Business Environment Analysis and Reflection: Ryanair

This report provides a comprehensive analysis of Ryanair's business environment, encompassing both a detailed report and a reflective component. The report section evaluates Ryanair using various business environment tools including SWOT, PESTEL, and Porter's Five Forces analyses to assess its strengths, weaknesses, opportunities, and threats, along with political, economic, social, technological, environmental, and legal factors. The Porter's Five Forces model examines the bargaining power of suppliers and buyers, the threat of new entrants and substitutes, and competitive rivalry within the airline industry. The reflective section discusses the development of communication and ICT skills, identifying areas of strength and areas for improvement. The report concludes with recommendations for Ryanair to enhance its business operations and competitiveness, emphasizing the importance of service quality improvements and strategic considerations.

Reflective
Report

Table of Contents
PART 1 (REPORT).........................................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Analysis of Ryanair business environment............................................................................3
CONCLUSION................................................................................................................................6
RECOMMENDATION...................................................................................................................6
REFERENCE...................................................................................................................................8
PART 2 (REFLECTION)................................................................................................................9
INTRODUCTION...........................................................................................................................9
MAIN BODY ..................................................................................................................................9
CONCLUSION..............................................................................................................................11

PART 1 (REPORT)
INTRODUCTION
Business environment is consider as combination of environment factors which can be
internal as well as external. These environment factors impact on an organisation directly and it
will include innovation in society, technology, legal consideration and so on (Cohen and
Kietzmann, 2014). Organization taken for this assignment is Ryanair airline which is founded in
the year 1984 and it is consider as one of largest airline firm across Europe that is conducting
their business operations at diverse nations. This report will include several topics like evaluation
of different marketing tools such as PESTEL analysis, SWOT analysis and porter's five forces.
MAIN BODY
Analysis of Ryanair business environment
There are various types of business environmental tools which are adopted by a company
in order to analyse their internal and external environmental factors. Explanation of some of the
major tools in respect of Ryanair are given below:-
SWOT Analysis
Strengths Weaknesses
 The respective company offer low cost
flight services which help them in
attracting more passengers.
 They also have huge brand name as
well as image at the marketplace from
more then 20 years.
 They have small headquarter due to
which they have low overheads cost.
 The financial situation of respective
company is strong.
 They are highly depend on the
subsidies.
 The respective company also face
issues related to poor services complain
()Ryanair Low-Cost Strategy Business
Model, 2019.
 They have low frequencies as well as
mid day departure flight time which is
issue for business passengers.
Weaknesses Threats
 They can expand their business at  Their is huge competition at the

different other locations.
 They can also grow market along with
EU enlargement.
 They can also conduct merger with
other airline companies (Jia nd et. al.,
2017).
marketplace such as British Airways,
London Gatwick and so on.
 They is always fluctuation in the price
of fuel which seems as threat for airline
company.
PESTLE Analysis
Factors Description
Political In respect of airline industry, political system of one country and
its relationship with another countries impact on them in both
ways positively and negatively. The respective company is low
cost airline as well as they also have very limited destination
which impact on business positively. But there are some
situation which impact negatively on them such as terrorist
attract in Europe.
Economical The price of Oil or fuel fluctuate on regular basis which impact
on airline business because they have to change or update their
policies or strategies accordingly (Savrul, Incekara and Sener,
2014). But Ryanair is low cost airline so that change in
economical factor will impact them less.
Social The respective factor will include change in customers
preference, demography and so on. In respect of respective
airline, they need to consider factors like passengers are more
attracted toward those short haul routes flights. This is so
because it will help them in attracting passengers toward their
services.
Technological It is essential for respective airline company to adopt new as
well as advance technology so that they can attract more
passenger. This will also help them in develop more effective as
well as attractive flight services as well as they also able to

conduct promotion effectively (Ryanair SWOT & PESTEL
Analysis, 2019).
Environmental In today's time it is essential for companies to conduct their
business operations and practices by considering environmental
factors. This is so because if Ryanair will not take care of these
factors then they may face various issues from passengers as
well as environmental protection agencies (Lee, Kao and Yang,
2014). So they may adopt strategies in order to decrease or
control emission of CO2.
Legal The respective company need to follow rules and regulations of
Europe commission in order to conduct their practices in legal
manner. Due to Brexit they may also comply legislation of both
UK and EU government.
Porter's Five Force Model
 Bargaining power of suppliers: It is define as stage at which if the bargaining power of
suppler will high they may asked for huge amount for low quality products and services.
In respect of Ryanair, bargaining power of suppliers is high because there are only two
manufacturer in airline industry i.e. Airbus and Boeing. Respective company purchase
their planes from Boeing so they their power is high.
 Bargaining power of buyers: It is a situation at which customers or buyer can demand
for quality goods or services at low prices when their power is high and if they have low
power then they have to pay more for low quality products (Rocha, 2012). In respect of
respective company, their bargaining power is high because they are operating in low
face airline industry where customers loyalty is low. Here buyer are only loyal to those
airline which offer services at low fares. Along with this, in respective industry switching
cost is almost zero so buyer switch to that airline where they get low flight services.
 Threat of new entry: It is define as situation at which new company can easily entry or
exit at the marketplace. If there is high threat then new firm can enter easily and visa
versa. In respect of Ryanair threat of new entry is low because respective industry is

expensive and there is high rules and regulation (Ryanair Porter’s Five Forces Analysis,
2019). So in this industry it is not easy that new company can enter as well as establish
business like respective company very quickly.
 Threat of substitutes: This is define as situation when customer can identify the similar
products and services easily at the marketplace. If buyer can find substitutes easily then
the threat will be high and visa versa (Lenssen and et. al., 2013). In respect of Ryanair,
they have low threat of substitutes because in the European land there are number of
other systems like train, bus, ship, car and so on but there is no substitute of air plane.
 Competitive rivalry: It refers to factor which determine competition level as well as
how profitable is particular industry. In respect of respective company competitive
rivalry is high because there are several other firm which are operating in similar
industry. For example Easy jet, Wizz Air, Go, British airline and so on.
CONCLUSION
By analysis above mentioned topics it can be determine that for every company it is
essential to conduct analysis of business environment because through it they can develop
strategies or action plan in effective manner. Along with this it will also help management in
understand competitive situation at particular marketplace. There are numbers of tools which an
organisation can adopt in order to conduct business environment analysis such as SWOT
analysis for internal evaluation, PESTEL for external and porter's generic model for the
competitive market. Through all these company can develop plan of action which will help them
in gaining various benefits such as increase in profitability, market shares, customers base and so
on.
RECOMMENDATION
Through analysis above topics which are related to different model and approaches there
are some factors which is essential for Ryanair to consider because through it they can enhance
their business as well as gain high profitability at their potential marketplace. From which some
recommendations which is necessary for them are given below:-
 The respective company must improve their facilities and services quality so that they
can avoid issues related to bad services. For this they may train their staffs which help
them in conduct work in more proper way.

 They also introduce mid time flight in order to fulfil requirement of business persons as
well as they can also introduce more flight. By this they able to increase their customers
base as well as profitability ratio. Along with this it will also help them in gaining high
competitive advancement at the marketplace.

REFERENCE
Books and Journals
Cohen, B. and Kietzmann, J., 2014. Ride on! Mobility business models for the sharing
economy. Organization & Environment. 27(3). pp.279-296.
Ji-fan Ren, S. and et. al., 2017. Modelling quality dynamics, business value and firm
performance in a big data analytics environment. International Journal of Production
Research. 55(17). pp.5011-5026.
Lee, J., Kao, H. A. and Yang, S., 2014. Service innovation and smart analytics for industry 4.0
and big data environment. Procedia Cirp. 16. pp.3-8.
Lenssen, G. and et. al., 2013. A value mapping tool for sustainable business
modelling. Corporate Governance.
Rocha, E. A. G., 2012. The impact of the business environment on the size of the micro, small
and medium enterprise sector; preliminary findings from a cross-country
comparison. Procedia Economics and Finance. 4. pp.335-349.
Savrul, M., Incekara, A. and Sener, S., 2014. The potential of e-commerce for SMEs in a
globalizing business environment. Procedia-Social and Behavioral Sciences. 150.
pp.35-45.
Sena Ferreira, P. and et. al., 2012. Framework for performance measurement and management in
a collaborative business environment. International Journal of Productivity and
Performance Management. 61(6). pp.672-690.
Sodeyfi, S., 2016. Review of literature on the nexus of financial leverage, product quality, &
business conditions. Journal of Economic & Management Perspectives. 10(2). pp.146-
150.
Wetherly, P., 2014. The business environment: themes and issues in a globalizing world. Oxford
University Press.
Online
Ryanair Low-Cost Strategy Business Model. 2019. [Online]. Available
through:<https://www.slideshare.net/kevinconstant96/ppt-ryanair2>.
Ryanair Porter’s Five Forces Analysis. 2019. [Online]. Available through:<https://research-
methodology.net/ryanair-porters-five-forces-analysis/>.
Ryanair SWOT & PESTEL Analysis. 2019. [Online]. Available
through:<https://www.swotandpestle.com/ryanair/>.

PART 2 (REFLECTION)
INTRODUCTION
Reflective report is consider as written document which help in describing person's
experiences while conducting may work or report (Sena and et. al., 2012). This respective report
is a reflective report which increase information regarding skills and abilities which are
developed by learner while conducting respective report. Along with this it will also include
several skills like research, communication, ICT and so on.
MAIN BODY
While conducting this report I am able to learn various thing which help me in my future
career development. Through this I also able to determine my strengths and weaknesses so that I
can develop strategies accordingly in order to polish as well as improve those skills respectively.
Some of the major skills which I evaluated during conducting this assignment are
communication, ICT, research, numeracy, team work, time management, problem solving and so
on.
 Communication Skills:- During conducting the report I get to know that my
communication Skills is good because I am interacting with everyone easily and
effectively as well as according to my team members they are also satisfied with my
communication style. Along with this I also analysis that my verbal as well as non verbal
skills are also effectively because through it I am easily make my team members
understand what I want to say. My team mates also tell me that my presentation skill is
also good because I am confident while giving presentation in front of senior. At last I
want to rate my communication skills 9 out of 10 because according to me through this
skill I give my full contribution in the project by interacting with team members about the
topics. But I also want to polish my communication skill so that I can more effectively
communicate with other according to the situation.
 ICT Skill:- In addition to this I determined that I need to work on my ICT Skill which is
related to information and computer technology because while me and my team member
are developing presentation, I am not able to give my full efforts. So I decided to take
classes in order to increase my ICT skills and for this I will take class of software usage
like MS Excel, power point, word and many others. This is so because it will help me in

developing more effective report as well as presentation by using these technological and
computer tools. Due to lack of respective skill I fell under confident in some situation
which also motive me to increase to skills because in today's time it respective skills are
very essential.
 Research skill:- While conducting this report I also analyse my research skill and by it I
get to know that I am very good in this. This is so because I gather information very
easily by using different methods or tools like online as well as offline books, journals,
documents and many others. Along with this, I am also assisting my team members that
how they can also find appropriate as well as reliable data and information about the
topics. I am very happy and satisfied with my respective skill because it help me in
gathering most appropriate, reliable and authenticate data or information about the report
topic. Through which me and my team members able to attain out desire outcome or goal
related to report which we are developing.
 Numeracy skill:- The next skill which I able to enhance while developing this report is
numeracy skill which is related to mathematics that include ability of a person through
which he/ she can understand mathematical or numerical data and information. Through
this skill a person get huge help in developing practical decision. While conduct this
report I analyse that if I want to develop my career in airline industry I need to enhance as
well as improve my numeracy skills and abilities. So for this I decide to attain different
classes where I can improve my respective skill. I am lacking in this skill, I get to know
about this when we all are conducting calculation related to some budget of report then I
realise that I am not good at mathematical calculation. For this I can attain class of maths
where I get chance of improving my respective skills as well as I also need to conduct
practices so that skill get improved and become effective.
 Team Work Skill:- I also analysis that Team Work Skill is also very essential in
conducting work in team or group because a person need to communicate with each other
so that they can they can conduct their work in effective way. While analysing this I get
to know that my team work skill is good because I easily communicate with my team
members as well as I also able to conduct activities in effective manner. Along with this I
can easily understand everyone perspective which lead to attainment of our desire target
in effective manner. By appropriate team work skills I able to get various benefits such as

we meet proper structure of project, our quality of work get enhanced, we all use our
skills and abilities effectively and many more.
 Organisation/ time management skill:- While conducting this report work I also get to
know that organisation as well as time management skill is also very essential if a person
want to conduct work in effective manner. This is so because by it they can conduct their
work or task according to the proper time schedule which lead to accomplishment of task
in effectual way. By this activity I get to know that my organisation as well as time
management skill is good I always complete my assign work on the time as well as my
work quality is also very organised. So I can rate my this skill 8 out of 10 because some I
not able to complete my work which are hard or very much based on practice at proper
time.
 Problem solving skill:- During conducting this report I get to know that my problem
solving skill is not much effective. This I get to know when one of my team member
came to me with some issues, during this situation I understand the issue but I not able to
give them appropriate solution. At that time I get to know that I am lacking in problem
solving skill and I need to enhance or improve it in order to develop career in corporate
sector. So for this I decide to take training under professional so that I can observe as well
as learn how to solve issues in effective and successful manner. This is so because
through it I can easily as well as effectually solve issues of others.
Therefore, by conducting above analysis I get to know that for conducting effective and
developing career in airline industry there are various skills and abilities are required from which
I am good at some skills and bad at some. My good skills are communication Skill, research
skill, Team Work skill and Time Management skill whereas my weak points are ICT Skill,
numeracy skill and Problem Solving Skill.
CONCLUSION
By analysing above situation it can be summarise that through reflective report an
individual able to analysis whole experience by evaluating situation which they conduct. This
will help them in developing more effective strategies or action plan in order to improve skills
and abilities. Along with this through respective type of writing a person also able to understand
their strength which they can polish to grab opportunists in more successfully.