Ryanair: Internal Environmental Analysis & Strategic Options Report

This report provides a comprehensive analysis of Ryanair's internal environment and strategic options. It begins with a VRIO analysis to assess the company's resources and capabilities, followed by a SWOT and TOWS analysis to identify strengths, weaknesses, opportunities, and threats, and to generate strategic options for the next five years. The report then evaluates these options based on suitability, feasibility, and acceptability, considering factors such as marketing penetration, product development, and new customer acquisition. The analysis explores how Ryanair can leverage its strengths and opportunities to overcome weaknesses and mitigate threats, offering insights into strategic decision-making within the airline industry. The report also discusses the importance of strategic direction and methods in achieving organizational goals and developing new products and services.

Internal
Environmental
Analysis & Evaluation
of Strategic Options

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
A ‘VRIO’ or ‘VRIN’ analysis of the company. What is your overall assessment of Ryanair’s
strategic capability..................................................................................................................3
TASK 2 ...........................................................................................................................................5
A ‘SWOT’ and ‘TOWS’ analysis of the company. What possible options are available for
the company to pursue over the next 5 years.........................................................................5
TASK 3 ...........................................................................................................................................8
An overall evaluation of these options concerning the ‘suitability’, ‘feasibility’ and
'acceptability’ of each option..................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Internal Environment is the combination to those conditions, events and factors by which
organisational activities and behaviour of the employees get influenced. The analysis can be
conducted to evaluate all those activities that impact performance of the organisation. It includes
core competencies and capabilities of an business organisation. Managers make some strategics
and plans in order to extend the performance of the organisation. A valid strategy is helpful in
developing growth and profit, or any other factors that are establishes by managers in order to
achieving the targets of the company. Evaluation of strategic factors are based on area and the
age of the industry and organisational decisions are effected by them.
TASK 1
A ‘VRIO’ or ‘VRIN’ analysis of the company. What is your overall assessment of Ryanair’s
strategic capability
VRIO framework is used as tool to analyse internal resources of the company. It is
helpful in finding out capabilities, that can be a source of continuous competitive advantages.
The distinct set of techniques and tools were developed by Barney, (1991) during his work, Firm
Resources and Sustained Competitive Advantage. According to the author, resources are
valuable and rare assets of the organisation. VRIO was also known as VRIN (Grant, 2016).
There are following factors in VRIO framework, that impact on Ryanair's competitive
advantages analysis. Such are as:- Value – Along with this, resources are very valuable for the organisation, they helps in
increasing customer value. Internal environment adds value in business, in order to put
some efforts in opportunities and argue against threats. It is important for Ryanair's
airlines, that it continuously reviews the value of the organisation. Rare – Valuable and rare resources aid transitory competitive advantages. They can be
consider rarely by only one or few companies. Mostly it happens that firms are uses same
strategics for resources to implementation, and no one organisation be succeed in its
performance (Chen, 2011) Costly to imitate:- It is not possible for every organisation, that it can stimulate resources
in comparison of another organisation. There are three situation, in which organisation is

not able to afford these resources, such are as :- Social complexity,historical conditions
and casual ambiguity.
 Create to capture value – Ryanair's airlines, firstly have to improves its management
structure, so that it is cable to established overall control on plans and policies on
implementation of resources. (Wheelen and Hunger, 2011).
Resources/
Capabilities
Value Rarity inimitably Organisational
support?
Product
Distribution at
international level
Yes No No Yes
The brand
management
Yes Yes Yes Yes
Supply chain
management
Yes Yes Yes Yes
Top Executives/
Superiors
Yes Yes Yes Yes
In internal business environment, there are two types of resources tangible and intangible
resources. The process of utilization of certain assets in the organisation, is known as resource.
Some resources are generated in organisation, they are internal resources (Therivel and Paridario,
2013). Specific resources can be obtained by the external suppliers and non specific resources
are less specific and less significant in added value. Human, physical and final resources are
come under this category. Competence is refer as when the organisation have ability to compete
with another organisation.
Strategic capabilities of Ryanair's :- Ryanair's is the world most famous airlines, that is
connected with 153 designations. Identification of environmental analysis and the objective of
the organisation, will help to know its success and capabilities.(Sevkli and et. al., 2012). These
both are the factors that are helpful to make organisation successful and also improves its the
performance. Strategics and polices affects positively on business organisation in terms of
market share and ease up air ticket's costs. Objectives are helpful in develop business growth

and put impact on name and fame of the company in order to increasing profit as well as profile
of the company. Ryanair's airlines has its own pre decided objectives by which company is able
to determines its success and attracts customers easily. The internal environment of the company
also affects on the performance of the company, for example:- management system, culture and
behaviour of the employees and managers. In order to Ryanair's airlines it is essential to find out
those factors that effects negatively to its performance, for that the organisation have to make
plans reduces all those factors. The PESTAL analysis of the company also effects on profit of the
company, it includes political, environmental, social, technological and legal factors of the
business. If the organisational goals and aims are not pre determined, it is not able to achieves its
targets (Murillo-Luna, Garcés-Ayerbe and Rivera-Torres, 2011).
TASK 2
A ‘SWOT’ and ‘TOWS’ analysis of the company. What possible options are available for the
company to pursue over the next 5 years
SWOT analysis includes strengths, weakness, opportunities and threats of the company.
It is helpful in assessment of external and internal factors of the organisation. Strengths and
weakness are known as internal factors & opportunities and threats are as external factors of the
organisation. SWOT analysis is conducted for an individual, an organisation, or as well as nation
also. The analysis is assistive in making strategics and resource planning for an organisation
(Zhu, Sarkis and Lai, 2013). After this, it is also determined that what will be the next aims,
and targets of the company. SWOT analysis includes these four elements:-
 Strengths:- Strengths are refers as that Ryanair's marketing expertise and its about its new
products and innovations or ideas. It involves also quality of a product and value added
services of an production. Strengths also depends upon location of a business.
 Weakness:- Weakness of an company are based on lacking of marketing expertise and
relation with competitors. Poor qualitative products and history of the business will also
become a cause of weakness.
 Opportunities:- Opportunities are always included future growth of the business and also
of the employees in capital market. Mergers and ventures are also a part of success. It
defines that to develops the business from level to another. It also relates with relations
with external market.

 Threats:- It involves price war and competitors of external market. Taxation also helpful
in introduce a new product in market.
Strategic options that impacts on Riynair's growth as comparison with
VIRO framework:-
Strengths :-
 Reputation
 Cost management
 Low Risk activities
 Marketing Expertise
 Quality Products
Weakness:-
 Factors that affects performance :-
internal and external.
 Price wars
 Competitors
Opportunities
 Added new clients
 Enter in new market
 Raise values and morale
 Increasing time delivery
 Innovation of anew product
Threat
 Acts of gods
 Clients dissatisfaction
 Increasing supplier cost
 Reduces market demand.
TOWS Analysis :-
External Opportunities
 Added new clients
 Enter in new market
with a new product
 Raise values and
morales of organisation
External threats
 Decreasing supplier
cost
 New competitors
 Customers inability to
pay
Internal Strengths
 Low risk process
 Easy to use
SO
Every organisation wants to
get benefits from its resources
by using potential strength,
ST
ST strategics are effects on
external strengths. Different
enterprises select ST strategy,

 Quality products and the opportunity for every
business to acquire from
internal resources.
they helps in opening new
branches, with that agonistic
scourge can be defeat.
Internal Weakness
 Reputation
 Project management
 Communication
WO
When an organisation become
successful in weakness and to
be overcome with internal
factors, then WO strategics are
being useful.
WT
It is tendency of e organization
that it can get over with its
weakness and ease up the
threats. WT strategy useful in
applying to take away the
imperfection which will
surmount with these external
threats.
Comparison between SWOT and TOWS analysis:- SWOT analysis is a strategic
planning element, that helps in knowing the strengths, weakness, opportunities and threats.
SWOT and TOWS analysis includes the identical basic steps and likely produces kindred result.
In order to, the managers thinks just about to strengths, weaknesses, threats and opportunities,
which may have an impact on the position of the analytic thinking. .
Strategic options that impacts on Ryanair's growth as comparison with VIRO
framework:-
Marketing penetration:- It very essential for any business to sell its products to
customers and they can easily satisfy with these products and services. Ryanair's airlines must
have to increases their produces and services among clients to develop their sale and
maximizing profits. The value of the products is always based on resources, so that company can
utilise them to make asset. The company have to finding new options to persuade customers- a
market strategy is proper when it is executed in the business. Growth and development strategic
plans are correspond a kind of stairs, where bottom level staves existing less risk but it maybe
less impact of quick growth.
Product development – A standard strategy, involves developing new products in market
before sell it to customers. New products affects market conditions and it also increases number
of competitors. If Ryanair's airlines gives quality services to its customers, it will provide them a

wide range of clients and customers or make healthy relationship among peoples and clients.
Market conditions forces to the company that it must have to innovates new commodities to the
new customers and clients. After that, company will be able to create a successful, series of new
customers. Product development also maximising the ratio of sales and revenue. A product can
be develop in only one situation if it have something new for the market (Herva and Roca, 2013).
New products for new customers:- It is very important for every company to make new
customers in order to achieve new targets and aims. If an company develops new products for
their customers, so its accepting they the customers will like it. It matches their tastes and their
choices. For they have to brings new customers, for products development. If they likes those
products, it is very beneficial and profitable for the company. It includes strengths and
opportunities for company.
TASK 3
An overall evaluation of these options concerning the ‘suitability’, ‘feasibility’ and
'acceptability’ of each option
To understand the importance of Sustainability, Acceptability, and Feasibility, firstly an
organisation have to understand the uses of strategic methods and directions. Strategic direction:- Strategic directions are course of study in which an organisation
establishes its goals and aims. It will also assistive in evaluation of internal and external
market of the organisation. Strategics directions are related with decision making process
of the company. Without any planned decisions no one organisation become successful
and do not inspire to raise up the expectation from the market as well as customers also
(Rosenbusch, Rauch and Bausch, 2013). They forces to the organisation in order to
developing the knowledge and research at higher level. Strategics are always based on
growth and developing new products and services of the market.
 Strategic methods:- Ryanair's airlines have to implement some strategics methods for the
organisation, in order to development of new products and services, so that the policies
can works easily. It generates a great business performance in capital market, but it is not
easy beacsue of these organisations are rapidly fail in motivation of their employees.
Along with this they are not a able to work together. A real leader makes effective plans
and goals to gain future growth in their business (Berkes and et. al., 2011).

There are 3 factors that evaluates in chosen the best strategic methods:- Sustainability:- Sustainability relates with the strengths and weakness of an business. It
capitalized the company's strengths and avoid its weakness. Ryanair's airlines needs to
distinguish with market with its identity. It have to provides quality products and services
to the customers, for the betterment of its profit. Sustainability helps to decides vision,
mission and value that gives customer trust to an organisation. A long range strategic
plan to take many financial decision and makes reports and budgets, so for the time they
can be used. It also needs assessment of all over business activities to identified future
growth. Flexibility:- It helps in make an organisation in taking decision. Ryanair's have to
flexible in taking long term,and short term decisions. Need of an organisational
flexibility, is helpful in communication between employees and managers (Combe and et.
al., 2012). So that an healthy and working environment can be created, it develops
chances of better performing of employees.
 Acceptability:- It is the biggest factor, for the organisation to accept truth from
customers, and business must have to known about the customer needs and wants and
developed product according to this. It shows that what option are accepted and what are
avoided in an business organisation.
Porter's Model – Potter's 5 forces model is assistive in analysing the level of competition
within an business organisation and its strategics development. It draws upon industrialized
organization (IO) economics to deduce five forces that ascertain the competitors strength and
hence the attraction of the business enterprise. There are 5 forces that included in porter's model.
Such are as :- threats of fresh entrants, bargaining power of customers, bargaining power of
suppliers, threats of substitutes and industrial rivalry
Bowman’s Strategy Clock – Bowmen's strategy clock is helpful analysing the marketing
competitive position of the company in comparing to the substance of rivals. It is assistive in
developing strategic position of the organisations. According to this method, low value added
low price , and low prices are depends upon hybrid position of the company. It also effects the
low share in market by focusing on directions monopoly pricing.
The Power interest - Matrix

CONCLUSION
From the above mentioned report it has been concluded that how internal environment
affects the strategics and plans of the organisation. It also mentions about the VRIO analysis of
the Ryanair's airlines. The mentioned organisation have to developed values and objectives to its
organisation. So that customers can get better products and services. After that SWOT analysis is
described, the strengths, weakness, opportunities and threats faces by an organisation. It can
helpful to achieving targets and goals to an organisation. Along with this,it includes, how
strategic methods and directions affects decision making processes and growth of the company.
REFERENCES
Books and Journals

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outcomes of internal and external green supply chain management practices. Journal of
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