SWOT and PESTEL analysis of Ryanair

Individual Report Context
of Business

Table of Contents
INTRODUCTION...........................................................................................................................1
1) SWOT and PESTEL analysis of Ryanair...............................................................................1
2) Problem faced by Ryanair that require immediate action.......................................................3
3) Discuss the solution to a problem with the help of management theories and concepts........4
4) Short report writing describing the experience.......................................................................6
CONCLUSION................................................................................................................................7
..........................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business report is necessary for analysing the situation of a business and then recommend
the course of action by its depth analysis and it also evaluate the ideas for the business
environment. It provide the reader with an appropriate solution so that they can best decisions.
Ryanair is an Irish airline carry various passengers that provide the benefit of low fair prices and
it cover 225 destinations and serve a network of 40 countries in Europe (Bansal, Zahedi and
Gefen, 2016). The business environment is dynamic and the management of a company could
adapt changes in policies and procedures achieve the task in a limited time. This report includes
the SWOT and PESTEL analysis to assess its resources and competitive advantage and it also
contribute a significant position within the airline industry. This report cover the various
problems faced by the manager of Ryanair during the Brexit. It also comprises of management
theories and various concepts to achieve the task in a effective manner. At the end, the report
covers the experience and learning ability of an individual.
1) SWOT and PESTEL analysis of Ryanair
The environment in which company carry out its operations is regarded as dynamic and
impulsive(Berry, Broadbent and Otley, 2016). The macro environment factors have a major
impact on decision making which influences the economy of a business. The senior authority of
a Ryanair has applied both micro and macro environmental factors to assess its resources so as to
achieve a competitive position within the airline industry.
SWOT analysis: The company uses the SWOT analysis to identify the strength and weakness of
a business by grabbing the opportunities and combatting threats(Clarke, 2018). It also aids in
ascertaining the level of competition and enhancing the profitability of a business. Below, the
SWOT analysis of Ryanair is presented as follows:
Strength Weakness
 Ryanair is one of the leading airline in
the European market covering more
than 200 destination pan across the
globe.
 It has been characterised by rapid
expansion and have reached one billion
 One of the weakness of Ryanair is that
any change in employee compensation
would adversely impact its profitability.
 The performance of Ryanair has poorly
in range of polls and surveys during last
few years.
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customers.
 The low cost structure provide the
benefit of cost advantage and also
provide fixed shareholders returns.
Opportunities Threats
 Ryanair could expand its operations in
new routes which provide growth
opportunities for the airline.
 It focus on providing good services to
their customers through Always Better
Program to gain large access of
customers.
 There is an wide opportunity of
minimising the charter fight segment.
 One of the major threat is that there is
fluctuation in fuel prices that affect the
profitability of business model.
 There is increase in corporate taxes in
case of Ryanair.
 There are large number of players
especially from low cost regional
carriers which posses a major threat to
the respective firm.
PESTEL: This analysis help to examine the political, economical, social, technological,
environmental and legal factors that has affected the Ireland(Dahlgaard-Park and et. al., 2018). It
provides the framework of macro environmental factors that provide the direction of action
through a proper strategic planning and to facilitate the smooth operations of a business. With
reference to Ryanair, the PESTEL analysis are described as follows:
Political Factors: This factor includes political stability, corruption, foreign trade, labour
law and so on. Ireland is a political stable country and it also maintain good relations with the
countries like United Kingdom and so on and it play an important role in the Brexit(Fletcher,
Massis and Nordqvist, 2016). The political system in Europe has a major impact on airline
industry and Ryanair is the low cost airline which has limited number of destinations across the
globe. This airline industry has to follow the rules and regulations of government policies that
has detrimental effects which are inevitable within the country due to entry of Brexit.
Economical Factors: The magnitude of this factor includes various aspects like interest
rates, inflation rates and economic growth. Ireland is the 33rd largest economy in the world in
terms of GDP that has witnessed giant growth over the years(Dhani, and Sharma, 2017). One of
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