Ryan Air Case Study: Analyzing Issues, Applying Management Theories

This case study examines Ryan Air, focusing on its business operations and challenges within its internal and external environments. It begins with an introduction to Ryan Air, highlighting its budget airline model and competitive landscape. The study then performs a SWOT and PESTLE analysis to evaluate the airline's strengths, weaknesses, opportunities, and threats, as well as the impact of political, economic, social, technological, legal, and environmental factors. The analysis identifies key problems such as negative media coverage, poor employee relations, and a lack of customer service. The study proposes solutions by applying management concepts and theories, particularly McGregor’s Theory X and Y, to improve employee motivation, address customer needs, and foster a more positive work environment. The case study aims to provide insights into the complexities of managing an airline business and offers strategies for overcoming operational challenges.

Ryan Air
Case Study

Table of Contents
INTRODUCTION......................................................................................................................3
TASK 1.....................................................................................................................................3
1. Performing SWOT and PESTLE analysis for Ryan Air....................................................3
2. Problems faced by Ryan Air that require immediate attention with its reason..................5
3. Describing management concept and theories to solve the problems occurred.................6
TASK 2.....................................................................................................................................8
4. Evaluating the project report studied by sharing the experiences......................................8
CONCLUSION..........................................................................................................................8
REFERENCES...........................................................................................................................9

INTRODUCTION
Business consists of internal and external surroundings which further involves the
factors of macro environment that impact organisation either positively or negatively. This
project is based upon the Ryan Air which was introduced by Christopher Ryan, Liam
Lonergan and Tony Ryan in 1984 being most popular for its Irish Budget airlines. It is an
ideal company for others in maintaining least-cost effectiveness for its airline services
(Caputo, Borbély and Dabic, 2019). This project analyse the SWOT and PESTLE analysis for
determining the impact of macro factors on business. It further identifies the problems which
are to be managed by proper direction and control of managers. Additionally, it describes the
management concepts and theories which are applicable to solve the problems of business.
This also analyse the evaluation for study of project report by sharing experiences to meet the
interest of stakeholders.
TASK 1
1. Performing SWOT and PESTLE analysis for Ryan Air
Business is defined as commercial, industrial, professional, etc., which develops
motivation of employees to perform their task effectively in producing and selling goods for
maximisation of profits. The business surroundings are categorised on internal and external
environment which creates internal strength and opportunities to overcome its weakness and
threats to achieve success. Managers of Ryan Air build competitive advantages to compete
with their rivalries such as Easy Jet, Wizz Air, etc., to sustain in perfect competition market.
It further apply SWOT and PESTLE analysis to determine the impact of macro factor in
business environment with reference to Ryan Air are mentioned below:-
SWOT Analysis:- This framework is the abbreviation of internal strength and
weakness with external opportunities and threats. It is referred as planning technique to
determine the competitive strategies to attain success by achieving organisation goals and
objectives (Danford and et.al., 2014). Managers of Ryan Air implement this analysis as to
analyse their strength which creates an opportunity for business to remain stable in competing
market by controlling the risk which creates weakness and threats to survive. This is
explained as under:-
Strength ( S ) Weakness ( W )
 The Ryan Air consists of least-cost
effectiveness which attracts more of
customers to travel for luxurious and
comfortable journey.
 This airline industry consists of
flights at short duration which leads
customers to meet their destination
easily without consuming more time.
 The Ryan Air faces the problems of
employee relations as they are not
able to develop trust, faith and co-
ordination among each other, that
creates disputes in business.
 The organisation lacks in developing
customer relationship services which
create negative impact on their loyalty
and support.
Opportunities (O) Threats ( T )

 The Ryan Air further constructs brand
new flights to target new market
which leads to enlarge customers by
expanding the business.
 The business also focuses on
increasing their routes and destination
as well as providing facilities to
customers for their international
airline services.
 The Ryan Air assumes treats of
continuous change in prices of fuel
affects the company model, strategic
decision making and profitability
ratios.
 The airline industry most commonly
face the problem of choice of
customers as they are also facilitated
by road transports such as trains, cars
and buses which reduce their costing
with more time consumption.
PESTLE Analysis:- It is described as identifying the key factors of macro
environment which influence the business from its external surroundings. These elements are
political, social, economical, technological, legal and environmental which affect the business
either positively or negatively to achieve its long-term goals (DaSilva and Trkman, 2014).
Managers of Ryan Air implement this framework as to determine external opportunities to
overcome the uncontrollable risk which creates threats for business and delay in goal
achievement efficiently.
 Political:- This factor consits of taxable and fiscal policies, trade tariffs, labour and
environmental laws political stability and instability, trade restrictions, etc. It affects
the strategies of business as it creates threats for organisational goals and objectives.
Managers of Ryan Air are adversely impacted by the political factor as increase in
tax rates leads to high price of tickets that have negative impact on its sale. The UK
government have imposed large ampunt of taxation for more than three times in last
twenty-four years.
 Economical:- In this element there are fluctuating exchange rates, interest rates,
disposable income of consumers, etc. It affects directly or indirectly to the business
which negatively impact for expenditure of people by spending income on particular
product (Juric, Smith and Wilks, 2015). Managers of Ryan Air are negatively
impacted by economic factor through high pricing of oil for airline industry which
increase their cost of business and lacks in maximisation of profits.
 Social:- This determinant includes cultural trends, age distribution, population
growth, demographic conditions of birth, death, education, etc. It positively affects the
business directly by changing habit of population migrating from one place to
another. Managers of Ryan Air are directly affected by this factor of macro-
environment through changing behaviour of customers by more travelling on their
holidays which increase sale of tickets at low cost flights.
 Technological:- It is the element which consists of new technology, ideas and
automation. This affects the business in positively by developing competitive
strategies to compete with their rivalries. Managers of Ryan Air are advantageous by
rising mobile banking system which allow passengers to book tickets in advance and
make online payments.

 Legal:- This factor consists of health and safety for employees, consumer protection
laws, advertising standards, product labelling and packaging, etc. It negatively impact
the business through locking down the flight facilities to another countries. Managers
of Ryan Air are adversely affected by legal factor of consumer protection law by
making them aware of their health and safety issues while providing them
percautionary measures on travelling through airline industry (Lawton, 2017).
 Environmental:- It is the factor which involves restriction of environmental
pollution, reduce wastage, weather and climate, insurance, agriculture, infrastructure,
etc. This negatively impacts the business environment as the fluctuation in climate
and weather tends to cancel the departure of flight from one destination to another.
Managers of Ryan Air are adversely affected through their restriction on carbon
emission from the European Union.
2. Problems faced by Ryan Air that require immediate attention with its reason
Leadership:- It refers as the ability of an individual to perform and guide the certain
instructions of managers which results in developing qualitative products to meet consumer
satisfaction. This creates opportunity for the growth of business by meeting the requirement
of consumers through providing them high level of satisfaction. Leaders of Ryan Air at
various departments in order to maintain their minimium cost of tickets to ascertain
maximisation of profits (Lee and et.al., 2017).
Management:- This is defined as the capability of managers to take innovative ideas
for strategic decision making for planning, organising, staffing, directing and controlling the
actions of employees. It leads to achieve success by competing with its rivalries in global
market with specialised product through least-cost effectiveness. Managers of Ryan Air
focus on administrating, controlling and monitoring to determine the possibility of errors that
are to be solved by corrective measure to accomplish goals and objectives of business.
Development of people:- It is described as the procedure to develop people by proper
training of employees which increase their efficiency in performing with specialisation.
Managers of Ryan Air provide training and development to its employees for reducing time
consumption and errors by performing their task with proper knowledge and information.
Problems of airline industry:- There are various issues which negatively impact
business in achieving its goal and obejctives (Liczmańska and Kuczyńska, 2016). Some of
the problems are also faced by managers and leaders of Ryan Air are explained below which
are as follows:-
 Negative media coverage:- This creates negative impact in positioning the product to
its customers as it shows the worse image of company wihch creates bad repuation in
the eye of their target market. Managers are adversely affected by this problem as it
reduce their large number of travellers which results in minimisation of profits.
Leaders are negatively impacted by the pessimistic role of media as it stop the sale of
tickets.
 Lacks in consumer service:- The business lacks in maintaining the relationships with
their customers by not providing them superior quality products to achieve high level

of satisfaction for the cost paid. Managers of Ryan Air are adversely affected by this
problem as they are not able to develop speicalised flight which provides luxury and
comfortable while travelling. Leaders of Ryan Air are negatively impacted by the lack
of consumer service as they are not able to control the actions of employees to meet
the requirements of target market (Newman, and et.al., 2014). This result in dealy for
achievement of organisational goals and objective and create instability in competitive
market.
 Poor relation of employees:- The busines faces the problem of poor relation of their
workforce as they are not able to interact with each other, that further lacks in co-
operation among them. Managers of Ryan Air are adversely affected by the
indisciplie behaviour of employees which creates bad environment of business.
Leaders of Ryan Air are negatively impacted as they are not able to control the
adverse behaviour of employees through jealousy, partiality, untrust, etc.
 Disputes among workers:- The disputes are termed as conflicts which increase bad
behaviour of employees through disrespecting, untrust and unfaith, etc. Managers of
Ryan Air are adversely affected as the employees are not well maintained and they are
not listening to one another. Leaders of Ryan Air are negatively impacted as their is
no co-ordination of employees that reflects the worse image of business.
3. Describing management concept and theories to solve the problems occurred
The management concept and theories are implied by organisation to solve the
problems through innovative ideas by corrective measures that leads to eliminate errors and
achieve goals and objectives (Pereira and Caetano, 2015). This provides solutions for
business that emphasize business in sustaining at perfect competition market. Theories
implmented by the managers of Ryan Air are described below:-
McGregor’s Theory X and Y:- This theory was introduced by an American social
psychologist named as Douglas McGregor in 1960. It represents the basic principle of
management to increase motivation among employees to perform their task with
effectiveness by improving the organisational culture. This theory consists of two factors
which are X and Y that implies the human work motivation and managment. Managers of
Ryan Air implement this theory to build the relationship among employees in order to meet
the customer needs effectively with co-ordination by performing for specific task. It is further
explained below as:-
 Theory X:- It refers as the management of activities performed by employees that
will provide maximum level of satisfaction to its target audience. This determine
wrkforce with their specialisation, performance, time consumption by directing and
controlling their actions. The managers emphasize employees about their value of
work performed which will leads to achieve success through creativity in solving their
organisational problems. Managers of Ryan Air focus on improving the poor
relationships of employees by organising meetings, area to interact, which develops
bond among each other, build trust and faith, etc. This motivates employees to
perform their task with collaboration by forming one team that achieve target
efficiently.

 Theory Y:- It is described as fulfilling the needs of employees at self-esteem and
actualisation that satisfy the employees and motivates them to perform their task with
eagerness for bonus, rewards, pronotion, incentives, etc. This focus on workforce to
complete their task on specified duration which leads to achieve organisation goals
and objectives to attain success in competitive market (Werner and et.al., 2018). The
people are motivated to perform their activities with high skills, proper quality
managment and with efficiency. Managers of Ryan Air implements this theory for
evaluating actions of their employees with decentralisation and delegation, job
engagement, participative managment, performance appraisals, etc to meet ocnsumer
requirements. The managers focus to solve the problem of disputes among employees
by engaging them to perform collectively that results in good relations.
Herzberg’s Two Factor Theory:- This theory was introduced by great psychologist
named as Fredrick Herzberg. It states that there are some elements which affect the level of
job satisfaction and dissatisfaction for employees while performing their task for business.
This concept is also known as two-factor theory which comprises of motivation and hygiene
facotrs of employees that affects their working style to achieve the desried tsrget. Managers
of Ryan Air implement this managment principle to solve the problems occured in business
which delay in goal accomlishment for its success. It is explained as under:-
 Motivators:- This concept is described as the motivating the employees to perform
their job with accomplishment of individual as well as organisational goals and
obejctives. It emphasize business to motivate their workforce by adopting the
democratic approach of managment by improving their actual job through
effectiveness and efficiency. The managers of Ryan Air focus on this factor of
motivator by job enlargement, enrichment, empowerment, etc., that emphasize
employees to perform in accordance with team leader as an ideal. This develop the
interest of workers to perform task with excitment to compete with rivalries in order
to sustain in competitive market. Managers of Ryan Air implement this to insist the
media by reducing their negative coverage from positive impact whch enlarge its
customers by enhancing market share.
 Hygiene factors:- It refers as the employees if they are not interested in performing
their task this will create job dissatisfaction whereas if the job is according to their
choice or interest this will increase their effectivenss with job satisfaction. Managers
of Ryan Air focus on the level of job satisfaction of their employees by monitoring
their actions which leads to develop specialisation by increasing efficiency. The
managers of Ryan Air implement this theory of hygiene factor as to solve the lack in
customer service by providing them superior quality of flights which leads to provide
luxrious and comfortable travelling with safety measures for asthma and daiberties
patients.

TASK 2
4. Evaluating the project report studied by sharing the experiences
From the above prescribed project report it have been understood that the
surroundings of organisation plays the major role in determining impact of macro
environment on its strategies. We learn from this project that various problems are being
faced by entrepreneurs such as poor relation among employees through disputes and
conflicts, lack in consumer service, negative media coverage, etc. The employees lack in
specialising their performance with quality management that attracts more customers to travel
in holidays for their comfort and luxurious lifestyle in flights (Zhou and et.al., 2014). The
business solves it's problems by implying the management concepts and theories of
McGregor theory of X and Y followed with Herzberg's two factor theory through its
corrective measures.
The managers of Ryan Air focus on their actions as to improve their customer
services with minimising cost effectiveness that provides high level of satisfaction. This
further targets in maximisation of revenue and profitability ratios that results in
accomplishment of organisation goals and objectives for their success. It leads to compete
with rivalries through their competitive advantages from internal strength to overcome
weakness and with external opportunities to reduce uncontrollable risk which may further
cause threats to business.
We have experienced and analysed various factors of business which impact business
on its competitive advantages that may impact either positively or negatively. This project
futher teaches about the problems which creates controllable and uncontrollable risk for
business that are essentially to be solved by management theories. It further creates
opportunity for business to achieve its goals and objectives to sustain in competitive market.
CONCLUSION
From the above discussion it have been concluded that business environment plays
major role in designing and development of organisation for achievement of goals and
objectives. This project covers the SWOT analysis by determining the strength, weakness,
opportunity and threats followed by the factors of macro environment. These factors are
explained by PESTLE analysis through political, social, economic, technological, legal and
environmental determinants of business. Apartly, project specifies the problems faced by
organisation such as negative media coverage, customer service, employee relations,
disputes, etc., which are to be managed by proper direction and control. It describes
management concepts and theories through McGregor’s Theory X and Y as well as
Herzberg’s two factor theory to solve the problems of airline industry.

REFERENCES
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