Strategic Management - Ryanair
Added on 2020-10-22
11 Pages2988 Words108 Views
Strategic Management
Table of ContentsINTRODUCTION...........................................................................................................................3MAIN BODY...................................................................................................................................3Ryanair- Background information...............................................................................................3External Airline industry analysis by using strategic tools..........................................................4Analyse the three major direct competitors to the Ryanair..........................................................5Analyse the internal environment by using the relevant strategic tools.......................................6Strategic directions evaluated the Ryanair's strategic choice and future strategic direction........7Critically evaluation on the selected future strategy in Ryanair..................................................8Justification of selected future strategy........................................................................................8FUTURE RECOMMENDATION...................................................................................................9CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10Books and Journals.....................................................................................................................10
INTRODUCTIONStrategic management is basically a continuous process that can be used for the purposeof planning, analysis and monitoring all the assessment which is required in organization toachieve their goals and objectives. It is generally applicable for long term planning and providethe direction the business to handle the task in proper manner. Ryanair is a type of low costairline which founded in 1984, headquartered in Ireland, with primary operational bases. Ryanairwas founded in 1895 by the Ryan family to give the proper scheduled for passenger servicesbetween UK and Ireland. This report will discuss about Ryanair airline industry that can usedifferent type of business model to manage the operations and financial performance at the timeof recession. Furthermore, this document will discuss about the internal and externalenvironment factors. MAIN BODYRyanair- Background informationRyanair was founded in 1895 by the Ryan family to give the proper scheduled forpassenger services between UK and Ireland. On the other, as alternative to then state monopolyairline. The Ryanair airline was provided the full services such as two classes of seating andthree leasing aircraft etc. The organization is consisted of repositioning Ryanair as a low cost fares. It is alsoproviding the service according to the choices of customers and also improved the travelservices by using digital concept. This organization has followed the specific strategy to adopt the digital platform forimproving the flying experience which allows for user to bring bags. Enhance the digital concept to launching a new idea, the simplest website and Ryanairapplications where consumer easily access the details. (Pels, Njegovan & Behrens, 2017).Changing its previous policy of concentrating on cheaper secondary airports and also added tothe networks. In 2015, They offered various type of services relating 1,600 plus flights per dayfrom 190 airports across the Europe. In additional leased air craft to give the extra capacity insummer seasons. In this way, it was increased the growth 11% from the 81 million passengers in2014 to 2015. They also expected to be 105 million in 2016 and load factors increases from 83 %to 89%. As per December 2015, Ryanair were shared the trading range in between €1-4.60 to€15.08 with increase the profit rate. Afterwards, Ryanair began to pay the serious of special
dividends. It had engaged in the different share buyback and company had returned over the 2.9billion to share holders over the eight years, In this way, it is subsequently increased the interestrate to the 29.8 % at the total aggregate cost of 407.2 million. External Airline industry analysis by using strategic toolsExternal analysis had been conducted by using PESTLE framework to determine theenvironment conditions and situations of business. Pestle analysis is a Framework a which isused to analyze or monitor the macro environmental factor that may have profound the impact onRyanair performance (Ansoff & et.al., 2019). There are different external factors such as :Political Factor- There are the strict rules and regulation for the Ryanair airline industry.It associated with the risks such as damaged and accident. There are specific factorsinvolves policy, foreign trade, labor law, trade restrictions and environmental law etc.these are the major element that impact on the Ryanair airline.Economical Factor- this factor influence on the Ryanair airline and determinants ofcertain economy performance and efficiency. The recent economic recession made themarket to see the lowest period. Ryanair were under the pressure to cope with increasingthe price of fuel. These are the different factors that impact on the Ryanair industrywhich needs to maintain their business process because it directly affects the country. Social Factor- Ryanair always create social value in order to meet the changing demandof customers, the organization is required to incorporate changes, Many Passengers arepreferred those airline which are providing the best quality of service at cheap price. Inthis way. It impacts on the airline industry and decrease the number of travelingpassenger. Technological Factor- Technology is the advancement of modern facilities whereRyanair has provided the online services so that customer easily booking. The companyalso conducted the online campaign on the social media network for attracting morepeoples. The increased technology can make airline gain more profit in globalmarketplace. Legal factor- This factor is holding the special importance for analyzing the externalenvironment of Ryanair airline. There are various type of rules and regulations whichnecessary for airline to offer the safe travel along with the high quality of services.
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