Internal Environment Analysis and Strategic Recommendations for Ryanair

RUNNING HEAD: Strategic Management
Strategic Management

Strategic Management 1
Executive Summary
The focus of this report is on the case study of Ryanair which is an Irish airline founded in the
year 1984. Ryanair belongs to the budget airlines industry of Europe and is in a strong position.
This report focuses on the internal environment analysis of Ryanair through VRIO analysis,
SWOT and TOWS analysis. Furthermore, eight step change management model by John P.
Kotter has been proposed to be taken into account by Ryanair. Moreover, it also provides
strategic recommendations based on the analysis and makes evaluation of its suitability,
feasibility and acceptability.

Strategic Management 2
Contents
Introduction......................................................................................................................................3
Internal Environment Analysis........................................................................................................3
VRIO Analysis of the company.......................................................................................................4
SWOT Analysis and TOWS Analysis of the Company..................................................................5
Proposed Change Management Methods and Theories...................................................................8
Strategic Recommendations on the basis of Analysis...................................................................12
Suitability, Feasibility and Acceptability Evaluation....................................................................12
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

Strategic Management 3
Introduction
Ryanair is an Irish airline which was founded in the year 1984 having its headquarters situated in
Dublin, Ireland. The primary operations of Ryanair are based at London Stansted and Dublin
airports. In the year 2016, Ryanair was considered as one of the largest airline of Europe by
scheduled passengers flown and created a record of carrying more international passengers as
compared to other airlines. The characterization of this airline is made on the basis of its rapid
expansion resulted by deregulation of the aviation industry in the year 1997 in Europe and the
victory of its low- cost business model. 37 countries in Africa (Morocco), Europe and the Middle
East (Jordon and Israel) are served by the route networks of Ryanair (Malighetti, Paleari &
Redondi, 2009).
The European aviation market suffered from the impact of Brexit and by giving due
consideration to rising oil prices, overcapacity and high competition, it was decided to minimize
the structural costs for the purpose of gaining success across the sector. Ryanair and EasyJet
belonged to the European budget airlines industry and remained in a strong position in the year
2017.
This report focuses on the internal environmental analysis and evaluation of the strategic options
adopted by Ryanair by making VRIO analysis, SWOT and TOWS analysis of the company and
proposing effective change management theories and methods. This report also provides
strategic recommendations based on the analysis made along with the overall evaluation of the
recommendations in terms of suitability, feasibility and acceptability.
Internal Environment Analysis
For the evaluation of the strategic options adopted by the company, it is important that the
internal strategic capabilities of Ryanair should be analyzed. This analysis will identify the key
internal strength and weaknesses of Ryanair from the SWOT analysis of the airlines. This will be
achieved by making the examination of resources and competencies for Ryanair by way of
applying VRIO model and analyzing the way in which the business functions are performing
within the organization.