SWOT and PESTLE analysis of Ryanair and Leadership Styles

This report analyzes the internal and external environment of Ryanair through SWOT and pestle analysis affecting the company directly and indirectly. It evaluates the pestle factors that have influence on the opportunities and threat of the company. The report highlights the leadership styles suiting and non-suiting the company based on pestle analysis. Further, with the help of examples, the report outlines the importance of Corporate Social Responsibilities (CSRs) for Ryanair.

Context of Business

TABLE OF CONTENTS
TABLE OF CONTENTS 2
INTRODUCTION 3
TASK 1 3
SWOT and PESTLE analysis of Ryanair....................................................................................3
TASK 2 6
Evaluation of pestle factors with respect to opportunities and threats to the organization.........6
TASK 3 8
Leadership Styles that will suit and not suit the company..........................................................8
TASK 4 11
Corporate social responsibilities of Ryanair.............................................................................11
CONCLUSION 13
REFERENCES 14

INTRODUCTION
Ryanair is an Irish airlines company founded in 1984. The company has its headquarters
in Swords, Dublin, Republic of Ireland. It is the largest airline group of United Kingdom. This
report will analyze the internal and external environment of Ryanair through SWOT and pestle
analysis affecting the company directly and indirectly. This report will evaluate that pestle
factors that has influence on the opportunities and threat of the company. Through the leadership
styles suiting and non-suiting the company based on pestle analysis will be highlighted. Further,
with the help of examples the report will outline the importance of Corporate Social
Responsibilities (CSRs) for Ryanair.
TASK 1
SWOT and PESTLE analysis of Ryanair.
SWOT ANALYSIS
Strengths Weaknesses
 Fleet Strength: The company has a
fleet of 450 aircraft, planning to
make it 600.
 Strong Balance Sheet: In the
statement of The Irish Stock
Exchange, company has 3.8 Euros as
cash equivalent. The profits of 1
billion is projected by the company.
 Business Model: During the
pandemic where most of the
companies in airways sector cut
down the costs Ryanair through add-
ons offers non-essential services to
keep its costs low.
 Stock Market Performance: The
rating of the company has been
upgraded by the Investor’s Business
 Refunds: Customers of the company are
unhappy with its refund policy.
 Layoffs and Grounding: 3000 jobs had
been cut by the company for
restructuring purposes.
 Controversial Positions: The company
remains in bad controversies because of
the statements by the CEO.
 Bad Reputation: Ryanair has bad
customer score as a result of its structure
of pricing.
 Strikes: The members of the union
expressed their dissatisfaction regarding
pay and working conditions as a result
company had to face 48 hours strike.
 Management of employee relation: The
company have weak relations with its

Daily (Complete SWOT Analysis of
Ryanair – Company Highlights,
2022). The company is the safest
firm in airline sector for buying
shares.
 Routes: 1831 routes are offered by
Ryanair. The leads with the
competitor by 65% more routes.
 Europe's Largest Low-Cost Airline:
With over 450 aircraft Ryanair is
Europe's largest low-cost airline.
 Modern Era Aircraft: The
operations of Boeing 737-800 aircraft
are exclusive to Ryanair. This allows
the company in keeping expenses to
low along with the maintenance of
the requirements to high safety.
 Low Airport Prices: The company
exerts its pressure on airports to
reduce their fees while it determines
the location to fly from when large
number of passengers start to return.
employee.
 Seasonality of earnings: The
companies’ earnings are highly
seasonal.
Opportunities Threats
 Government Assistance: COVID
corporate financing facility by the
government has benefited the
company through loan of 800 million
euros.
 Survival of the fittest: In the
situation of crisis like gulf wars, 9/11
crises, very high fuel prices and
 Government Regulations: No control of
the company over the regulations by the
government.
 COVID-19 Restrictions: Confusion and
inconsistency in the restrictions during
covid-19.
 Video Conferencing: Estimates of
Chicago Booth Review revealed that

meltdown in 2008, became the reason
for bankruptcy declaration of many
airlines but the company survived all
the situations proving its resilience.
 Talent Availability: The company
has the opportunity to hire the best
skilled proficiency talent.
 Increase customer satisfaction: The
company can improve its customer
score through better processes.
business conducts meeting over video
conferencing with external clients. The
revenue stream may threaten for
business travelers.
 Air Travel Confidence: Coordinated
efforts and measures to boost
confidence to customers.
PESTEL ANALYSIS
Political Economical Social
 Brexit uncertainty is a
negative impact on the
business.
 Terrorist attacks more
frequently in Europe
negatively impacts
company’s smooth
operations.
 Rise in fuel impacts the
company negatively.
 Pressure on fare prices
due to post Brexit GBP
weakness.
 Pandemic impact on
economy and aviation.
 High speed rails
preference of the
customers over airlines
will have negative
impact on the company
(PESTLE ANALYSIS ,
2022).
 Will of customers to
spend more when the
costs of tickets are less.
Technological Environmental Legal
 Digital platforms
enhancement will have
positive impact as it
improves experience
of the customers
 Costs of the company
may increase due to
regulations of European
Union.
 Focusing on
Environmental initiatives
will be positive for the
 As a result of receiving
certain aid by the state
at its European airports
company is subject to
lawsuit by European
Commission this will
have adverse effect on

company. the company.
 Compliance to dual, UK
and EU regulations
because of Brexit will
increase complexity in
legal environment of the
company.
TASK 2
Evaluation of pestle factors with respect to opportunities and threats to the organization
TOWS ANALYSIS
Strengths Weaknesses
Opportunities The company's strong stock
market performance is linked
to its survival of the fittest
opportunity. Company can
take advantage of its stock
market performance for
surviving in the circumstances
of crisis.
 Social environment of
tendency of customer
to spend more when
discounts are given can
be correlated to the
opportunity to increase
sales volume.
 Technological factor of
advancements in social
Company's weakness of non-
acceptance and discontentment
of its customers regarding its
refund policy is linked with the
opportunity of government
assistance. Company can bring
new refund policies to satisfy
its customers and improve its
image in the eyes of
government to take advantage
through assistance by
government.
 Economic factor of rise
in prices is interrelated
to the weakness of bad
reputation in the minds
of the consumers.

media platforms is
linked with the
opportunity of increase
the customer score with
better facilities being
provided to them.
 Environmental factor
of Ryanair being
focused on
environmental
initiatives is linked
with the opportunity to
increase customer
satisfaction.
 Economic factors for
increase in fare prices
as an outcome of
Brexit will further
adversely impact the
customer satisfaction
with Ryanair.
Threats  The company's strength
of availability of talent
to hire is linked with
the threat of
competition (The
TOWS Matrix ,2022).
 Recruitment of talent
by the competitors
imposes threat for the
company.
 Company's
weakness of bad
reputation is linked
with the threat of lack
of air travel
confidence. Bad
reputation of company
may result in lack of
confidence among the
travellers.
 Social Factor of
customers preferring
fast rails over travel by
air imposes threat of
losing sales volume.
 Legal factor of
Compliance to dual,

UK and EU regulations
is connected to the
threat of increased
government regulation.
TASK 3
Leadership Styles that will suit and not suit the company.
Autocratic or Authoritarian Leadership Style
In autocratic leadership style the leader takes decisions without considering the efforts
and opinions of anyone else. There is no consultation with the members in the team before the
decision being taken by the leader. This type of leadership style is rarely effective and results in
low job satisfaction and poor morale in the employees. This style is effective only in the scenario
of crisis (Wachira, Karanja and Iravo, 2018). The autocratic leadership style is also named as
coercive or commanding leadership style. It allows negligible input or efforts from the team
members of a group. All the decision are needed to be taken by leaders only. The authorizes the
group leader with the powers to dictate all the methods and processes related to work to the team
members. It creates a feeling among the group members that they are not trusted with the
important tasks and decisions that are required to be taken for the completion of goals by the
group. The structure created as a result of this leadership style is very complex and suffocated
with the high level of rigidness in the environment. Out of the box thinking and creativity that is
the biggest benefit associated with the team work is completely finished as the outcome of
adapting this style of leadership by the leader (Vasilescu, 2019). The rules that are established
and tend towards clear communication and needs to be clearly outlined by the leader. This style
is not suited for the company because adapting to this style will:
 Result in an increase in bad customer score,
 Bad reputation of the company,
 Discontentment among employees,
 Poor employee morale.
 This style clearly discourages the input by the group.

 Creative solutions to the problems and expertise of the employees are completely
ignored.
Affiliative Leadership Style
In affiliative type of leadership style leaders put in their efforts in creation of emotional
bonds with the staff members. Through adapting to this leadership style leader makes a mindset
regarding employees come ahead of the profits generated by the organization (Lee, Idris and
Tuckey, 2019). The style focuses completely on people and relationships. It is the act through
which social and emotional bonds between each team member is formed. It is an approach that
creates and sustains the environment at workplace to be peaceful. A leader following affiliative
approach cares and nurtures and stays tuned with the emotions of all the members in the team.
This inspires togetherness, collective work and happiness as well as harmony. Ongoing positive
feedback is valued by the affiliative leader. The style allows engagement between leader and
team member on both formal and informal basis thus, the days when employees had to wait for
the annual performance reviews for their feedback have gone (Gomes, 2020). It is a modern form
of leadership that means that employer takes charge and let the employees known about their
value and worthiness as a part of team. This leadership style is best suited for Ryanair because it
will result in:
 Increased job satisfaction for employees,
 Good customer score building,
 Establishing employee-employer relationship with trust,
 Enhanced sense of belongingness in the organizational employees,
 Improvement in communication,
 Creation of working environment with harmony.
 Constructive feedback that boosts the morale of team members and enhances their
performance.
 Harmonious work culture helps in interpersonal conflicts being resolved swiftly.
 Establishment of a sense of loyalty on the part of employees as a result of emotional care
and physical well-being by the employer.
 Stress free and easy to manage work flow by the employees because of the flexible and
autonomous environment and the workplace that creates breathing space for the
employees.

 Emergence of strong leadership with empathy and compassion that enhance employee
morale and emotional recovery from business crises.
Coaching form of leadership style
This leadership style is distinguished by collaboration, support and guidance. The focus
of coaching leaders is to emerge the best teams by guiding the employees based on goals and
obstacles. Autocratic from of leadership is opposite of coaching form of leadership (Purwanto,
Asbari and budi Santoso, 2019). Great time and energy are given by a coaching leader to identify
and nurture the strengths of team members. A coaching leader puts his time to possess deep
understanding of the reports in order to be aware about the beliefs, dreams, hopes and values of
every member in a team. This style of leadership is similar with democratic and affiliative
leadership styles the major distinction is a coaching leader is more concentrated on the growth
and success of the employees individually. Leaders following this type of leadership style
promotes positivity in environment that stimulates encouragement and freely conducts
communication. The employees may sometimes think of being micro managed by their coach
leader. Lot of time and energy is required in this style (Kalsoom, Khan and Zubair, 2018). This
technique does not always lead too fast and efficient results. It is not always an ideal choice for
companies that are result driven and high pressurized. This type of leadership style is suited for
Ryanair because:
 Through this dual way communication and collaboration are encouraged.
 Involvement of constructive feedback.
 Facilitation of personal and professional development on the part of individuals.
 Being focused on supportive and not judgmental approach. Creation of more opportunities for growth and development.
Transactional Leadership Style
Transactional leadership is also called as managerial leadership. In this leadership style
top management relies on their subordinates for rewards and punishments that are needed to
achieve optimal job performance from the employees (Ramesh and et.al., 2019). In this type of
leadership style employer or leader is only concerned to one thing that is the work that has been
done by the employees or team members.
This type of style is commonly seen in the sales teams, where a leader who is following
transnational leadership style sets target for sales to be achieved. Rewards in form of bones are

given to the member who reaches the target. The roles and responsibilities are clear in this style
so no chances for ambiguity are there (Siripipatthanakul and Sixl-Daniell, 2021).
This type of leadership style is not suited for the Ryan air as this creates de-motivation in
the employees or team members. It results in bare work done by the employees as they know the
worth of doing their work all the time.
Gestures of unscheduled appreciation are used by transactional leader to keep their team
members engaged and motivated. This type of leadership style works in an environment that is
structured and, in the company, where processes are established through defining roles according
to that specific task that are to be accomplished.
Transactional leader work within an existing structure of an organization according to
transactional leadership style. The transactional leader seeks delivery of articulated and
measurable results to a particular task from its subordinates.
The evaluation of subordinate by a transactional leader is based on the fact whether the
employee meet the requirements and expectations related to results or not. This leadership style
is not suited for Ryanair as:
 Only short terms goals can be achieved by this style.
 This technique is not able to inspire and propagate creativity.
 Procedures are established an expense of innovation.
TASK 4
Corporate social responsibilities of Ryanair
Corporate social responsibility is an approach through which a business organization
undertakes the social issues and environmental issues along with the shareholders' business
concerns and profits. It is a model of business that is regulated by the business itself. This model
enables organization to be accountable for social responsibilities to company itself, its
shareholders and the society (Mirayani, and et.al., 2019). Practicing corporate social
responsibilities is also known as corporate citizenship. Consciousness in companies regarding the
type of affect they have on the sum total of all the aspects of society, economy, environment and
social comes from the corporate citizenship. Engaging in corporate social responsibilities by a
business in its ordinary course of business operations means the methods or ways through which
they bring prosperity to the society and environment.

Importance: It helps Ryanair to attract and retain employees: By taking up the corporate social
responsibility Ryanair ensures that the company is compassionate and all people are
treated well by the company including the employees of the company. Through this
company attracts more and more talent by showing that it is committed towards
improving the world (Firdaus, Purnamasari and Akuba, 2019). More productive and
better works environment is created for the employees. Corporate social responsibility improves the perception of the Ryanair among its
customers: Today's business world has stiff competition which can be a little challenging
for the company in terms of setting itself distinct from its competitors in the eyes of the
customers. Ryanair undertakes social responsibility to win the consumers along with the
development of platform that is capable to earn the attention by the audience. Social
responsibility enables people to see Ryanair as a positive force of the society. The
projects taken up by the company's management and its team helps in raising the
awareness about the important causes that keeps the company top of mind. When it
comes to branding CSR also imply its importance (Donia and et.al, 2019.). In order to
have a successful brand that is capable to retain the customers, company must create trust
within its target audience. Ryanair believes that with the help of appropriate CSR strategy
it can build a good reputation and earn the loyalty and trust with the customers. Customer
loyalty helps business for a long way. Customers are key factor that makes a business
functioning. The customers in return for their loyalty want companies and businesses to
do something for the society and not just focus on the profits only. Customer opt and
stick to the company that are not just oriented with the profit factor. CSR shows investors of Ryanair the accountability sign of company: More socially
responsible business attracts more investors towards it. All investors have common goal
in totality that to earn high returns over the money invested by them. Businesses are seen
as accountable and transparent if in their projects of helping communities they handle the
management of the finances adequately. Ryanair saves money through corporate social responsibility: Socially responsible
company like Ryanair earns more profits as the customers will to spend more on the
brand that understands and undertakes its corporate social responsibility. CSR also

attracts and retain the employees in the organization this helps it to save costs because
employee turnover ratio stays low. CSR enables the company to better engage with its customers: corporate social
responsibility helps company in engaging with its customers. Through many forms of
CSR company involves in direct interaction with the societal members that are both
customers and potential customers (Nazir and Islam, 2020). Ryanair gets direct feedback
from its customers regarding the activities performed by company and the areas on which
company need to be improved. Customers that are part of company's CSR advertise
effectively through word of mouth to the organization's potential customers.

CONCLUSION
Based on the report SWOT and pestle analysis of Ryanair has been highlighted. The
report has evaluated the company's opportunities and threats based on the factors that have been
highlighted through pestle analysis. In addition, report also outlines the link between company's
strengths and opportunities and weaknesses and threats. Further, the report has also analyzed the
leadership styles that are best suited and unsuitable for the company. Lastly the report has
discussed the importance of corporate social responsibility in context of Ryanair.

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Online
Complete SWOT Analysis of Ryanair – Company Highlights. 2022. [Online]. Available through:
https://iide.co/case-studies/swot-analysis-of-ryanair/
PESTLE ANALYSIS . 2022. [Online]. Available through: <https://pestleanalysis.com/ryanair-
pestle-analysis/>
The TOWS Matrix .2022. [Online]. Available through:
https://www.mindtools.com/pages/article/newSTR_89.h