Ryan Air Case Study

This case study analyzes the SWOT and PESTEL factors affecting Ryanair and proposes solutions using management concepts. It also discusses the main problem facing the company and the experience of writing the report.

Ryan Air Case Study
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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?.................9
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...................................................9
4. Experience in writing this report...........................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Entities operate their activities in a business environment that involves wide range of
elements and have significant impact upon business functioning. As to gain strategic edge it is
essential for an organisation to have all essential understanding related to the factors (Heimler,
2020). This report include case study analysis of Ryanair, entity perform their business
operations as low unit cost airline and have it’s headquarter in Dublin. Present report involves
formative discussions upon pestle and SWOT analysis. Both of these evolution aid company to
identify all the factors that can negatively impact upon business while taking advantage from
opportunity to maximize their profitability. This report also includes problems that are being
facing by entity along with its appropriate solutions. At last, experience while writing this report
is also included in this report.
1. Perform a SWOT and PESTEL analysis for Ryanair
SWOT:
SWOT analysis is defined as strategic analysis with the help of which organisation can
evaluate strength, threats, weakness and opportunities that are prevailing in respective industrial
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sector. With the help of this company can take advantage of Strategies and measures through
which they can overcome weakness in best effective manner. SWOT analysis of Ryanair is being
mentioned below:
STRENGTH:
Major strength of Ryanair is that services that are provided by company are of low cost
compared to other organisation. Entity provides low cost rates, rates low cost per passenger, low
cost per seat etc to consumers (Ford, 2020). Along with is it has been evaluated that, fare rates
of company is also lowest in respective industrial segment as compared to other entities those
who operate their services in Europe. It has been evaluated that Ryanair is having largest short-
haul network career with the help of which they provide this services to consumers with 1600
routes across 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
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WEAKNESSES
Major weakness of Ryanair is related to their labour relation arrangement and employee
compensation (Mastelic, Ivandic and Boban, 2020). Both of these factors affect organisation
business functioning in number of ways. Along with this is it has been evaluated that brand
perception is also fall under major weakness of company due to their poor performance in polls
and survey and awards.
THREAT
Ryanair is facing acing threat because of economic condition that is prevailing in
international market segment. It has been evaluated that brexit significantly impact upon overall
functioning of Ryanair in Europe. In addition to this heavy fluctuation in the prices of fuel is also
act as threatening factor for company that can lower down overall profitability rate of entity.
Along with this company is facing threat due to other low cost regional careers and shortage of
staff that negatively impact upon business functioning of company.
OPPORTUNITIES:
Ryanair can take formative opportunity by making significant increase in consumer and
company interaction process. It will allow entity to take regular feedback from their customers
and offer them services accordingly. Along with this by re-designing of Ryanair websites entity
can also provide opportunity to company in which they can offer the customer services with
fewer clicks. It has been evaluated that Ryanair can gain significant opportunity in respective
industrial sector. By offering single fee facilities to their customers, in this entity can provide
different type of services like booking choice of reserve seating and fast security to customers in
a single fee structure.
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PESTEL analysis for Ryanair
Pestle analysis is defined as a strategic tool that aid organisation to evaluate different
types of factors prevailing in political, social, environmental, legal, economic and technological
segment (Settey and Gnap, 2020). All these elements significantly impact upon business
operations of entity. In addition to this, it has been evaluated that with the assistance of this
evaluation company can formulate tactics and strategies through which they can ensure more
competitive advancements. Mentioned below pestle analysis in context with Ryanair is defined
manner.
Political Analysis
Ryanair operates their functioning worldwide this makes company mainly get affected to
the political conditions like safety regulation act guidelines, employment law, political stability
and regulation that are prevailing in a country. It has been identified that in UK there is a stable
government in which company can take advantage to operate hassle-free operations and can
effectively access to suppliers in a well defined manner. While other countries may have a rigid
bureaucratic behaviour of government that can create number of obstacles in front of Ryanair
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that can restrict them to make expansion of their business profitability. Along with this increase
in tax rate of passengers worldwide Ryanair can have impact upon the sale of air tickets as this
can make customers to tend towards other mode of travelling. By taking use of political stability
some of the nations company can make significant maximization in their market shareholding.
Economic Analysis
The factor mainly involved elements related to inflation rate, unemployment rate,
economic growth, and disposable income of customers, exchange rate and more. These elements
can impact Ryanair business operation in number of ways; along with these factors have
capability to fluctuate company services price base. This has been evaluated that by taking use of
economic growth and decline in unemployment rate in some of the nation’s Ryanair can make
significant increase in their overall revenue base. While some countries having high labour
caused in this situation company is required to make heavy investment in requirement of
efficient workforce. Along with this has been identified that weakening of pound can also lead
company to measure reduction in their marginal benefits. In this Ryanair can take use of stable
economical opportunities such as low rate of oil prices in order to increase their organisational
profitability.
Social Analysis
This factor mainly includes elements like demographic norms, characteristics of
population, and customs within a community (Wąsowska, 2020). In addition with other factors
like income distribution and growth rate and income of individual is also involved in social
factor. All these factors have significant capability to impact on business functioning of Ryanair.
This has been determined that in Britain individuals is mainly tend towards travelling. By
undertaking use of the significant opportunity Ryanair can provide attractive discounts on long
as well as short distance travelling. This will help company to make significant increase in sales
ratio of entity. By neglecting social factors company may lose large base of customer interest
towards organisation.
Technological Analysis
Majority of population have tended towards internet and technology. In United Kingdom
torch majority of population take use of internet as well as Smartphone. In this Ryanair can
effectively attract interest of consumers by offering them attractive discounts and travelling
facilities. By taking use of technology company can develop their mobile app through which
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they can increase their demand of air ticket by increasing interest of customers social
networking. This will help company to make significant increase in the customer base. In this
Ryanair can make their customers to select the movie they would like to watch in their travelling
time. Apart from this, entity is required to make sure that the payment options and e-air tickets
are safe and do not pose with any risk.
Environmental Analysis:
It has been evaluated that nowadays individual and government of many nation have
significant and positive turn towards environment (Leinonen, 2020). In addition to this
government of many nations imposed laws related to raw material, carbon footprint, pollution
target etc for entities those who are operating their functions in respect to industrial segment. It
has been analysed that in order to ensure long-term sustainability Ryanair is required to focus
upon strategies through which they can make reduction in carbon footprint, pollution and more.
Along with this entity is required to engage in CSR activities as to influence consumer interested.
This will not only help them to increase the goodwill but also benefit them to gain support of
government in respective country.
Legal Analysis:
This factor include elements related to laws such as consumer protection, health and
safety, labour law, discrimination law, patent law, copyright law etc. There are different types of
law and legislation that are formulated by government and required to be implement by
organisations in order to save themselves from being get involved into any legal obligation. This
makes Ryanair to ensure that all the relevant legislations and laws are being abided in their
workplace structure that is essential for airline industry. This will help company to ensure
maximum support of government that can automatically increase their goodwill in marketplace.
2. Main problem that is facing Ryanair that requires immediate attention and why?
According to the above mentioned SWOT and PESTEL analysis it has been analysed that,
Ryanair is facing major problem that required immediate attention. As any delay may lead entity
to face decrease in their overall sales and profitability ratio (Diderich, 2020). Along with this, it
has been evaluated that company is also facing issues related to staffing like, shortage of ATC
staff. This significantly impact upon overall profitability and productivity of company in number
of ways. In addition to this, it has been evaluated that entity is also facing issues related to
Brexit. In addition to this it has been evaluated that, due to brexit it is hard for company to
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employee individuals from United Kingdom that automatically lead entity towards shortage of
employees. As per the above discussion, it has been determined that it is essential for Ryanair to
undertake immediate and effective actions, as negligence of this may lead entity to face number
of a certain issues that will directly or indirectly affect organisational growth and profitability.
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
It has been analysed that Ryanair operate their function as an Irish low cost budget airline in
Europe. Company offer different type of services to the customers at low cost, comparatively to
any other organisations in respective industrial sector. It has been determined that entity from
past many days is facing with the issue related to staffing. In order to overcome this management
of company is required to apply different type of management theories as well as concept in
order to encourage behaviour characteristics of employee. This will further help them to fulfil
their needs and demand in a well effective manner. In addition to this it has been identified that
by taking advantage of different management theories company can motivate employee towards
work hard work:
Behavioural Management Theory
It states identify human dimension within organisational workplace structure. In this it is
essential for management to effectively evaluate behaviour pattern a well as characteristics of
workforce in order to frame strategies to encourage them as to evaluate behaviour of employees.
Ryanair by taking use of this theory entity can effectively able to recognise performance of
employees in Airline Corporation. This will further help entity to take advantage of motivation
strategies in order to increase performance of employees.
ERG Theory
This theory is mainly related to 'Maslow's Hierarchy Needs' and 'Alderfer'. It is further
segregated into divided into three respective categories- Existence, Relatedness and Growth
named as ERG.
Existence needs:
In this it is essential for entity to identify safety as well as psychological needs of employees
this includes food, clothes, shelter and security. By evaluating all these company can effectively
able to fulfil basic need of employees through which they can provide safety to workforce in
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organisational workplace structure (Settey and Gnap, 2020). In this Ryanair can provide life
Insurance allowances, medical insurance to employees in order to increase their performance.
Relatedness needs:
This need is related to belonging and love, in this it has been evaluated that a worker want
friendly and positive environment in a workplace structure. In this it is essential for Ryanair to
evaluate that there is a collaborative and formative relationship among employees. Along with
this company is required to focus upon development of effective and positive atmosphere as to
increase morale of employees.
Growth need:
This is related to self actualization and self esteem needs. In this it is essential for an
organisation to motivate their employees in relation with Ryanair by providing good appraisal,
accomplishment, respect to employees top management can effectively able to increase
employees motivation. Along with this entity is required to ensure that they do not discriminate
employees on any ground at this can significantly impact on their overall profitability base.
4. Experience in writing this report
While writing this report the most important experience that I have gained is to conduct
strategic analysis like Swot and pestle in a best effective manner. With the help of this I can
effectively able to gather and allocate data and information’s effectively. Major challenge that
affects me is collecting accurate information as well as statistics related to respective
organisation. This further takes my lot of time as in this I have to go through different books,
journal, and websites as to find relevant information. However with the help of swot and pestle
evaluation I effectively evaluate each and every aspect through which this report can be
accomplished in a well-defined and accurate manner along with correct information’s. Along
with this it has been evaluated that while writing this report I undertake use of pictorial and
statistical information in order to demonstrate actual figures of company. Thus, according to the
evaluation I have gained positive experience while writing this report as it not only benefit me to
increase my level of knowledge but also provide me the opportunity to increase my future
developing growth and opportunities.
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CONCLUSION
According to the above report this has been concluded that a business organisation conduct
their functions and activities in environment that includes different type of factors. These factors
have negative as well as positive impact on business functioning. In this it is essential for entities
to have proper understanding of these factors in order to gain strategic edge in marketplace. This
will effectively help them to ensure economic growth long term sustainability in respective
industrial sector. For this by the use of pestle and SWOT Analysis Company can effectively able
to evaluate its strength, weakness, threats as well as opportunities and can further develop
strategies and tactics against them. By undertaking use this evaluate company can significantly
able to ensure long-term productivity as well as profitability.
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REFERENCES
Books and Journals
Diderich, C., 2020. Understanding the Industry Environment and Its Implications to Strategy.
In Design Thinking for Strategy (pp. 79-92). Springer, Cham.
Leinonen, V.T., 2020. Future of logistics: Opportunities and threats.
Harvey, G. and Turnbull, P., 2020. Is Ryanair the Southwest Airlines of Europe?. In Case
Studies in Work, Employment and Human Resource Management. Edward Elgar
Publishing.
O'Halloran, B., 2020. Trade union insists Ryanair offer direct employment to pilots. The Irish
Times.
Heimler, A., 2020. State aid control: recent developments and some remaining challenges. In EU
State Aid Law. Edward Elgar Publishing.
Havlovic, S.J., 2020. European Works Councils in the Airline Industry. In Strategic Innovative
Marketing and Tourism (pp. 1-6). Springer, Cham.
Sabaitytė, J., Davidavičienė, V. and Van Kleef, G.F., 2020. The Peculiarities of Low-Cost
Carrier Development in Europe. Energies, 13(3), p.639.
Tiago, F., Couto, J., Verissimo, D., Faria, S. and Borges-Tiago, T., 2020. Impact of Seasonality
on the Management of Tourist Accommodation Establishments in the Azores.
In Strategic Innovative Marketing and Tourism (pp. 1043-1051). Springer, Cham.
Wąsowska, K., 2020. The Analysis of Passenger Air Transport Development in Poland over the
Period 2010-2018. European Research Studies, 23(1), pp.13-30.
Kigwiru, V.K., 2020. The European Union’s Jurisdiction in Merger Regulation. Available at
SSRN 3534986.
Kigwiru, V.K., 2020. Case Referrals under the European Union (EU) Merger Regime. Available
at SSRN 3534985.
Ford, M., 2020. The Fissured Worker: Personal Service Companies and Employment
Rights. Industrial Law Journal, 49(1), pp.35-85.
Settey, T. and Gnap, J., 2020. Comparison of Price and Emission Levels of Air Passenger
Transport and International Bus Transport in the Slovak Republic. Transportation
Research Procedia, 44, pp.129-136.
Mastelic, T., Lorincz, J., Ivandic, I. and Boban, M., 2020. Aerial Imagery Based on Commercial
Flights as Remote Sensing Platform. Sensors, 20(6), p.1658.
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