Ryanair Case Study: SWOT and PESTEL Analysis, Main Problems, and Proposed Solutions

This case study analyzes Ryanair's SWOT and PESTEL analysis, identifies the main problems the company is facing, and proposes solutions using management concepts and theories. Learn more about Ryanair's strengths, weaknesses, opportunities, and threats, as well as the impact of political, economic, social, technological, environmental, and legal factors on the company. Find out how Ryanair can overcome staffing issues, negative media coverage, and other challenges.

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?.................8
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...................................................8
4. Experience in writing this report.............................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Organisation operates their functioning in the business environment that involves wide range
of elements that have significant impact upon organisational business, functions and activity. In
this organisations are essentially required to have proper understanding of all these factors in
order to gain strategic edge and ensure competitive advantages in respective industrial sector
(Buttle and Maklan, 2019). Present report discuss case study analysis of Ryanair which is the
lowest unit cost airlines operating their services while headquartered in Dublin. Present report
includes formative discussions on pestle and SWOT analysis. With the help of this analysis
respective entity can effectively able to identify the strength and weakness and can overcome the
threats with strategic measures and rules. In addition to this report include major issues that has
been facing by Ryanair. Along with this report include experience while writing this project.
1. Perform a SWOT and PESTEL analysis for Ryanair
SWOT:
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SWOT analysis is a strategic framework that allows an entity to evaluate its strength,
weakness, opportunities and threats with the help of this organisation can undertake strategies
and policies in order to curb down the threatening and weakening factors as it affect overall
profitability of entity. It also aid company to minimise the risk by taking advantage of
opportunities to grow. It is a strategic planning technique through which entity can effectively
able to develop business strategy in order to overcome the risk and ensure stable growth. SWOT
analysis of Ryanair is mentioned below:
STRENGTH:
Major strength of Ryanair is that they provide lowest unit cost airlines services in all
around the globe in context with cost per passenger, cost per seat and cost per available seat
kilometre. Along with this it has been evaluated that, this entity provide low fare rates
comparatively to other organisations in same industrial sector in Europe (Buttle and Maklan,
2019). Further this has been evaluated that respective organisation possess largest short-haul
network carrier by offering their services with 1600 routes in more than 30 nations.
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Illustration 1: Top 10 Airlines ranked by Seats Europe to Europe: 8 Sep 2014 to 14 Sep 2014
WEAKNESSES:
Over the past many years it has been evaluated that weaknesses of Ryanair is labour and
employee compensation relating arrangements. This is one of the most affecting factors that
slowing down organisational growth efficiency. Along with it has been evaluated that with poor
performance in awards, range of surveys and polls, company is having weak brand perception.
THREAT:
One of the major threats that has been facing by Ryanair is because of brexit as well as
fluctuations in fuel prices in all over the world. Thus, it affects overall functioning of company in
number of ways that lower down their profitability ratio index. Along with this it has been
analysed that company is also facing threat of shortage in staff. For instance company have
shortage of ATC staff that effect company number activities in many ways. In addition to this
another thread of Ryanair is from other low cost regional carriers in Europe.
OPPORTUNITIES:
By taking advantage of the opportunities like enhancing customer interaction with
Ryanair can effectively provide number of advantages to company. Along with this entity by
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undertaking strategically advanced measures like re-designing of the website and offering fewer
click facilities to their customers can effectively able to attract consumers attraction. Further this
has been evaluated that by taking the advantage of single fee such as providing booking facility,
fast end security and reserve sitting facilities to customers in a single fee feature can provide
number of advantages to company.
PESTEL analysis for Ryanair
Political Analysis
Rise in rate of passenger taxes from current rate may impact upon overall entity sales of
ticket by air, as this may make customers to shift their tend towards other mode of transportation.
This political factor will affect Ryanair overall profitability ratio in a significant manner.
However by undertaking advantage of political stability in Europe and certain other countries
Ryanair may increase their market share holding capacity.
Economic Analysis
This factor mainly involved element related to rate of borrowing, fluctuations in rate of
currency, interest rates etc. In context with this weakening of Pound will affect marginal benefit
of respective organisation and may further lower down economic benefit of company. However
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with many other economical opportunities like reduction in oil price will benefit Ryanair to
increase their profitability by lowering down cost of production.
Social Analysis
This has been evaluated that per capita income of individuals and Britain is significantly
high comparatively to other nations this makes large number of people to travel. Thus, by
undertaking use of this opportunity Ryanair can provide short term as well as long term
travelling facilities to their customers. This will lead company to make significant increase their
overall sales and profitability index. However company is significantly required to conduct
research in order to evaluate dynamic changes in travelling patterns of individual. As if company
neglect this may lead entity to face serious loss in their overall profitability.
Technological Analysis
In the modern world digital technology is taking egde in a significant manner. Large
number of individuals operates their functions and undertakes their activities through internet.
This has been evaluated that students, adults and mainly all age group of individuals are tend
towards technology and internet. Thus, by taking significant of this Ryanair can influence and
encourage customers with attractive online facilities and social networking. Along with this by
offering the facilities to their customers in which they can allow consumers to select the movie
they would like to watch while travelling can aid company to bind customers with attractive
services and facilities. Along with this Ryanair is required to ensure that payment services and
air tickets they are providing to customers by internet is secured and safe. As negligence of this
affect goodwill and growth of company.
Environmental Analysis:
Nowadays, individuals have great concern towards environment. In addition to this it has
evaluated that carbon footprint is becoming major alarming point in most of the countries. This
may pose restriction to Ryanair to perform their business in order to gain profitability. Thus, as
to ensure competitive advantages Ryanair is requiring ensuring that they take measures to lower
down carbon emissions as to have positive concern towards environment.
Legal Analysis:
Government of UK pose different type of legal rules and regulation that are essential for
the entities to perform (Naletina, Damić and Jabučar, 2019). This has been evaluated that there
are strict rules and regulations for airline companies to abide and negligence affect companies in
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number of ways. As it is essential for Ryanair to ensure that all the relevant laws have been
complies by company in order to safeguard them from being get fall into any legal penalty and
obligations.
2. Main problem that is facing Ryanair that requires immediate attention and why?
In accordance with the above mentioned SWOT as well as Pestel analysis it has been
evaluated that major problem that has been facing by Ryanair is due to brexit and shortage of
staff. All these problems require immediate actions as it will largely affect overall profitability
and sales ratio of company (Angelopoulos and Leivo, 2013). This however low down market
holding capacity of company and will negatively impact upon their many operations in
significant way. Along with this it has been identified that due to shortage of workers in
organisational workplace structure of company face inefficiency in their operations and low
production level. This significantly affects profitability of company. Thus, this has been
evaluated that these issues are required to be effectively overcome by Ryanair and need
immediate actions as negligence of this may lead entity to use their number one airline and low
cost unit airline provider entity.
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
Ryanair is conducting their business operations as low cost airline service provider. This
entity was founded in 1984 and operate their functioning while having headquarter in Dublin.
Different types of services have been providing by this entity to customers. However it has been
evaluated that there are number of issues that have been facing by company that significantly
affects their operations. Major problems that Ryanair is facing due to brexit as it allow entity to
change it strategic measures and policies that affect number of internal as well as external
functioning of company (Myro, Légidos and Hernández, 2013). In addition to this Ryanair is
also facing issues that are related to negative media coverage on its consumer service, employee
relations and disputes these are acting as factors that affect in a negative manner. In this,
company to take immediate and effective measures as to overcome these issues in a well
effective manner. In order to overcome the staffing issues company is required to partner with
the nearby education facilities that will allow Ryanair to have fresh supply of potential and
skilled workers. Along with this company is also required to re-construct their financial plans
and undertake recommendation from experience financial advisor as to develop cost effective
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strategies as to operate their functioning in a best effective manner. Along with this number of
issues that has been facing by company due to brexit in these stuffing issues is also one of the
major factors. For this company by taking advantage of contingency theory of management can
effectively able to undertake use of advanced technology as to make significant increase in
performance level of employees. It allows managers to undertake decision making effectively
according to situations. This has been evaluated that effective management is termed as a
backbone of business organisation. Thus, it is essential for Ryanair to take use of effective
management theories as to overcome the negative impacts over entity operations.
Further, Ryanair is also facing negative media coverage in this company by taking use of
digital promoting and advertising measures can ensure attraction of customers in best effective
manner. Along with this as to overcome the issue of staffing Ryanair is required to effectively
engage human interest into workplace decision making process. For this by undertaking use of
behavioural management theories managers can motivate team members in best effective manner
and can offer collaborating working atmosphere. This will aid company to strength and their
internal structures (Abeyratne, 2014). Along with this to overcome negative media coverage
Ryanair by taking use of number of e-commerce, advertising platforms, advertising techniques
can ensure attraction of large base of customers from different geographical locations. Thus, by
taking consideration of all these measures Ryanair can ensure high profitability and growth
opportunities in respective industrial sector.
4. Experience in writing this report
Most important experience that has been gained by me while writing this report is
effective evaluation and research. As while writing this report I have to analyse every factor that
are covered in SWOT and pestle analysis. In this context I evaluate elements like strength,
weakness, and threats opportunities in context with Ryanair business functions. With the help of
this I can effectively able to accomplish this report with the help of accurate and effective data
and information. In addition to this, it has been determined by me that as to conduct pestle
analysis it is required by me to analyse overall aspects like political, technical, social, legal, and
environmental in best effective manner. In this I relate all the factors and analyse industry
operations in context with every factor in a well defined manner. For this I take use of different
websites, journals and information sources in order to present this report with appropriate and
correct information. Further it has been analysed that I take use of different pictorial and statical
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data in order to accomplish this report in a best effective and present table manner. Apart from
this there were certain difficulties that I have faced while writing this report, as in this I have to
acquire statistics as to accomplish this report (Dobson and Piga, 2013). In this I spent my lot of
time on analysing different books, websites, and organisation business page. However the one of
the most essential experience that I gained while writing this report is to conduct strategic for the
frameworks like pestle and swot. This will effectively help me to gain more future benefits in a
professional manner.
CONCLUSION
As per the above mentioned report this has been concluded that, an organisation operated
their business services in a business environment that involve wide range of factors that may
negatively or positively impact upon smooth business functioning in order to overcome the
negative impact of the prevailing factors. For this organisation is required to identify all the
factors and develop a strategic measure in order to ensure competitive edge. In this entity has to
evaluate the impact of these factors company by taking use of pestle and spot evaluation can
develop formative strategies as to overcome the negative impact. Along with this by taking
advantage of strategic planning as well as measures allow companies to ensure their long-term
sustainability and profitability in respective industrial segment.
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REFERENCES
Books and Journals
Dobson, P.W. and Piga, C.A., 2013. The Impact of Mergers on Fares Structure: Evidence from
European Low‐Cost Airlines. Economic Inquiry, 51(2), pp.1196-1217.
Abeyratne, R., 2014. Market Based Measures. In Aviation and Climate Change (pp. 69-81).
Springer, Cham.
Myro, S., Légidos, B.R. and Hernández, P.I., 2013. Effect of low cost airline companies on
international tourism in Spain. Estudios Turísticos, (198), pp.61-79.
Abeyratne, R., 2014. The Challenge Faced by ICAO. In Aviation and Climate Change (pp. 83-
105). Springer, Cham.
Angelopoulos, P. and Leivo, P., 2013. Drivers and barriers for relocation of freight operators to
smaller airports-A case study at Jönköping airport (Axamo).
Naletina, D., Damić, M. and Jabučar, A., 2019. Customer Satisfaction with Services of Low-Cost
Carriers at Pula and Zadar Airports. InterEULawEast: journal for the international and
european law, economics and market integrations, 6(2), pp.71-97.
Ferro, F.I.V., 2018. Equity research-Ryanair Holding PLC (Doctoral dissertation, Instituto
Superior de Economia e Gestão).
Abdi, M.R., Elliot, L. and Edalat, F.D., 2016. Strategic Business Plan Based on Total Quality
Management for Property-Marketing Small Enterprises in UK. In Handbook of Research
on Entrepreneurship in the Contemporary Knowledge-Based Global Economy (pp. 509-
527). IGI Global.
Smircich, L., 2017. Concepts of culture and organizational analysis. In The Anthropology of
Organisations (pp. 255-274). Routledge.
Shields, J and et. al., 2015. Managing employee performance & reward: Concepts, practices,
strategies. Cambridge University Press.
Buttle, F. and Maklan, S., 2019. Customer relationship management: concepts and technologies.
Routledge.
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2015. Human resource
management. Gaining a Competitive
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