BBS003-1: Ryanair CSR and Sustainable Business Practices Analysis

This report provides a comprehensive analysis of Ryanair's corporate social responsibility (CSR) initiatives and sustainable business practices. It begins with an introduction to sustainable management, emphasizing the importance of people, environment, and profit. The report then delves into Ryanair's specific strategies, including its ESG policy and responses to CSR challenges. The analysis incorporates tools such as SWOT analysis and Porter's Five Forces to assess the airline's strengths, weaknesses, opportunities, and threats, as well as its competitive position. Furthermore, the report examines different approaches to CSR across Micro, SME, and Corporate businesses, comparing their strategies and methods for measuring success. The report concludes with a reflection on the learning outcomes achieved during the unit, referencing the student's online journal. The report highlights Ryanair's initiatives to attract customers with low fare tickets and maintain environmental and social awareness. It also addresses the company's weaknesses, such as past performance issues and potential safety concerns, while exploring opportunities for improvement and future growth. The report includes references to support the analysis and provides a balanced perspective on Ryanair's business practices.

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Name of the Student
Name of the University
Author Note

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Table of Contents
Section A.........................................................................................................................................3
Introduction......................................................................................................................................3
Introduction/summary of the assignment brief and task..................................................................3
Explanation of a sustainable approach to business strategy and management – evidence by
examples of strategies that businesses use to operate in an ethical and sustainable way................4
SWOT analysis................................................................................................................................6
Porters Five Forces Analysis...........................................................................................................8
To evidence and analyze the different approaches to CSR of Micro, SME and Corporate
Business, are their approaches similar? Are there differences and how can you measure success
in their CSR strategies?.................................................................................................................11
References......................................................................................................................................13
Section B- Reflection.....................................................................................................................15
References......................................................................................................................................19

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Section A
Introduction
Sustainable management constitutes of operating a business on three primary grounds,
and they are people, environment and profit. Many companies are involving CSR strategies to
gain sustainability as well as acquire profit. The report will explain the initiatives taken by the
company Ryan air to create sustainability and analyze ways to sustain in the competitive market.
The use of various tools will be exemplified in the report, such as SWOT analysis, porters five
forces model to understand their sustainable approach making the company sustainable and
operate in an ethical process.
Ryanair is an Irish budget airline which was founded in the year 1984, and it's
headquartered is in Swords, Dublin. Ryanair is a part of the largest family of Ryanair holdings
and its airline services which also operates in the U.K. (Ryanair.com. 2020). The present CEO of
the company is Michael O'Leary. Based on this company, understanding of sustainable approach
in managing a business will be analyzed. The study will also explore the company's strategic
planning and the methods they apply to maintain corporate social responsibility (CSR).
Introduction/summary of the assignment brief and task
In today's competitive market arena, sustainable development is a key to success and
profitability. Considering the current condition, it can be stated that for better development of
sustainable initiatives that are primarily considered every organization and it is the crucial thing
to make sure that the companies are analyzing where internal capability and external
opportunities are present simultaneously. There have been much development approaches

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considered by different companies to make sure that their sustainability goal is being achieved in
the given timeline. Still, many organizations have failed to attain that state in the given
timeframe. In the following section a theoretical discussion will be on the competitive
advantages that can be gained by Ryan air to have an upper hand on the competitors in the
market. To analyze the CSR challenges and maintain sustainable development, some theories
will be considered, and in accordance with them, appropriate approaches will be made.
Explanation of a sustainable approach to business strategy and management – evidence by
examples of strategies that businesses use to operate in an ethical and sustainable way
The process of gaining competitive advantage need a proper infrastructure to be
incorporated in the workplace environment. Implementing proper infrastructure operations can
identify the opportunities and threats that need to be developed incorporated, uncontrolled to
chalk out sustainable strategies to become more sustainable and competitive in the cutthroat
competition. According to Borbély (2016), Sustainable development is an ethical standard which
must be incorporated in every company. According to Brundtland Commission, the concept of
sustainable development should be made more tangible I.T. companies can identify their CSR
challenges and organize activities, which create growth process and societal development
(Wackernagel Hanscom and Lin 2017). This is a crucial thing in sustainable development as it
portrays the company's responsibility towards the uplifting of society. The contribution to
civilization should be made by eliminating the adverse effects of business, like decreasing carbon
emissions, industrial wastes, stopping usage of plastics etc. Many companies in order to improve
their CSR activities have adopted these type of initiatives. Companies should analyze ways of
linking responsibility with opportunities so that they can contribute to the society as well as trade

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profit for themselves. Thus, sustainable development will become the source of value creation
for managing the company as well adhering to the societal norms.
Ryanair is one such company which has provided a single route from southern islands to
London Gatwick airport, leading airlines. By the year 2020 Ryanair had of 4.1 % of international
air traffic passenger demand. Ryanair has always maintained environmental and social awareness
from the very beginning as it is said to be the greenest and cleanest airline of Europe
(Investor.ryanair.com. 2020). They attract customer with low fare air tickets and the
consecutively invest in new aircraft engine technology which attracts more customers. In
maintaining CSR strategy Ryanair follow its ESG policy, which consists of 6 key attributes, they
are as follows:
 Safety and quality
 Energy efficiency
 Environment and carbon emissions
 Labor management training and social
 Ethics and transparency
 Corporate governance
In the recent times, Ryanair is freezing serious issues related to corporate social
responsibility. According to the qualitative data published by Geneva based covalence, covers
that Ryanair has CSR strategies under 45 criteria's which includes labor standards, waste
management policy, social utilization and human Rights policy. Issues that have been faced by
Ryanair is that they post inappropriate information on their website. They contribute only 2% of
carbon dioxide emissions, posting inappropriate price list of flights in their websites (Statista.

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2020). Apart from providing misleading information, another CSR issue Ryanair is facing, is that
of maintaining social responsibility, as in many cases it has been observed that they are incapable
of handling emergency situations. There has been reports against Ryan air for misbehaving with
passengers and putting them in awkward situations.
SWOT analysis will be presented to understand the strength weaknesses opportunities
and threats of the company Ryanair. The SWOT analysis is given below:
SWOT analysis
Strengths
 The key competitive advantage of Ryanair is there low fare cost of flight tickets. Ryanair
has proved to be the one providing lowest costs fare tickets among other European
Airlines (Moreno-Izquierdo and Perles-Ribes, 2016).
 Providing low cost tickets from their competitors, they provide low fare air tickets for
short haul journeys and long routes which their competitors cannot
 The average package of Ryanair includes seat reservation, on board purchases and
insurance cover, which is comparatively low according to average revenue per passenger
provided by their competitors
 They have adapted the business model of Southwest airlines and Ryanair was the first
airline to provide low cost travelling expenses in Europe. Due to Ryanair's innovation,
short haul flying in Europe constitutes of online distribution, online check in, automatic
bag drop. They've even created networks to the remote regions where they provide
travelling provisions making it unique process and creating larger connectivity.

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 Ryanair has more than 1600 routes in near about 30 countries, with more than 186
airports any beautiful North Africa. They even have the facilities of short haul flight
networks.
 Strong focus of the management, which leads to constant support of Michael O'leary’s
leadership, and their focus is in keeping low cost services and fares.
Weaknesses
 Although Ryanair has reached heights in providing customers with low fare travelling
cost, they have been constantly degraded in polls, services and awards
 From the recession period of 2008 to 2009 they have suffered huge loss degrading the
performance, although they were in top position in airline market
Threats
 There are possible assumptions that reducing the cost also lead in the company
compromising the safety and security of the aircrafts. Therefore there is a possibility of
accidents, to attract more customers and acquire their trust
 Lack of focus by management in the competencies can prove a major threat for the
successful and sustainable operation of the company. This has been proven when Ryanair
attempted to buy their rival company Air lingus, an Irish airline, but rejected by
competitors and Irish government.
 The level of unit cost is much lower than that competitors in Europe although their
competitors can pose serious threat to the operation of the company

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Opportunities
 From the year 2013, Ryanair has been taking initiatives regarding passenger interaction
with airline. To Increase the interactivity, they developed a website and a new mobile
application where customers can book a ticket from, introduced less restrictions on
baggage, decrease charges in making changes to bookings flight tickets. Introducing
these facilities and provisions to the customers in the year 2014 Ryanair acquired
considerable increase in their revenue collection
 The launching of Business Traveler product will help to improve their customer services
processes.
 They have planned a design of a new hundred Boeing 737 Max 200 aircraft, with the
possibility of hundred more options. This craft will be delivered between 2019 to 2024;
they have CFM leap 1B engines, which helps in reducing fuel consumption by 18%, and
reduce noise emission by 40%. Craft has provided extra seeds, which will help in
reducing cost and a better aircraft for attracting more customers
Porters Five Forces Analysis
Bargaining Power of Supplies
Boeing has been usually Ryanair's central supplier, regardless, there are reports that
"Ryanair is excited about Comac's masterminded C919 plane, which is being made to coordinate
the Boeing 737 and the Airbus A320, the dominating players in the business plane publicize.
Comac, Chinese fly creator, is attracting Ryanair's excitement due to increasingly imperative
proportions of seats inside its planes, similarly as extended level of adequacy related with

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imperativeness usage (Dupire and M'Zali 2018). This reality signals about Ryanair's growing
bargaining power towards its essential supplier, Boeing.
In any case, the supplier trading costs for Ryanair is unfathomably high due significant
proportion of costs included related with pilot retraining needs. What's more, bearer pilots have a
strong managing influence in the airplane business, considering the way that there is no rich
supply of uncommonly qualified and experienced pilots. Before long, Ryanair acknowledges
rapidly extending power towards a substitute class of its suppliers. Significantly, reinforced level
of competition among air terminals has largely extended the trading power of bearer associations
in their business relationship with the local air terminals.
 Bargaining power of Customers
Managing force of customers can be explained as "a favored position that starts from
gathering to crush producers to cut down expenses or improve quality". Ryanair customers
acknowledge high wrangling power since changing to another transporter is clear and not related
with additional expenses. In any case, it must be referenced that only for Ryanair, anyway for
airplane industry with everything taken into account "the wheeling and dealing power of buyers
is tolerably high and growing, since most transporter associations are constrained to lessen costs
by commanding contenders"
Extended level of significant worth affectability of Ryanair customers is another factor
that adds to their managing power. Ryanair is especially frail against any worth decline estimates
familiar by its opponents due with the nonattendance of brand dependability related with the
transporter business.
 Threat of substitutes products and services

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A substitute is "a thing or organization of another industry, which makes an equivalent a
motivator for the customer". The threat of substitute things or organizations is a fundamental
thought upon the level of profitability of an industry. It is on occasion attested that "there are for
all intents and purposes no alternatives for quick traveling, except for possibly quick trains
(standard substitutes), which are not totally developed now and are feeling the loss of the
essential system in a huge bit of the locale".
Regardless, substitute organizations for airplane industry when everything is said and
done and Ryanair explicitly fuse railroad frameworks, sea transports, coach transport, similarly
as, vehicle rental firms. In any case, "commonly, train, transport or boat tickets are more
exorbitant than Ryanair's flight tickets" as a result of the picked system of Ryanair that relies
upon humble expenses as the major wellspring of high ground.
The threat of guideline substitute, Ryanair now and again tends to trains in a proactive
manner through giving worth relationship expenses of Ryanair organizations with train benefits
on the association site and various sources. Regardless, it is fair to communicate that the danger
of substitute things and organizations for Ryanair is unimportant diverged from various
undertakings in the business place.
 Danger of new Entrants
Danger of new competitors relates to the level of straightforwardness related with going into
an industry and matching current market players). The threat of new members is low for Ryanair
in light of the colossal section checks related with entering transporter portion that fuse
economies of scale, capital necessities, access to flow channels, etc.

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Economies of scale, known as the cost advantage related with business augmentation is
seen as the best entry deterrent into airplane industry. Specifically, as demonstrated by
economies of scale, for set up feature players in transporter industry, for instance, Ryanair "as
the measure of a thing conveyed during a given period fabricates, the cost of gathering each unit
diminishes".
Likewise, essential capital requirements related with entering bearer industry consolidate,
anyway not obliged to getting physical workplaces, overseeing inventories, taking an interest in
promoting activities and pulling in qualified workforce address another basic impediment.
Inconveniences related with getting to scattering channels is another critical limit looked
by new challengers in the airplane industry. To be explicit, neighbourhood and worldwide air
terminals will probably be not able to make additional openings in their establishment to serve
new members into the market.
To evidence and analyze the different approaches to CSR of Micro, SME and Corporate
Business, are their approaches similar? Are there differences and how can you measure
success in their CSR strategies?
Although corporate social responsibility is the primary factor to be included in most of
the organizations, it can be different in case of small businesses and large businesses. A
misconception has been building among the business people and researchers that CSR activities
are only for the larger enterprises. Size of a business can be a factor in determining choices in
CSR activities. Therefore, this part of the report analyses the differences between micro
organizations and extensive organizations process of CSR strategies implementation to make the
company develop and reach heights of success. According to Crane Matten and Spence, (2019),

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large businesses have a greater impact on the society, and they attract attention from the
customers therefore they are more liable to make a difference in the society as well as create a
reputation among stakeholders. SMS are small organization which have the size of
approximately thousand employees, therefore the CSR activities is much more less in compared
to the larger businesses in case of small businesses.
Although in the recent times, small and medium enterprises have created a major place in
keeping the economy stable particularly in the developing countries. An organization have
represented 90% of the business and have provided 50% of employment in global arena. It has
been observed that assembly has contributed increasing the economy and by 40%. According to
Pierce et al (2017), Small medium organization has also contributed 50% in export business,
increase in numbers. Therefore, considering the impact of SME and micro organizations on
global economy and employment, CSR strategies must be developed by them to increase their
sustainability and help in acquiring competitive advantage.
Another major factor considering the success of small organizations is the aligning the
CSR strategies to the Human Resource Management Department, which can help in
synchronizing the activities of a company (Voegtlin and Greenwood 2016). The major HRM
Practices, in a small to medium organizations, are description of Job analysis and job design,
provision of training to the employees, providing adequate compensation and benefits to the
employees, and maintaining relationships. Therefore, combining CSR will help the organization
to solve the emerging conflicts between employees and develop an integrated environment. It has
been observed that, CSR is much preferable in case of changing condition, while adapting new
changes in an organization.