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Ryanair vrio analysis - VRIO Framework | Competitive Advantage Analysis

Added on - 03 Feb 2020

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InternalEnvironmentalAnalysis & Evaluationof Strategic Options
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1...........................................................................................................................................3A ‘VRIO’ or ‘VRIN’ analysis of the company. What is your overall assessment of Ryanair’sstrategic capability..................................................................................................................3TASK 2...........................................................................................................................................5A ‘SWOT’ and ‘TOWS’ analysis of the company. What possible options are available forthe company to pursue over the next 5 years.........................................................................5TASK 3...........................................................................................................................................8An overall evaluation of these options concerning the ‘suitability’, ‘feasibility’ and'acceptability’ of each option..................................................................................................8CONCLUSION..............................................................................................................................10REFERENCES.............................................................................................................................11
INTRODUCTIONInternal Environment is the combination to those conditions, events and factors by whichorganisational activities and behaviour of the employeesget influenced.The analysis can beconductedto evaluate all those activitiesthat impact performance of the organisation. It includescore competencies and capabilities of an business organisation.Managers make some strategicsand plans in order to extend the performance of the organisation.A valid strategy is helpful indeveloping growth and profit, or any other factors that are establishes by managers in order toachieving the targets of the company.Evaluation of strategic factors are based on area and theage of the industry andorganisational decisions are effected by them.TASK 1A ‘VRIO’ or ‘VRIN’ analysis of the company. What is your overall assessment of Ryanair’sstrategic capabilityVRIO framework is used as toolto analyse internal resources of the company. It ishelpful infinding out capabilities,that can be asource of continuous competitive advantages.Thedistinct set of techniquesand toolsweredeveloped by Barney, (1991)during his work, FirmResources and Sustained Competitive Advantage. According to the author, resources arevaluable and rare assets of the organisation. VRIO was also known as VRIN (Grant, 2016).There are following factors in VRIO framework, that impact on Ryanair's competitiveadvantages analysis. Such are as:-Value– Along with this, resources are very valuable fortheorganisation, they helps inincreasing customer value.Internal environment adds value in business, in order to putsome effortsin opportunities and argue against threats. It is important for Ryanair'sairlines, that it continuously reviews the value of the organisation.Rare– Valuable and rare resources aid transitory competitive advantages. They can beconsider rarely by only one or few companies. Mostly it happens that firms are uses samestrategics for resources to implementation, and no one organisation be succeed in itsperformance (Chen, 2011)Costly to imitate:-It is not possible for every organisation, that it can stimulate resourcesin comparison of another organisation.There are three situation, in which organisation is
not able to afford these resources,such are as :- Social complexity,historical conditionsand casual ambiguity.Create to capture value– Ryanair's airlines, firstly have to improves its managementstructure,so that it is cable to established overall control on plans and policies onimplementation of resources. (Wheelen and Hunger, 2011).Resources/CapabilitiesValueRarityinimitablyOrganisationalsupport?ProductDistribution atinternational levelYesNoNoYesThe brandmanagementYesYesYesYesSupply chainmanagementYesYesYesYesTop Executives/SuperiorsYesYesYesYesIn internal business environment,there are two types of resources tangible and intangibleresources.The process of utilization of certain assets in the organisation, is known as resource.Some resources are generated in organisation, they are internal resources (Therivel and Paridario,2013).Specific resources can be obtained by the external suppliersand non specific resourcesare less specific and less significant in added value.Human, physical and final resourcesarecome under this category. Competence is refer as when the organisation have ability to competewith another organisation.Strategic capabilities of Ryanair's :-Ryanair's is the world most famous airlines, that isconnected with 153 designations.Identification of environmental analysis and the objective ofthe organisation, will help to know its success and capabilities.(Sevkli and et. al., 2012). Theseboth are the factors that are helpful to makeorganisationsuccessfuland also improves its theperformance.Strategicsand policesaffects positively on business organisation in terms ofmarket share and ease up air ticket's costs. Objectives are helpful in develop business growthand put impact on name and fame of the company in order to increasing profit as well as profile
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