SWOT and PESTEL Analysis for Ryanair

This report provides a SWOT and PESTEL analysis for Ryanair, evaluating its strengths, weaknesses, threats, and opportunities. The main problem facing Ryanair is a shortage of staffing, which requires immediate attention. The report proposes solutions using management concepts and theories, such as contingency theory and behavioral management. The experience of writing this report has provided valuable insights and knowledge.

Individual Essay
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INTRODUCTION...........................................................................................................................3
1. Perform a SWOT and PESTEL analysis for Ryanair..............................................................3
2. Main problem that is facing Ryanair that requires immediate attention and why?.................7
3. Propose a solution to the problem you have identified using at least TWO management
concepts and theories that you have learnt during your course...................................................8
4. Experience in writing this report.............................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Organisations operate their business functioning in an environment that involved different
type of element that has impact upon functioning of business in number of ways. This makes
organisations to have formative understanding of all the elements prevailing in business
environment as to gain a strategic edge (Angelopoulos and Leivo, 2013). Present report is
conducted on Ryanair. Entity perform their services has low cost airline company having
headquartered in Dublin. Report includes pestle and SWOT analysis that allow entity to evaluate
is strength and weakness. In addition to this issues that are facing by company is also included in
this report. Lastly experience while writing this project is included.
1. Perform a SWOT and PESTEL analysis for Ryanair
SWOT: SWOT analysis acts as a strategic tool with the help of which organisation can
determine its strength, weakness, threat and opportunity. With the help of this entity can develop
strategic plans and policies that further aid them to overcome strength while taking advantage of
prevailing opportunities. SWOT analysis is being mentioned below in relation with Ryanair:
STRENGTH:
Respective organisation provides low unit cost airlines services worldwide comparatively
to other competitors. Entity offer lowest cost in terms with cost per passenger, cost per seat, and
cost per available seat kilometre. Along with this it has been analysed that Ryanair provide low
fare rate comparatively to other rivals in Europe. Along with it this has been evaluated that
Ryanair is having largest short-haul network carrier that makes them providing best services with
1600 routes in more than 30 countries.
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Illustration 1: Top 10 Airlines ranked by Seats Europe to Europe: 8 Sep 2014 to 14 Sep 2014
WEAKNESSES
Major weakness that has been faced by company is change in entity labour relation and
employee compensation arrangements. It majorly impact upon overall functioning of business.
Along with this brand perception also falls under the weakness category of Ryanair as company
measured poor performance in range of polls, awards and service.
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THREAT
Major threat that has been facing by Ryanair is due to the heavy fluctuations in price of
fuel and brexit. Along with this entity is facing staff shortage that significantly impact upon
productivity and profitability of company (Ferro, 2018). In addition to this entity also face major
threat from low cost regional carriers offer low cost facilities to customers.
OPPORTUNITIES
Ryanair can gain significant opportunity by maximizing interaction with customers and
airline. Along with this it has been analysed that entity is required to redesign their websites and
offer the customers with the facility of fever clicks. Along with this by making their website
looks in an attractive manner company can gain attraction of customers. In addition to this, to
overcome the threat company can gain opportunity with the initiatives like providing range of
features for single fee. In this company can provide their customers with the facilities like fast
security booking, facility and choice of reserve sitting with a single fee structure.
PESTEL analysis for Ryanair
Political Analysis
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With the constant increase in passenger tax rate from existing low rate can negatively
affect sales of ticket by air of entity. This makes large number of customers to avoid travelling
and choosing other transportation modes. It will significantly affect profitability of Ryanair.
However with the use of UK stable political conditions respective industry can make expansion
of their profitability in a significant manner.
Economic Analysis
Factors like rate of currency, rate borrowing rate etc is some of the economic factor that
have significant impact upon organisational functioning. In context with this with, weakening of
Pound on continuous basis significantly affect marginal benefit of present organisation. However
by taking advantage of economic opportunities like decrease in oil price range can benefit
Ryanair to increase their overall profitability base.
Social Analysis
According to the evaluation is has been analysed that large number of individuals in
United Kingdom have inclined towards travelling. By taking use of this opportunity Ryanair can
attract customers by offering them many benefits and facilities in their short and long travelling
distances. This makes significant increase in profitability and sales of entity. Apart from this by
making investments in research and development process company can analyse dynamic
travelling patterns of consumers. Negligence of analysing customer’s perception can affect
Ryanair profitability in a negative manner.
Technological Analysis
Nowadays majority of population are inclining towards technology and internet services.
There is significant opportunity for company as with the help of this company can take
advantage to influencing customers towards their organisational offerings. By offering them
attractive services and promoting the same on social media and digital technological network
entity can increase their profitability. For example Ryanair can provide their customers with the
facility to select the movie they would like to play while they travel. However company is
required to make sure that air tickets that are booked by customers through internet provide
proper security and payment option. As if it shows any risk to consumer then this will
significantly impact upon organisational goodwill.
Environmental Analysis:
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Government as well as individual now have major concern towards environment (Buttle
and Maklan, 2019). Thus, it is essential for company to make reduction in their carbon footprint
as to safeguard environment. This allow organisation to gain loyalty from customers and support
from government.
Legal Analysis:
Government pose different type of regulation and legal rules upon organisations in order
to make them perform their functions in a legal manner. Thus, it becomes essential for Ryanair to
effectively ensure that all the essential legal laws as well as standards are applied in their
organisational structure. As by neglecting this lead entity to falls under major legal penalties.
2. Main problem that is facing Ryanair that requires immediate attention and why?
A sper in accordance with the above pestle and SWOT evolution this has been evaluated
that major problem that has been facing by Ryanair require immediate attention as to secure their
high goodwill and profitability in marketplace. Any further delay lead organisation to fall under
many issues along with decrease in profitability ratio. This has been identified that Ryanair is
facing problems of shortage of staffing. This decreases workplace efficiency and productivity of
company. Along with this brexit also impose major threat on functioning of entity that makes
Ryanair to employee candidates from UK. Thus, in accordance this Ryanair is required to
effectively take preventive measures and actions with the help of strategic policies. As if they
neglect this then there are different types of problems that can directly or indirectly impact upon
long-term sustainability growth and profitability of organisation (Naletina, Damić and Jabučar,
2019).
3. Propose a solution to the problem you have identified using at least TWO management
concepts and theories that you have learnt during your course
Ryanair perform their business operation and provide services to customers as Irish budget
Airlines. This entity was founded in the year 1984 and have it’s headquarter in Dublin. Number
of services has been offered by this entity that mainly is of lowest range in present industrial
sector. Ryanair is one of the largest European budget airlines who provide satisfactory services
to customers in a low price range. However there are different type of problems and issues that
company face due to brexit. This makes company to face the problem of staffing that negatively
impact upon their operations. Further it has been evaluated that due to facing negative media
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coverage on customer service, employee relation and disputes, company face significant
decrease in their overall profitability.
In this context it has been evaluated that issues like staffing affect majorly of business
functioning of Ryanair. For this company is required to re-evaluate recruitment practices of
entity as to recruit new candidates (Abeyratne, 2014). For this company by taking use of
strategic policies and measures can diversify their hiring practices. In this and it is required to
take effective measures to offer motivation to their existing candidates and provide them many
facilities. Further Ryanair by making collaboration with nearby education facilities can gain
opportunity to have fresh supply of employees. Along with this as to overcome increase in cost
company by undertaking use of costing strategies and hiring highly experienced financial
Advisors can develop cost effective strategies to perform their business operations in low budget.
It has been analysed at shortage of staff impact operations of organisation. In order to overcome
this challenge managers of entity have the responsibility to take use of different manager’s
theories in order to effectively strengthen their organisational workforce framework. As to
overcome staffing issues with the use of contingency theory of management Ryanair can
overcome the issue in a well defined manner that significantly aid managers to undertaker best
decisions even and complex situations. It has been analysed that effective management is
backbone of any entity. Thus, it is essential for Ryanair management to take advantage of
formative management strategies in order to accomplish their goals in a well defined manner.
With the help of these management strategies company can effectively able to overcome
negative impact of brexit. Along with this as to overcome the issue of negative media Coverage
Company is required to undertake use of different promotional and advertisement measures.
Further by collaborating with different types of e-commerce advertising platforms and Ryanair
can effectively able to overcome this issue and can further attract attention of customers towards
organisational offerings. In addition to this as to overcome complex industrial force it is essential
for company to influence more interest of human in their workplace decision making structure
and satisfy interpersonal needs of employee. For this Ryanair managers can take use of
behavioural management theories as to provide effective motivation to the workers, collaborative
working atmosphere and can strengthen their organisational structure. By considering all the
measures Ryanair can strengthen their weakness while ensuring long period of sustainability in
respective industrial sector.
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4. Experience in writing this report
By writing this report I have gained much experience that is negative and positive for me.
During the starting phase of project lot of data and information’s have been duly gathered by me
as to ensure that project must be done with accurate and correct information. This report provides
me with the experience of determining strength, weakness, threats and opportunity that has been
facing by Ryanair. Swot and pestel analysis has been undertaken by me in which I effectively
evaluate every aspect like social, economical, political, environmental and technical. By
evaluating all these elements I undertake use of journals, website and digital network as to
allocate appropriate and proper information. In addition to this I analysed every pictorial and
statistical data as to gain proper knowledge to make this report (Dobson and Piga, 2013). Apart
from this, there are different issues and difficulties that have been faced by me. Like in order to
collect appropriate information I have to go through number of websites, organisation pages and
journals this takes my majority of time. However most important experience that I gained from
this report is I learn to strategically analyse every aspects and framework like Swot and pestle in
a best effective manner. This provides me with the opportunity to write any report in a well
defined manner. It also benefit me to increase my professional knowledge
CONCLUSION
As per the above mentioned report this has been concluded that, entity operate their
functioning in a business environment that include wide range of factors that have significant
impact upon the organisational activities in a positive or negative manner. Thus, it is important
for organisation to have proper understanding of all these factors and develop strategic measures
as to overcome them. This can be done by taking use of pestel and SWOT analysis. As this allow
of company to have proper information about the factors that can affect their functioning. With
the help of different management theories and concept of organisation can effectively able to
strengthen their workplace structure that further aid company to make significant increase in
their overall profitability and productivity index.
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REFERENCES
Books and Journals
Dobson, P.W. and Piga, C.A., 2013. The Impact of Mergers on Fares Structure: Evidence from
European Low‐Cost Airlines. Economic Inquiry, 51(2), pp.1196-1217.
Abeyratne, R., 2014. Market Based Measures. In Aviation and Climate Change (pp. 69-81).
Springer, Cham.
Myro, S., Légidos, B.R. and Hernández, P.I., 2013. Effect of low cost airline companies on
international tourism in Spain. Estudios Turísticos, (198), pp.61-79.
Abeyratne, R., 2014. The Challenge Faced by ICAO. In Aviation and Climate Change (pp. 83-
105). Springer, Cham.
Angelopoulos, P. and Leivo, P., 2013. Drivers and barriers for relocation of freight operators to
smaller airports-A case study at Jönköping airport (Axamo).
Naletina, D., Damić, M. and Jabučar, A., 2019. Customer Satisfaction with Services of Low-Cost
Carriers at Pula and Zadar Airports. InterEULawEast: journal for the international and
european law, economics and market integrations, 6(2), pp.71-97.
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Ferro, F.I.V., 2018. Equity research-Ryanair Holding PLC (Doctoral dissertation, Instituto
Superior de Economia e Gestão).
Abdi, M.R., Elliot, L. and Edalat, F.D., 2016. Strategic Business Plan Based on Total Quality
Management for Property-Marketing Small Enterprises in UK. In Handbook of Research
on Entrepreneurship in the Contemporary Knowledge-Based Global Economy (pp. 509-
527). IGI Global.
Smircich, L., 2017. Concepts of culture and organizational analysis. In The Anthropology of
Organisations (pp. 255-274). Routledge.
Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., Johns,
R., O'Leary, P., Plimmer, G. and Robinson, J., 2015. Managing employee performance &
reward: Concepts, practices, strategies. Cambridge University Press.
Buttle, F. and Maklan, S., 2019. Customer relationship management: concepts and technologies.
Routledge.
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2015. Human resource
management. Gaining a Competitive.
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