Ryanair: Comprehensive Business Analysis and Solution Report

This report provides a comprehensive analysis of Ryanair, a low-cost airline, examining its strengths, weaknesses, opportunities, and threats through a SWOT analysis and assessing external factors via a PESTEL analysis. The report identifies the main business problem facing Ryanair as staffing issues, including a shortage of ATC staff, which significantly impacts sales and profitability. To address this, the report proposes solutions based on management concepts, although specific theories are not detailed in the provided text. The report also includes an introduction and a conclusion, summarizing the key findings and the student's experience in writing the report. The report aims to provide a strategic understanding of Ryanair's business environment and suggest ways to improve its operational efficiency and financial performance.

Ryanair
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INTRODUCTION...........................................................................................................................3
1. Perform a SWOT and PESTEL analysis for Ryanair..............................................................3
2. Main problem that is facing Ryanair that requires immediate attention and why?.................9
3. Propose a solution to the problem you have identified using at least TWO management
concepts and theories that you have learnt during your course.................................................10
4. Experience in writing this report...........................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................12
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INTRODUCTION
Organisation conducts their business function and activities in an environment that involved
white number of elements. All these elements significantly impact upon organisational business
activities and number of ways (Diderich, 2020). These elements can impact in a negative and
positive manner this makes organisations to have formative understanding of all the elements
providing and business environment. This will significantly help them to gain more strategic
edge as per compared to other competitors along with maximum profitable advantages. Present
report has been made on Ryanair. Organisation performs their functioning as low cost airline
entity and was founded in the year 1984. This entity provides low cost services to the customers
while having headquartered in Dublin with more than 17,500 employees. This entity provides
best services to consumers and ranked among them as top Airlines service in United Kingdom.
This report involves swot and pestle analysis that aid entity to have information related to their
strength, weaknesses, threats, opportunities along with the environment in which they conduct
their functioning. This will help them to formulate strategies and ensure further economic
development. Along with this report include discussion on the issues facing by company along
with the relevant solutions.
1. Perform a SWOT and PESTEL analysis for Ryanair
SWOT:
SWOT analysis mainly stands for strength, weakness, opportunities and threats. It is a
strategic framework and a powerful tool that allow organisation to develop business strategy and
accelerate organisational development and growth in a well defined manner. With the help this
framework entity can effectively able to analyse their internal as well as external factors and can
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developed strategic planning in order to ensure effective functioning of their organisational
activities. Mentioned below SWOT analysis of Ryanair is being done:
STRENGTH:
Most important strength of Ryanair is that their services are of low cost worldwide in
context with cost per passenger, cost per seat and cost per available seat kilometre. By offering
services with low cost this airline gain significant strength in international market place. Along
with this it has been evaluated that by offering low fare rate this entity significantly gained more
strength and competitive advantages comparatively to other rivals within Europe. Further one
most important strength of Ryanair is that their services are not only of low rates but also are of
high quality that effectively satisfy consumer needs and demands while ensuring their loyalty
towards entity (Wąsowska, 2020). Organisation is having largest short-haul network carrier
through which they provide their airline services with having 1600 routes across all across in
more than 30 countries.
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Illustration 1: Top 10 Airlines ranked by Seats Europe to Europe: 8 Sep 2014 to 14 Sep 2014
WEAKNESSES
Main weakness of routes across lies within its labour relation and employee
compensation arrangements. Both of these significantly have negative impact upon
organisational business functioning and further affect business activities of entity in number of
ways. Along with this has been evaluated that due to poor performance in surveys and polls
alone with in awards brand perception also emerged out as major weakness of entity that affect
their overall business activities.
THREAT
Major weakness that has been facing by Ryanair is due to the economic conditions
prevailing in international market place, this is mainly because of brexit as it affects Ryanair
functioning in overall Europe. Along with this heavy fluctuation in fuel prices is also one of the
major threat factors that can significantly affect company functioning. Furthermore shortage of
staff and threat from other low-cost regional carrier is also a threat element that may affect
organisational functioning.
OPPORTUNITIES
Ryanair can gain significant opportunities by increasing interaction process with
customers as it allowed them to undertake feedback from customers while identifying their
actual need and demand. Along with this company by making significant re-designing of their
websites can also undertake maximum opportunities comparatively to other competitors. As it
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allow company to provide their website facilities to customers with fewer clicks as well as with
more attractive looks. In addition to this by providing consumers with the facility of single fee in
which offer different type of facilities such as fast lane security and booking choice of reserve
seating. This can be provided to customers by paying single fee.
PESTEL analysis for Ryanair
Pestle analysis is a strategic tool that are undertaken by organisation in order to determine
external factors that are prevailing in business environment and have significant impact upon
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business operation. Pestle stands for political, economic, social, technological, environmental
and legal aspects that affect every business performance as well as activities. It is essential for an
organisation to conduct a situation analysis before formulating any strategy as well as tactical
plan. As with the help of this entity can able to determine changes that is prevailing in macro
environment (Kigwiru, 2020). In addition to this it has been identified that by undertaking use of
pestle analysis companies can successfully able to monitor and can respond towards the changes
in a well defined an appropriate manner. It further allows entity to gain more competitive
advantages in marketplace:
Political Analysis
This factor mainly includes the elements that are mainly related to legal and
governmental regulations, political stability or instability has significant impact upon business
environment. Along with this certain elements like tax guidelines, safety regulations, political
stability, trade regulation and employment laws are some of the factors that can impact upon
functioning of business organisation. It has been evaluated that Ryanair perform their
functioning worldwide and in many countries. In some of the country's, government have stable
condition as provide hassle free operating functioning to conduct function and access supplier
and market in best effective manner. While other countries may provide a rigid bureaucratic
behaviour of government that affect Ryanair with many hurdles, that restricts them to expand
their business and can profitable advantages. This has been evaluated that with the significant
increase in passenger tax rates worldwide can negatively impact Ryanair sales of air ticket by
shifting consumer tend towards other travelling mode of facilities. However with the help of
taking political stability in some of the countries Ryanair can increase their marketing and
profitability share in best effective manner.
Economic Analysis
Economic factor mainly include elements that are related to economic growth, inflation
rate, the disposable income of consumer, unemployment rates, exchange rate and more. All these
factors directly and indirectly impact upon organisational functioning. It also affect organisation
price of product as well as services (Settey and Gnap, 2020). It has been evaluated that decline in
unemployment rates and high economic growth in developing countries provide a significant
opportunity for Ryanair to make significant increase in their overall revenue worldwide. High
labour cost in developing countries can make Ryanair to spend more on their work force
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recruitment. In addition to this it has been evaluated that by weakening of pound Ryanair can see
decrease in their marginal benefit. However by taking use of significant economic opportunities
like reduction in oil price can allow company to increase their overall base of profitability.
Social Analysis
Social factor mainly include elements related to demographic, characteristics, values of
population, customs, believe and norms that are prevailing in community. Along with this
growth rate, age distribution, attitudes and income distribution are also some of the essential
factors that are required to be considered by organisation before targeting their consumers. In
context with Ryanair it has been evaluated that in Britain is having large number of individuals
those who have their interest towards travelling. With the help of this opportunity company can
effectively able to attract attention of consumers by providing them attractive vouchers in long as
well as short distance travelling. This can not only make significant increase in their overall
profitability and sales ratio but can also ensure large base of customers for long period of time.
However by neglecting interest of consumers can negatively affect organisation as decrease in
consumer loyalty that can further affect their profitability index.
Technological Analysis
Large number of population spends the time on technology and internet. Along with it
has been evaluated in Britain majority of population all around the world undertake use of
Smartphone and internet. By taking advantage of this factor Ryanair can increase those supplies
through online purchase. In this with the advantage of linked technologies as well as mobile apps
Ryanair can make significant rise in demand of their air ticket by offering customers with many
attractive facilities and discounts. Along with the help of social networking company can attract
attention of customers in a significant manner and can offer them facility related to select the
movie that they like to watch in their travelling. However entity is required to make sure that
there payment option and air tickets through internet do not link with any risk factor as these can
impact upon company goodwill.
Environmental Analysis:
Environmental factors involved all those elements that have negative impact upon
environment. It has been evaluated that in order to safeguard environment most of the countries
government have undertaken significant measures to avoid shortage of raw material, carbon
footprint, pollution targets and more. All these are done by government with an aim to maintain
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balance in ecological traits like change in climate environment, weather and more. Along with
this, all these factors impact upon nation tourism, agriculture and farming. Thus, in context with
Ryanair it has been evaluated start business sustainability can make effective improvement in the
business process of entity (Wąsowska, 2020). As it can effectively ensure minimum
environmental impacts further it has been evaluated that in most of the countries there is a high
demand of environmental friendly products thus, with the help of this opportunity Ryanair,
company can increase their supply chain and can undertake measures to ensure high goodwill in
marketplace. In addition to this entity is also required to ensure that by undertaking significant
measures in order to conduct their business functions by considering environment safety.
Legal Analysis:
Legal elements are related to labour laws, consumer protection laws, discrimination laws,
patent laws, health and safety laws, copyright laws and more. In this it is essential for entity to
have formative understanding of all the legal as well as legal measures in order to successfully
undertaker business measures. This allows them to conduct their functioning with principles and
ethic. In addition to this, it is essential for entity to have significant information related to the
rules and regulations of each nation in which they conduct their functions. Further it has been
evaluated that there is a significant opportunity for company to make significant improvement in
their performance by abiding all the public safety regulations and laws. In this by conducting
performance by considering all the legal measures Ryanair can effectively able to overcome
threat of facing legal penalties. It has been evaluated that there are significant legal laws that are
imposed by government of United Kingdom for airline industries. In this it becomes essential for
Ryanair to comply all the legal standards in a well defined manner. As this will allow them to
ensure maximum support from government along with this, it will help company to increase their
overall profitability and goodwill in marketplace.
2. Main problem that is facing Ryanair that requires immediate attention and why?
According to the above mentioned SWOT and PESTEL analysis it has been analysed
that, Ryanair is facing major problem that required immediate attention. As any delay may lead
entity to face decrease in their overall sales and profitability ratio (Heimler, 2020). Along with
this, it has been evaluated that company is also facing issues related to staffing like, shortage of
ATC staff. This significantly impact upon overall profitability and productivity of company in
number of ways. In addition to this, it has been evaluated that entity is also facing issues related
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to Brexit. In addition to this it has been evaluated that, due to brexit it is hard for company to
employee individuals from United Kingdom that automatically lead entity towards shortage of
employees. As per the above discussion, it has been determined that it is essential for Ryanair to
undertake immediate and effective actions, as negligence of this may lead entity to face number
of a certain issues that will directly or indirectly affect organisational growth and profitability.
3. Propose a solution to the problem you have identified using at least TWO management
concepts and theories that you have learnt during your course
The main issue faced by Ryanair, the Irish low cost budget airline is acknowledged to be staffing
challenges. It is important for the organisation to deal with this in a timely manner so as to
ensure that the entity does not face extensive adversities in the long run. In this relation, the
management of the concerned airline firm is seeking to propose certain solutions through
which staffing issues can be resolved in due course of time. For this purpose, the
management is applying management theories and concepts. Through this, the aim is to gain
knowledge of the behavioural characteristics of employees and later than that fulfil their
needs and demands in an effective manner (Harvey and Turnbull, 2020). This is proposed
with the intent to gain knowledge of their behavioural patterns and motivate them so that
they work with their full efforts for the accomplishment of organisational goals and
objectives. This would even empower them and make them stay in the company for a long
period of time, thereby helping in resolving the issue of staff turnover for Ryanair.
Behavioural Management Theory
This theory seeks to explore the human dimension of an entity. Hereby, the management of an
organisation intends to gain knowledge of the behavioural pattern and characteristics of
employees so as to stipulate strategies to encourage them accordingly. Thus, Ryanair should
make use of this theory in order to identify and analyse the behaviour of individuals working
within the confines of the company. After the recognition of their behavioural patterns and
performances, the airline corporation would be able to stipulate better motivation strategies
for dealing with the staffing issues in an effective manner for organisational betterment.
ERG Theory
ERG theory of motivation is related to 'Maslow's Hierarchy Needs' and 'Alderfer'. They
collaborated with each other theory to rectify the needs. This theory also states the needs of
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an employee as per hierarchy levels which are divided into three respective categories-
Existence, Relatedness and Growth named as ERG.
Existence needs:
This need is derived from both psychological needs and safety needs. This states that an
employee would not be driven to work until unless their psychological need and safety
needs are fulfilled such as food, shelter, security, clothes etc. Here psychological need is
concerned with basic needs of an employee that are acknowledged to be food, water, house
etc, while the safety needs are concerned with employee's security in their workplace. This
can be met by Ryanair through provision of allowances, life insurance, medical insurance
and many more.
Relatedness needs:
The second need which is drawn from love and belonging is the one whereby an employee
wants a friendly environment at their respective workplace. This is important for having a
better relationship with colleagues, employer and others. In the absence of a friendly
atmosphere, there are always clashes of interest which create a conflict between employees
and superiors (Leinonen, 2020). Thus, it can be said that without a positive environment, an
employee can not serve to an organization properly. In this relation, Ryanair focuses upon
the development of a positive atmosphere so as to boost the morale of employees in an
effective manner.
Growth need:
The last need sorted by most important needs according to Maslow's and Alderfer is Self
Esteem and Self-Actualization. An employee will be highly motivated only when their hard
work shows better outcomes. A feeling of accomplishment, respect, good appraisal provided
by the top level management leads towards the fulfilment of this need. The lack of these
factors for an employee would result in non satisfaction within staff within the confines of
organization. For this purpose, Ryanair recognises the deserving and productive employees
on a timely basis.
4. Experience in writing this report
The experience that I have gained while writing this report is effective evaluation of
strategic framework as well as tools like, swot and pestle analysis in a well defined manner.
Further it has been evaluated that, at the starting phase of this project I face many difficulties in
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order to collect accurate data and information’s in order to conduct these evaluations. Along with
this it also consumes my lot of my time. However with help of different websites, journals,
online website of organisation help me to collect wide range of relevant information. With the
help of this, I undertake evaluations of SWOT and pestle analysis in a best effective manner. It
has been evaluated that there are different factors prevailing in political, economic and social
environmental and technical aspects that have significant impact upon organisational
functioning. It has been identified that I also undertake use of statistical and pictorial
information’s in order to conduct this report as to demonstrate accurate number of company data.
Along with this in order to conduct this report I take advantage of different websites as collect
relevant information and data in order to conduct this report. Thus, as per the evaluation it has
been identify that most important experience that has been given by me by writing this report is
evaluation of strategic tools in a well defined manner. It not only help me to increase my
knowledge but also maximize my professional growth opportunities in a well defined manner.
CONCLUSION
As per the evaluation it has been concluded that an organisation operate their business
functions and activities in environment that in encompass different form of elements as well as
factors that can affect an organisation in a negative as well as positive manner. Thus, an
organisation is required to have formative understanding of all the elements in order to develop
strategic measures as to overcome negative impact of all the factors upon organisational
functioning. This will allow them to ensure more strategic growth. This report includes SWOT as
well as pestel analysis. With the help of this entity can effectively able to identify their strength,
weaknesses, opportunities and threats along with the business environment that further aid them
to develop strategic plans in a well defined manner. Along with this by taking advantage of
strategies and tactics entity can effectively able to make significant increase in their overall
profitability and productivity. It further benefits company to retain their customers for long
period of time by ensuring long term sustainability.
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