Business Environment Analysis: Ryanair and the Tourism Sector Report

This report provides a detailed analysis of Ryanair's business environment, focusing on the application of various strategic frameworks. It begins with an introduction to the concept of the business environment and its significance, followed by an in-depth PESTEL analysis to assess the political, economic, social, technological, environmental, and legal factors impacting Ryanair's operations. The report then utilizes a SWOT analysis to evaluate the airline's internal strengths and weaknesses, as well as external opportunities and threats. Furthermore, the report examines Ryanair's strategic positioning through Porter's generic strategies, specifically cost leadership and differentiation. The conclusion summarizes the key findings, emphasizing the importance of understanding the business environment for effective decision-making. The report uses various academic sources to support its arguments and analysis.

Business Environment
in Events, Hospitality
and Tourism

Table of Contents
INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
CONCLUSION.....................................................................................................................................6
REFERENCES......................................................................................................................................7
Books & Journal:...............................................................................................................................7

INTRODUCTION
Business environment is the most important part of market. It is defined as process
which comprises of internal and external factors organisation structure. (Ahmadi, 2018).
With changing period of time, it has become important to focus on both these factors so that
goals and objectives are achieved in proper manner. Ryanair, Airline Company
headquartered in Ireland. It has number of subsidiaries such as Malta Air, Buzz, etc. This
report comprises of PESTEL, SWOT analysis and porter generic strategies. This report gives
brief information about impacts of business environment on specific sector.
MAIN BODY
PESTEL Analysis
It is a framework which is utilised by companies with purpose of determining external
factors acting upon business operations and functions.it is necessary to focus on this concept
as it gives brief information about market and changing situations. It comprises of several
components which are further discussed below-
Political factor-
In this element intensity of government intervention within economy and this sector
includes environmental law, labour law, trade policies etc. The impact of Brexit affects
Ryanair at larger level as because air traffic between UK and EU countries reduces access to
UK market. It is important for selected enterprise to follow all rules and regulations of
countries where the flights flew which makes it difficult for them to operate in proper manner
(Bertozzi, 2017).
Economical-
This is another component of framework in which focuses on inflation and deflation
rate foreign exchange rates etc. Due to the impact of covid-19 situation, airline industry has
been impacted at wider scale up to 30% of loss. Moreover, this impact of laws has
devastating Ryanair operations and functions. It is necessary for them to achieve economic
benefit so that it is easier to improve their business sector appropriately (Don-Serge, 2019).
Social-
It focuses on belief, shared values, religion, culture and many more. In context of
selected organisation dead target market are business and leisure travellers who like to travel
on periodically basis. As prices of this airline are low cost generation Y travellers are able to
afford short trips every year. Focusing on disposable income of people they are able to stable
they are business in most effective way.
Technological-

The use of internet has changed the technological field and Information technology
sector at larger level. It is important to be aware about the increased demand of digital
platforms which provides online products and services. In relation with selected enterprise,
they are still in the process of improving their security system and other software’s. Due to
regular update of technology it disrupts the financial structure of a company. The
technological factor has a deep impact on organisational functions it is necessary for them to
have a perfect knowledge about trending tools hardware or software through which they can
give a better user experience (Fabuš, 2017).
Environmental-
The travel and transportation business has a deep impact on environmental factor as
because they produce the greenhouse gas emissions. In relevance with selected corporation,
they have been also critical sized by many people for producing a massive carbon footprint
and affecting environmental as a less natural habitat of a society in community. Therefore, it
is necessary to focus on environmental factors as the impact Goodwill of a company at wider
level.
Legal factors-
It is another element of chosen enterprise, in which it reflects the contract agreement
laws and regulations etc. It has been seen that it is important for businesses to focus on their
activities that they are to be carried out in ethical and legal way following all the rules and
regulations of a country (Gomes, 2020).
After analysing the above framework it has been seen that external factor has a deep
impact on enterprise overall management structure and it is essential to focus on this
component so that market situations are being analysed in appropriate way.
SWOT Analysis-
It is a tool which is adopted by enterprises in which it determines the internal
capabilities of a company throw accessing to their strength weakness opportunity and threat.
The focusing on this framework it is easy for cooperation to improve their weak areas for or
achieving higher growth and development.
Strength
 Main strength of Ryanair is that it is
established in Europe and is
following low cost airline this model.
 Strength is that it operates globally
and target entrepreneur as a less
tourism individuals through which
they are able to gain higher
profitability.
Weakness
 Due to its large operation and
management, it has a poor customer
service as they are unable to deal with
regular inconvenience of customers
and people.
 Due to uncertainty events within
airline industry such as covid-19
pandemic situation which affect their
marketing strategy and they are
unable to make effective decision
making.

Opportunity
 The company has an opportunity due
to impacts of covid-19 situation on
income of people. Because many
people have lost their jobs and low
cost airline tickets to travel from one
place to another which creates an
opportunity for firm.
Threats
 The biggest threat of airline industry
such as Ryanair is that they do not
have control over their physical and
financial resources due to which they
have threat of uncertainties of future
events.
Above specified SWOT analysis is important to be used through which enterprise is
able to improve their inner capabilities at higher level which is it beneficial for future growth
and development (Hamilton, 2018).
Porter Generic strategies-
It is another strategy which is used for company to gain competitive advantage within
a specific market to achieve objectives. It comprises of three components which are discussed
below-
Cost leadership-
Cost leadership- it is a strategy in which company used to lower the price of a
product to be the lowest cost producer in the market to gain competitive benefit. In context of
selected enterprise, they use this strategy in most effective manner as they have a low ticket
price which attracts customer at higher level. By using this strategy they are able to achieve
competitive advantage at wider scale (Hamdan, 2017). Cost leadership help company to
engage with customer and retain them for longer period of time as it fulfil their needs and
demand in affordable way.
Differentiation strategy
This is another competitive strategy which is being adopted by Ryanair as they
differentiate themselves from others by the fleeing from secondary airport to secondary
airports which are far away from in city airports. Through this it makes them different from
their competitors and helps them in Survival for longer period of time.
Therefore from the above explained framework it has been seen that to gain
competitive advantage select an enterprise uses porter generic strategy framework which
assist them to be ahead in industry rivalry.

CONCLUSION
After a brief analysis of our report it has been concluded that business environment is
necessary to be considered by enterprises so that decision making is done effectively.
Moreover this report gives brief information about impact of business environment in a
specific industry. Therefore, it is important for marketers to have appropriate knowledge
about these business environment factors so that problems or issues do not arise. It is also
stated that market research analysis is needed to be conducted so that goals are accomplished
in a timely period.

REFERENCES
Books & Journal:
Ahmadi, 2018. Study of relation between business model and sensemaking
decisions. Journal of Humanities Insights,2(02), pp.99-108.
Bertozzi, 2017. Porter’s five generic strategies; A case study from the hospitality
industry. International Journal For Research In Mechanical & Civil
Engineering,3(2), pp.09-23.
Don-Serge, 2019. The role of knowledge creation, sharing and utilization to the resource
based view of competitive advantage. Global Journal of Management And Business
Research.
Fabuš, 2017. Current development of business environment in Slovakia and Czech Republic.
Gomes, 2020. Bioleaching for resource recovery from low-grade wastes like fly and bottom
ashes from municipal incinerators: A SWOT analysis. Science of The Total
Environment,715, p.136945.
Hamdan, 2017. Porter’s Strategies in Healthcare. In Strategic Thinking in a Hospital
Setting(pp. 9-15). Springer, Cham.
Hamilton, 2018. The international business environment. Oxford University Press.
Hwang, 2018. Understanding first-class passengers' luxury value perceptions in the US
airline industry. Tourism Management Perspectives,28, pp.29-40.
Qosasi, 2019. Building SMEs' competitive advantage and the organizational agility of
apparel retailers in Indonesia: The role of ICT as an initial trigger. Gadjah Mada
International Journal of Business,21(1), p.69.
Versloot, 2016. Turbulence in the higher education publishing industry due to open access: a
PESTEL analysis(Bachelor's thesis, University of Twente).
Vigna, 2018. Phase change materials in transparent building envelopes: A Strengths,
Weakness, Opportunities and Threats (SWOT) analysis. Energies,11(1), p.111.