Case Study: SWOT and PESTLE Analysis of Ryanair

This case study analyzes the SWOT and PESTLE analysis of Ryanair, an Irish budget airline. It explores the strengths, weaknesses, opportunities, and threats of the company. The study also discusses the problems faced by Ryanair and the management concepts and theories used to identify solutions. The main problem that requires immediate attention is the negative employment relations. The report suggests using management theories such as scientific management and administrative theory, as well as concepts like organizational culture and change management.

Case study
(Ryan air)

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
1. SWOT and PESTLE analysis for Ryanair..............................................................................1
2. Problem that is facing Ryanair that requires immediate attention and why...........................4
3. Management concepts and theories to identify the solution...................................................5
4. short report on experience in writing this report ....................................................................7
CONCLUSION ...............................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
Business context refers to an understanding of all the factors and activities in the business
that includes various decisions that are made to accomplishing and achieving the task on time. It
is basically used by the execution of strategic initiatives. This case study is based on the Ryanair
which is one of an Irish budget airline since 1984. This can be criticised over its employee
conditions and heavy use of extra charge. This report covers the SWOT and PESTLE analysis of
the company to know the weaknesses and opportunity in the market place. Further it explains the
problems that was faced by Ryanair and finds solutions by using management concepts and
theories. And at last gives an experience to writing this report (Kew and Stredwick, 2016).
TASK
1. SWOT and PESTLE analysis for Ryanair
Ryanair is one of the Irish Budget airline company headquartered in Swords, Dublin
since 1984, founded by Christopher Ryan, Liam lonergan and Tony Ryan. To know the internal
and external factors company do SWOT analysis for intrinsic factors and PESTLE analysis for
external factors (Zhu and Zolkiewski, 2015).
SWOT Analysis
It refers to a study of strategic plan that is help a manager in the Ryanair to identify the
strength, weaknesses, opportunities and threats and it is related to business planning and
competition.
Strength Weaknesses
 Low unit cost
 advanced and using innovative
technique.
 Brand Perception of people
 seasonality in earning
Opportunities Threats
 Customer service
 business travellers
 Brexit to put pressurise to downward
the prices
 Fuel prices and currency movements
Strength
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It refers to an internal and positive attributes of a Ryanair that helps in earning more
revenues and it also a process of success(Waring, 2016). Low cost- The main strength of a Ryanair is that it is one of the low unit cost of airline in
all over the world. The traffic cost and manufacturing capacity of cost per available seat
kilometre and a cost per seat is less than that of their competitors firms in the same
industry. Using innovation – because of making innovation and creation in the technology such as
direct online, automated bag drop, hand luggage- only travel and online check-in helps
the travellers to experience the great in flying. This helps in earning profit and revenue as
compare to rival firms(Pyszczynski, Solomon and Greenberg, 2015).
Weaknesses
It refers to a negative that detract from the strength in the internal environment of
Ryanair. In this company need improvements in their weak sectors. Some are as follows. Brand perception of people- Main drawback and the weakness is that many people things
negative about the brand like uncaring and money-grabbing. And this perception of an
individual person affects the sales of the firm and it impact the profit margins of the
firms(Marti and Scherer, 2016). Seasonality earning – The major weakness is that organisation mainly earn profits in
summer rather than winters. This pattern of seasonality affect the sales and profit in the
firm and it also affect the working employees in the company.
Opportunities
It refers to an external factors that helps in succession of a business. In context of Ryanair
, there are some opportunities that are explained below(Sweeney, Grant and Mangan, 2015).
 Customer service - The main opportunity of a firm is to provide better customer service
by focusing on the customer experience through Always getting Better program. They
regularly interact with their passengers to know their suggestions this will help in earning
revenues with increasing sales(McNeil, Frey and Embrechts, 2015). Business traveller- Ryanair is launching a product named “ Business traveller” with a
specification of single fee. Fast lane security, reserved seat choices like ' premium rows'
and booking flexibility.
Threats
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It refers to an external factor on which company have no control over it. In Ryanair, it
includes some threats that are as follows.
 Brexit in UK- The major threats that occur in Ryanair is due to Brexit occur in UK that
affect the economy and GDP of a country and that downward the prices.
 Fuel and currency prices – the major threats that face by company is the fluctuations in
fuel prices and the currency movements(Barrett, 2016).
PESTLE Analysis
It refers to a business strategy that helps in identifying the external factors that affect the
business activities. In context of Ryanair, it explains below(Fiaz, Su and Saqib, 2017).
 Political – This factor affects the business activities, sales and revenue of a company.
Due to Brexit occur in the UK, it affects the overall organisation and creates a challenge
in the environment of business. And there is terror attack in Europe that will adversely
affect the air travel demand that impact the sales of Ryanair. But company now focus on
the increasing the growth outside the UK for nest one or two years until the Brexit that
was occur in the country is over(Level, 2016).
 Economic - Due to Brexit in the United Kingdom, it put pressurise on charging the fare
prices for the services they provide and the fluctuations in the oil prices affects the profit
margins of the Ryanair. But now the firm mainly focus on the short-haul capacity that
helps the company in coming year because of increasing in the air traffic. In this the
profits and revenue is low because they invest more on capacity growth(Anderson and
Sun, 2017).
 Technological - Nowadays people are very addicted with the internet, especially social
media or networking. This helps the Ryanair to attract more and more customers at a very
short period of time, and for this company provide internet services so passengers will
playing games and because of using mobile and internet banking customer allow to book
tickets easily and make payments simpler(Madar, 2018).
 Social – People of UK are more excited and interested to travelling. This culture helps
the Ryanair to increase the sales and profits of the firm. Because of changing habit of
people who live in the society influence and encourage the short and long distance
travelling and this contribution gradually low the cost of flights that was preferred by
British passengers(Yahaya, and Ebrahim, 2016).
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 Legal – Because of Brexit occur in UK, Ryanair require to comply with both laws and
regulations that was imposed by country UK. It will create complexities in providing the
services at low cost and there is delay in flights in different European countries. It affect
the profits and revenues of the firm(Yahaya, and Ebrahim, 2016).
 Environmental – This factor affects the Ryanair business because of carbon footprints. It
gives an warning alarm for a airlines companies. Because of this firm can restrict the
carbon emission from the EU(Madar, 2018).
2. Problem that is facing Ryanair that requires immediate attention and why
The major trouble that an Ryanair is facing is its negative employment relations that
require a quick solutions because of earning higher profits and sales. Solving this problem helps
in better relations among the employees and it increases the productivity of an employees that
helps in achieving the task on time(Anderson and Sun, 2017).
Employment relations
It refers to that term that covers the employees relation and their working in a team to
complete a task on time with a desired profits. In Ryanair, manager can facing the problem of
employment relation because of not clearly follow the long-term strategy and also firm not
follow the social culture for their employees. This problem is arising because company follows
the autocratic approach of management over their employees, this provide stress , staff turnover,
conflicts between them and lack of motivation. All this create the negative organisational
culture(Fiaz, Su and Saqib, 2017).
Organisation follow autocratic style of leadership in this a leader tells and order their
employees what to do and how to do it, without getting any suggestions and advice from their
staff members. Because of using this style by the leaders demotivated the staff members and
create more conflicts. It creates a lack of trust between the team mates. And it does not create a
sense of professional ownership of the work that will affect the employees relations in a bad
way(Level, 2016).
It is an important for a Ryanair to solve this problem because it helps in employees good
working and they work productively. It also allows the management to take a quick decisions
and focus on the company growth rather than employees relations. For better employees relation
it builds a trust among the employees and it improves the overall communication which is very
essential for airline company to coordinates with other staff members. To resolve this problems
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better the relation with customers and it also stop the employee turnover. Which is very
challenging for a company to recruit new employees because it contains lots of cost and time.
3. Management concepts and theories to identify the solution
Management theories and concepts refers to that strategies that includes various activities
, frameworks and guidelines for succession of the business in the market place. It is depends on
the company goals and plans in which they operates. In context of Ryanair, it facing the problem
relating to employment relation which is major in terms of company productivity and
proficiency. To solve this problem manager of an organisation apply some management theories
and concepts that helps in solving the problem immediately. These concepts and theories are
explained below(McNeil, Frey and Embrechts, 2015).
Management theories
It refers to that rules that guide the managers to manage the organisation activities. It
explains the employees that effectively relate to the organisation goals and tasks that helps in
achieving the task and profits. In Ryanair these theories is used to solve the problem that was
related to employees relation are described below. Scientific management theory – It refers to that theory that analyses the workflows in the
organisation. It includes economic efficiency like employees productivity. The major
work of this theory is to apply science to the engineering of processes of management. In
context of Ryanair, problem relating to employees relation is solve by using this theory
of management because it majorly focus on the employees performance and monitored
every individual in the organisation. They give rewards for good and effective working of
an employees so they work productively. This theory also maintain the employees
relation in a way that collaborates the strong relation between employees and employers
so they enjoy the work and gives the best results(Anitha, 2016). Administrative theory of management- This theory is proposed by Henry Fayol and it is
also known as 14 principle of management. In Ryanair, manager can apply these
principle to solve the problem related to employee relation. In this manager use division
of work and equity in this that are explained below(Barrett, 2016).
Division of work- It refers to that principle of management in which task can be assigned
according to the divisions of workers. In context of Ryanair, manager can distribute the whole
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task into different employees according to their skills and knowledge this helps in maintaining
the human relation and reduces the conflicts among them.
◦ Equity principle of management – It defines the idea that was used by an employees
to fairly motivates the employees and analyse and identify their strength and
weaknesses. Therefore, it helps the organisation to solve the problem relating to
employee relation(Sweeney, Grant and Mangan, 2015).
Management concepts
It refers to the art of getting things done through others in a systematic and efficient
manner. It includes basic activities of management like controlling, directing, staffing,
organising and planning. In context of Ryanair, manager follow organisation culture and change
management this are as follows(Pyszczynski, Solomon and Greenberg, 2015).
Organisation culture – It refers to the values, customs, belief that governs how an individual
behave in the organisation. In context of Ryanair, manager can apply ethical organisation culture
to boost the employee morale, increase productivity, goal oriented and risk takers(Marti and
Scherer, 2016).
Ethical organisation culture – It refers to that culture that promotes ethical behaviour
among every employees who work in a company to achieve the goal. It cut down the
misbehaviour of staff members that creates a healthy working environment to the people. This
will enhance the productivity of an employees on a given task. To solve the problem relating to
employee relation, manager suggest and apply some rules of ethical culture. For this manager
can communicate their staff members in a well behaved manner and if they politely talk to their
staff members than it gives the positive message to their subordinates. It helps in enhancing the
productivity, increases sales and revenue in the organisation(Zhu and Zolkiewski, 2015).
Change management – It refers to that approach which support and help a person, organisation
and a group in making a change. In context of Ryanair, manager adopts the change as per the
requirement of the organisation. Firm facing the problem that is related to the employee relation
for this, they apply the change management rule to immediate solve the problem. For this they
apply some practices of management like communicate and the message about the change to
convince and understand to adopt change for achieving the goals in the organisation. In this
information is transferred from top to bottom and employees provide information according to
their needs. In this manager apply the controlling and directing concepts of management so it
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enhance the employee productivity and also increases and maintain their relations(Waring,
2016).
4. short report on experience in writing this report
To making this report helps in understanding the knowledge of management in a
business. How to analyse the problem and situations that was arise in the company by using
various factors of management identify the leadership styles. Because of limited time on making
this report does not explain much but it gives the great experience about the research process and
how management concept and theories are applicable on the difficult situation. Because of this
case study, I have understand the different functions of management and how they solve the
problems that arise in the organisation. It also give knowledge about the leaders and managers
role they play in the organisation by using change management function and different culture. It
also assist in understanding the dynamic culture and nature of an enterprise. It gives the
knowledge about the internal and external factors of the business that helps in analysing the
opportunities, threats, weaknesses and strength. This report suggest, in what way a person solve
and handle the particular situation on a immediate basis. It helps in research the topic and gives
the proper information about the UK pestle and how the Brexit impact the overall business and
the economy of a country(Kew and Stredwick, 2016).
CONCLUSION
From the preceding report, it has been concluded and understand that management is an
important part for every organisation and the succession of every organisation. In this report,
manager of Ryanair analyse the internal and external factor to enhance their productivity by
adopting and find the opportunities and reducing the threats that arise in the organisation. In this
firm analyse and identify the problems and gives the management theories and concept to solve
the problem of employee relation and enhance the productivity of every employees. At last give
their suggestion in making the report that helps in increasing a person knowledge and skills
about the research.
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REFERENCES
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contribution of management theory. Academy of Management Review. 41(2). pp.298-
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management theory in practice: an empirical investigation. Supply Chain Management:
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Century (pp. 163-178). Routledge.
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from an emerging economy. The Journal of Developing Areas. 51(4). pp.143-156.
McNeil, A.J., Frey, R. and Embrechts, P., 2015. Quantitative risk management:
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Anitha, J., 2016. Role of Organisational Culture and Employee Commitment in Employee
Retention. ASBM Journal of Management. 9(1).
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