Strategic Management at Ryanair: SWOT Analysis, Porter's Five Forces, and Growth Strategies | Desklib

Strategic Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Question 1 a) Strategic development approaches which are adopted by Ryanair and an
explanation the balance of perspective & emergent strategy formulation processes..................3
Question 1 b) Strategic Leadership by Ryanair’s CEO...............................................................4
Question 2 a) SWOT analysis by identifying the issues that Ryanair faces along with an
effectiveness of Ryanair responses to the major changes in the macro environment..................5
b) Using Porter’s five force model a critical assessment of strengths & attractiveness of the
European airline sector................................................................................................................7
Question 3 a) An environmental analysis through ‘Always Getting Better (AGB) strategy......9
b) Ansoff Matrix for the assessment of growth strategies adopted by Ryanair within Europe.10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
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INTRODUCTION
The concept of strategic management refers to a company’s planning or structure that is
being developed in order to have smooth & well-structured strategical actions into business. This
involves an analysis or market as well as industry competition along with its proper scanning so
that company can be able to take corrective actions and attains competitive edge in market. This
involves a deeper understanding of company’s internal & external analysis through SWOT,
Porter’s five force and competitive analysis. The strategic management also involves a step
towards organisational growth through Ansoff Matrix. The present report involves a highlight
upon the strategic management concepts at Ryanair UK. The report talks about company and its
internal analysis. Further, it also comprises of company’s leadership which its CEO adopts, the
application of Porter’s five forces and critical analysis of market environment. Lastly it talks
about growth matrix of Ryanair UK.
MAIN BODY
Question 1 a) Strategic development approaches which are adopted by Ryanair and an
explanation the balance of perspective & emergent strategy formulation processes
The different strategic approaches adopted by Ryanair UK are mentioned below:
Perspective approach:
Within this technique, the company’s, vision, mission & the core values are mentioned, or
the objectives are stated before the strategic execution starts. This shows that the firm would
intentionally formulates & performs a rational intended strategy based on to preferences &
priorities of top level management. Therefore, this approach adopts a top to down hierarchical
structure as well as authoritative style of management. The prescriptive process is linear that is
from strategic evaluation to strategic development & then to its implementation. Hence, in
relation to Ryanair the strategic planning is experienced as a rational, orderly, deterministic or
systematic procedure that is suitable for having a stable organisational environments. The present
approach comprises of 3 schools of thought that are designing, planning as well as positioning.
The main limitation of this approach is that such types of companies does not carries full
information or are lacking with information which is highly essential for the effective business
decisions to carry out the proper systematic analysis of strategy.
Emergent Approach:
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Within an emergent approach of strategic planning, the strategies emerges as a managers
formulates the strategic as well as operational decisions time to time which results into a certain
technique. This shows that the firm realises its strategy that would not be far from the intentional
planning of company from top but emerges from the decisions or the actions which are taken,
interpretations of certain events & the complex communication at lower levels thus leads to the
bottom-up emergence. Therefore, strategy formulation under this is an interactive, gradual as
well as the unplanned procedure that permits flexibility or the adaptation as the company’s
environment fluctuates. However, the moment strategy emerges by the pattern of decisions, this
could be documented in a form of annual reports or the strategic plans of Ryanair.
The main limitation of this approach is that it is highly impractical in nature as such type of
companies does not have clear direction or the company’s managers feel themselves out from the
decision making board.
Initiatives adopted by Ryanair
Initially the company Ryanair was operating its business with huge losses but later on
when the company analysed its strategy then found the need of change within it. After this the
company has implemented the methodology of low cost business through eliminating the
business class or with the launch of single model plane. This has lead towards the enhancement
of its sales as well as helped in the generation of higher revenues. Also, Ryanair has also taken
an initiative of providing online booking services to its clients so that can attract customers from
large part of market with a facility of convenient bookings.
Question 1 b) Strategic Leadership by Ryanair’s CEO
The strategic leadership within Ryanair by its CEO is autocratic leadership style. The
autocratic style is categorized as an authoritarian style in which a CEO or a leader is being
characterized by personal control upon all the decisions related to business. Such type of leaders
generally does not prefers to have suggestions or views form their staff members or from their
employees. They feels that they by themselves are enough capable of handling things and
making decisions, or they carries full knowledge about the business affairs. The CEO at Ryanair
use to take organisational decisions based on to his judgement and knowledge without asking
from his team.
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