Strategic Management Report for Ryanair

This report analyzes the impact of macro environment on Ryanair, its internal environment and capabilities, competitive forces of the market sector, and strategic planning for the organization. It includes frameworks such as PESTLE analysis, stakeholder analysis, SWOT analysis, Ansoff matrix model, and McKinsey's 7S model.

Strategic Management
Report

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1: Applying appropriate frameworks analyse the impact and influence of the macro
environment on a given organisation and its strategies..........................................................3
TASK 2............................................................................................................................................8
P2 Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks.............................................................................................................................8
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 .............................................................................................................................12

INTRODUCTION
A business may be defined as an entity in which an individual or group of individual are
engaged in different commercial, professional and industrial activities in order to earn more and
more profit. Varieties of goals has been set by the higher authorities of the business. By
achieving all the set objectives, a company can maintained its growth in the competitive market.
It is very important for the management of the organisation to make the proper and sound
business strategies(Albukhitan, 2020). These strategies not only help in analysing the market but
also help them in enjoying the competitive advantage over their rivals. The strategies of the
company has been made on the basis of goals and objectives which are defined by the higher
authorities. The following report is based on the Ryanair company which is a well known Irish
ultra low cost carrier founded in 1984. The primary headquarter or operational base of the
company is located at Dublin and London Stansted airports and has has Ryanair
UK, Buzz, Lauda, and Malta Air as subsidiaries airlines. The respective company operates in
more then 400 Boeing 737-800 aircraft, in which 737-700 are used as as charter aircraft, or as a
backup. The following report is going to provide information about the internal an external
analysis of the respective company with its strategies within the organisation by applying porters
generic and Bowman strategic clock.
TASK 1
P1: Applying appropriate frameworks analyse the impact and influence of the macro
environment on a given organisation and its strategies.
All the conditions which is related to the micro environment is use to be implemented in
all the countries(Amoako, and Dartey-Baah, 2020). This help in developing proper strategies
and programme with which all the working areas and techniques can be effectively measured and
identified. It is very important for all the organisation to develop these strategies in proper
manner as this help them in enhancing their future goals and target and also assist in identifying
the needs of the company. According to the mission and objectives of the company major
strategies has been used by the Ryanair in order to maintain the flow of goals and objective
within the firm. This has been discussed below :-

 Mission :- the mission of the company is to provide low fare programme to their
customers and also develop the different sound strategies which assist them in framing
cost and operations.
 Objectives :- the first and the foremost objective of the company is to focus on
providing high quality and good services to their passengers and established a low cost
fare firm.
Techniques which are used in strategic planning
 Benchmarking :- Benchmarking may be defined as those technique which are used by
the organisation in comparing their business processes and performance metrics with the
other companies(Arifiani, and et.al., 2021).
 Business Analysis :- business analysis may be defined as those technique which are used
by the organisation in order to create and implement the plans, in order to identify the
needs and best result for the company.
Analytical approach which are used in macro environment
PESTLE analysis :- this framework assist the firm in developing and implementing the different
business strategies. All the external factors which directly impact on the operations of the
business can be effectively identify. PESTLE analysis in relation to the Ryanair company has
been discussed below :-
 Political :- this factor is related to the rules, tax policies and many more which are
developed by the government of the nation. The political stability of the government and
their relationship with the other countries have a great impact on the airline industry. In
context to the Ryanair, the government of the nation mandate the all the airline industry is
abides by political policies of the country. But the respective company was totally against
the idea of including them in European union emission system, they believed that
additional taxation policy was unfavourable for them(Bagnoli, Vedovato, and Costantini,
2020).
 Economic :- this factor comprises of economic change, profitability change, interest rate,
GDP rate inflation rate and many more. In relation to the Ryanair, the COVID 19
pandemic and increase in the rate of fuel directly influence the whole aviation industry.
Increase in the fuel rate significantly reduces the profit margin of the company. Along

with this the purchasing power of the people has been highly affected because of this
pandemic. The per capital income of the nation has been decreases.
 Social :- this factor comprises of demographic changes, change related to the preferences,
need and behaviour of the consumers. It is very important for the firm to identify all these
changes if they want to stand on the market for a long period of time. In context to the
Ryanair, the management of the company observed that the people of the nation prefer
high speed rail over airline for short haul routes. This affect the profits of the company.
Along with this, during the pandemic travelling has been banned by the government due
to which the sales of the ticket has been highly affected(Browne, and et.al., 2018).
 Technological :- this factor comprises of adoption of innovation and digitalisation within
the economy. It is very important for the firm to adopt theses changes with the change in
time. In context to the Ryanair, the management of the company improvised their website
and also introduced an app for ticket booking in effective manner. This investment in the
advanced technologies assist them in increasing and maximizing their revenues and
profit.
 Legal :-this factor is related with some legal norms and rules which help the organisation
in successfully operate their business activities. In relation to the Ryanair, low cost
strategy has been used by the management of the company which may become
problematic for them after Brexit because they have to follow the laws of both UK and
EU.
 Environmental :- this is related to all the rules and laws which are made by the
government of the nation in order to protect their environment. In relation to the Ryanair,
the carbon footprint is being considered as the alarming point for the management of the
organisation which may affect their operations in the airline industry.
Stakeholder analysis
This is being considered as the most important step which assist the organisation in
developing the different business strategies as it helps in supply excellent quality of product to
their consumer. Along with this, this also assist in overcoming form all the barriers which came
in the way of understanding the growth of project. In context to the Ryanair, stake holder
analysis of the company has been discussed :-

 High Power- High Interest:- these individuals are basically the decision maker of the
organisation and it is required to manage all the activities very closely. In context to the
Ryanair, the top level management of the company came into this and their decision
make a great impact on the organisation(Games and et.al., 2020).
 High power- Low interest:- this grid comprises of those individual who are compulsory
to be kept in loop. In relation to the Ryanair, the workers or employees of the
organisation fall under this category because they need to be keep satisfied by providing
them required detail.
 Low power- High interest:- the individuals who fall under this category are required to
be adequately informed as they assist in the completion of the project. In relation to the
Ryanair, the travel agent of the company fall under this category as they posse the less
power in the organisation but they required to be informed by the company. Low power-low Interest:- this comprises of those individual which possess low power
within the organisation as they may get bored with larger amount of details. In context to
the Ryanair, the airports fall under this category as they posse low power power as well
as the interest in the different operations of the company.
SWOT analysis
It is the framework which is used to identify the strength, weakness, threat and
opportunities of the firm so that it can make and implement strategy accordingly. In relation to
Ryanair, it is narrated below-
Strength
 The respective company have around
450 fleets which is being considered its
biggest strength. Now the management
of the organisation is planning to
increase their fleets form 450 to 600.
 Another biggest strength which possess
by the company is that they keep their
cost always low. This is being
considered as the core business model
of Ryanair. This help the organisation
Weakness
 The main weakness of the company is
that they does not provide the services
of cash refund to their consumer.
Instead of this they offer time limited
voucher to their customers which make
them unhappy and dissatisfied.
 Recently company terminate around
3000 jobs because of the restructuring
of the company which result in laid of
workforce. This directly affect the

in attracting more and more customers image of the organisation in a very bad
manner.
Opportunities
 The management of the company have
the opportunities to expand their
business in all across the globe. In
order to this, they have took a loan
amounting of 800 million euros form
the bank of England COVID corporate
financing facility(Hair and et.al 2021).
 Due to the restriction on travelling form
one place to another because of
COVID, this directly affect the
manufacturers of airline. The Ryanair
have the opportunity that they can
purchase many airline at a very low
cost which reduces the competition.
Threat
 The biggest threat which are faced by
the respective organisation is that they
have no control over the rules and
regulation which are made by the
government. The norms related to the
COVID is violated by the company
which affect their goodwill.
 Another threat which are faced by them
is the less air traffic because of this
pandemic. This take some time to make
the airline traffic normal till the vaccine
is available all across the world
Ansoff matrix model
This is being considered as the most important tool which are used by the organisation in
order to analyse and develop the different strategies for the success of the business in the
competitive market. This comprises of four strategies which assist the firm in expanding their
business all across the globe. In relation to the Ryanair this frame has been discussed below :-
 Market penetration:- this is concerned with increasing the sales of the company with
existing product in the existing market. This strategy is mainly applied by the company in
order to improve their sale in the present market without aiming on bringing anything
new. This strategy can be used by the Ryanair in order to enhance their sale volume by
offering same services with in the same market.

 Product development:- this strategy mainly focus on developing and introducing the
new product in the market of the firm. The main objective of this strategy is to bring
something new in the competitive market in order to attract more and more customers in
the present market(JUNIAR, 2019). In relation tom the Ryanair, the management of the
company can bring new services in the existing market in order to satisfies their
customers for increasing the sales.
 Market development :- this strategy focus on using existing product in the new market
in order to increase their customers base. The respective company can use this strategy in
order to grow their customers base with the help of existing services in the new market.
This also saves the cost of company.
 Diversification:- this is being considered as the most toughest strategy among all. This
strategy is concerned with focusing on entering into the new market with the help of new
product and services. In relation to the Ryanair, the management of the company can
adopt this but this required lots of time as well as money.
Form the above discussion the management of the Ryanair company can use the market
development strategy. With the help of this strategy they can enter into the new market with the
help of new services.
TASK 2
P2 Analyse the internal environment and capabilities of a given organisation using
appropriate frameworks
Strategic capabilities of the organisation and their key components
This is basically a process which comprises of developing and enhancing the different
strategies of the business so that they can stand in the competitive market for a long period of
time and acquire large market area. Basically there are six element of strategy such as purpose,
goal, tool, action plan, value and vision which assist the organisation in improving their strategy
for attaining all the set goals.
Resource based view strategy
This is a managerial frameworks which are used by the organisation in order to determine
all the strategies which can be exploited by them in order to enjoy the sustainability and

competitive advantage over their rivals in the market. The management of the Ryanair company
manage their resources in a very effective manner so that they can make the unique products.
McKinsey's 7S model
This framework is utilize by the organisation in order to analyse its firm design by seeing
the different internal factors. This help in identifying whether these factors are aligned in
effective manner so that they can attain al its target. In relation to the Ryanair this framework has
been discussed below:-
 Strategy:- this comprises of all the strategies which are used by them for achieving
sustainability in the competitive market. The strategy which is being used by the Ryanair
is to offer low fare tickets to their passengers. This help them in sustaining in the market.
 Structure:- this basically shows that in which way the different units and areas of the
company are organised. The Hierarchical organisational structure has been followed by
the respective company which help in communicating within the organisation from top to
bottom in a very effective manner.
 System:- this comprises of all the day to day activities of the business. Both manual as
well as technology has been used by the Ryanair which assist them in carry out the task
quicker and with utmost productivity(Khan, Daddi, and Iraldo,, 2020).
 Skills:- this comprises of skills and ability which are posses by the employees of
company to perform excellent. Training programme has been developed by the Ryanair
for their employees so that they can give better services to their consumers.
 Style:- this comprises of how the top level management of the company manage the
organisation. Autocratic and transformational leadership style has been used by the
Ryanair in which only one leader have the authority to make decision.
 Staff:- this involves the type and number of employees in the company. Around 17500
employees work in the organisation to achieve the organisational goals.
 Shared values:- this comprises of all the rules and regulation which guide the behaviour
of worker within the firm. Te core value of the respective company is that they offer low
priced and value money
VRIO framework

This tool help the company in dividing their resources in four components. In relation to
the Ryanair this has been discussed below:-
Valuable:- in relation to the Ryanair company, financial resources of the company fall under this
category as this resources add value for their customer.
Rareness:- the employees of the respective company are rare in nature. Special training has been
given by the management of the company to their employees so that they provide good services
to their customers.
Imitable:- the customers of the Ryanair company are imitable in nature as they offer low fair
ticket to their consumer(Lee, and Jeong, 2020). It is hard to imitate the culture and community
of the organisation.
Organised:- this involves that all the resources of the company are fully organised. The supply
chain management of the company is well organised which assist the company in providing their
services in better way.
TASK 3
P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given market
sector for an organisation.
This tool is used by the company in determining the competitive environment, in context
to the Ryanair company this has been discussed below:-
 Threat of new entrant:- this is related to the entry of new competitor in the market. In
relation to the Ryanair, Low amount of threat has been faced by the company form this
factor as the aviation industry required huge investment as well as its entry barrier is
high.
 Bargaining power of supplier:- this is related to the, ease for supplier to increase the
price. In context to the Ryanair, high amount of threat has been faced by the company
form this factor as there are only two supplier of airline i.e. Airbus and Boeing. The
company purchase the plane form Boeing(Levinthal, 2018).
 Bargaining power of Buyer:- the power of this force is very High for the company
because of lack of customer's loyalty due to low prices. The customer can switch to the
other airline if company increase the price which result in loss of customer base.

 Threat of substitutes:- this is related to the availability of the substitute product in the
market. In relation to the Ryanair, Low amount of threat has been faced by the company
form this force as they offer rates to their consumer as compare with train fair on their
website. This help in retaining the consumer(Mazzei, and Noble, 2019).
 Threat of competition:- this is concerned with the availability of the competition in the
market. In relation to the Ryanair, the power of this element is very high for the company
as there are well known airline firms in the market which offer same kind of services at
the same prices
TASK 4
P4 Applying a range of theories, concepts and models, interpret and devise strategic
planning for a given organisation.
Porter's generic strategies
This is basically a tool which assist the organisation in understanding that how they can
enjoy the competitive advantage in the market. In relation to the Ryanair, this framework has
been discussed below:-
 Cost leadership:- this strategy state that, become leader in the market by minimising the
cost which assist the company in increasing their profit margin and sales. Low cost
strategy has been used by the Ryanair company which help in attracting more customer's.
 Differentiation:- this comprises of making innovating offering different from their
rivals. In relation to the Ryanair, effective research has been required in order to adopt
this strategy(Mithas, Murugesan, and Seetharaman, 2020). By offering new services in
the market company can attract lots of consumer.
 Focus:- this comprises of two strategies i.e. cost focus in which company focus on
enjoying the cost advantage and on the other hand differentiation focus in which
organisation focus on seeking distinction. In context to the Ryanair, the company can
adopt this strategy by bringing innovative product in the market to enjoy competitive
advantage.
Bowman's strategic clock

This tool has been used by the organisation in order to understand that, how they can
positioning their offering in the market to attain a competitive position in the market.
 Low price and low value added:- this is related to keeping the price low so that can
compete in the market. Low price strategy has been used by the Ryanair to stay ahead in
the competition.
 Low Price:- this comprises of producing the goods in a very large quantity. The
respective company work on very low profit margin and high volume of good which
assist them in increasing the sales(Svatošová, 2019). The company become low price
leader in the market.
 Hybrid:- in this strategy company focus on offering high value added good to their
customers at a very low price. The strategy of low pricing can be used by the company in
the competitive market with bringing innovation in their services.
 Differentiation:- this comprises of offering the high quality of product at the average
price. This strategy can be used by the respective company by paying focus on the quality
of the product and in their branding.
 Focused Differentiation:- this strategy can be used by the organisation by focusing on
the luxury product which are sold at a very high price. The Ryanair follow the low price
strategy, if they want to adopt this they have to make changes in their management by
offering high prices to their customers.
 Risk high margins:- this comprise of charging high prices for the product which is not
suitable for the long term. If the Ryanair adopt this strategy then they have to charge high
prices for their items which is very risky.
 Monopoly pricing:- this is related to the position of the company in which they present
themselves as a leader in the market. Only one can offer these types of services.
 Loss of market share:- this strategy involve those product which are not accept by the
consumer. The product who have high prices generally not accept by the consumer they
have opt standard price(Teece, 2018).
Low price strategy can opt by the Ryanair company which assist them in retaining their
customers and face the competition.

CONCLUSION
From the above report it has been concluded that in order to develop an effective strategy
the management of the company have to determine the external as well as internal environment
which assist them in facing the competition. This report conclude the PESTLE as well as SWOT
analysis on the chosen company which have both negative and positive impact on the working of
company. Further this report conclude that the management of the company can use the cost
strategy in order to enjoy the competitive advantage over their rivals and retain their customers
for a long period of time. This report also concluded the nature of the company resources which
assist in developing the strategies.

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