Business Environment of Ryan Air

Running head: BUSINESS ENVIRONMENT OF RYAN AIR
Business Environment of Ryan Air
Name of the Student:
Name of the University:
Author Note:

1
BUSINESS ENVIRONMENT OF RYAN AIR
Table of Contents
Introduction:....................................................................................................................................3
Task 1:.............................................................................................................................................3
Part a. Ryan’s history and business objectives:...............................................................................3
Part b. PESTLE, Porter’s Five forces and SWOT:..........................................................................4
PESTLE of Ryanair:....................................................................................................................4
The following is the PESTLE analysis of Ryanair:.................................................................4
Political:...................................................................................................................................4
Economic:................................................................................................................................5
Social:......................................................................................................................................7
Technology:.............................................................................................................................7
Legal:.......................................................................................................................................8
Environmental:........................................................................................................................8
Porter’s five forces:......................................................................................................................9
Threats of new entrants:...........................................................................................................9
Threats of substitutes:............................................................................................................10
Bargaining power of customers:............................................................................................10
Bargaining power of suppliers:..............................................................................................10
Industry rivalry:.....................................................................................................................11
Porters Value Chain analysis and SWOT of Ryanair:...............................................................11

2
BUSINESS ENVIRONMENT OF RYAN AIR
Porter’s Value Chain:............................................................................................................11
SWOT analysis of Ryanair:...................................................................................................12
Part c. Ansoff Matrix:....................................................................................................................13
Task 2: PPT (Attached).................................................................................................................14
Task 3:...........................................................................................................................................14
Part a. Current skills, abilities and experience of Ryan’s management and employees:...............14
Part b. Future skill development plan and SMART analysis:.......................................................16
SMART analysis of the activities:.............................................................................................16
Conclusion:....................................................................................................................................18
References:....................................................................................................................................19

3
BUSINESS ENVIRONMENT OF RYAN AIR
Introduction:
Business health of a company can be judged on various parameters like revenue
generation and market position. The aim of paper would be reviewing the business health of an
origination and then propose activities to deal with a recognized health issue. The company
considered for the study is Ryanair, the Irish low cost carrier based in Dublin. The paper is
divided into three sections. The first section delves into a PESTLE analysis of the airline industry
followed by a Porter’s five forces analysis. This would followed by a SWOT analysis based on
Porter’s value chain. The second task would be a PPT presentation while the third task would
would with skill development at Ryanair.
Task 1:
Part a. Ryan’s history and business objectives:
Ryan Airlines is an Irish airlines company having its headquarters in Dublin which was
founded in 1984 by Tom Ryan. The airline company is a public limited company listed on the
Irish Stock Exchange, London Stock Exchange and NASDAQ. The company started operating in
the year 1985, thus ended up breaking the duopoly Aer Lingus. The directors of the company
acquired 85 percent share in London European Airways, thus expanding the capital of the
company. Ryan Air took advantage of the deregulation of the European Union and expanded into
North America and got listed on NASDAQ to tap the American capital market.
The short term objectives of Ryan Airlines is to earn high revenue by serving maximum
number of passenger. The company holds high position in the global airlines industry which is
evident by the facts like 130 million passengers it carries annually and 32 years high level
passenger safety standards. Ryan Airline holds high position in punctuality and enables

4
BUSINESS ENVIRONMENT OF RYAN AIR
customers to save more money by its customer intensive price packages (corporate.ryanair.com
2018). The long term objectives of the airline company is to retain these high positions and
emerge as a market leader in the global aviation industry.
Part b. PESTLE, Porter’s Five forces and SWOT:
PESTLE of Ryanair:
The following is the PESTLE analysis of Ryanair:
Political:
The political factors which impact the operations of the aviation sector are the
international air sharing agreements between their home countries and host countries. Since, the
airlines companies operate flights across international borders, these companies have to abide
by airspace agreements between countries. The Irish Aviation Authority regulates the safety
aspects of the air travel within the country (iaa.ie 2018). The airlines companies like Ryanair
have to abide by regulations laid down by the International Civil Aviation Organization, the
aviation arm of the UN which lays codes and practices for passenger safety (icao.int 2018).
The second political which impacts the airlines industry is bilateral relationship between
government and pacts between them pertaining to freight and taxes. The Government has signed
a global tax agreement with other European countries which would allow them to share financial
data of the customers. The agreement has included non-European countries like China, which
point out to the growing bilateral ties between European and Asian governments (independent.ie
2018).

5
BUSINESS ENVIRONMENT OF RYAN AIR
Opening of markets to foreign countries have largely boosted the aviation industry. For
example, the opening of the European market allowed European aviation companies like Ryan to
enter into North America and get listed on NASDAQ. This analysis shows that opening up of
markets enable the aviation companies to get access to economic resources of foreign countries
(investor.ryanair.com 2018).
Political threats to aviation companies like Ryanair are terrorist attacks on aircrafts and
hijacking (news.bbc.co.uk 2018). These incidences pose threats to security of both passengers
and onboard crew members. Political moves like Brexit also threat the business generation of the
aviation companies (irishtimes.com 2018).
Economic:
The first economic factor which impacts the aviation industry is the international
currency exchange rates. This is because international operations form a major portion of their
operations and thus have to accept and may payments in various foreign currencies. Moreover,
the leading companies like Ryanair are dependent on international currency rates for investing in
the foreign companies, which paves ways for their capital base strengthening
(investor.ryanair.com 2018).. The graph below shows the rising international exchange rate of
EU, the currency of Ireland compared to two international currencies USD and INR. The graph
shows that though the value of EU is more than both the currencies, the rate of USD is more
compared to INR. This means that the Irish airlines company can acquire assets in Asian markets
at lower rates and thus earn more profits. Again, selling in the American market would be more
profitable. This analysis shows that exchange rates have great impact on the investments and
financial transactions of aviation companies (Boehmer, Fong and Wu 2015).