Transition to Circular Economy: A Case Study of Ryanair

This report discusses the transition of Ryanair to the circular economy, including the barriers faced and solutions implemented. It also provides an overview of the circular economy and its principles. The report highlights the cultural, technological, regulatory, and market barriers faced by businesses in transitioning to a circular economy. The challenges faced by Ryanair in reducing cabin waste and implementing flexible catering are also discussed.

International Strategic management

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
Books and Journal......................................................................................................................11

INTRODUCTION
International strategic management is considered as the continuous management planning
procedures that intent to develop strategies in order to enable firm for expanding worldwide as
well as accomplish globally. Moreover, this is vital as it tends to drive strategies of successful
enterprises into diverse market environment (Akpinar and Sahin, 2019). Additionally, In order to
succeed in an economy a business needs to be remaining working with Business Ethics and has
to maintain its sustainability. The businesses are required to shift from the linear economy to the
circular economy in order to achieve success in the market. For the purpose of this report the
example of Ryanair Company has been identified. Ryanair is a low-cost airline that was
established in 1984. The company's headquarters are in Dublin, with principal operations at the
Dublin Airport for the Blind and London Stansted Airport. This essay contains the overview of
the Ryanair Company and its transition to the circular economy. It also contains the several
example that helps to identify the barriers that the Ryan Air has faced in order transit from linear
economy to the circular economy.
MAIN BODY
Ryanair is a big corporation that was established in 1984. In 2016, it overtook Ryanair as
the largest European budget airline, carrying more international passengers than any other
carrier. They have about 400 Boeing 737 NG to 800 NG aircraft on the ground, some of which
are employed as charter planes and others as backup planes for pilot training. There is a firm that
is well-known for its rapid growth and success as a result of its low-cost business plan. Ryanair
is well-known for providing low-cost airline services throughout Europe. With the use of their
route network, the organization can reach around 40 nations throughout Europe. The firm does
not operate on the basis of providing free food and drink on board and charging to take us on a
tour for the same. Other sources of revenue for the company include hertz car rentals, hotels,
phone cards, and bus tickets, which account for 16 percent of the company's profit. Aside from
that, the Run air airline has supplied services such as passenger and cargo transportation to
numerous places. It is the company's primary product or service to give to its customers, with the
ones described above and others being secondary to it. It also assisted their consumers in
avoiding agency fees by allowing them to order tickets only through their websites.

Circular economy is undertaken s the industrial system which is restorative through
intention as well as design. Moreover, this replaces the end of life aspects with restoration,
shifting towards utilization of renewable energy. Additionally, this also obviates the usages of
toxic chemicals that impair ruse as well as return towards biosphere and intent for waste
elimination by effective designs of goods, material, techniques and models of business.
Currently, circular economy plays essential role into firm (Amason and Ward, 2020). As this is
regarded as the economic model that focus upon waste management after reuse, through re-
utilizing resources, repairing and recycling instead of producing the all new one to reduce raw
material uses as well as recycle them as it can able to. The concept of circular economy is
regarded as the crucial strategy within environmental conservation that focuses on waste
management after consumptions. Furthermore, respective concepts have crucial implications for
packaging and manufacturing methods. Also, circular economy is different from traditional
economy into a linear model that considers resource reuses in production process. Rather than
this, it does not undertake any form of longer term waste disposal. Essentially, e- waste that is
often landfill or burned after breaking the uses. It also develops final European commodities
manufacturer or importers who considers the load of waste disposal after their consumption. So,
the EU has adopted packaging of circular economy as guidelines for member countries is to
enhance their competitiveness and leads towards sustainable economy growth.
However, the concept of circular economy is based on few essential principles that are;
maximizing natural capital, through managing bounded natural resources the initiatives along
with resource value formation at every opportunities. The resource management turnover would
leads towards intelligent resource adoption through implementation of renewable as well as
effectual technologies and availability of resources (Angiola, Bianchi and Damato, 2019).
Additionally, the revolving economy would aids in growth of natural capital by managing the
flow of resources into system and develops effective circumstances for resources resumptions
such as soil quality and many others. The other principles is utilizing resources to maximize
their advantages, it may be performed through rotation, components, aspects of items as this
facilitates additional advantages. In addition to this, it leads towards re- development, recycling
and renovating in order to maintain the flow of elements and objects into economy. Maintain
effectiveness of system, it is also vital principle. It may be performed by developing as this

assists them to obviate adverse externalities form commodities. Moreover, this involves negative
impact reduction on human welfare such as transportation, housing, education, foods and health.
Also, the adverse impact the management results from resource usages that are soil, climatic
change, water, air pollution and soil.
Cradle to cradle design, or C2C design, is a common term. It's a theory that's been
devised and applied to help a country's economic recovery. In the year 1990, it was conceived or
designed by a German scientist named Dr. Michael Grandguard and an American architect
named William McDonough. When De Real Eyes notices big mounds of rubbish that are causing
significant pollution in the environment, they debate how these waste might be repurposed to
create something new and helpful. It benefits the environment by reducing harmful waste and
using biological nutrients, which act as manure (Bartošova and et. al., 2020). This design is
beneficial to the ecosystem's upkeep as well as the development of numerous businesses,
societies, and the environment. This is why the circular economy was created, since it is a
concept that states that resources should be conserved through maximizing their use. It claims
that there is a critical need to decrease trash on Mother Earth, which may be reduced by
recycling or decomposing it, which helps to generate fertile manure for the ecosystem.
The blue economy system is a theory that is based on the ZERI philosophy. Zero
Emission Resource & Initiative (ZERI) is an acronym for Zero Emission Resource & Initiative.
Guntur Pauli created or devised this idea in 2004. This strategy or philosophy aims to move the
focus of society away from resources and toward evidence and resources. This idea operates in a
very unique way, reducing waste from the air throughout the research process and fostering new
businesses. The concept behind this technique is to use a scientific method to represent a promise
in a lifelike manner. It focuses entirely on the local community in order to make many attempts
to enhance the community's functioning. It aids in the development of an existing economy by
injecting cash inflows and currency into a local economy, as well as emphasizing the importance
of purchasing items from local vendors. The emphasis on buying local items leads to the
acquisition of more and more products, lowering an organization's costs.
The concept of a circular economic system was first proposed in 1970. It is a notion that
aids in working with market sustainability by enhancing resources and altering the market's
existence. This hypothesis was established with the aid of William McDonough's cradle to cradle

theory in his book. The notion of circular economy has been focused by stakeholders, most
notably the government and people, in order to improve a country's economy and offer a better
environment for citizens. It focuses on producing or manufacturing items in such a way that they
may be recycled or reused (Cabral, Carvalho and Ferreira, 2020). They are created in a way that
is long-lasting and aids in the development of functioning abilities.
The major distinction between the circular and linear economies is that the circular
economy focuses on repurposing current products as raw materials to generate new products,
whereas the linear economy repurposes waste raw materials to create new products. Not only is
cradle to cradle design linked to circular economy, but so is the blue economy system concept,
which helps to apply left local community (Esenyel, 2020). Local and small business owners
may be more focused and increase their sales with this technique, which will help them stay
afloat in the market. Both of the aforementioned ways are totally connected to the circular
economy and what a country can do to minimize pressure and influence on the economy in
general. It helps to reduce pollution and waste during the production process, which is extremely
high when a product is made (Lopez, 2020). All of the discussion helps to appreciate how both
ideas contribute to a circular economy that is both supportive and successful.
Various industries as well as government are promoting transition towards circular
economy as a way to attain developed and longer term sustainability and individual’s growth.
Moreover, it is undertaken to be the vital part of circular economy that includes re-utilization of
commodities and materials at end of life, instead of well determined advantages of circular
economy, the huge majority of material as well as items utilized through society remain essential
linear economy part (Gavurova and et. al., 2020). So, the transitions from linear to circular
economy have become main challenges of 21st century and various companies like Ryanair.
Additionally, the circular economy includes keeping resource or material into economic cycle
through forming re-utilization and industrial symbiosis.
Furthermore, there are essentially four barriers for business who desires to transition
towards circular economy that are technological, cultural, and regulatory and market. These
barriers are interrelated. For this, enterprises with a firm culture hesitant towards circular
economy that would not formed circular designs (Greve, 2021). So, customers would lack
interest as well as awareness related to circular designs as none of these are provided within

market. It states that cultural barriers may persuade technological barriers which encourage
cultural barriers. Other illustration related to interrelatedness are regulatory as well as market
barriers. For it, restricted circular procurement may outcomes in bounded funding for circular
ventures model since it cannot become competent to explain credibly that there is a market for its
goods within absence of those procurement. In addition to this, it turn can further challenge the
growth of international consensus within policy makers related to transitioning towards circular
economy. Therefore, regulatory barriers may persuade market barriers that induce further
regulatory barriers. Along with this, the interrelatedness of four classified of circular barriers
might outcomes into chain reaction towards failure of circular economy, with economy them
remain into their present business (Kodama, 2019). Apart from this, analyzing the four categories
of circular barriers and its various sub-categorized in explanatory way that can reveal insights
related to root cause of failure about transition towards circular economy. Once these root cause
are determined, targeted interventions may be consider for breaking the reaction of chain towards
failure of circular economy as well as replacing this with one which is geared towards transition
of circular economy.
Within circular economy, the cultural barriers emerges as the key obstruction related to
transition towards circular economy along with three out of five much imperative barriers
determined being cultural ones. Rather than this, these lack customer awareness as well as
interest. It has been analyzed that due to transition towards circular economy firm culture is an

issues that frequently represented that many ventures would remain stuck into its present
business models that even few circular economy actions had already been considers. Also, it is
much mind set problems (Ramli and Hernald, 2019). Furthermore, entities may only deliver
circular goods in case their whole supply chain is circular. Along with this, this is tough from
various entities to identify firms which are also keen for embracing circular economy.
Airlines procedures about 5.7 million tonnes of cabin waste into year as well as number
of passenger enhances. In addition to this, the waste volume could be twice within upcoming 10
years, as per the International Air Transport Association (IATA). Moreover, airlines across the
world have recognized the effectiveness of minimizing, reutilizing as well as recycling waste.
From evaluating data of passenger consumption as well as utilizing compostable dishes and cups,
for donating non- unpreserved food products and lunching on board cans and bottles recycling,
airlines are involved towards preventing cabin waste from lasting into incinerators. So, the
challenges Ryanair faces during transition are in-flight catering performs within strict safety of
foods, hygiene controls as well as weights requirements and freshness. Therefore, plastic
packaging is often go- to option. Also, on- board waste, includes leftover food & beverages
packaging passengers, paper towards, plastic wrapping from head set and blanket and others are
alls consider to national waste management controls which bound pollutions. Some of the
challenges are reducing wastage, various countries have move further with its norms as well as
imposed strict controls upon catering waste from global flights that depends upon animal health
concerns. The regulations, developed for obviating global transfer of diseases like mouth and
foot, speaks that airlines treat catering waste and high risky (Umam and Sommanawat, 2019). As
these norms states airlines hands are joined, sector advocates adaption of smarter waste
legislation that enables much recycle while maintain human as well as animal controls of health.
The other challenge is flexible catering, for assuring the satisfaction of passenger, airline often
stock much food than needed on board flights. Additionally, the flexible catering is regarded as
the one way which airlines may restrain the waste. Also, through tacking consumption above
time, airlines anticipate that beverages and meals are much popular upon any provide route as
well as adjust stock consequently.
Pay as you go, the other solution is pay- as you- go approach in which tourists order
meals before flights that broadly utilized through lower costs carriers but also enhancing through

other airlines. Passengers only purchases what it consume, that minimizes the untouched food
amount which should be thrown away. Taking the lead, Ryanair , is obviating variety of singular
plastic products from their lounges as well as aircraft. Also, utensils no longer have an outer
plastic wrapper and are rather rolled into napkin, outer wrappers are detached from amenities kits
and plastic stir sticks as well as straws are removed with birch wood and bamboo. Moreover,
Ryanair is switching towards biodegradable paper packaging, wood cutlery and cups through
2023. Furthermore, the circular economy is also helpful in innovative airport recycling, as one by
goods of air transport’s rapid development is undertaken to be the amount of waste from airports.
Also, the waste is produced from several sources that incorporate retail outlets as well as
restaurants, restrooms, air cargo terminals, airport offices landscaping and others. For mitigating
the waste environmental impact as well as complying with regulatory needs, airports are
maximizing the implementation of sustainable waste management systems.
Ryanair have pledge for obviating whole non- recyclable plastics from their practices
through 2023, as well as launching a voluntary carbon offset payment for consumers while
booking. So, while switching towards biodegradable cups, paper packaging on board, wooden
cutlery and other, they have also committed for making its head – office, bases and operations
free from plastics. Moreover, they have also addressed the plastic parts into aircrafts to observe
what is non- recyclable as well as perform with original equipments producers for moving
towards much recyclable plastic (Ryanair pledges plastic free flights by 2023, 2021).
An aircraft would essentially remain into service for about 20 to 25 years. At the time,
this would fly upon average about 40, 274, 144 km, also above 1000 times across the world
along with few long haul aircraft flying above 100 million km. Additionally, once this reaches
the end of their helpful life, 85% to 90% of aircraft may be recycled. Moreover, this assures
appropriate disposal, but may undertakes benefits of various higher quality elements as well as
materials. The sector is affirmative which present rates of recycling may be maintained as
advancement for technologies. In addition to this, The Aircraft Fleet Recycling Association
(AFRA) is performing with 72 forms like engines as well as aircraft producers, elements
operators and suppliers to develop best practices for disposal of aircraft as well as recycling.
These entities recycle above 150 aircraft as well as 30,000 tonnes of aluminum each year. Also,

producers are also assuring the new aircraft are developed not only for longer, safe as well as
effectual life but also for life end opportunities (Velikorossovand et. al., 2020).
CONCLUSION
As per the above report, it has been concluded that international strategic management is
essential as this is the continuous management planning procedures that intent to develop
strategies in order to enable firm for expanding worldwide as well as accomplish globally.
Moreover, this is vital as it tends to drive strategies of successful enterprises into diverse market
environment. In addition to this, circular economy plays essential role into firm. As this is
regarded as the economic model that focus upon waste management after reuse, through re-
utilizing resources, repairing and recycling instead of producing the all new one to reduce raw
material uses as well as recycle them as it can able to. In addition to this, it is undertaken to be
the vital part of circular economy that includes re-utilization of commodities and materials at end
of life, instead of well determined advantages of circular economy, the huge majority of material
as well as items utilized through society remain essential linear economy part. So, the transitions
from linear to circular economy have become main challenges of 21st century and various
companies. Additionally, the circular economy includes keeping resource or material into
economic cycle through forming re-utilization and industrial symbiosis. Apart from this, there
are essentially four barriers for business who desires to transition towards circular economy that
are technological, cultural, and regulatory and market.

REFERENCES
Books and Journal
Akpinar, H. and Sahin, B., 2019. Strategic management approach for port state control: The
Black Sea Memorandum of Understanding detention analysis. Maritime Business Review.
Amason, A.C. and Ward, A., 2020. Strategic management: From theory to practice. Routledge.
Angiola, N., Bianchi, P. and Damato, L., 2019. HOW TO IMPROVE PERFORMANCE OF
PUBLIC UNIVERSITIES? A STRATEGIC MANAGEMENT APPROACH. Public
Administration Quarterly, 43(3).
Bartošova, V. and et. al., 2020. Strategic Management of Development and Institutional
Formation of Organizations. Academy of Strategic Management Journal, 19(3), pp.1-8.
Cabral, Â.M.R., Carvalho, F.M.P. and Ferreira, J.A.V., 2020. International Strategic
Management: A Conceptual Model with Top Managers’ Emotional Intelligence, Cultural
Intelligence, and Networking. information, 11(12), p.577.
Esenyel, V., 2020. Corporate reputation as a strategic management tool: Through the lens of
employees. International Journal of Management and Sustainability, 9(1), pp.24-42.
Gavurova, B., and et. al., 2020. Strategic management in SMEs and its significance for
enhancing the competitiveness in the V4 countries-a comparative analysis. Management
& Marketing-Challenges For The Knowledge Society.
Greve, H.R., 2021. The organizational view of strategic management (pp. 43-59). Oxford
University Press: New York, NY.
Kodama, M., 2019. Developing Holistic Strategic Management in the Advanced ICT Era.
Ramli, R. and Hernald, Y.I., 2019, March. The Analysis of Strategic Management of Fajar in
Increasing Corporate Income. In First International Conference on Materials
Engineering and Management-Management Section (ICMEMm 2018) (pp. 153-157).
Atlantis Press.
Umam, R. and Sommanawat, K., 2019. Strategic flexibility, manufacturing flexibility, and firm
performance under the presence of an agile supply chain: A case of strategic management
in fashion industry. Polish Journal of Management Studies, 19.
Velikorossov, V.V., and et. al., 2020. Strategic management.
Online
Ryanair pledges plastic free flights by 2023. 2021. [Online]. Available
through:https://www.thefuturescentre.org/signal/ryanair-pledges-plastic-free-flights-by-2023/.