This report analyzes the impact of macro environment on Ryanair's strategies, internal environment analysis, and capabilities using appropriate frameworks like PESTLE analysis, Ansoff Matrix, SWOT analysis, and McKinsey's 7S model.
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Unit 32 – Business Strategy
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Table of Contents INTRODUCTION..........................................................................................................................3 TASK 1............................................................................................................................................3 P1Applyingappropriateframeworksanalysetheimpactandinfluenceofthemacro environment on a given organisation and its strategies..............................................................3 TASK 2............................................................................................................................................7 P2 Analyse the internal environment and capabilities of a given organisation using appropriate frameworks..................................................................................................................................7 TASK 3..........................................................................................................................................10 P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given market sector for an organisation..........................................................................................................10 TASK 4..........................................................................................................................................11 P4 Applying a range of theories, concepts and models, interpret and devise strategic planning for a given organisation.............................................................................................................11 CONCLUSION.............................................................................................................................13 REFERENCES..............................................................................................................................14
INTRODUCTION Business use to provide varies goals as in order to earn maximum profit and to ,maintain the growth of company through which goals can be achieved. As for all the business activities it is important to maintain different kind of strategies through which market analysis can be made and the competitive advancement can be framed, this generates targets and the goals with which competitive advancement can be achieved. Business strategy use to set the goals and the targets with which it can implement the long-term goals and planning. This use to frame the guiding principles and the methods in which the companies can perform and maintain their work in proper way. It helps out in evaluating the decision making process and also in setting the goals and the objectives of the company(de Medeiros,and et. al., 2020).The organisation chosen in report is Ryanair which is a well known Irish airlines headquartered in Dublin. It generally have so many sister airlines like alta AIR, Ryanair UK and Buzz. This major report will cover all the external and the internal analysis with the strategies in the business by applying bowman strategic clock and porters generic. TASK 1 P1 Applying appropriate frameworks analyse the impact and influence of the macro environment on a given organisation and its strategies. All the macro environment condition use to be implemented in all the countries and it creates a major programs and strategies with which all the working areas and the techniques can be measured and identified. It generates the major advancements with which brand image of the company and their required strategies cab be framed. As it is important for all the companies and the business practises to earn and develop such type of strategics which will enhance their future goals and targets and also measure the requirements need in the companies(Blackwell,2017). As for Ryanair the major strategy used inorder to maintain the flow of goals and objectives in the business are according to the vision and the mission of the company.Mission-To provide all the passengers a low fare programs and also to generate a major efficient manner of operations with which cost and the operations can be framed.
Objectives-To establish such company which will generate low fare and also focus on improvement of there services and growth. Techniques used in strategic planningBenchmarking-This is the general; practise which use to provide all the important working and the competitors in order to acknowledge all the important core elements and the strength of the company.Business analysis-It use to provide all the core strength and the weakness in the organisation and their working areas(Sanders, and Wood, 2019). Analytical approach used in macro environment PESTLE Analysis This generally provides all the strategies that should be implemented in all the strategic management and in their varied external environmental factors. As in context of Ryanair PESTLE analysis is being mentioned below:Political:It is generally the political and the intervention of the government in the company as in regard to all the rules and the government abiding bodies and principles. This provides all the norms and the framework of rules which narrates the major rules regarding government system. As the tax rate is being increased Ryanair is majorly being affected as it increases the tax rate which affected the general sales of the tickets.Economic:It is all economic changes and the profitable changes and inflation rates and the interest, exchanges rates which are being discussed in order to,maintain the profitable advancement and the growth of the company. Ryanair as due to changes in the process and as impacted by the pandemic covid situation was majorly being affected and framed and made a major barrier in the company. As the power for all the passengers to spend in the company is thereby being affected.Social:This is the demographic changes and the customers requirements which are being fulfilled by the company in order to maintain the growth, as in Ryanair the short and the long travelling has increased and expanded the sales of the company and also made the company to earn profit(Franceschelli,and et. al., 2018).Technological:This provides all the digitalisation and the innovation which is being used by the company as to make it sustainable and manageable. As for Ryanair they have
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opted some techniques through which they try to manage all the mobile application to make the booking which helps the customers to gain the facility.Legal:Ryanair use to impose all the low cost strategy through which they try to implement the methods in which legal aspects are being fulfilled. But as in the time of Brexit the change in the laws affected the company and their working through which they are implemented to being affected as they have to focus on the laws of UK and EU. Environmental:This is the sustainability and the changes that the company use in order to maintain the working of the organisation and also to implement the promotion of strategies required for environment protection. As Ryanair uses carbon footprints which promotes the benefits and the advancements as in context of operations being performed in the company(Yerpude, 2021). Ryynair's strategies Ryanair is the largest airline in the Europe that will termed as the number of the passenger who are the largest in the World for global travellers. It has been founded in the year of 1985 that has been enlarged rapidly capitalising on the opportunity that are presented their terms as per to the European deregulation of the air industry in 1997 as effectively and efficiently. It is an Irish company that headquartered is established in Dublin and has about 1000 routes, 40 bases and about 200 aircraft. Their business model is based on South west airlines in the USA that is an international field of market. Stakeholder analysis This is an important process which use to give all the strategies in which high quality of products are been provided and their has been analysed that all the variable use to remove the barriers and the changing barriers which helps out in maintain the progression and its report with all the strategies which are to be implemented in the company they are as in context to Ryanair are as follow:High power- High Interest:It is the generally all those authorises which have high power in the organisation as in context to Ryanair they use to create a major role in the company and also focus on upliftment and advancement in the business practise.High power- Low interest:This category use to involve all the stakeholders of the company which use to provide major investment as in context to maintain the growth.
Ryanair will have to provide all the necessary details in order to make them satisfied regarding the company and their function.Low power-High interest:They usually cover low power in the company but have the major interest as in context to it they use to provide the helps in the projects and the working but with low interest feature. Ryanair use to have the agents, customers who come under this category as it is important for them to make them know about all the essential details required for the company.Low power- Low interest:They have no interest in the business of the company and there is no optimised power being given to them. As for Ryanair airports are being covered under it as they use to specifies that it usually shows no interest in business and haver less power as been analysed. Ansoff Matrix This tool gives the organisation different strategies as according to which the company can direct their working and can also make different new expansion by following the ideology given in it. As in context to Ryanair they are mentioned there under:Market penetration:This is the general strategy which helps out to make the company to expand their business with the help of applying some new strategy in the market and the work and also by applying all the new functioning in their existing services. As in context to Ryanair they can enhance their services and facilities for the growth and development.Market development:The main strategy in this is to make the existing products of the company to be used in the new market areas, as in Ryanair they can apply all the ,methods in which their airline facilities can be made available to new market region so that new customers can be attracted and the facilities regarding the growth can be made with gaining new reach and new customers involved in the company(Lawton, 2017).Product development:The plan made by the company in order to bring and to introduce new products in the market so the attention of customers can be gained and this will help out to generate the revenue of the company. Ryanair can opt to provide new and innovative services which will make the work to be easy for all of them and will also maintain the growth.
Diversification:This is the riskiest zone in which new product will have to be introduced in all the new market areas. It creates a high risk factor in the company. As for Ryanair can try to focus on making the new product in the new market segment which will make their company being identified among all. Ryanair can try to use market development technique as they can enter in new segment of market with their existing services so as to attract the customers and th gain more g=revenue generation. SWOT Analysis This is a general tool which help out to evaluate the working of the company and also maintain the strategies through which the weakness and the strength of the company is being measured. As in context to Ryanair it is given as follow: Strength Thecompanyisoperatingtheir business with more than 450 flights and now they also planing to increase them to 600 flights.ThemainbasisofthisRyanairis keeping the low prices of their flights sothattheycaneasilyattractmore customers and also proving some add- on services(Favre, 2017). Weakness The company as fails to offer the cash refundsonthecancellationtomake customer happy and satisfied. They are also facing huge affects on the reputation of the company as they have cut down the 3000 jobs which leads to major lays off of the workforce. OpportunitiesInordertoexpandthebusiness opportunities, they have taken the help formtheBankofEnglandCovid Corporatefinancingfacilityfrom there, they have taken the loan around 800 million euros.Theyhavepurchaseddifferent airlinesformthedifferent manufacturer as they are facing huge Threat They are not having any control over therulesandregulationofthe government andthis is the big threat forthecompanyfortheireasy operations. Another threat is they are facing very less traffic in air due to the huge impact of COVID-19 and this can be resolved till the time then the vaccine is available
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looses due to COVID restrictions.across the world. TASK 2 P2 Analyse the internal environment and capabilities of a given organisation using appropriate frameworks Strategic capabilities It provides the method in which all the action and implementation of plan can be made so as to enhance the benefit of the company and also to maximise the profit and competitive advancements. It involves all the major features like values, vision, action plan, tools etc. all these plays a major role in making the work and the strategy being accomplished in operational manner. Resource Based View This is the method through which the company can make different kind of strategies as throughwhichtheycanmaintainthegrowthandthesustainableadvancementandthe competitive edge in the analysation of business practises. It generally are of two types they are like tangible and intangible. Ryanair can efficiently use all their services and resources to be used in better manner so as to gain the advancement and all the unique offers can be made for them. Mckinsey's 7S model It generally gives the ideas and the design in which the company can work and maintain their identification with effective design and the strategies that will help out to maintain the goal and the targets. As in context of Ryanair they are mentioned as follows:Structure-This generally provides an important tool and the units in which the division is being made by the organisation for their benefits. As in context to Ryanair they use to follow the hierarchical structure and their flow of information is from top to bottom. As it gives a long chain process and command by superiors(Ross,Beath, and Sebastian, 2017).Strategy-Ryanairusetofocusonthemostimportantstrategyofmakingand implementing such flights which will help out to maintain the low cost fare to all the customers through which they can choose their company as the important source and manner. This generates and make them to maintain all the market upliftment and raising more customer towards it.
Skills-It focus in providing all the customers the most efficient training in order to make them highly trained towards their working and also to make them confident towards working in the company. As Ryanair use to focus on making general training sessions to all their employees as according to which they can maintain the high growth and help the organisation to work better.System-It generates and give the idea about the procedure which is being used by the company so as to maximize the profit and the growth. As Ryanair use to make and apply variable technical and the manual advancement in their working by using both in adequate manner this helps in smooth functioning of the company.Staff-Thememberswhoarebeinginvolvedinmakingthecompanytoberun successfully are covered in it. As Ryanair use to have so many employees being working under it, as it is of now are about 17500 employees working in order to make the organisation work in better manner.Style-It is the working process which is being involved by the company as to make it know about their targets and goals. In Ryanair they use to focus on transformational leadership style in which all the staff ,members are being handled by the one leader and that person is authorised to make all big decisions of the company so as to make them work and analyse all the means of working in proper manner (Macchi,Savino,and Roda, 2020).Shared value-It is the ethical norms and the standards which are being implemented by the organisation in their company so as to make the working smoother and to implement all the variable methods for focusing on the growth and upliftment. Ryanair, generates the low price value as to save money and to make the value of money being applied ion their organisation. VRIO Framework This tool generates four important elements in which the specification and the function of the company is bifurcated. As in context to Ryanair, this is being mentioned thereunder:Valuable-The things or the resources which are being valued by the company so as to make it more used and advanced for all the working companies are considered in it. Ryanair use to value the financial resources which are being used by them.The points will get fixed and require to be utilise in a maximisation manner. Hence, it is their basic
key set of duties of the business of management to develop an effective plan of actions as according to the allotment of resources to move out the high resulted section in return as effectively.Rareness- This involves all the unique and the important products which are being opted by them as the rare ,material and help for the company. In case of Ryanair they use to provide training sessions to all their employees so as to make the benefit and try to make the efficient staffing with the help of human resource so they tends to be their rare resource(Aluchna,2018).Hence, they are highly able to accomplish several resources by the term of having a lot of monetary stocks. The business of management that have involves with several competent and activities of individuals who are having several abilities that are related to the execution of managerial activities in an effective manner with the support of utilising various resources in an increasing statement of the manner as effectively and efficiently.Imitable- This involves all the affordability made by the company so as to copy all the resources. Ryanair use to provide customer community as the important affordable resources who use to frame and imitate all the cultures which are used by the company for betterment.As it required a tremendous amount of money of funds to adopt an economic sections that are connected with the methods like managerial information and the suitable set of the structure as due to which their challengers might ascertain high term of thoughts to simulate their manner and tools for their own benefits and advantages as effectively. Organisation-This use to generate all the resources which are being framed and properly organised by the company as to make all the services and the efficiency to be made in fully organised functional provide the general working more easy.The staff faculty are require to have an effective set of term of skills on performing their suitable section with advanced and adapted application that will supports in declining the loss of points from the organisation.
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TASK 3 P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given market sector for an organisation. This is a tool which strategies so as to make the company to work by keeping all the advancement and also to analyse the competition of the market channels. This is generated to avoid all kind of issues and risk which make their competitive areas to lose all the edge and the advancement. As in context to Ryanair this is being mentioned there under:Bargaining power of suppliers-It provides the suppliers power in the company to raise their prices and the dominant position of the suppliers in the company. As for Ryanair the bargaining power is ultimatelyHighas when researched they have just two areas as their resources they are like Boeing and Airbus, and Ryanair use to to take all the resources from Boeing so they can maximise they prices at any time when needed(Lacy-Nichols, Scrinis,and Carey,2020).With the support of basic set of variations and development to evaluate the result and make higher supplier to extract the cost.Threat of new entrant-This is the easiness which is been seen in the market to adapt all the same business being settled by some other person. It means the competition of starting the same business in the company, as Aviation company use to be highly expensive and they require lot of paperwork so this generates a barrier in the companies to start such business. Threat of this to Ryanair isLowas they are not more concerned about it.The business of management have a lot of sections that preset the term of threat of new entrants that are working on major and innovative models in the management.Threat of Substitute-This is the substitute products which are being used by the customers in order to make the work easy and also to change their loyalty and shift to any other company. This threat isLowfor Ryanair as they already focus on providing the low fare strategy in which it is easier for customers to manage all of it in variable time. So they are not much concerned about it(Pramanik, Maiti, and Maiti, 2018).All of such sort of sections that are related to effective value of statement and create the relations and variations to measure the result to the business of management. Again this threat are working as the high substitute of the market in the field of management.Bargaining power of Buyers-It involves the power of the customer towards the company and their working as by bargaining according to their needs and requirements.
Ryanair haveHighthreat of this force as they majorly have to plans regarding to increase the prices of their facilitates in order to make their customers being loyal towards them, switching cost they have is zero and which creates a major threat as in case if the customers shift it will create a major problem(Cardoni, Kiseleva, and Lombardi, 2020) (Blank, 2019).This might be related to effective and suitable section of the development and advancement to measure the results and make effective maximisation in discounts and offers for the development of the business of management as effectively. Rivalry in existing competition-It involves the competition the same market segment as in caparison to all all other organisations, Ryanair haveHighpower force as they tend to operate low cost airlines and there are so many airline facility which are being available in it. This created a huge threat and issue as in comparison to all.Such sort of factor can be related to major formulation and developing demand to make rivalry in the present set of the competitors. It will be related to fall of cost, maximisation of the global productive and make accessibility as effectively and efficiently. TASK 4 P4 Applying a range of theories, concepts and models, interpret and devise strategic planning for a given organisation. Porter's Generic Strategy This is an important tool which helps out to give the ideas about the competitive advancement in all the chosen areas. This focus on knowing all the important values and depiction as for product, enterprise and the services which are been given initiated. As in Ryanair services and the products are been given as under:Differentiation-Itinvolves the innovative approach of the company as according to which the company can opt and gain more customers and this can help out to evaluate and make all the adaptive strategy through which the offerings can be implemented. Ryanair can apply this strategy as by using soke uniqueness and the innovative approach which will make the companies to gain more customers as by attracting them with some specific features(Cosenz, and Noto, 2018).Cost leadership-This uses different kind of offerings which are being made available by the companies as it generates the advancements and also make the edge in the market
segment. Ryanair can frame the lost cost strategy as through which customers can be gained in the company and it will provide low profit to all the individual in the reasonable growth and sales.Focus-It provides the two basic fragments where the company use to apply to important target areas and variants they are like, cost focus which depicts the target segment and cost of the company and the other is seeking differentiation which makes all the issues to be concerned in it. They use to make out all the nature and the changes to be adequate. Ryanair can make the varies strategies for the cost effectivenesses by reaching to innovative approach and services. Bowman's Strategic Clock It provides the competitive position of the product in the market. As for Ryanair some important strategies are mentioned there under:Low price-This is mainly a method in which the company can adapt a low pricing method which will help out to make all the changes and the establishment through which the profit margin can be applied and it will provide the general terms and meaning for the working. Ryanair can try to make facilities for the customers at low pricing so as to make more profits.Low value added and low price-It promotes the pricing to be kept low so as to make the benefits and also to implement all the nature and the working frames to be easily captured. Ryanair can opt the low price for their company(Remaneand et. al., 2017).Differentiation-This involves generating he best services for the products and also to make the established areas and goals so as to make the specific changes as in according to the services and goods. Ryanair can make the branding of their services to be optimised so as to increase the loyalty.Hybrid-It involves the high brand products which are being made effective with all the strategy and the combination which is being opted. Ryanair can implement different strategy so as to make the new innovation and also by applying better services in low cost. Focused Differentiation-This is generally the requirement or making all the services and the products to be assigned in a well manner so as to optimised the use and to serve some
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new service in luxury and high cost. Ryanair as have the low cost strategy can try to focus on making different methods in which new service at high pricing can be applied.Monopoly pricing-Company can opt a monopoly leader strategy as through which they can make the product and the services to be different and unique from others. Ryanair can use this as it serves no competition.Risky high margins-It persisted the changing high prices for the services which is being provided earlier. As Ryanaircan try to apply all new methods through which Ryanair can change their strategy and make it high priced. Loss of market shares-As to avoid the loss in the company share they can try to make all such offering and the services to be made which will not value any kind of engagement of services. As consumers try to take the low pricing services so they can make new offering at normal pricing. Ryanaircan opt low price strategy as to gain the loyal customers base and to apply the competitor in the regular market(Veretekhina, and Korotin, 2018). Strategic Management Plan SummaryRyanair is a leading low fare airlines company, head quartered in Dublin, Ireland. It is planning to widen its segment of operation by launching a new package for the business class with premium prices. It will be providing all the luxuries available in any business class flight. VisionThe company sights at establishing itself as a leading low price airline in Europe by confirming continuousimprovements and developing low fare service offers. MissionThe mission statement of the company is increase the number of passengers by offering low fares while ensuringcontrolled cost and efficiency in operations. ObjectivesTo broaden the area of operation of the company. To become a leading company among the dearer flights. To generate more revenue. TacticsProduct- Ryanair is going to furnish a new package of business
class flights to attract new segment of customers towards it. Price- Company will be charging premium prices from the customers irrespective of its low cost pricing policy. Place- The new package will be available in all the routes in which the company is dealing currently. Promotion-Advertising through social media will be used to promote the product along with the banners informing the new package will be displaced outside the airports. Controllingand Monitoring Evaluation Benchmarking technique can be used by the company. In this tool, the results brought up by the new package will be compared with that of the competitors of the industry and an analysis will be done to improve the areas which are pulling the product backwards. CONCLUSION From this above report it is concluded that, business strategy use to provide all the external and the internal advancement so as to make the strategies for companies advancements. It provides the externals and the internal factors like SWOT analysis helps out to know the strength and the weakness of the company with the new opportunities. PESTLE analysis discuss about the positive and the negative impact on all the factors made in it. As Ryanair is alow pricing company it can maintain the cost strategy to make themselves better from all the competence in the market and also by evaluating different market shares ion the company. Furthermore, it is also analysed that VRIO provides the strategy and the method that can be applied in the company.
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