Ryan Air Case Study: PESTEL, SWOT, Challenges, and Proposed Solutions

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Case Study
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This case study provides a comprehensive analysis of Ryan Air, a prominent airline company. The report begins with an introduction to the business environment and the importance of management in achieving organizational goals. It then presents a PESTEL analysis, examining the political, economic, social, technological, environmental, and legal factors affecting Ryan Air. Following this, a SWOT analysis is conducted to evaluate the company's strengths, weaknesses, opportunities, and threats. The study also discusses the challenges and issues faced by Ryan Air, particularly those related to Brexit and EU policies. Finally, the case study proposes solutions to these identified problems, emphasizing the importance of effective management and strategic planning. The conclusion summarizes the key findings and reinforces the significance of continuous evaluation and adaptation in the dynamic aviation industry. The report uses management concepts and theories to address the challenges and propose solutions for Ryan Air.
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RYAN AIR CASE
STUDY
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Table of Contents
TASKS..................................................................................................................................................3
1. Prepare PESTEL& SWOT Analysis in relevance with organisation...........................................3
2. Discuss the challenges & issues faced by chosen organisation...................................................5
3. Present a solution of the above identified problem in relevance the Ryan Air............................6
4. Summary......................................................................................................................................8
CONCLUSION....................................................................................................................................9
REFERENCES...................................................................................................................................10
Books & Journal:...........................................................................................................................10
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INTRODUCTION
Every organisation wishes to expand the business for longer period of time. This is only
possible when coordination and cooperation exist in the management. Business environment is
defined as process in which factors affecting the firm activities are determined and tracked. So,
entities remain aware about such elements so that no hurdles or obstacles arises in the operation as
well as well as functions. Enterprise is only able to achieve their goals and objectives when
management is available. It is the base of the corporation and without which further process and
procedures cannot be carried out. Ryan Air, headquartered in Dublin and which is emerging airline/
aviation industry. This report comprises of PESTEL & SWOT Analysis, management concept &
theories, problem as well as solution of the entity and the last short report.
TASKS
1. Prepare PESTEL& SWOT Analysis in relevance with organisation
In the world of innovation and technology, competition is rising at rapid level & business
sector is expanding accordingly. Main reason for this statement is unlimited wants and need of
humans. Organisation faces competition at every phase and to overcome with challenges as well as
threats frameworks and various tools are used by entities. Progress and performance level is also
analysed by using this methods. Expertise, skills and knowledge is required to implements them
effectively within the firm. Market trends as well as uncertain activities are monitored when both
the tools are adopted in proper manner (Eling, 2017).
PESTEL Analysis
Frameworks are important for every organisation because they assist them in examining the
market trends and situations in appropriate manner. This tool is a method through which factors
(external) are determined and identified which affect the business productivity at wider level. In
context to Ryan Air, firm uses this because it helps them in analysing those component which
influence the operations activities of business and such factors are discussed below-
Political factors- In organisation, involvement of government and its activities is common
and bound to happen at every aspect. Political factors are those which include labour law, tax
policy, environmental law etc. Such factors are uncontrollable and uncertain which leads to problem
for the entities.Gaganis, 2019). Due to changing environment, enterprise is becoming more active
towards these elements. In relation with Ryan Air, occurrence of Brexit affects the firm functions at
broader area. It has a deep impact on airline industry and changes the business environment of
entities.
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Economic factors- Further comes the economic country which comprises of
unemployment, policies, laws, etc. UK economy is rising and gives shelter to various businesses to
carry out their business appropriately. Country follows mixed economy and this leads to positive
inter-relationships and access to international markets easily. Ryan Air is affected by economy
factors such as policies and laws of EU have a negative as well as positive impact on aviation
enterprises. For example- Fluctuation in taxes has changed the structure of firm. Also, relationship
is maintained between entities & government (Thomas, 2017).
Social Factors- This factor includes religion, culture, standard of living, disposable income,
etc. It is essential for firm to consider these elements as part of organisation because considering
them leads to analysing the target customer as well as market. This results in use of resources in
optimum way. In the chosen organisation, entity is able to generate profit because of delivering right
product to right customers. With help of social factors, effective strategies and tactics are
implemented so that business runs smoothly and properly. For example- firm has fulfilled the
requirement specified by end users such as short routes with less time while covering all the
destinations.
Technological factors- Time is changing and corporate world is becoming advanced and
which have given rise to technology. These factors involve use of artificial intelligence,
implementation of tools and techniques etc. Yes, it has simplified the work of manpower but also
has resulted to scarcity of resources. In context to Ryan Air, they are using technology to acquire
more customers and to explore wider opportunity for business by improving and enhancing their
websites, online e- ticketing platform etc. It assists people in accessing the amenities in proper way.
But sometimes due to low security, it might affect the operations as well as functions.
Environmental factors- Another important component is environmental factor in which
pollution, temperature and climate change, natural resources, waste disposal etc. take place. Other
than profit earning motive, these elements are also to be involved enterprise. In relation with Ryan
Air changing of EU policy such emissions for aviation firm might be costly for entity. This also
results in high cost of production and conflicts may also arise (Nurmi, 2018).
Legal factors- These are important factors and which comprises of contract and company
law, commitments etc. Such elements help both enterprise as well as government to maintain a
discipline so that healthy relationship is developed. In relation with Ryan Air, they focus on such
factors so that everything goes properly and goals as well as objectives are achieved within a given
period of time. Such as laws and legislation in EU policy slow down the growth and development
and hold up the process.
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SWOT Analysis
In market, new entrants of firm is rising and affecting the existing businesses at wider
degree. It is necessary that every organisation to be aware about such uncertain activities. So,
SWOT is used by entities in order to gain the competitive advantage and to identify the internal
capabilities this analysis is adopted. It requires deep market research and knowledge which is used
thoroughly in the process. This framework has been describe below-
STRENGTH
Organisation is operating its activities in the
European territories whose country economy is
stable and which results in availability of
resources at wider level.
Due to offering affordable services, scale of
customers has become stronger and broader.
WEAKNESS
Labour wages and employee compensation may
affect the business of Ryan Air and it also leads
to decrease in creditability of the enterprise.
Corporation is expanding their airline industry
but aggressively used strategies could have a
negative impact on goodwill of the firm.
OPPORTUNITY
Profit and sales revenue are rising and entity has
opportunity in accessing the globalisation and
internationalisation.
With use of technology, new and methods can be
adopted for enhancing business such promotion
and advertising through digital platforms.
THREATS
Fluctuation changes in country’s economy leads
to conflicts in structure of organisation.
Rules and regulation of EU as well as Brexit
slow down the growth of business.
After a brief analysis of above matter it is stated that to continue the business for longer
period of time and to survive in market it is essential to evaluate and identify the external and
internal factors of organisation. So, two types of tools are adopted by corporation which are
PESTEL & SWOT. Both are applicable in business and are used accordingly. Through these
techniques, tactics for enhancing progress level are formed so that activity of rivals & competitors
are tracked in appropriate manner (Ervural, 2018).
2. Discuss the challenges & issues faced by chosen organisation
In every business organisation, there are different kind of issues and problems which occur
which imposes direct impact on the success and growth of business firm in adverse manner.
Therefore, the manager make effective strategies, technique as well as methods for operating the
business activities in smooth way. Also, they focuses on resolve the issues and problems which arise
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at workplace. There are different kind of problems which includes economic as well as worker
issues that must be resolved in stipulated period of time. Thus, the manager adopt the various
methods and technique in order to remove the conflicts and grievance arise within business
organisation. It is necessary to resolve the problems in order to increase the sales and growth in
future period of time. In reference of Ryan air, Due to Brexit, they faces many problems and issues
within workplace (Falcone, 2020).
Also, they faces the problems due to European union policy. In addition to this, it is difficult
for the business firm to operate its business at international level due to Brexit as well as high wage
rate. Apart from this, the European union policy forces the business organisation to comply the rules
as well as regulations that imposes direct impact on the subordinates and management of the
company. Therefore, Ryan Air emphasised on such issues and problem to be resolved quickly that
helps them in increasing the brand image as well as goodwill of the business entity at marketplace.
There are various issue which is faced by this company but the manager build effective strategy in
order to resolve them in less period of time. Beside from this, the top management of Ryan Air
focuses on increasing the reputation and goodwill of the company across the international level.
They focuses on reducing the issue and complexity which occur in the marketplace. Apart from this,
Due to increase in interest rate as well as import/ export law results in reducing the income of the
business entity. Therefore, it is necessary for the legal as well as marketing manager to consider all
these element so that they can perform the business operation and functions in an effective manner.
It helps in increasing the future success and growth of the business firm. From the above mentioned
issues and problems, it has been analysed that, it is vital for the manager to resolve the problems in
order to increase the growth of company in less period of time. In assistance of this, the manager
assess the challenges which occur within marketplace in order to achieve goal and objective in short
span of time. Apart from this, the manager adopt effective methods and technology in order to
analyse the economic as well as legal factor which imposes direct impact on the productivity as well
as profitability of business firm. It take huge amount of time in tackle the issue and problems that
arises in future time period. Therefore, the manager of Ryan Air make effective strategy, policies
and procedure for reducing the problems which arises at workplace. It helps in increasing the brand
image and goodwill of the business firm. Also, it boost the success and growth of Ryan Air in future
period of time. In addition to this, the manager of the company want to reduce the impact of Brexit
on the performance of business organisation (Meirmanov, 2020). Thus, the main purpose of Ryan
Air is to earn more and more profit for future growth and development of the company. The
manager focuses on resolving all issues, conflicts, problems that affect the performance of the
business firm in negative manner.
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3. Present a solution of the above identified problem in relevance the Ryan Air
It is often said that risk is associated from the first day of starting of business. A successful
entrepreneur is one who is always ready to take the risk and challenges. In firm, at every phase
ample numbers of factors are involved which creates hurdles and obstacle within the enterprise.
These are important because it helps in analysing the calibre of the entity to deal with difficult
situations. It also assists in increasing the performance level of organisation. Firm adopt and use
management concept as well as theories so that problems which affect the development are solved
is proper manner. It depends upon the enterprise to select suitable theories according to the
occurring of events so that effective measures are taken. In context to Ryan Air, management is well
organised and use strategies as well as tactics to tackle with such issues.
CONCEPTS-
Problem management- Issues and challenges are part of business and which are needed to
be minimised and removed effectively. Problem management refers to process/ concept of
determining the uncertain activities and challenges which can hinder function and operation of
business. This is used by firm to manage and identify such issues so that mission and vision of
company is achieved without any errors. So, Ryan Air which is airline industry faces huge obstacles
such as governmental involvement, laws, etc. It is responsibility of the manager and leaders to deal
and rectify such issues so that firm environment does not get disrupted. Time and huge cost is
involved in the process and which impact the workplace in entity.
Problem & knowledge Management- In this aspect, it states that to understand the
problem which has been identified it is crucial to first have knowledge about that area in which
issues are arising. Awareness and being active increases the level of knowledge and which helps in
solving challenges. In relation with Ryan Air, employee and labour are well aware about their roles
and responsibilities which assist them in understanding the problems (Niemand, 2020).
Change/ Problem management- In organisation, flexibility is necessary so that all the
whenever the fluctuation is done in business no hurdles occurs. It is essential that change is to
adopted by everyone in the firm to maintain the structure of the organisation stable. In relation with
Ryan Air, they management in entity is supportive in nature and everyone is ready to adjust with the
change this results in cooperation and coordination amongst the employees. To overcome with
problem it is crucial that whenever an event occurs, needed and require changes are to be done.
Theory-
Every organisation follows theories in their business and accordingly all the activities are
carried out. With help of these, guidelines are given and which helps the business to focus on their
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core areas. In relation with Ryan Air, HR of the company decides these theories so that management
modify and rectify the errors/ issues in the management.
Contingency Theory- This theory states that one problem has numerous way of solution
and different types of methods are to be used for the positive results. So, to handle and manage
heterogeneous issues entity uses theories in effective manner. Ryan Air adopts this (CT) because in
aviation industry challenges as well as threats occurs and scattered the business environment. Brexit
has negative impact on entity and with use of contingency theory, new ideas and thoughts are
developed which helps in dealing with hurdles (Greco, 2019).
System Theory- Further comes the theory in which organisation is viewed as part of the
system and is divided into two parts which are open and closed system. In this, complex work and
tasks are being considered and individual in the firm investigate about the people who are work as
team to achieve the result. Open system refers to in in which environment affect the organisation.
Closed system is defined as environment in which entities are not affected by environment. Selected
firm revolves around (OS) because EU policy forces airline industry to accept the laws and
legislation. This results in negative impact and low morale of employees. So, managers and HR of
the firm should use preventive measures to deal with such problems.
After a brief analysis of above analysis, it is examined that organisation should maintain
and manage problems by using management theories as well as concepts. They assist and depict
right path to tackle with difficult situations (Otley, 2016).
4. Summary
Every organisation performs different roles according to their business traits. Business
environment and management are two different concepts and are adopted by entities appropriately
because they are reason for growth and overall development. In this report, problem and solution of
the business, frameworks- SWOT & PESTEL, concept and theories of management has been
described. To achieve the positive results these tools are used appropriately. Issues and challenges in
corporate world occurs on daily basis and which affect the entire business at wider level. So,
concepts/ theories have been discussed such as system and contingency, problem management
concept. Thus, decision making in enterprise is required at all the stages (Homburg, 2017).
Corporation is only able to implement strategies and tactics when effective decisions making has
been taken. Hence, skills and knowledge are to be thoroughly used so that results are achieved
within a period of time.
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CONCLUSION
From the above mentioned topics, it has been analysed that the business environment as
well as management plays a vital role for the operation of business activities and functions in
suitable manner. Therefore, it helps in increasing the success and growth business firm in future
period of time. Apart from this, the manager adopt the PESTLE as well as SWOT Analysis in order
to assess the internal and external factor which imposes direct impact on productivity as well as
profitability of the business organisation. Beside from this, the manager of Ryan Air adopt the tools
and techniques in order to monitor and control business activities in an organised manner. The main
purpose of every organisation is to grab the opportunities and minimize the threat which is
prevailing at workplace. Therefore, the different concept and theories which is used by business
firm in order to gain the expertise knowledge which is necessary for the success and growth of the
organisation. Beside form this, the manager collect the necessary information which is used to
increase the brand image and goodwill of the business firm at marketplace.
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REFERENCES
Books & Journal:
Eling, 2017. Under pressure: how the business environment affects productivity and efficiency of
European life insurance companies.European Journal of Operational Research,258(3),
pp.1082-1094.
Gaganis, 2019. Culture, business environment and SMEs' profitability: Evidence from European
Countries.Economic Modelling,78, pp.275-292.
Thomas, 2017.Business process managment. U.S. Patent Application 15/113,257.
Nurmi, 2018, November. PESTEL analysis of hacktivism campaign motivations. InNordic
Conference on Secure IT Systems(pp. 323-335). Springer, Cham.
Ervural, 2018. An ANP and fuzzy TOPSIS-based SWOT analysis for Turkey’s energy
planning.Renewable and Sustainable Energy Reviews,82, pp.1538-1550.
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Falcone, 2020. Towards a sustainable forest-based bioeconomy in Italy: Findings from a SWOT
analysis.Forest Policy and Economics,110, p.101910.
Meirmanov, 2020. The existence of a generalized solution in the whole time of a problem with a
free boundary.Matematicheskie Zametki,107(2), pp.229-240.
Niemand, 2020. Theories in Information Management: Analysing Development Trajectory.
InHandbook of Research on Connecting Research Methods for Information Science
Research(pp. 40-51). IGI Global.
Greco, 2019. Goal-setting in the career management process: An identity theory perspective.Journal
of Applied Psychology,105(1), p.40.
Homburg, 2017. Customer experience management: toward implementing an evolving marketing
concept.Journal of the Academy of Marketing Science,45(3), pp.377-401.
Otley, 2016. The contingency theory of management accounting and control: 1980–
2014.Management accounting research,31, pp.45-62.
Prajogo, 2016. The strategic fit between innovation strategies and business environment in
delivering business performance.International journal of production Economics,171,
pp.241-249.
Almalki, 2017. Challenges in Implementation of Information System Strategies in Saudi Business
Environment: A Case Study of a Bank.International Journal of Computer Trends and
Technology,43(1), p.60.
Akhmetshin, 2017. Analysis of innovation activity of enterprises in modern business
environment.Journal of Advanced Research in Law and Economics,8(8 (30)), pp.2311-
2323.
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