Business Report: SWOT, PESTEL and Ryanair Analysis

This individual report provides a comprehensive analysis of Ryanair, a major player in the airline industry. It begins with an introduction that highlights the importance of business reports in evaluating a company's situation and recommending courses of action. The report includes a SWOT and PEST...Read More

Individual Report Context
of Business

Table of Contents
INTRODUCTION...........................................................................................................................1
1) SWOT and PESTEL analysis of Ryanair...............................................................................1
2) Problem faced by Ryanair that require immediate action.......................................................3
3) Discuss the solution to a problem with the help of management theories and concepts........4
4) Short report writing describing the experience.......................................................................6
CONCLUSION................................................................................................................................7
..........................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business report is necessary for analysing the situation of a business and then recommend
the course of action by its depth analysis and it also evaluate the ideas for the business
environment. It provide the reader with an appropriate solution so that they can best decisions.
Ryanair is an Irish airline carry various passengers that provide the benefit of low fair prices and
it cover 225 destinations and serve a network of 40 countries in Europe (Bansal, Zahedi and
Gefen, 2016). The business environment is dynamic and the management of a company could
adapt changes in policies and procedures achieve the task in a limited time. This report includes
the SWOT and PESTEL analysis to assess its resources and competitive advantage and it also
contribute a significant position within the airline industry. This report cover the various
problems faced by the manager of Ryanair during the Brexit. It also comprises of management
theories and various concepts to achieve the task in a effective manner. At the end, the report
covers the experience and learning ability of an individual.
1) SWOT and PESTEL analysis of Ryanair
The environment in which company carry out its operations is regarded as dynamic and
impulsive(Berry, Broadbent and Otley, 2016). The macro environment factors have a major
impact on decision making which influences the economy of a business. The senior authority of
a Ryanair has applied both micro and macro environmental factors to assess its resources so as to
achieve a competitive position within the airline industry.
SWOT analysis: The company uses the SWOT analysis to identify the strength and weakness of
a business by grabbing the opportunities and combatting threats(Clarke, 2018). It also aids in
ascertaining the level of competition and enhancing the profitability of a business. Below, the
SWOT analysis of Ryanair is presented as follows:
Strength Weakness
 Ryanair is one of the leading airline in
the European market covering more
than 200 destination pan across the
globe.
 It has been characterised by rapid
expansion and have reached one billion
 One of the weakness of Ryanair is that
any change in employee compensation
would adversely impact its profitability.
 The performance of Ryanair has poorly
in range of polls and surveys during last
few years.
1

customers.
 The low cost structure provide the
benefit of cost advantage and also
provide fixed shareholders returns.
Opportunities Threats
 Ryanair could expand its operations in
new routes which provide growth
opportunities for the airline.
 It focus on providing good services to
their customers through Always Better
Program to gain large access of
customers.
 There is an wide opportunity of
minimising the charter fight segment.
 One of the major threat is that there is
fluctuation in fuel prices that affect the
profitability of business model.
 There is increase in corporate taxes in
case of Ryanair.
 There are large number of players
especially from low cost regional
carriers which posses a major threat to
the respective firm.
PESTEL: This analysis help to examine the political, economical, social, technological,
environmental and legal factors that has affected the Ireland(Dahlgaard-Park and et. al., 2018). It
provides the framework of macro environmental factors that provide the direction of action
through a proper strategic planning and to facilitate the smooth operations of a business. With
reference to Ryanair, the PESTEL analysis are described as follows:
Political Factors: This factor includes political stability, corruption, foreign trade, labour
law and so on. Ireland is a political stable country and it also maintain good relations with the
countries like United Kingdom and so on and it play an important role in the Brexit(Fletcher,
Massis and Nordqvist, 2016). The political system in Europe has a major impact on airline
industry and Ryanair is the low cost airline which has limited number of destinations across the
globe. This airline industry has to follow the rules and regulations of government policies that
has detrimental effects which are inevitable within the country due to entry of Brexit.
Economical Factors: The magnitude of this factor includes various aspects like interest
rates, inflation rates and economic growth. Ireland is the 33rd largest economy in the world in
terms of GDP that has witnessed giant growth over the years(Dhani, and Sharma, 2017). One of
2

the major concern is fluctuations in the fuel prices that affect the profitability and thereby
decreases the productivity of Ryanair. The economic crises create a major downfall in number of
passengers and result in decrease in revenue of an airline industry.
Social Factors: This includes diet conscious, safety emphasis, cultural barriers and
growth rate of population. Government has taken various measures to reduce the greenhouse
gases from carbon emission which lead to human consequences(Herremans, Nazari, and
Mahmoudian, F., 2016). Ryanair provide low cost of tickets and hospitality and also provide
excellent services to their passenger. The passenger are impressed by polite behaviour and well
being of air hostess so that they could prefer to travel again in this airline industry.
Technological Factors: The extent of this force includes level of technology,
automation, technical awareness etc. Ireland is one of the technologically advanced country in
the world that attract the talent of tech professionals from the around the world. In this digital
era, the Ryanair provide various online facilities like passengers can book their tickets and they
can get the information about their flights and its time and fare in their respective webpage. Also,
this airline provide the facility of audio songs and movies on the LCD screen of passengers
during their flight. Ryanair has introduced new and innovative software for rendering fast
information and service and also resolving the issues of passengers.
Environmental Factors: There is an increasing awareness of environmental factors like
climate, change in weather, environmental policies and so on. There are some environmental
challenges like water pollution, noise and air pollution. The government has introduces various
policies and procedures to control pollution like EU emission trading schemes in order to
improve the efficiency of a carbon dioxide. Ryanair follow the environmental rules and provide
assistance to the government to protect the environment by using innovative technology and
equipments. Also, This airline industry has the major aim to reduce the impact of carbon
footprints on the environment.
Legal Factors: This factor includes various aspects such as employment laws, health and
safety laws, patent and trademark rights and many more. The Irish government focuses on the
law and operations of a business enterprise(Katz, 2017). Ryanair is an international airline
agency that has to follow some rules and regulations which provide benefit to their passengers.
This airline industry give competitive position and provide monopoly to the management across
3

the globe. EU has issued the new guidelines and legislations to provide the better and efficient
rights to their passengers in the context of Ryanair.
2) Problem faced by Ryanair that require immediate action
The exit of Britain from European Union, namely, Brexit has created number of
uncertainties to the airline industry(Khilji, S.E. and Schuler, 2017). Due to Brexit, the Ryanair
faces number of issues that has a negative impact on the airline industry. The main problem
faced by Brexit is increase in prices of fuel that increases the cost of tickets and thus minimize
the profit margin of airline industry. This reduces the sales and decreases the efficiency of
within the confine sector of Ireland. Also, the shareholders has suffered huge losses due to
market fall down that affect the economic growth within the airline industry. This results in high
employee turnover that created the unimaginable chaos all over the country. There is not proper
hierarchical structure followed by a company that results in large number of shortage of staffs.
Poor management is one of the major problem faced by a company because the role of
management is very important to ensure success of an organisation. The manager perform
various functions such as planning, organising, controlling and monitoring the activities to
facilitate proper coordination and facilitate the smooth operation of an organisation(Ma, 2020).
It lead to poor decision making that affect the overall performance of the company. The manager
of Ryanair does not provide the compensation benefits and rewards that decreases the morale of
employees. Also, they are not clear about the goal and objectives of a company due to lack of
communication strategy which create a negative force towards it. If the manger does not assign
the work and task among the subordinates in according to their skills, then it could not work
and thus brings ineffective results.
The respective firm is facing other problems too that is negative media coverage that give
rise to misinformation through social media sites like twitter, Facebook and so on which results
in biasness and posses the threat to the company. It has also faces the problem of strikes that lead
to cancellation of tickets and thereby results in the huge losses of a company. Lack of
communication strategy is one of the major issue that company is facing because it creates
misunderstanding and confusion among the staff working in an organisation(Mamic, 2017). This
leads to negative attitude and disputes among the employees. As a result, there is less customer
satisfaction that affect the sale and the profitability of a business enterprise. Therefore, this result
in declining the overall growth and efficiency of an organisation and reduces its productivity.
4

3) Discuss the solution to a problem with the help of management theories and concepts
Management is very important for an organisation that help in achieving the goals
effectively and efficiently by following proper time management strategy(Nurmi, and Niemelä,
2018). The manager provide the clear cut vision and assign the work among the subordinates that
matches their talent so that they could work beyond their potential. There are various
management concepts and theories that is applied by the manager of Ryanair which is
prescribed below:
Setting of Goals: Goal is very essential in one's life to work with greater efficiency and
effectively. It provide a balance towards working and ensure greater success within the
organisation. The manager of Ryanair facilitate proper coordination to accomplish the goals of a
business in order to facilitate the smooth operation of a business by assigning the work among
the subordinates in according to their skills.
Planning: Planning is very important concept of management without which nothing can
be done as it provides the direction of action by deciding the alternative among the various
courses of action available. The manager of Ryanair can make an appropriate planning to
achieve the task in a proper time by utilizing the time in a effective manner.
Proper usage of resources: There are various resources like men, material, machine,
money and method that play a key role in an organisation. The manager of Ryanair see that there
is optimum utilisation of resources that provide the sustainable growth to the company and help
in achieving long term objectives and it also aids in decision making that improves the overall
productivity.
Skilled Workforce: Employees are important asset of the company that provide a major
contribution in the success of a company. The HR manager of Ryanair hire the right candidate at
right place to work with greater efficiency. This help the airline industry in maintaining the
smooth operation as the chances of misconduct is less.
Theories of management: Management theories provide the guidance to managers to
manage a business enterprise(Raharja, 2017). The theories that are used by the manager of
Ryanair are given below:
Participative: In this theory, the employees are given the chance to participate in the
decision making of an organisation(Rosenberg Hansen, and Ferlie, 2016). This facilitate the
5

cordial relation between the employer and employee of a company with the help of effective
communication strategy. The manager of Ryanair consider the views and opinions of its staff so
that they feel that their presence is worth towards the company. This improve the performance of
employees and help in achieving goals effectively and efficiently. Therefore, this motivates the
staff and inspires them to work hard. It leads to greater job satisfaction when employees see that
their recommendations and ideas are taken into consideration. It also help in fast decision
making and encourage staff to work more with greater efficiency.
Situational theory: This theory is characterised by manager who behaves differently
according to a given situation that help in improving the efficiency of organisation(Sorgner, and
Fritsch, 2018). The manager of Ryanair adapt the change in policies and procedures to work in a
dynamic environment. This also aids the manager within the confine airline industry to divide
the work among the subordinates in according to their skills to increase the output. This also help
to improve the overall working procedure and provide best customer service. One of the greatest
advantage of situational theory is that it provide the comfortable working environment to the
employees and give the better chance to reach a positive outcome. Also, it promotes the team
spirit among the workers and find the quick solutions to their problems.
4) Short report writing describing the experience
Macro environment is a broader concept that includes various aspects like national
income, per capita income, GDP, level of employment, competition and so on that influence the
decision making of an organisation(Wang, W.Y., Pauleen and Zhang, 2016). In a dynamic
environment, changes should be must for the smooth operation of a business and it allows
employees to learn new skills and broaden their knowledge base. The manager perform various
functions and get the work done from people to complete the task in a proper time. It bring
proper coordination and cooperation and therefore improve the overall performance of a
company. Strategic planning and judicious use of resources are two most crucial factors that
provide growth opportunities to a company and ensure success within the organisation.
The internal and external analysis is conducted to determine the level of competition and
profitability and it also aids in ascertaining the strength and weaknesses of a business through
various factors like political, economical, technological, environmental and legal factors. This
provide the proper analysis of a business by rendering the proper solution to a business. The
6

manager has to face every aspect of problem in conducting daily operation but the effective
solution could be find by courageously and patiently. There are various theories and strategies
that manager could apply to work effectively and efficiently and complete the task in a proper
time like planning, organising and so on. The manager can apply unity of command in an
organisation that provide systematically of work and help in avoiding the conflict situation. It
can appreciate the work of subordinates and provide rewards and compensation benefits in order
to improve their performance.
CONCLUSION
From the above furnished information, it can be inferred that management can achieve
the task effectively and efficiently by developing a proper strategy. It can gain competitive
advantage by adopting the proper rules and regulations of a government policy and therefore
ensure success within the organisation. It has been analysed that manager can assign the work
among the subordinates in according to their skills to gain maximum productivity. Thus, this
improve the overall functioning of an organisation and provide future growth opportunities. The
manager can consult the opinions and ideas of subordinates in order to increase their efficiency
and effectiveness so that they feel that their presence is important to a company.
7

REFERENCES
Books and Journals
Bansal, G., Zahedi, F.M. and Gefen, D., 2016. Do context and personality matter? Trust and
privacy concerns in disclosing private information online. Information & Management.
53(1). pp.1-21.
Berry, A.J., Broadbent, J. and Otley, D.T. Eds., 2016. Management control: theories, issues and
practices. Macmillan International Higher Education.
Clarke, M., 2018. Rethinking graduate employability: The role of capital, individual attributes
and context. Studies in Higher Education. 43(11). pp.1923-1937.
Dahlgaard-Park, S.M., and et. al., 2018. The evolution and convergence of total quality
management and management theories. Total Quality Management & Business
Excellence. 29(9-10). pp.1108-1128.
Dhani, P. and Sharma, T., 2017. Emotional intelligence and personality: Their relationship in the
Indian context. Prabandhan: Indian Journal of Management. 10(9). pp.39-52.
Fletcher, D., De Massis, A. and Nordqvist, M., 2016. Qualitative research practices and family
business scholarship: A review and future research agenda. Journal of family business
strategy. 7(1). pp.8-25.
Herremans, I.M., Nazari, J.A. and Mahmoudian, F., 2016. Stakeholder relationships,
engagement, and sustainability reporting. Journal of Business Ethics. 138(3). pp.417-
435.
Katz, J.E., 2017. Machines that become us: The social context of personal communication
technology. Routledge.
Khilji, S.E. and Schuler, R.S., 2017. Talent management in the global context. The Oxford
handbook of talent management, p.399.
Ma, N., 2020. Strategic market analysis for a privacy solutions company (Doctoral dissertation,
California State University, Northridge).
Mamic, I., 2017. Implementing codes of conduct: How businesses manage social performance in
global supply chains. Routledge.
Nurmi, J. and Niemelä, M.S., 2018, November. PESTEL analysis of hacktivism campaign
motivations. In Nordic Conference on Secure IT Systems (pp. 323-335). Springer,
Cham.
Raharja, S.U.J., 2017. Strategic Analysis of the Regional Water Company in Cirebon City West
Java, Indonesia. Review of Integrative Business and Economics Research, 6(2), pp.408-
413.
Rosenberg Hansen, J. and Ferlie, E., 2016. Applying strategic management theories in public
sector organizations: Developing a Typology. Public Management Review. 18(1). pp.1-
19.
Sorgner, A. and Fritsch, M., 2018. Entrepreneurial career paths: occupational context and the
propensity to become self-employed. Small Business Economics. 51(1). pp.129-152.
Wang, W.Y., Pauleen, D.J. and Zhang, T., 2016. How social media applications affect B2B
communication and improve business performance in SMEs. Industrial Marketing
Management. 54. pp.4-14.
8

9