MANAGEMENT 5 Report: Political, Economic, Social Factors for Ryanair

This report provides a comprehensive analysis of Ryanair's competitive business environment. It begins with an overview of PEST (Political, Economic, Social, and Technological) and SWOT (Strengths, Weaknesses, Opportunities, and Threats) analyses, explaining how businesses use these tools to assess external and internal factors. The report then delves into how political and economic factors affect businesses in general, followed by an examination of current factors impacting businesses now and in the future, such as credit availability and technological changes. The core of the report focuses on Ryanair, analyzing how political, economic, social, and technological factors will impact the airline in the future. It examines specific political policies, economic trends, and social and technological advancements. Finally, the report outlines actions Ryanair could take to gain more customers, including introducing new aircraft, offering lower fares, improving punctuality, undertaking digital improvements, and enhancing environmental sustainability efforts. The report is well-researched, citing multiple references to support its findings.

Running head: MANAGEMENT
Competitive Business Environment
Name of the Student:
Name of the University:
Author Note:

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Table of Contents
Part 1................................................................................................................................................2
1. PEST and SWOT Analysis and How Business Use the Tools....................................................2
2. Explanation of How the Political and Economic Factors Affect the Business............................2
3. Current Factors that Affects Business Now and In Future..........................................................3
Part 2:...............................................................................................................................................3
1. Analysis of how Political Factors would Impact Ryanair in Future............................................3
2. Analysis of how Economic Factors would Impact Ryanair in Future.........................................4
3. Analysis of how Social and Technological Factors would Impact Ryanair in Future................4
Part 3................................................................................................................................................5
Actions taken by Ryanair to Gain More Customers:.......................................................................5
References:......................................................................................................................................7

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Part 1
1. PEST and SWOT Analysis and How Business Use the Tools
PEST Analysis which refers to the political, economic, social and technological refers to
the management method where an organization is able to assess the external factors that
influence the operation for becoming increasingly competitive in market1. On the other hand,
SWOT analysis refers to the internal strengths and weakness along with the external threats and
opportunities2.
Businesses use the SWOT analysis for understanding the strengths and weakness of the
business that would help in influencing the ability of taking advantage of newer opportunity3. On
the other hand, businesses use the PEST framework for monitoring and analyzing the factors of
the macro environment that might have profound impact on the performance of the organization4.
The tool is particularly useful for starting a newer business or entering foreign market.
1 A Gupta, "Environment & PEST Analysis: An Approach To The External Business Environment." (2013)
2(1) International Journal of Modern Social Sciences.
2 H Yuan, "A SWOT Analysis Of Successful Construction Waste Management" (2013) 39 Journal of Cleaner
Production.
3 G Brooks, A Heffner and D Henderson, "A SWOT Analysis Of Competitive Knowledge From Social Media For A
Small Start-Up Business" (2019) 18(1) Review of Business Information Systems (RBIS).
4 PS Aithal, "Study On ABCD Analysis Technique For Business Models, Business Strategies, Operating Concepts &
Business Systems." (2016) 4(1) International Journal in Management and Social Science.

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2. Explanation of How the Political and Economic Factors Affect the Business
Business should be able to track the political environment. Changes in political factors
influence the business strategy. It has been found that stability in the political system can
influence the appeal of the local market. The actions of the government also influence economic
environment5. The examples include political instability or stability, government policy,
corruption, bureaucracy, foreign trade policy, regulation of competition, trade restrictions and tax
policy.
The economic factor that affects the business includes all the key trends within the
economy that helps in or restricts the company in achieving the objectives6. The economic
factors that commonly hinders business includes the employment factors, consumer behavior,
inflation, interest rate and all the economic indicators.
3. Current Factors that Affects Business Now and In Future
Availability of Credit and Finance: Although financial institutions do not have much
involvement with the business but it eventually impacts the ability of a company in doing
business. For example, interest rates, availability of the credit and the consumer loans are the
external factors that can be controlled rarely.
Localized Infrastructural Changes: It is to be noted that changes in local infrastructure
might prove disastrous or fortuitous for the business. For example, zoning laws, housing
development and the highway construction are vital for a business since they need to depend on
location for attaining success.
5 T Lawton, S McGuire and T Rajwani, "Corporate Political Activity: A Literature Review And Research Agenda"
(2013) 15(1) International Journal of Management Reviews
6 R.A Blackburn, M Hart and T Wainwright, "Small Business Performance: Business, Strategy And Owner-Manager
Characteristics" (2019) 20(1) Journal of small business and enterprise development

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Changes in the Trends and Technology: While a business spends good parts of the
profits on the marketing with the hopes of influencing the trend then there exist some that are
beyond the control. An enhancement in the technology use by the customers is built on the
strategic planning which the company might not be prepared for and which in a way might
impact the business.
Part 2:
1. Analysis of how Political Factors would Impact Ryanair in Future
The political factors highly influence the future of Ryanair. It is considered to be one of
the reputed airlines of Europe. Political policies are considered important for some flagship
airlines like Ryanair. Europe has furnished this trend for the airline industry thereby
implementing the policies of innovative pricing and product differentiation. 7Besides, the airlines
have also faced directives issued by European Union that disallowed the government subsidies to
the airlines for ensuring a level playing ground.
2. Analysis of how Economic Factors would Impact Ryanair in Future
The economic factors of the country directly impact the airline industry. There exists
direct relation with the economic and the trade cycles. In this regard, it can be said that Ryanair
is the least affected compared to other Airlines due to its low fares. The economic factors mostly
include GDP, exchange rates, inflation rates, unemployment rate, monetary and fiscal policy8.
7 S Rövenstrunck, Comparative Analysis Of The European Low Cost Carriers Ryanair And Easyjet With The US
Pioneer Southwest Airlines (2013).
8 M.A Myre, "An Analysis Of Airline’S Financial Performance And Its Influencing Factors."

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Change in one of the factors that result in financial impacts with reduced activities in business.
This has direct impact on airline business by reducing the total number of the passengers with
regard to the specific destination thereby leading to the loss of the company. In other words, the
crisis has a direct influence on the revenue collection. Ryanair however would get preference
over the other airlines due to the lower cost structure. Given the scenario, it could be the case that
the passengers resorting to the last minute bookings would choose Ryanair over the other
airlines.
3. Analysis of how Social and Technological Factors would Impact Ryanair in Future
The social factors include lifestyle, value and the beliefs of the society. Most passengers
look for safety within airline and they mostly prefer the airline with the most advanced up to date
measures. The introduction of Ryanair has brought about a change in the lifestyle of the citizens
since they could opt for more business and holiday trip at a lower fare. Besides, the airlines are
also known for the politeness and the hospitality of its staffs.
As far as the technological factors are concerned there has been a change in the airline
industry due to the emergence of internet and technological innovations. Internet has brought
about facilities of booking tickets online and listens to music and watch videos while flying.
Ryanair tried to cope with the immediate necessities of revenue generation through introduction
of an online ticketing facility.

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Part 3
Actions taken by Ryanair to Gain More Customers:
The actions that Ryanair could undertake for gaining more customers are as follows:
1. Introducing Newer Aircraft: With continuous customer complaints regarding
reduced legroom space, the airline now plans to introduce new aircrafts with not only bright and
new interiors, more seats and legroom.
2. Providing the Option of Finding Lower Fare: The airline also targets towards
finding a cheaper fare within a matter of 3 hours and provide an additional benefit through the
credit facilities of the airline.
2. Maintain Punctuality: The airline experienced a drop in punctuality by 8 percent and
plans to deliver a target of 90 percent in this year.
3. Undertake Digital Improvements: The airline also plans to introduce a mobile app
which is not only better, faster along with a presence of new fare finder, travel guides and sports
ticket.
4. Undertake Environmental Improvements: The airline works towards a program of
setting of carbon thereby aiming at being plastic free for the next five years.

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References:
1. Gupta, A, "Environment & PEST Analysis: An Approach To The External Business
Environment." (2013) 2(1) International Journal of Modern Social Sciences
2. Yuan, H, "A SWOT Analysis Of Successful Construction Waste Management" (2013)
39 Journal of Cleaner Production
3. Brooks, G, A Heffner and D Henderson, "A SWOT Analysis Of Competitive Knowledge From
Social Media For A Small Start-Up Business" (2019) 18(1) Review of Business Information
Systems (RBIS)
4. Aithal, PS, "Study On ABCD Analysis Technique For Business Models, Business Strategies,
Operating Concepts & Business Systems." (2016) 4(1) International Journal in Management and
Social Science
5. Lawton, T, S McGuire and T Rajwani, "Corporate Political Activity: A Literature Review And
Research Agenda" (2013) 15(1) International Journal of Management Reviews
6. Blackburn, R.A, M Hart and T Wainwright, "Small Business Performance: Business, Strategy
And Owner-Manager Characteristics" (2019) 20(1) Journal of small business and enterprise
development,
7. Rövenstrunck, S, Comparative Analysis Of The European Low Cost Carriers Ryanair And
Easyjet With The US Pioneer Southwest Airlines (2013)
Gupta, A., 2013. Environment & PEST analysis: an approach to the external business
environment. International Journal of Modern Social Sciences, 2(1), pp.34-43.
8. Myre, M.A, "An Analysis Of Airline’S Financial Performance And Its Influencing Factors"

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