
the Ryanair their continuous change in labour relation and employee compensation arrangements
have major chances to impacts company business.
Opportunities: Ryanair has various types of opportunities in their business to enhancing their
business by their myRyanair system (Boissy and et.al., 2016). Company also have opportunities
to grow in market by improving their customer experience through Always Getting Batter
program of the company.
Threats: The threat for the organization which impact the business environment of the Ryanair,
that is Brexit. Just because of Brexit implication company face pressure to cut down their price,
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which is already low (Deasy and et.al., 2016). The another threat of the company is fuel price of
flight, because fuel price of flight most of the time fluctuate.
PESTLE analysis of Ryanair
Political Factor: Political factors are those factors which are design and shape by the
government and legal authorities of the country (Boissy and et.al., 2016). It may include tax
rates, import export rate, foreign exchange rate etc. The environment of Ryanair is also impacts
by the political factors, such as government of UK charge high rate of taxes from the commercial
air travel. Just because of this law of government company also need to improve their flight
charges. And high charges of travel services impacted the customers of the Ryanair.
Economic Factor: Economic factors includes the major thing is Brexit. After the implication of
Brexit in the UK, most of airline services are affected negatively (Prajogo, 2016). Because price
of pound also goes down after the Brexit and no one actually wants to invest in the UK. Also,
after the Brexit consumer spending consequent into a fall in leisure travelling cost, that will
negatively impact the environment of Ryanair.
Social Factor: Social factors includes the group of people within the society. It is also included
the caste, religion, age and sex of people of society. Social factor of UK directly impacted the
Ryanair business because, high rate of living reduce the interest of British people towards the
travels and that may reduce the business of Ryanair (Boissy and et.al., 2016). Also, the another
thing is the age of people is impacted the Ryanair, because in UK aged people are more likely to
go travel and become difficult to accommodate them at the airline.
Technological Factor: The latest technologies are also impacted the business of Ryanair
(Georgescu and Popescul, 2015). Ryanair implement technologies like biometrics and Alexa
which provide information to the customer at the airport and also reduce the extra pressure of
employees and customers.
Environment Factor: The environment is very much affect the business environment of the
Ryanair. Such as change in the weather and climate company have to postponed their flights, it
will affect the customers and the revenue of the company.
Legal Factor: Legal factors have major impact on the business environment of Ryanair. Such as
changes in the labour law will impact the policies of company and company have to adopt new
policies (Erasmus, Strydom and Rudansky-Kloppers, 2016). For an example after the implication

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of Brexit in UK, the rules and norms of country are become different from the EU laws, that will
impact the company legal factors and organization have created changes accordant to Brexit.
Porter's Five Force Model
Competitive Rivalry (High): There are various airline services are available in the UK such as
Easy Jet, Go, Wizz Air etc. they are competition for Ryanair (Boissy and et.al., 2016). They are
also provided their services at the low cost.
Threats of New Entrants (Low): The aviation industry is most lavish and expensive industry,
no one can not easily able to enter this market (Kozubíková, Homolka and Kristalas, 2017).
Buying jet is very costly, and this industry also need qualified pilot and staff to run the business.
So the threats of new entrants are low in the market.
Bargaining Power of Suppliers (High): The bargaining power of supplier is high for Ryanair.
Because in the market two airplanes manufacturers company available i.e.: Boeing and Airbus.
And Ryanair purchase their airplanes through the Boeing. So, the bargaining power is in the
hand of Boeing company.
Bargaining Power of Buyers (High): Company also facing the problem of bargaining power of
buyer, because customer are easily to switch those airlines services who are provided their
service at low cost. So, the power of buyer is high.
Threat of Substitute (Low): Threat of Ryanair is low in the market. Because Ryanair provide
their airlines services at low price to the customers which is not provided by the another airline
(Georgescu and Popescul, 2015). Also, there are various transportation services available such as
cars, buses, trains but thy consume time and money. So, the threat of substitute is low for the
Ryanair.
Impact of Potential Strategic Solution
Potential strategies like transparency, data availability are important foe every business
growth. These strategies provide a strong support to the company (Kozubíková, Homolka and
Kristalas, 2017). Such as Ryanair using the transparency strategies, according to this they are
provided right information to their customers such about their booking, flights, date and time of
their flights etc. So, it is just because their transparency strategies (Erasmus, Strydom and
Rudansky-Kloppers, 2016). Another potential strategies, data availability according to these
strategies company can mange their all data about their services which they are providing. By
using some potential strategies company can enhance their business within the right direction.
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Recommendation
For achieving the short, medium and long term of the Ryanair company can use some
tools and techniques. Such as company is facing the problem of power of suppliers (Moore and
et.al., 2018). For this problem can set long term goal in which they plan and set some techniques
by which they are find out better option for the company suppliers. Such as company also facing
the problem like Brexit, for this company can set medium term goal and conduct survey of the
market to know the impact of Brexit by this method company know the situation after Brexit and
plan strategies for achieving medium term goal (Kozubíková, Homolka and Kristalas, 2017).
And for customer company set short term goal by which company manage to provide good
quality services to their customer for achieving short term goal.
CONCLUSION
From the bases of above study it has been concluded that how business environment of
Ryanair impacted. In this study has been included Swot analysis, Pestle analysis and Porter 5
force to understand the internal and external business environment of Ryanair. It has been also
included, the impact of potential strategies such as transparency and data availability of the
business and provide recommendation for achieving short, medium and long-term goal of
company.
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PART 2
INTRODUCTION
Learning skills are very important in personal and professional life (Delamain and
Spring, 2017). With the help of leering skills like communication, ICT, numeracy, team work
and time management skills person will become more productive and enhance their productivity.
In this study will include different skills of learning which is communication skills, ICT
skills, research skills, numeracy, team work skills, organization/ time management, problem
solving skills etc. In this study will explain personal learning experience.
MAIN BODY
Learning Skills
With the help of this I have learned various things in which communication is my first
priority. I feel that my verbal and written communication become stronger. Just because for this I
am actively participating in the classroom discussion, by which I raised my own question and
doubts about the assessment (Moore and et.al., 2018). With the help of those discussions my
internal fear of communicate or interact with other people go down and I improve my
communication skills with others. I also learned to written good content. Because in this project I
am participated in the presentation and report writing activities. With the help of these activities I
will improve my written communication, in which I understand how to framing sentence, which
types of language and words are use in the formal report writing and presentation (Kozubíková,
Homolka and Kristalas, 2017). I also know about the different types of communication process
which can be used in the communicating with people (Boissy and et.al., 2016). With the help
good communication I feel motivated and more confident. By the improvement in
communication skills, now I confidently share my thoughts and opinion with person and my
friends and do not feel any type of hesitation now.
My ICT skills will also improve by this project. With the help of this project I know that
how to search specific data from the online resource and websites, learn the management and
setup of emails. With the help of this project I deign presentation and send them to my friends
and seniors so, I learned the process of email (Delamain and Spring, 2017). I also learned that
how to manage my data and how to analysis this data properly. I personally feel that in today
time ICT skills are very much required, by this assessment I can easily improve this technique.
With the help of those technological skills I can assess my more knowledge and use these
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methods for more projects and assessments(Kernbach, Eppler, and Bresciani, 2015). ICT skills
very important in my life because with the help of those skills I can easily develop my
technological knowledge and learn more things from the various techniques and tools which are
included in ICT.
I learned that to solve a problem first I need to identify it, ask my team about how did this
happens and must be aware of the whole situation. Then I will choose the solution which is most
suitable and appropriate to the situation. (Veltsos, 2017)To get the ideas to solve the problem I
have to take measures such as Brainstorming as it is the most effective method to get the ideas in
a time saving manner. And before finalizing the solution I will look for all the possible
alternatives which is less risky than others. After choosing this step I will execute the solution of
the problem so that I can make it right with minimum damage to the company(Kozubíková,
Homolka and Kristalas, 2017). At last, I will evaluate the outcome of the solution to the problem
and check if the decision I took was wrong or right.
To make the efforts of the team put in a resourceful way I give my team the way to go to
right direction. So that it is easy for them to enhance their skills and work in the team with
everyone in a respectful manner. I have taught everyone to follow the protocols of the company
no matter what and always ask and respond to someone with respect no matter what designation
they have in the company. All employees from junior to senior will be treated with respect that is
how they can coordinate with each other easily(Kozubíková, Homolka and Kristalas, 2017).
Otherwise, people who work in team starts to fight as who will take credit for this work, and
distribute the work according to their preference and specialization as when they get the work
according to their perspective then efficiency of completing the work will be high and work will
be completed with perfection. I have made sure that my team and me communicates on every
aspect that disturbing them professionally or personally. As if he or she is getting with some
crucial phase in life will affect their work in the organization. That is why I help them in both the
aspects (Kernbach, Eppler, and Bresciani, 2015).
I have developed my skills which are related to numerical factors. Even as a manager it
is necessary to be good in mathematical algorithms in a practical way. Being a manager does not
means I have to solve the calculations on board or on paper like scientists or engineers
(Kernbach, Eppler, and Bresciani, 2015). My field of the work is different I have to calculate and
evaluate the situation that how risky or beneficial they are and is it worth for the company if the
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factor of risk is high. I evaluate the possible outcome of the situation or opportunity so that I can
let the company know that does this measure matches to the standard of the company and gives a
suitable return or not. If not then I will reject the chance because as a manager I have to take
risks on the outcomes which are less risky and gives a high amount of profit in return. (Bovée,
Thill and Raina, 2016)
CONCLUSION
From the bases of above study, it has been concluded that how learning skills are helpful
for the growth of personality of an individual. In this has been included the communiaction
skills, ICT skills, numeracy, organization and time management skills etc. which has been
improved in personality.

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REFERENCES
Books and Journals
Boissy, A and et.al., 2016. Communication skills training for physicians improves patient
satisfaction. Journal of general internal medicine. 31(7). pp.755-761.
Bovée, C.L., Thill, J.V. and Raina, R.L., 2016. Business communication today. Pearson
Education India.
Deasy, S and et.al., 2016. Controlling use of a business environment on a mobile device. U.S.
Patent 9,247,042.
Delamain, C. and Spring, J., 2017. Developing baseline communication skills. Routledge.
Erasmus, B., Strydom, J.W. and Rudansky-Kloppers, S. eds., 2016. Introduction to business
management. Oxford University Press Southern Africa.
Georgescu, M. and Popescul, D., 2015. Social Media–the new paradigm of collaboration and
communication for business environment. Procedia Economics and Finance. 20.
pp.277-282.
Kernbach, S., Eppler, M.J. and Bresciani, S., 2015. The use of visualization in the
communication of business strategies: An experimental evaluation. International
Journal of Business Communication. 52(2). pp.164-187.
Kozubíková, L., Homolka, L. and Kristalas, D., 2017. The effect of business environment and
entrepreneurs’ gender on perception of financial risk in the smes sector. Journal of
Competitiveness.
Moore, P.M and et.al., 2018. Communication skills training for healthcare professionals working
with people who have cancer. Cochrane Database of Systematic Reviews. (7).
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics. 171.
pp.241-249.
Veltsos, J.R., 2017. Gamification in the business communication course. Business and
Professional Communication Quarterly. 80(2). pp.194-216.
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