Ryan Air - Case Study

This case study on Ryan Air discusses the SWOT and PESTLE analysis of the company, identifies the main issues that need immediate attention, and explores two management theories. It also provides expert study material and solved assignments for students. Get access to high-quality study resources at Desklib.

RYAN AIR- CASE STUDY

Table of Contents
INTRODUCTION...........................................................................................................................3
TASKS.............................................................................................................................................3
SWOT and PESTLE analysis for Ryan air..................................................................................3
Main issues that is facing company that needed immediate attention.........................................6
Two types of management theories and concept.........................................................................7
Reflection...................................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERNECES..............................................................................................................................12

INTRODUCTION
The current study is based on Ryan air, which is capable to cater low cost services to its
passengers. This report explain PESTLE and SWOT analysis in context of chosen firm, and also
define two major problems that company is facing which required immediate actions specified
with reasons. Furthermore, this study also justified two management theories that have learnt
during work and clarified small part of personal experience at the end.
TASKS
SWOT and PESTLE analysis for Ryan air
Strength-
The strength of this organization is its lowest unit costs, it consider as one of the lowest
airline in the world (Ahmed and et.al., 2019). Whether defined by cost per accessible seat
Kilometer, cost per passenger or seat, firm production of ability and traffic cost it less than that
of any competitors. Firm is able to carriers more over than 130 million travelers a year on over
than 2000 daily flights. This company is initiate in low cost airlines business model and has
accumulated a good amount of expertise in sector over years.
Weakness-
The weak point of this organization reflect in context of managing workers relations, this
weakness of company was evidence in 2018 summer when walkouts by cabin crew and pilots
over pay and work situations forced it to cancel flights to certain of major holiday destinations
(Ferro, 2018). Ryan air has positions itself as safe and low fare airlines; however passenger
perception of firm has been issue for airline. For example, Buzz score of this company has
declined from 13 to 35 currently, though decline has been typically attributed to flight
cancellations and strikes.
Opportunity-
Organization has very strong and powerful presence in nations such as Spain, Germany,
UK and Italy (Ahmed and et.al., 2019). Undoubtedly, these countries or markets present further

progress opportunities for Ryan air. Another chance that company can obtain by improving their
consumers services that is increase passenger’s interest towards them and enhance their
satisfaction level. It can signal moves towards improving quality of their passengers’
communication within airline. By grabbing these opportunities, Ryan air sustain for longer
within their industry.
Threat-
Fluctuations in fuel prices can posses threaten for Ryan air business model and financial
budget, because its operates as low cost carriers and majorly dependent on low fuel prices to
keep managing, as it can be said that this is the factor on which firm has limited control. Another
threat that affects company and its profitability is weaker gross Britain pound; it significantly
depreciated post Brexit referendum, by almost 20 percent by end of FY16.
PESTLE analysis-
Political factor-
Brexit impact on Ryan air and its sector profitability as well as productivity negatively
(Cronrath and et.al., 2016). Britain voted to leave European Union, a step that has resulted into
economic and political uncertainties. Political uncertainty can disrupt EU UK flights unless there
is certain sort of agreement by 2019. UK airlines like Ryan air which run multiple routes across
European Union nations could lose their privilege; it will restrict business expansion process and
negatively impact on revenue generation in context of firm.
Economical factor-
Recession is one of the economic factors that also impact on Ryan air productivity and
profit margin (Ndjami, 2016). It will occur in United Kingdom after their full leave from EU,
low cost airlines such as Ryan air earning potential in U market will decline as there is a very
close association between demand for leisure travel and economic performance. However, it can
be expected that UK economies issue will recognizable their bases in EU to gain potential
growth opportunities, Ryan air as low cots airline cannot be able to manage Brexit included
economic ambiguity.

Social factor-
British people are now become much interested in holiday travelling rather than before,
they are seeking to obtain the best airline services with affordable prices (Gilroy, Lukas and
Volpert, 2018). But due to bad relationship between top management of firm and its workers, it
impact on consumer services negatively. They cannot be able to provide services according to
passengers needs and in some case organization had to cancel flights that create negative brand
image within airline sector.
Technological factor-
Technological advancement impact on Ryan air brand image and market position
positively, as it make firm capable to generate awareness about its services which allow to gain
attention of passengers (Lawton, 2017). It helps to increase profitability of company and drive
people towards purchasing low cost travel packages which are pocket friendly. With the help of
technological advancement, Ryan air can promote their brand in market effectively.
Legal factor-
Changes in Employment related law affect Ryan air employment contract and agreements
negatively, it put pressure on company to make changes accordingly (McLachlan, James and
Hampson, 2018). For instance, they have to pay wages according to qualification and abilities of
employees and also provide fair wages to staff members because it is very essential to sustain
within market place. Without complying with Equality Act 2010 and other employment law,
Ryan air had to face legal issues that impact on its productivity negatively.
Environmental factor-
UK government put pressure on airlines and other sectors to reduce carbon footprint
which impact on their current business model and productivity (Lo and et.al., 2018). This
environmental factor affect firm positively, as Ryan air is using new aircrafts that are fuel
efficient and noise level is very low as compare to its old one. It helps to increase their
consumer’s base and provide satisfaction to passengers. Furthermore, airline sector have to seek
the best alternative operations strategy that help to adjust climate change.

Main issues that is facing company that needed immediate attention
From above analysis, is has been determined that Ryan air is facing several issues while
operating and managing their business, which directly impact on its productivity and
profitability. The two main issues that firm is facing mentioned below that requires immediate
attention and right solutions.
Poor employee relations-
Ryan air relations with workers, specially their aircraft pilots are fraught. Organization
has come under fire for refusing to consider unions and supposedly offering poor working
conditions, which affect relationship between management and its staff. For instance, employees
are banned from charging their own smart phones at work to reduce the electricity bill of firm.
This kind of behavior towards workers or cabin crew members create negative working
environment that decrease productivity level rather than its competitors. Furthermore, company
also bullied their pilots to pressure to agree to new agreements where they would have to pay
cost of 15000 for retraining on new aircraft while pilots left airline or when firm was strained to
negotiate with unions at the time of following 5 years. Due to this kind of behavior many staff
members from UK have left their jobs with company and as outcome organization is recruiting
now contract employees from agencies that require a lot of money and efforts. Several cases
related to Ryan air negative behavior towards their workers and firm for pilot victimization going
on court. This major issue was not only affecting organization reputation but also making their
workforce unhappy and unsatisfied which are leading new applicants or talents of airline sector
to think once before applying or entering into Ryan air. The concept is clear that cabin crew of
this firm are not obtaining wages they deserve and wish to get for hard work they put in. Long
flights hours and little relaxation period, decrease the ability to work effectively, all of this
deserves right compensation and better pay.
This issue needs proper action because it helps to improve firm relation with their staff
members. In order to solve above problem, Ryan air must comply and follow all the employment
related laws and regulations as well as apply their term and conditions in context of employee
well fare. For example, organization must pay good wages and right salary package to its staff
according to their performance & efforts they put in while doing jobs with firm. As it help to
retain skilled applicants with company for longer and help to prevent them for legal issues.

Issues related to consumer services-
Ryan airs consider as low cost airline in the world, but it also known as the worst
passenger services airline. Poor in flight treatment makes people feel like nuisance more than
consumers. Customers treated by staff very badly, which affect passengers satisfaction level as
well as interest for travelling in Ryan air flights. In additional, when flights are cancelled due to
climate change and other reasons, consumer’s services group and staff are unable to provide
proper information to passengers regarding changes. Workers are ineffective and they cannot be
able to cater the best service after arrival. The voice tone of cabin crew members was not so
good, they were loud and there language was not much effective which directly impact on
passengers mind and purchasing behavior negatively. Many consumers make complain against
workers, in context of way they behave and communicate with passengers. Regarding their
services and workers attitudes, Ryan air obtain the lowest rating of one star, people give negative
reviews about its services that directly affect its profit margin. For example, while conducting
survey, consumers were asked about how well this company handles complaints; more than 50%
of respondents gave Ryan air lowest rating possible.
After analyzing the above issue, it can be said that organization had to take right action
and give more attention in context of this problem. They had to train their existing staff properly
and also guide them how to communicate with passenger. Company must hire new applicants as
well who are able to interact and solve issues of visitors regarding flight cancelations and in
other areas. They should implement new systems to handle complaints of passengers which
make them able to respond quickly. With the help of training and development sessions, human
resource management team, improve communication skills of cabin crew. Employees can
communicate in effective manner that will impact positively in turn of revisiting passengers.
Two types of management theories and concept
Human relations theory-
This management theory is established by Elton Mayo for improving productivity and
abilities among dissatisfied workers (Ishii, 2019). It is best suited in context of Ryan air
situations and issues they face in business. With the help of applying the principles of this theory,
company can improve their staff satisfaction and enhance their motivational level rather than

before by changing environmental conditions like provide rest room during long flight period,
these kind of change had a positive effect. By complying this theory, organization has tried to
change variables that employees perceived would have a negative impact on satisfaction, like
quotas and length of workday. Top management of Ryan air give extra attention towards their
staff satisfaction, they had to make all possible arrangements for cabin crew members that help
to satisfy their needs. Effective performance was a outcome of full attention management paid to
its employees. In simple words, attention received by staff made them feel more valuable. This
theory stated that workers are more encouraged and motivated by environmental factors, such as
working conditions and good salary package. Human relations theory of management showed
that workers productivity will increase when they feel important by others.
This theory work as the best solution to above problems that has been identified, with the
help of this concept company can improve employee relation and manage it effectively. Workers
will respond positively when management make some efforts for cabin crew and change their
facilities related to staff. Furthermore, workers also respond effectively to any novel
modification in work environment like good salary packages and clean work place; they are
more productive because labors know they are being examined by its senior.
So it can be said that with the help of human relation theory, firm removes grievance
among workers, improved their productivity and motivational level rather than before. It will
help to improve employees relations with Ryan air and also support to retain them for longer.
When firm implement its principles in context of existing business structure they can be able to
satisfy their workers, and it allow management to feel more comfortable while long journey in
flights. All these things happen, when senior efforts to appreciate their staff for hard work and
effective performance.
Henri Fayol’s administrative management theory-
Henry Fayol developed this theory in order to improve employees’ relations with
management in organizations. They developed principles of administrative management as high
to low approach to evaluate a business. By complying with the principles of this theory, Ryan air
can solve their issue and manage employee relations efficiently.
Division of work-

Manager within company must divide roles and accountabilities equally without making
any discrimination based on age, race and gender. It will help to manage and improve employee
relations in firm.
Authority-
When manager give orders to its staff with keep in mind that power comes with a lot of
responsibilities, they can take actions by considering well being of staff as it help to solve
employee relations issues.
Discipline-
Manager communicate with their workers in form of respectful manner and good
conduct, which help to make employee relations of company run smoothly and effectively.
Unity of command-
According to this principle, workers must receive orders from one leader or manager and
that worker is answerable to that manager. It helps to reduce risk of confusion between
management and workers which may leads to create positive working environment.
Unity of direction-
This principle of management is all about unity and concentration. All workers deliver
same activities and responsibilities that can be connected to common objectives, which help to
build effective relationship between management of company and its staff.
Subordination of individual’s interest -
There are always all types of interests in companies. In order to have business function
well, this principle indicated that workers interest are subordinate to ethics of organizations.
When manager behave ethically with workers, they can build strong relations at workplace.
Remuneration-
Productivity and motivation are close to one another as far as effectively running of
company is concerned. Accordant to this principle, manager must be sufficient to remunerate to

keep staff productive and inspired. They will give people compensation and other benefits after
considering their performance which help to build positive relationship with employees.
Centralization-
According to this principle, it implies focusing on decision making power at executive
board. When top management share authority for decision making procedure with middle as well
as lower management, it manages employee relationship effectively.
Scalar chain-
With the support of this principle, manager will able to learn how to support employees
and determine its benefits that affectively build positive employee relations at work place.
Order-
Manager should focus on staff well fare, and concern about their safety at workplace,
according to this principle that help to achieve objective effectively.
Equity-
Top management must be fair to employees at all the times, both managing and
maintaining discipline as essential and acting with kindness where necessary.
Stability of tenure of personnel-
Manager must strive to decrease employee turnover and solve their issues which is quite
beneficial in term of productivity and profitability.
Initiative-
When manager give full freedom to its staff to create and keep out plans for improving
their performance as well as motivational level, in return they can build healthy and progressive
work atmosphere.
Esprit de corps-

By promoting and encouraging workers spirits, organizations manage staff relations
efficiently, according to this last principle of this theory.
Reflection
While conducting this study, I analyzed that managing employee relation is very
important because it directly impact on business productivity and its profit margin. I had
experience that Ryan air makes hard and effective attempts in order to solve their issues that are
very essential for its business growth and sustainability. I also realize that company try to
improve their consumer services rather than before by focusing and considering passengers
needs. Management seeking for solving customers issues and responds them quickly after flight
cancellations that help to provide clients proper satisfaction. Furthermore, I also evaluate that
management theories will be beneficial in context of Ryan air as it support company to
understand the importance of staff that are able to contribute in achieving business objectives and
help to gain competitive benefits. I think that Henri Fayol’s theory of management as well as
human relation theory is quite effective and helpful for organization. With the help of these
theories, manager of firm effectively manage their employee relations and satisfied their needs.
CONCLUSION
From above analysis, it has been concluded that political, social, economic,
technological, legal and environmental factors impact on Ryan air negatively and positively. But
taking right decisions and appropriate actions company solve their problems, which increase its
profitability and improve employee relations in effective manner.

REFERNECES
Book and Journals
Ahmed, J. U and et.al., 2019. Ryanair: A low-cost business model in the european airline
industry. SAGE Publications: SAGE Business Cases Originals.
Ahmed, J. U and et.al., 2019. Ryanair: A low-cost business model in the european airline
industry. SAGE Publications: SAGE Business Cases Originals.
Cronrath, E.M and et.al., 2016. Brexit–Auswirkungen auf den deutschen und europäischen
Luftverkehr. Wirtschaftsdienst. 96(9). pp.675-681.
Ferro, F.I.V., 2018. Equity research-Ryanair Holding PLC (Doctoral dissertation, Instituto
Superior de Economia e Gestão).
Gilroy, B.M., Lukas, E. and Volpert, T., 2018. The European ‘No-Frills’-Aviation Market:
Current and Future Developments. In Competition versus predation in aviation
markets (pp. 203-233). Routledge.
Ishii, A., 2019, June. Opinion dynamics theory considering trust and suspicion in human
relations. In International Conference on Group Decision and Negotiation (pp. 193-204).
Springer, Cham.
Lawton, T.C., 2017. Cleared for take-off: Structure and strategy in the low fare airline business.
Routledge.
Lo, P.L and et.al., 2018. The determinants of CO2 emissions of air transport passenger traffic:
An analysis of Lombardy (Italy). Transport Policy.
McLachlan, J., James, K. and Hampson, B., 2018. Assessing whether environmental impact is a
criterion of consumers when selecting an airline. International Journal of Advanced
Research. 6(3). pp.740-755.
Ndjami, B.J., 2016. The Economic Feasibility of an Ultra-low Cost Airline.
Online
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