Ryanair Case Study: Leadership and Management Theories

This case study analyzes Ryanair, an Irish budget airline, examining its business environment through PESTEL and SWOT analyses. The PESTEL analysis explores political, economic, social, technological, environmental, and legal factors impacting Ryanair. The SWOT analysis identifies the airline's strengths, weaknesses, opportunities, and threats. The study delves into the problems faced by Ryanair concerning these factors. Furthermore, it explores leadership and management theories, specifically transformational leadership, in the context of Ryanair's operations. The case study aims to provide a comprehensive understanding of the airline's challenges and strategies within the competitive airline industry, offering insights into its business environment and leadership approaches.

RYANAIR CASE STUDY

INTRODUCTION
TASK 1
PESTEL analysis of Ryanair
SWOT analysis of Ryanair
TASK 2
Analyzing of those problems happened in PESETEL analysis
This is a very important analyze as it helps in growth of organization. This also helps in identifying of
those factors which can helps in faster development of organization. It has promoted understanding
of external factors which can have both negative and positive effect upon an organization. It is also
gives an idea of formation of strategies accordingly. Various problems that can be faced by the airline
regarding different factors and they are explained below:
TASK 3
Leadership and management theory in context to Ryanair
OUTCOME
CONCLUSION
REFRENCES

INTRODUCTION
Business environment is that kind of environment which involves both internal and external
factors which can affect various aspects of company which plays major role in growth of an organization.
Such environment involves employees, customer, management, supply and demand. All kinds of things
which are important for growth of business come under business environment. In other words this
environment is responsible for achieving goals and objectives of an organization. Scope of such
environment is very wide that deals with technicalities of business and problem related to its growth.
Ryanair is an Irish budget airline that was formed in the year 1984. It has its headquarters in Sword,
Dublin. This airline also operates in London Stansted airport. In the following file things that are goin to
be covered is SWOT and PESTEL analysis of Ryanair, leadership and management theories with problems
to be faced by the company.
TASK 1
PESTEL analysis of Ryanair
PESTEL analysis is that kind of analysis which acts as framework which is used for understanding
of those factors which is effects macro environment of company like Ryanair
Barrett, S.D., 2016.. It consists of certain factor like political, economic, technological, legal and
environment. Further these are explained below:
Political Factor: These factor deals with intervention of government in economy. It involves those
policies which are formed by government regarding different aspects of business. These policies are
based on political stability of market, foreign trade policies and also tax policies. In order to deal with
problems in market enactment done by government should be covering any of these factors.
Economic Factor: Under this factor various things related to growth and profitability of organization is
deal with. Also certain elements are included under this factor which is interest rate, unemployment,

inflation rate is there. Micro –economic factor includes how people spend their income or power of
expenditure (Caputo. and Borbely, 2016)
.Social Factor: They are known as socio-culture factors which deal with people living in society and their
day to day lifestyle. It includes customs, trends and taste of people. These factors are responsible for
creation of personal interest because and helps in understanding preferences of customers.
Technological Factors: These are that kind of factors which are related to all advances that is taking
place in terms of technology on regular basis. This factor is very important for smooth production. Such
factor play major role in distribution of goods and services and develops new ways of targeting market.
Environmental Factors: This factor is related to ecology and environment protection which is very
important. Such factor also emphasis on optimum utilization of resources which can help in protecting
environment. Organization are formed to deal with such emerging threat and its is duty of every
organization to operate itself under laws related to environment.
Legal Factors: These are those factors which are related to all laws existing within a country or society. It
is very important to follow such rules by an organization in order to establish themselves legally. These
factors play a major role in protecting company from legal issues.
SWOT analysis of Ryanair
This analysis is a framework that has been formed for evaluation of factors which create an
impact on progress of airline industry. As business structure of this airline is very simple and focused
upon providing better services to its customers. They have to face certain problems like poor services
and decrease in percentage of customer. That is why this analysis is important because it helps in
identifying of those factors that is creating negative impact over an organization. SWOT has help in
identifying of those factors that is necessary in order to avoid such problems. So , this analysis has
helped in analyzing of strength, weaknesses, opportunities and threats for Ryanair.
Strength Weaknesses
One of the most important strength of this
organization is its capability of covering market
area in the present market situation. As this airline
is set-up in European market and has cover about
200 destinations and 1800 routes. This coverage
has played a major role in promoting and
expansion of its business.
Low cost base has also played major role in
attracting customers. This has made an upliftment
of airlines business as increase in customers’
percentage must have boosted profitability also.
This has made airline to sustain itself in long run
and establish itself as bigger entity.
Change of behavior of labors working in the
Ryanair has created negative impact over the
growth of business because if labor is not going to
be satisfied, then quality of service is going to be
effected which is going to result into loss to this
airline. Also wages of employee is going to impact
the organization in a manner that loss of man
force is going to be there. Due to which efficiency
of operation is reduced.
Growing in a fast manner is very essential but
maintaining stability is also important. If it is not
done then it is going to impact upon investment
done by share holders. As no shareholder is going
to invest in a unstable organization.

Opportunities Threats
Ryanair is having a opportunity to increase its
revenue by making attractive schemes which is
going to attract more customers in an company.
This also promotes positive impact by generating
profit in huge amount.
Being a bigger entity in airline sector goodwill of
company is there which promotes loyalty in
customers and also there trust over brand. This
leads to covering of market at larger scale.
Due to the introduction of various new policies by
the government in UK has increased rate of tickets.
As change has been done in tax rate. This has lead
to switch of customers to another airline.
Also fluctuation in prices of petrol has affected
companies profit in negative manner. Huge loss
has been faced by the airline company.
Competitor of this airline has made business of
such company go down because they are giving
better facilities and lot of customers are going to
them. This ahs lead to loss of customer.
TASK 2
Analyzing of those problems happened in PESETEL analysis
This is a very important analyze as it helps in growth of organization. This also helps
in identifying of those factors which can helps in faster development of organization.
It has promoted understanding of external factors which can have both negative and
positive effect upon an organization. It is also gives an idea of formation of strategies
accordingly. Various problems that can be faced by the airline regarding different
factors and they are explained below:
Political Factor: These are those factors which are related to policy formed by government and it
can make company face lot of challenges like if policies of tax are changed then price level is going to be
effected of flights. This is going to make loss of customers. Such issue can be deal by arranging such
discounts which is going to be customer friendly (Grant,, 2017). So, that loss is not faced by the airline
company.
Economical Factor: This factor is related to economic condition of the company which means
that all finances decision is taken considering these facts. Such factors are very important to be deal
with as soon as possible. Supposing rate of inflation is decreased and is impacting overall economy of
airline. Under such condition business of airlines going to face loss because of decrease in inflation rate
demand is not going to be there which eventually leads to loss in an organization. This problem can be
solved through managing of revenue and using it in very appropriate way.
Social Factor: This factor includes all the behavioral changes taking place within a customer and
its preferences. It includes elements like trends, taste and needs. An airline company like Ryan air is
going to be effected from such factor in negative way because it is going to make switch of customers to
another airlines because of change in preferences. This problem can be solved by keeping track of

trending things in market and adapting them within Ryanair’s services. This is going to increase profit
and growth of the company.
Technological Factor: These factor deals with the advancement that is taking place in the field of
technology on regular basis. Such advancement is very important for an organization like Rayanair. As it
has to buy new and better equipment to make its flight safer for its customers. Problem that can arise is
of older technology used within its fligh that reduces chances of safety. Solution for this kind of problem
is to be updated with the latest technology present in the market. This is going to help in bring of new
airpalnces and faster services is going to be provided.
Legal Factors: They are related to development of laws which are present in society and have covered
every aspect of society. Problem which can occur in an airline organization is that if not registered itself
under the companies act then considered to be illegal which can lead to dissolve of company
immediately. To avoid this the company has to get itself registered under incorporated company law
under company law.
Environmental Factors: These factors are related to environment and its protection. Ecological factors
due to which raw materials are provided are covered under this only. Problems which can rise due to
these factors are carbon emission from engines, pollution caused by any aircraft. Solutions to these
problems can be solved by taking initiative for protecting environment and reducing carbon emission
rate from vehicles and aircraft. All such decisions are taken by committees that are set-up for this
purpose. Increase in cost because of reduction in emission is going take Airline Company to loss.
TASK 3
Leadership and management theory in context to Ryanair
Leadership is that form of thong which is important for the growth of an organization because
these leaders are also responsible for providing vision to a company. Role of leader is very important to
run a company. There are various theories that are related to an organization and its growth. Such
theory is explained below in detail, they are:
Transformational Leadership: These is one of the most important theory of leadership which says that
team is required for identifying of challenges that is to be faced by organizations. Such challenges are
required to deal with vision, creativeness and inspiration. In this approach change is caused within an
individual and social system around him. This is an ideal form which is forming valuable and positive
change in an organization. Elements presented in this theory is inspiration and motivation under which
foundation of leadership is promoted of consistence over vision, mission, set of values. After this comes
intellectual stimulation which means communications skills of employees are required to improve by
making the giving speeches and promoting their innovative ideas in the company. This is going to be
helpful for an organization like Ryanair in a way that it leaders are going to improve themselves and is
going to motivate employees to performe faster and better which is going to make achieving of gaoals
and objectives of organization easier and smoother manner. Also it ius going to create more of positive

environment for the worker and they are going to perform better within orahnization. Also leaders have
to keep on discussing over finding better alternative of increasing communication skills of its employees.
Management is that department which responsible of managing of everything in a company which is
going to help in creating that environment and also optimum utilization of resources within an
organization is management’s responsibility. Various theories are there which is going to help in
identifying role of management in better way and it is explained as follows:
Classic management Theory: This theory is one of the most famous theory of management under this
theory physical needs of employees is identified. All this is done for making feel safer and better to an
employee in baorganization. This theory is there to provide satisfaction to employees in terms of money.
Eixtance of these theory is helpful for an employee to amngae himself and co up with the work.
Manger under this theory is able to achieve certain objectives like profit maximization, labor
specialization and handling of straemlizing operations. Also emphasis is paid over increasing of
productivity. These becomes duty of mangers to manage such kind of things. Role of manger in this
theory is very important and priority is required to be decided for incraesing performance of employees.
This can be achieved through promoting the employees and giving them incentives with the salary and
he manger under this tarries they are getting. Also manager has to check over certain elements which
results into stability of organization. Certain principals are required to be followed by they are profit
maximization, labor specializations, centralized leadership, streamlined operations, productivity
emphasis, single- person and selected few for process of decision making and priority to follow the
bottom line to achieve success.
As, these seven principles are achieved into practices and then create an ideal work place for its
employees. This theory promotes hierarchical structure, employee’s supplication, and financial rewards.
Managers under these theory needs to identify its potential to promote all the above mentioned
principal in its organization. This theory is help full in dealing with lot of challenges that is face upon day
to day basis. If these problems are identified by the managers at earlier level than growth in the
company is going to take place at higher level. This is going to be helpful to organization like Ryanair in a
way that it is going to promote productivity in the organization which is going to provide better results
and then by increasing salaries of employees is going to give them motivation of performing very fast
and appropriate manner. Mangers of airlines have to seek towards new ways of promoting their
business at huge level. Certain procedure is required by the mangers of the airlines to be followed they
are related to physical needs of the customer and these customers . Airline company is going to be
benifited from this theory in a positive manner which is going to promote efficiency in working and
smoothness in production. Operations performance is going to be better.
OUTCOME
From the above understanding of various aspects of business environment. I have learned lot of
basic things required for its growth. This report has taught me about strength , weakness , opportunities
and threats. Also an airline company has been discussed in raelation to PESTEL. Both the analysis has

given me knowledge about how internal and external factors are effected because of lot of elements.
Then I have gained knowledge about theories of leadership and management which has taught me
about how leaders can play an important role in improving viaon and give motivation to ita employees.
Then in management theory I have learned that manger has an very important duty of promoting those
productivity and smooth functioning of organization. All this is what I have leatmed from this report.
CONCLUSION
From the above file it is clear that an business environment consist of those factor which is
important that is very important to be analyzed through PESETL and SWOT analysis which is going to
help an organization like Rayanair to deal with external and internal factors which can be responsible for
negative impact upon it. Also this organization has to improve its leadership skills that can be done
through applying of theory. Also management needs to improve which is going to done by aplicanility of
classic managmnet theory. This file has majorly emphasized over caovering of different aspect of
business environment.
REFRENCES
Books and journals
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