Management Report: Ryanair's Global Expansion Strategy

This report provides a comprehensive analysis of Ryanair's expansion opportunities within the context of global trade and globalization. It examines the airline's background, highlighting its low-cost carrier model and operational scope. The report emphasizes the importance of global trade and its impact on individual economies, discussing the benefits of foreign direct investment, technological innovation, and economies of scale. It contrasts international markets, utilizing PESTEL analysis to assess political, economic, social, technological, environmental, and legal factors influencing business decisions. The report also addresses practical problems and provides potential solutions for Ryanair's global expansion, offering insights into managing contrasting business environments and formulating effective business strategies. Overall, the report aims to educate Ryanair's Operations Director about the opportunities and challenges associated with international expansion, equipping them with the knowledge necessary for successful global operations.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction:...............................................................................................................................3
Background of the Organization:...............................................................................................4
Importance and Impact of the global Trade and Globalization:................................................5
Contrasting International Market and International Business Decision Making:......................7
Pattern of Internationalization:...................................................................................................9
Solutions to Practical Problems:..............................................................................................11
Conclusion:..............................................................................................................................12
References:...............................................................................................................................13

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Introduction:
The global presence of the modern business organizations is considered to be
substantial for the efficient management of their business. According to the comments of
Schaltegger, Hansen and Lüdeke-Freund (2016), the success of the companies in expanding
the perimeter of their business actions is considered to be crucial for enhancing the
sustainability of their business activities. The global presence is considered to help the
companies in increasing the numbers of their customers and at the same time, it provides
added advantage to the companies in providing greater market limelight for their products
and services. Having said that, the business operations of the companies at the global stage is
also associated with considerable number of challenges which have the potential to limit the
success of the companies in the international market (Peng 2016). Similar to growth, the
challenges or the loss for the companies with the inappropriate management of the global
operations is also substantial.
The study evaluates the opportunities that are up for grab for an Irish organization
named as Ryanair. The selected organization primarily operates within the perimeter of
Europe and requires extensive expansion for enhancing the sustainability of their business.
The study is designed to effectively educate the Operations Director of the company
regarding the opportunities that the expansion of their business actions will provide. Along
with that, the study portrays the importance of the global trade and globalization. In addition
to this, the study shows the implication of contrasting international markets in context of the
international business decision making. Along with that, the study shows the pattern of
internationalization undertaken by the companies operating in the modern world of business.
Other than this, the study delivers a brief assessment of the background of the selected
organization. It is understandable that the expansion of the business activities of a certain

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company will be associated with different challenges. The study also informs regarding the
possible tools and techniques that can be utilized for enhancing the ability of the managers in
resolving the business challenges.
Background of the Organization:
Ryanair DAC is considered to be one of the low cost Irish airlines operating across
the European nations. The mentioned airline was established in the month of November,
1984 and started its operations in the month of July, 1985 (Ryanair.com. 2020). The company
is seen to have fleet size of 368 and operates in approximately 225 destinations (Ryanair.com.
2020). Ryanair Holdings PLC is the parent organization of the Ryanair DAC (Ryanair.com.
2020). The company is seen to be associated with multiple subsidiaries such as Lauda,
Ryanair Sun and Ryanair UK. The headquarter of the organization is situated at Dublin
Airport of Ireland (Ryanair.com. 2020). The visionary leadership from the part of the senior
management team of the company is considered to be crucial for the success of the
organization. The senior management team of the company includes John Hurley, the Chief
Technology Officer, Kenny Jacobs, the Chief Marketing Officer, Juliusz Komorek, the
company secretary and the Group Chief Legal and Regulatory Officer, David O’Brien, the
chief Commercial Officer, Michael O’Leary, the Group Chief Executive Officer, Carol
Sharkey, the Chief Risk Officer, Neil Sorahan, the Group Chief Financial Officer, Edward
Wilson, the Chief Executive Officer of Ryanair DAC (Investor.ryanair.com. 2020).
According to the latest business report of the company, the organization is
experiencing the service excellence of 17,500 numbers of employees (Investor.ryanair.com.
2020). Due to the excellent ability of the company in maintaining high quality of services
along with the capability of managing the low cost carriers, the company is observed to
improve their financial condition in a noteworthy manner in recent years. The company
earned revenue of 7.151 billion Euro in 2018 and at the same time, the company was able to

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increase their operating income to 1.667 billion Euro (Investor.ryanair.com. 2020). Other
than this, the Irish airline was able to increase their net income as well in 2018 which was
visible with generation of 1.145 billion Euro as the operating income (Investor.ryanair.com.
2020). Having said that, the company faced considerable amount of criticism in recent years
regarding the inappropriate management of the employment relations, inaccurate handling of
the customer services, emission scandals, unsuitable advertisements along with the cases of
surcharges.
Importance and Impact of the global Trade and Globalization:
According to the comments of Peng (2016), the globalization or the global trade has
played a massive role in benefitting individual economies of across the globe by increasing
the efficiency of the markets. As per the claim of Auer, Borio and Filardo (2017), the impact
of globalization on the market is pretty significant as it is eliminating the existence of the
market monopoly. As a result of globalization, the trade relation and trade execution across
the national boundaries become pretty prominent and at such situation, the companies are
observed to be largely influenced in distributing their business actions in various regions.
Hence, the entry of the new business organizations in a particular business market increases
the rivalry amongst the companies. One of the other hand, Ghemawat (2017) presented a
unique point of view with the claim that the globalization acts as a catalyst in limiting the
military conflicts. As the globalization plays a noteworthy role in increasing the trade
activities amongst the countries and strengthens the economy of the nations, it becomes
important for the countries to maintain a stable political and social environment for
promoting the effective business. As a result, majority of the countries which are part of
global business have the tendency of limiting the military conflicts amongst themselves. As a
result of the global business, the companies are observed to contribute to the development of

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economy of each and every nation in which they operate and that ensures an equal
distribution of wealth across the globe.
With a precise look at the comments of Adekola and Sergi (2016), it is understandable
that there are considerable number of benefits with the impact of the globalization which
includes foreign direct investment, technological innovation and economies of scale. The
Foreign Direct Investment has the capability to boost the companies and societies in
achieving the desired growth and strength in economy in a more efficient manner. The
Foreign Direct Investment is considered to be crucial for the faster growth of the modern
trade world and at the same time, it places the companies in a suitable position for achieving
the transfer of technology (Ghemawat 2017). Other than this, the Foreign Direct Investment
enhances the ability of the companies and the business markets in managing the industrial
restructuring in a professional market.
On the other hand, Najam, Runnalls and Halle (2016) mentioned that the
enhancement in the level of competition in the business industries, has the ability to influence
the business companies in incorporating the technological advancement and the innovative
solutions and that becomes crucial in enhancing the quality of the technological development
from the part of the companies. As per the comments of Adekola and Sergi (2016), the
Foreign Direct Investment and Technological Innovation is interlinked with each and other
and that is visible with the fact that the Foreign Direct Investment helps the companies in
improving their economic output with the help of technological innovations which plays a
crucial role in making the processes more efficient. Apart from this, one of the most
important opportunities that globalization provides is the scope to the modern business
entities in realizing the economies of scale. As a result of the same, the companies achieve
the scope of reducing the cost and prices of their products and services that thy offer to their

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customers. Hence, it places the companies in a better position for achieving larger sales and
in generating a substantial amount of revenue.
With a precise look at the business operations of Ryanair, it is understandable that
globalization has the potential of increasing the flexibility of the company in managing their
industrial restructuring, in strengthening their ability in coping up with the transfer of
technology, in incorporating the technological advancement in their business actions which
includes the application of technology in controlling the air navigation, air traffic control, in
managing the customer queries and grievances, in confirming appropriate management of the
pre boarding processes and in ensuring the accurate management of the safety and security of
the customers. The globalization is crucial for the company in achieving an appropriate
reduction in the costing of the operational activities of the company which enables the
company in achieving their goal of being a low cost carrier.
Contrasting International Market and International Business Decision
Making:
With a precise look at the context of the international business, Child et al. (2017)
claimed that the significance of analysing the business environment has the potential to
contribute to the improvement of sustainability of the companies. In addition to this,
Martineau and Pastoriza (2016) mentioned that the global business operations place the
companies in such position where they have the obligation of managing the contrasting
business environments. Having said that, it is important for the companies to ensure that they
have the ability to tackle the differences with their strengths and in such situation, the
companies are observed to face the necessity of evaluating different factors of the markets
that are contrasting to each other. As per the comments of Child et al. (2017), the evaluation
of the contrasting business markets is professionally managed by the modern business

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decision makers with the utilization of the PESTEL analysis. The mentioned tool is of great
significance for the modern managers in evaluating the impact of the macro environmental
factors.
The differences between the countries on the basis of the political scenario or the
social scenario get well tracked with the application of the mentioned tool. For example, the
South Korea and North are facing considerable aunt of political tensions. As the political
tension affects the suitable business actions of the companies in that region, the application of
PESTEL will increase the awareness of the companies regarding the probable danger. On the
other hand, the utilization of the mentioned tool is important for the companies as it will
effectively educate the companies regarding the condition of the literacy rate of the nation
along with the per capita income indicators which are the fundamental factors that the
companies are expected to consider in deciding for the expansion of their business actions
(OECD 2016). Other than this, the utilization of the mentioned tool enhances the
understanding of the companies regarding the level of acceptance that the citizens of a
country have, for the incorporation of the technology and innovation. Other than this, the
mentioned tool helps the companies in understanding the condition of the labour and
employment market as that becomes important in gathering the information regarding the
availability of the skilled an efficient employees. Having said that, Dimitratos et al. (2016)
mentioned that the legal provisions associated with the business proceedings taking place in
the modern world of business is better understood with the help of the mentioned tool as it
provides in depth information regarding the impact of the environmental legislations, trade
legislations or the labour and employment related legislations on the business actions of the
companies operating in a particular business market.
On the other hand, Buckley (2016) mentioned that it becomes important for the
companies to get an in depth information regarding the micro environmental factors as that is

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essential for the formulation of business strategies. As per the comments of Buckley (2016),
the success of the companies in restructuring their business with a precise look at the micro
environmental factors of the business environment, increases the ability of the companies
tackling the business challenges and in utilizing their strengths for the achievement of the
desired growth in the modern world of business. As per opinion of Mathooko and Ogutu
(2015), the utilization of the Porter’s Five Forces analysis is considered to be the most
suitable tool for identifying the impact and the differences in the impact of the micro
environmental factors of the business environment. The utilization of the Porter’s Five Forces
model helps the business managers in gathering the knowledge related to various aspects of
the business such as the bargaining power of the buyers in a particular industry, bargaining
power of the suppliers in the market, the threat of new entries, competitive rivalry and the
threat of substitutes. Hence, with the application of the mentioned tool, the companies have
the opportunity to gather sufficient information regarding the requirements of the customers,
different types of needs of the suppliers, preferred pricing, the probability of the new entries
in the mentioned industry along with the intensity of the competitive business environment of
the mentioned industry. As a result, the companies achieve better position for the formulation
of their business level strategies which can help them in achieving the desired growth and in
resolving the complexity associated with their business actions.
With a precise look at the discussion, it is understandable that the selected company,
Ryanair has the possibility to gather important information regarding the contrasting macro
and micro environmental factors in various regions prior to the formation of the business
level strategies or the corporate strategies which will be the bases of their business expansion.

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Pattern of Internationalization:
Considering the dynamics of the international business management and the global
business operations, the prominence of two different patterns of internationalization is
visible. The cross border integration is one of the main patterns of internationalization
followed by the companies. As majority of the modern business entities are seen to be
inclined in developing a global presence, it becomes important for the companies to ensure
that they are able to integrate their business networks placed across the globe (Oshri,
Kotlarsky and Willcocks 2015). The cross border integration provides better agility to the
companies in managing their business actions and at the same time, it ensures high efficiency
in the business actions of the companies. Other than this, the cross border integration helps
the companies in enhancing their ability in serving the demands of the customers in a
considerably professional manner across the globe.
Other than this, one of the important patterns of internationalization undertaken by the
modern organizations is seen to be the “Outsourcing”. Outsourcing is a widely practiced
concept or pattern that increases the attractiveness of the internationalization. According to
the comments of Mathooko and Ogutu (2015), there are several companies that face heat of
business expansion owing to the necessity of substantial amount of financial investment for
the development of the infrastructure in the new business markets. The concern of such
companies in ensuring the availability of the suppliers, employees and the physical
infrastructure gets resolved with the practice of the concept of “Outsourcing”. The
outsourcing of the infrastructure, employees and the suppliers places he companies in a better
position in managing the challenge of internationalization in an effective manner. Other than
this, Goldschmidt and Schmieder (2017) claimed that the outsourcing of the infrastructure
and human resources increases the flexibility of the companies in managing the offshore
business actions which is one of the top most priority for the companies in limiting the

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operational cost and in generating larger revenue. Hence, it is understandable that the
business organizations belonging to the upscale market have considerable amount of scope of
manufacturing their products from the mid-scale business markets for limiting the
manufacturing cost of the products..
Considering the business operations of Ryanair, it is visible that the cross border
integration is crucial for the sustainability of the business activities of the company. With a
look at the business actions of the company, it is evident that the cross border integration will
play a crucial role in initiating business operations of the company at the global stage in a
more professional manner. The professional management of the cross border integration will
be of great significance for the company in ensuring that the quality of their performance gets
increased (Makkonen and Rohde 2016). At the same time, an efficient management of the
cross border integration will be important for the company in increasing their ability in
reaching out to the customers in a more efficient manner.
Solutions to Practical Problems:
With a precise consideration towards the intention of companies in expanding their
business actions across the globe, it is inevitable that the companies will face innumerable
number of challenges regarding the pricing, quality of their products, the alignment of the
needs of the customers with their product offerings, promotion of their products or services
and in management of their human resources. Considering such practical challenges, the
collection of knowledge which includes Porter’s Generic strategies, the segmentation,
positioning and targeting strategies, marketing mix strategies, Porter’s diamond model, Total
Quality Management and Six Sigma will be of great significance for the companies in
increasing their ability in tackling the above mentioned business challenges (Suwandej 2015).

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The porter’s generic strategies will educate the business managers whether they are
required to establish the cost leadership or product differentiation or go for the focus strategy.
On the other hand, the knowledge regarding the marking mix or the STP strategies are crucial
for the business managers in managing the impact of the marketing or promotions related
business challenges. Having said that, the knowledge of Porter’s Diamond model is crucial
for the companies in tackling the challenges related to the evaluation of suitability of the new
business markets. On the other hand, the theoretical and practical knowledge regarding the
implementation of Six Sigma or the Total Quality Management will be crucial for the
companies in ensuring that the quality of their products and services is not detrimentally
affected (Conger 2015). Apart from this, the companies face the necessity of developing the
teams and retaining their talented employees in a professional manner and for the same, the
knowledge of the team development theories such as the Tuckman or Belbin team
development theory along with the Maslow’s hierarchy of needs or the Herzberg Two factor
theory, are crucial for the success of the companies such as Ryanair (Eubanks et al. 2016).
Conclusion:
On an ending note, it is understandable that the introduction of the company at the
global stage, will be significant for their success in enhancing their sustainability. The
initiation of the global business operations from the part of Ryanair will be crucial in
increasing the number of their customers, the sales of their services and in generating larger
amount of profit. Having said that, the challenges associated with the global business
operations are required to be professionally managed with the application of various theories
and tools such as Belbin Team Development or Tuckman Team Development, STP
strategies, marketing mix strategies, Maslow’s hierarchy of needs along with the Porter’s five
forces analysis, porter’s generic strategies or PESTEL analysis.

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Adekola, A. and Sergi, B.S., 2016. Global business management: A cross-cultural
perspective. Routledge.
Auer, R., Borio, C.E. and Filardo, A.J., 2017. The globalisation of inflation: the growing
importance of global value chains.
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Child, J., Hsieh, L., Elbanna, S., Karmowska, J., Marinova, S., Puthusserry, P., Tsai, T.,
Narooz, R. and Zhang, Y., 2017. SME international business models: The role of context and
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Conger, S., 2015. Six sigma and business process management. In Handbook on Business
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Dimitratos, P., Buck, T., Fletcher, M. and Li, N., 2016. The motivation of international
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Eubanks, D.L., Palanski, M., Olabisi, J., Joinson, A. and Dove, J., 2016. Team dynamics in
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Ghemawat, P., 2017. The laws of globalization and business applications. Cambridge
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Goldschmidt, D. and Schmieder, J.F., 2017. The rise of domestic outsourcing and the
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Oshri, I., Kotlarsky, J. and Willcocks, L.P., 2015. The Handbook of Global Outsourcing and
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