Analysis of Ryanair's Business Environment and Management Strategies

INDIVIDUAL REPORT
TABLE OF CONTENTS

INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
PESTLE and SWOT Analysis.....................................................................................................3
Task 2...............................................................................................................................................6
Analysis from task 1....................................................................................................................6
Task 3...............................................................................................................................................8
Two management concepts and theories.....................................................................................8
Task 4.............................................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................13

INTRODUCTION
There are multiple internal and external factors present in the environment, which can
have an effect on the operations and functioning of a business organisation in the consumer
markets. These factors can both provide the business organisation with various opportunities in
the market to grow and expand their operations and threats to look out for which can pose a
danger to the business’s current operations (Hamilton and Webster, 2018). This report assesses
the business environment of the Irish budget airlines Ryan Air which was founded in 1984, 34
years ago. Ryanair makes up the largest part of a family of airlines under Ryanair Holdings
organisation and owns subsidiaries and operational sister airlines such as Ryanair UK, Lauda,
Malta Air and Buzz. It operates from its headquarters in Dublin and has grown to become largest
budget airline in the UK on the basis of scheduled passengers flown. Ryanair employs a total of
17,500 individuals and owns a fleet size of 287 for performing its operations and functions.
Task 1
PESTLE and SWOT Analysis
Pestle Analysis
It is a analytical tool which is used to evaluate and monitor external environmental
factors. The model is applied for Ryanair to analyse its external environment.
Political factors
Currently Brexit has led political instability by changing in policies, employment rate,
trade law and tax rate as well which directly led uncertainty in Ryanair business activities. Brexit
has raised passenger tax which is more than three time in the last 24 years on both type journey
i.e. long distance and short distance journey that directly impacted purchasing behaviour of
customers. Apparently for short journey, customer can prefer to go by bus and train instead of
airline services which could decline profit margin of company on ticket selling (Chen and Hitt,
2019).
Economic factors

Tax rate, changes in disposable income, unemployment rate, exchange rate of currency
etc. ate economic factors which has impacted organization performance. For example, recently
oil price has decreased which can maximize marginal benefits within company. Changes in
disposable income of customer due to unemployment rate reduces expenses on leisure travel
which will directly impact on Ryanair’s selling revenue (Ferdous, 2016).
Socio-cultural factors
British people show more interest in holiday travelling nowadays as compared normal
travelling. Such kind changing habits of British people can enhance short and long distance
travelling which directly can lead positive impact on sales increment. The reason behind is that
Ryanair is budget airline who offer low-cost flights in the UK. So, people are mostly preferred to
travel by low cost flights that will improve sales revenue of company.
Technological factors
UK is highly updated for technology so, people has highly attached with the internet,
mostly with social media which can help company to increase purchasing behaviour of
customers. So, company can offer mobile banking system to passenger where they can book air
ticket in advance and can payment as well. Even organization must offer display facility to
inform the passenger which movie and activities will play in travelling that keep excited
customer and inspire them to retake service.
Legal factors
Brexit has changed in policies and imposed several rules and regulation by UK’s
government. it has become very difficult for the organization to followed each and every law an
regulation according to country (Khorasani and Almasifard, 2017). In addition, it can be proved
quite expensive if they have mandated by authorities. In that state, company will unable to
continue low cost strategy which will directly impact on selling infrastructure of company.
Environmental factors
With rising environmentalist issues, UK’s government and people becomes more
concern. So government has implemented health and environmental safety policies. Second