SWOT and PESTEL Analysis of Ryan Air: Opportunities, Threats, and Leadership Styles

This report provides an overview of Ryan Air, followed by a SWOT and PESTEL analysis of the airline industry. The report identifies opportunities and threats for Ryan Air and suggests two leadership styles that would suit the business. The report also discusses the importance of Corporate Social Responsibilities for Ryan Air.

Context of Business

Contents
INTRODUCTION...........................................................................................................................3
Company overview......................................................................................................................3
SWOT .........................................................................................................................................4
PESTEL analysis ........................................................................................................................6
PESTEL analysis how the changes in PESTEL factors has influenced the Opportunities and
Threats business. .........................................................................................................................7
Based on the analysis of the PESTEL factors, identify any two leadership that will suit the
business........................................................................................................................................8
Situational leadership theory:......................................................................................................9
Behavioural Theory:....................................................................................................................9
Great man leadership theory:.......................................................................................................9
Discuss the importance of Corporate Social Responsibilities for your chosen business using
examples......................................................................................................................................9
REFERENCES..............................................................................................................................13

INTRODUCTION
Business is the process or activity which includes making living with generating profit by
the help of production or buying and selling of products. The business is related to an enterprise
which is involved in range of activities such as commercialisation, industrial and as well as
professional activities to solve an issue with achieving their goals (Chin, (2020)). As of business
in airline industry there is a large captured market by large enterprises in which UK has third
largest aviation network in the globe, with presence of second biggest aerospace manufacturer.
The industry is involved in passenger services, transportation and warehousing services. In this
report the discussion of such airline industry is done in their primarily focusing on their UK
business. In this report the swot and pestle analysis will be done with the evaluation of how their
factors will impact opportunities and threats of the business. At last of this report the CSR
activities and leadership style that are being used and which activities is done by the company is
elaborated.
MAIN BODY
TASK
Company overview
Ryan air is a Ireland based company established as a ultra low cost carrier founded in the
year 1984. It was mainly established by Ryan family with a staff of 25 people. Its was firstly
launched as the airline route in 1985. it aimed to do business on British routes and resulted as a
new innovation in low cost aircraft carriers. As compared to process from other airlines the
offering price of Ryan air is much lower. Which resulted in success of the airline. The idea of the
Ryan air airlines to launch as Europe first low fare airline. It is considered as innovation as it
processed high frequency flights moving in a single aircraft fleet condition with removing the
free drinks offering done by most flights and providing expensive meals on the flights which
reduced the cost significantly (Jamel, Saidani, and Nurcan, (2018)). With next step toward
technology in 2000 Ryan air website was launched which created another feature for the airline
as check ins were less time consuming and passenger were book tickets online. The process of
bookings to flying and reaching to destination was done perfectly. With the low cost flights

innovation in Europe the airline got wide acceptability and had long term impact in the airline
industry.
SWOT
The aviation industry uses lots of business strategies, as Ryan air is adapting and used lot
of changes in new times to get an efficient result for an better results such as cutting cost by not
providing snacks and foods as well as drinks in the flights, innovating and using new
technological features in the flights bookings and customer services to stand out in the industry
(Franceschelli, and et.al., (2019)) . The SWOT analysis of the organisation Ryan air is as
follows:
Strengths: The strength that are centred in analysis of Ryan air are
Low costs: Ryan air is one of the lowest costing European airline as the cost availability for per
seat for an kilometre is very low, the strengths gives Ryan air benefits as the production capacity
and other cost is much lesser than any of their competitors.
Low fares: As one of the most positive strengths Ryan air have is it enable very low fares which
result in more number of consumer and result in profitability. The average fare of the
organisation is very much lower than other flight service providers in UK.
Innovation: the innovation done by Ryan air gave exceptional result as there is no airline other
than easy jet and Ryan air that do short hour flights in UK. It changed the flight industry and
started a low cost revolution in UK.
Ryan Air is minimizing the threats in an effective manner. One of the most significant
threat is that there are flights is not prone to accidents. They needs to improve the safety
measures to provide a safe experience to the customers. The organisation is offering low fares in
the market to attract new potential customers in the market. This will possibly help them to
achieve greater results in the future. The main focus of the organisation is enriching the lives of
the customers by providing the excellent services to the consumers. Ryan Air had managed to
asses the critical threats which is affecting their operations through bringing innovation.
Weakness: The weakness that are enclosed in Ryan air are described below:

Brand perception: as per the consumer demand Ryan air provides what the customer want,
which showed safe travel and low fare with punctual timings of flights but yet the brand
performed poorly for long range flights and weakens position for longer duration flights.
Seasonality of earnings: As the company offer more short term flights it has some boundaries
like weather and consumer perception, the UK consumer don't do much travelling in Europe in
winters which make huge losses for the industry.
Strikes: the workers, flight attendants, pilots were seemed to be dissatisfied from the airline
services which resulted in conduction of strike, this effected in efficiency of service and
impacted reputation of the business. The working conditions were not favourable for the workers
and employees.
The main weakness of Ryan Air is their brand perception the organisation needs to
achieve a positive brand integrity among the customers. They need to ensure that they are
providing the best services to the customers at an affordable prices. This will certainly help them
to generate more revenues in the market.
Opportunities: The opportunities that are incoming Ryan airlines
Improved customer service: The company is moving towards innovation and increasing quality
of customer interactions with the business (Thapa Karki, Xheneti, and Madden, (2021)). This is
making the business more engaged with customers this includes designing websites, building
app, removing and providing baggage restrictions and charges of printing boarding passes has
been relieved.
Business travellers: the business has launched its traveller product in which in a single price
charge customer will get many features like security, booking, reserved seating and checked bad.
This feature is aimed to increase and improve customer service.
Talent Availability: as Ryan air is a large airline present in the UK industry, there is also a
huge work force present for them with thousands of skilled professionals like pilots, ground staff,
cabin crew and technical staffs. With best availability of talent and hiring of staff is resulting in
creating good opportunities.
The weakness is stopping the organisation's growth in the market. Ryan Air needs to
capitalise all the future opportunities to grow their business in a significant manner. By
overcoming the weakness of strikes they can hire talented candidates for the staff. This will help

them to provide better services to the customers and attain maximum customer satisfaction.
Another Weakness for the organisation is their seasonality of the earnings. They need to attract
different customers form other regions to maximize the overall profits in the market.
Threats: Threats present in Ryan airlines are as follows:
Accident: Till current date Ryan air have a very good safety record but as per report it has been
foretold that its cost cutting methods can result in cutting safety parts and reducing approach
towards safe flights. This can result in negative reputation impact for the brand.
Loss of focus: the focus of the Ryan air management is towards providing safe and punctual
short term flights at low fares. The focus of the brand can reflect from the main aim which can be
a threat for the brand like acquiring competitors (Tratnik, Urh, and Jereb, (2019)).
Competitive response: Ryan air has level unit cost is unmatched for competitors in Europe so
airlines are less competitive in its own sector. Ryan air can have threats from new entrants and
product and brand as same offerings can shift their existing customers.
PESTEL analysis
The pestle analysis of the external factors on the macro environment that influences the
airline business of Ryan air if followed by. The business is impacted by the sic factors which will
discussed and followed on, the factors are political, economic, social, technological, legal,
environmental.
Political factors: The political factors that effects Ryan air are, the uncertainty in the
Brexit to be challenging for large business environment as they have major impact by shifting
business strategies (Wang, and et.al., (2020)). The numerous terrorist attack happening in
Europe which is damaging the reputation in security and safety and which resulted adverse effect
on business and travel demand in the countries like UK.
Economic factors: The economic factors that are effecting Ryan air are the oil prices
that are increasing over time and budgeting according to operational margins, this causing to
change the budget for oil and fuel effectiveness in costing, impact of covid also had major
influence in economy. The Brexit factor put pressure in UK in fare prices creating and following
their low fare aim.

Social factors: The social factors that impact Ryan air are like consumer choices of high
speed railways over airlines in short distances travelling which can increase demands in saving
time, most business persons are using these services, consumer is willing to spend more on food
and other if the ticket fare is less.
Technological factors: the technological factor has an good impact in Ryan air as it has
created a new innovation in field of booking and creating convenience for the consumer as the
introduced the mobile app for flight bookings and created website which resulted in rising the
demand, this resulted in good response from customers and considered success for the brand.
Legal factors: the legal factors that are effecting in Ryan air are like it is subject to an
law suit by European commissioned for getting an central aid at some airports at Europe. It is a
right for the brand. Brexit laws is making to function the brand to follow dual, UK and European
regulations.
Environmental factors: the environmental factors that are effecting Ryan air are the
European regulation for carbon emission fro airlines which result in increasing cost for the
airline, they focus more in environmental concerns and take initiative like using aircraft's such as
Boeing 737- 800NG which has lowest emission of carbon and it is less intense (Xheneti, Karki,
and Madden, (2019)).
PESTEL analysis how the changes in PESTEL factors has influenced the Opportunities and
Threats business.
The Ryan air airlines is handled and placed an smart market position in terms of revenue
and size. It is an large organisation present in Europe which handled the UK market effectively
in their management and operational basis. It helped them in sustaining in its low cost and
providing low fare strategy still standing with profits. While doing such business various threats
and opportunities arises which needed to faced accordingly. As per the pestle analysis the
opportunities and threats can be determined, with help of the analysation by the tool threat and
opportunities are:
Political factors:
The political factors have their worn benefits and threats as per Ryan air airlines the
Brexit issue arises and had made severe losses for the brand by shifting and changing structure

but also it has opportunities as finding new areas of business with making new sources of
revenue.
Economic factors:
Economic factors for the airline, as rising prices of oil are making the brand to increase
tickets fare and the aim which the company want to achieve fades in providing low cost airline
services, opportunities is in this case is airline industry can adapt to more sustainable practices in
saving and getting fuel efficiency.
Social factors:
The social factors that implacable in airline industry of Ryan is consumer is preferring
more towards low cost airline services rather than the long duration railway lines in UK. This is
an opportunity to grow in the sector, where as consumer can shift towards better option if they
seek price is not worth for the travel if price changes take place in tickets.
Technological factors:
In Ryan air there are huge changes in technological field as the introduction of mobile
app and website in the industry is opportunities to create an better customer experience with
reaching to large amount of customers. The threat in this case is large amount of consumer is still
not aware about technological uses and unaware of understanding which result negatively.
Legal factors:
The legal factors in Ryan air have an opportunities as every airline gets an central relief
in receiving aid at certain airports to get equal rights like other airline services and maintain
ethical practices, threats is due the Brexit implications the company have to face dual rule and
regulations which result in disruption in internal environment.
Environmental factors:
The environmental factor that impacts Ryan airlines is laws regarding carbon emission
by the aircraft's they have been using, this will result in modification with extra cost and
investment. The opportunities they have as airline will be more aware towards sustainability and
environment protection with better focus toward environmental initiatives.
Based on the analysis of the PESTEL factors, identify any two leadership that will suit the
business
The company of airline Ryan air is using lot of leadership styles for benefits as without
leadership guidance there is less scope of development. The company have high reputation and

operates largely in network of UK air transport system. The Ryan airlines focuses in making a
strong position in market of aviation and passengers services in UK and other European nation.
Its primary focus is to provide low cost airline service in short duration travels around Europe.
The Ryan airlines strategies is cost advantage services by increasing the number of flights
seating capacity using fleet advancing. The beneficial leadership style which Ryan air are:
Situational leadership theory:
The situational theory demonstrate leaders to try the best option available for an situation
which require leadership attribute. This leadership style does not regard any style perfection
which is greater than other. It is above than other styles of leadership criteria in decision making
(Koniagina, and et.al., (2020)). Ryan airlines will be suited with this type of leadership style as in
this industry there are various situation that need different solutions and nature to solve the issue.
Transformational leadership theory:
this leadership is much focused on making engagement and relationship with leaders and
their members. This theory shows leaders who encourage the members, have charismatic
personality with inspiring nature that can help in achieving task (Vitari, and Raguseo, 2020). the
Ryan airlines can use this type of leadership style for benefit in making good relation of staff and
achieving short term and long term goals.
Behavioural Theory:
This theory focuses on the action of leader not the skills and quality of their ability. As
per this theory people can be learned and made leaders by enough training and experience. This
style of leadership is not much beneficial for an airline industry as the brand already use
employee for leadership and uses experienced candidates for the roles. The Ryan airlines have an
good position in market in field of aviation which shows presence of good leaders are there.
Great man leadership theory:
As per this theory the people already have inborn traits of an leader in them such as
charisma, confidence, intelligence and social skills. This theory is full based on superstition that
leaders are born not made. This theory is absolutely not beneficiary for the Ryan airlines
company because they consider employees based on their skills and talents which they have
developed and polished through goof training and development.

Discuss the importance of Corporate Social Responsibilities for your chosen business using
examples.
Corporate Social Responsibility is the model which make the organisations accountable
towards their customers, stakeholders and environment. According to this companies possess
responsibility towards social, economic and environmental factors (Hur, Moon and Kim,
(2020)). Ryanair adopted this business model in order to raise morale in the organisation which
help them in establishing their brand image. Corporate social responsibilities maintain strong
relationship between organisation and employees which helps them in better understanding and
coordination. Ryanair fulfil all the responsibilities including economic responsibility, ethical
responsibility, philanthropic responsibilities and environmental responsibility. It helps in
maintaining the financial stability in an organisation which is necessary for sustaining in global
market. It analyse the needs and wants of the stakeholders and customers which have to be
satisfied by the organisation in effective manner. There are various benefits of corporate social
responsibility in relation to Ryanair which are discussed below:
It increases the engagement of employees: It has been noted that engaged employee
contributes their efforts in best possible manner which results in higher productivity. Ryanair
focus on their employee's needs and expectation which helps them in employee retention for
longer time period. Adoption of corporate social responsibilities help them in lower down the
employee absenteeism which results in higher revenue generation in organisation. Engaged
employees grab the upcoming opportunity in effective manner which help Ryanair in sustain for
longer period of time.
Creates strong customer base: Corporate social responsibilities help in attracting large
customer base by providing best services and products to them. Customers of Ryanair become
more loyal and trustworthy towards company which results in increased sales and profitability.
All the ethical values are followed by Ryanair in the organisation which is preferable for the
growth of business. Corporate social responsibilities provides guidelines to employees which
they follow for effective operations.
Greater sustainability: Organisations are ethically responsible to follow the procedures
which do not harm the society and the citizens (Franco and et.al., (2020)). To sustain for the
longer time period, corporate social responsibilities help Ryanair in understanding the needs and
wants of customers. It helps in reduction of excessive costs which are not necessary for the

operations. Saving costa and capital help them in producing quality services and products which
help organisation in long run.
Competitive advantages: With the help of corporate social responsibilities,
organisations can effectively gain various competitive advantages which will help them in
further growth and expansion. Ryanair achieve their goals and targets along with different
opportunities which help them in building their brand image. They are socially conscious about
the usage of resources which are scarce in nature.
Maintaining company reputation: It is necessary for the company to create image and
reputation in market in order to attract customers. Corporate social responsibilities help Ryanair
in commencing fair practices which fulfil all the responsibilities which are required. Growing
recognitions help in enhancement of sale and marketing which results in higher profitability.
Reputation of Ryanair helps them in expanding their business in new boundaries which results in
success and growth.

CONCLUSION
From the above report, it has been concluded that business in aviation industry needs a
good strategic planning in the process to get success for the business organisation. As in this
report in the reference of an company an analysis is done by the strategic tools such as pestle and
swot and their with their brief discussion in related with their company. In this report the swot
analysis is done and resultant was gathered of the company opportunities and threats as per their
strengths and weakness. Further in this report pestle analysis is done and based on the analysis
the opportunities and threats for the organisation is discussed. At last of this report two
leadership style which are needed for the company is been discussed and finally the importance
and the company involved in Corporate Social Responsibilities activities is briefly showed with
the benefits resulting in the company.

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