Unit 32 Business Strategy: Analyzing Ryanair's Strategic Planning

This report provides a comprehensive analysis of Ryanair's business strategy, examining both the macro and micro environments in which the company operates. It begins with a PESTLE analysis to assess the impact of political, economic, social, technological, legal, and environmental factors on Ryanair's strategies. The report then delves into the internal environment and capabilities of the organization, utilizing frameworks to identify strengths and weaknesses. Porter's Five Forces model is applied to evaluate the competitive forces within the airline industry. Finally, the report interprets and devises strategic planning for Ryanair, employing various theories, concepts, and models to provide recommendations for future growth and sustainability. The analysis covers stakeholder interests, Ansoff Matrix application, and SWOT analysis to give a holistic view of Ryanair's strategic position.

Unit 32 – Business
Strategy

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Applying appropriate frameworks analyse the impact and influence of the macro
environment on a given organisation and its strategies..............................................................3
TASK 2............................................................................................................................................7
P2 Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks..................................................................................................................................7
TASK 3..........................................................................................................................................10
P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given market
sector for an organisation..........................................................................................................10
TASK 4..........................................................................................................................................11
P4 Applying a range of theories, concepts and models, interpret and devise strategic planning
for a given organisation.............................................................................................................11
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business use to provide varies goals as in order to earn maximum profit and to ,maintain
the growth of company through which goals can be achieved. As for all the business activities it
is important to maintain different kind of strategies through which market analysis can be made
and the competitive advancement can be framed, this generates targets and the goals with which
competitive advancement can be achieved. Business strategy use to set the goals and the targets
with which it can implement the long-term goals and planning. This use to frame the guiding
principles and the methods in which the companies can perform and maintain their work in
proper way. It helps out in evaluating the decision making process and also in setting the goals
and the objectives of the company (de Medeiros,and et. al., 2020). The organisation chosen in
report is Ryanair which is a well known Irish airlines headquartered in Dublin. It generally have
so many sister airlines like alta AIR, Ryanair UK and Buzz. This major report will cover all the
external and the internal analysis with the strategies in the business by applying bowman
strategic clock and porters generic.
TASK 1
P1 Applying appropriate frameworks analyse the impact and influence of the macro environment
on a given organisation and its strategies.
All the macro environment condition use to be implemented in all the countries and it
creates a major programs and strategies with which all the working areas and the techniques can
be measured and identified. It generates the major advancements with which brand image of the
company and their required strategies cab be framed. As it is important for all the companies and
the business practises to earn and develop such type of strategics which will enhance their future
goals and targets and also measure the requirements need in the companies (Blackwell, 2017).
As for Ryanair the major strategy used in order to maintain the flow of goals and objectives in
the business are according to the vision and the mission of the company. Mission- To provide all the passengers a low fare programs and also to generate a major
efficient manner of operations with which cost and the operations can be framed.

 Objectives-To establish such company which will generate low fare and also focus on
improvement of there services and growth.
Techniques used in strategic planning Benchmarking- This is the general; practise which use to provide all the important
working and the competitors in order to acknowledge all the important core elements and
the strength of the company. Business analysis- It use to provide all the core strength and the weakness in the
organisation and their working areas (Sanders, and Wood, 2019).
Analytical approach used in macro environment
PESTLE Analysis
This generally provides all the strategies that should be implemented in all the strategic
management and in their varied external environmental factors. As in context of Ryanair
PESTLE analysis is being mentioned below: Political: It is generally the political and the intervention of the government in the
company as in regard to all the rules and the government abiding bodies and principles.
This provides all the norms and the framework of rules which narrates the major rules
regarding government system. As the tax rate is being increased Ryanair is majorly being
affected as it increases the tax rate which affected the general sales of the tickets. Economic:It is all economic changes and the profitable changes and inflation rates and
the interest, exchanges rates which are being discussed in order to,maintain the profitable
advancement and the growth of the company. Ryanair as due to changes in the process
and as impacted by the pandemic covid situation was majorly being affected and framed
and made a major barrier in the company. As the power for all the passengers to spend in
the company is thereby being affected. Social: This is the demographic changes and the customers requirements which are being
fulfilled by the company in order to maintain the growth, as in Ryanair the short and the
long travelling has increased and expanded the sales of the company and also made the
company to earn profit (Franceschelli,and et. al., 2018). Technological:This provides all the digitalisation and the innovation which is being used
by the company as to make it sustainable and manageable. As for Ryanair they have

opted some techniques through which they try to manage all the mobile application to
make the booking which helps the customers to gain the facility. Legal:Ryanair use to impose all the low cost strategy through which they try to
implement the methods in which legal aspects are being fulfilled. But as in the time of
Brexit the change in the laws affected the company and their working through which they
are implemented to being affected as they have to focus on the laws of UK and EU.
 Environmental: This is the sustainability and the changes that the company use in order
to maintain the working of the organisation and also to implement the promotion of
strategies required for environment protection. As Ryanair uses carbon footprints which
promotes the benefits and the advancements as in context of operations being performed
in the company (Yerpude, 2021).
Ryynair's strategies
Ryanair is the largest airline in the Europe that will termed as the number of the
passenger who are the largest in the World for global travellers. It has been founded in the year
of 1985 that has been enlarged rapidly capitalising on the opportunity that are presented their
terms as per to the European deregulation of the air industry in 1997 as effectively and
efficiently. It is an Irish company that headquartered is established in Dublin and has about 1000
routes, 40 bases and about 200 aircraft. Their business model is based on South west airlines in
the USA that is an international field of market.
Stakeholder analysis
This is an important process which use to give all the strategies in which high quality of
products are been provided and their has been analysed that all the variable use to remove the
barriers and the changing barriers which helps out in maintain the progression and its report with
all the strategies which are to be implemented in the company they are as in context to Ryanair
are as follow: High power- High Interest: It is the generally all those authorises which have high
power in the organisation as in context to Ryanair they use to create a major role in the
company and also focus on upliftment and advancement in the business practise. High power- Low interest: This category use to involve all the stakeholders of the
company which use to provide major investment as in context to maintain the growth.

Ryanair will have to provide all the necessary details in order to make them satisfied
regarding the company and their function. Low power-High interest: They usually cover low power in the company but have the
major interest as in context to it they use to provide the helps in the projects and the
working but with low interest feature. Ryanair use to have the agents, customers who
come under this category as it is important for them to make them know about all the
essential details required for the company. Low power- Low interest: They have no interest in the business of the company and there
is no optimised power being given to them. As for Ryanair airports are being covered
under it as they use to specifies that it usually shows no interest in business and haver less
power as been analysed.
Ansoff Matrix
This tool gives the organisation different strategies as according to which the company
can direct their working and can also make different new expansion by following the ideology
given in it. As in context to Ryanair they are mentioned there under: Market penetration:This is the general strategy which helps out to make the company to
expand their business with the help of applying some new strategy in the market and the
work and also by applying all the new functioning in their existing services. As in context
to Ryanair they can enhance their services and facilities for the growth and development. Market development: The main strategy in this is to make the existing products of the
company to be used in the new market areas, as in Ryanair they can apply all
the ,methods in which their airline facilities can be made available to new market region
so that new customers can be attracted and the facilities regarding the growth can be
made with gaining new reach and new customers involved in the company (Lawton,
2017). Product development: The plan made by the company in order to bring and to introduce
new products in the market so the attention of customers can be gained and this will help
out to generate the revenue of the company. Ryanair can opt to provide new and
innovative services which will make the work to be easy for all of them and will also
maintain the growth.

 Diversification: This is the riskiest zone in which new product will have to be introduced
in all the new market areas. It creates a high risk factor in the company. As for Ryanair
can try to focus on making the new product in the new market segment which will make
their company being identified among all.
Ryanair can try to use market development technique as they can enter in new segment of
market with their existing services so as to attract the customers and th gain more g=revenue
generation.
SWOT Analysis
This is a general tool which help out to evaluate the working of the company and also
maintain the strategies through which the weakness and the strength of the company is being
measured. As in context to Ryanair it is given as follow:
Strength
 The company is operating their
business with more than 450 flights and
now they also planing to increase them
to 600 flights. The main basis of this Ryanair is
keeping the low prices of their flights
so that they can easily attract more
customers and also proving some add-
on services(Favre, 2017).
Weakness
 The company as fails to offer the cash
refunds on the cancellation to make
customer happy and satisfied.
 They are also facing huge affects on the
reputation of the company as they have
cut down the 3000 jobs which leads to
major lays off of the workforce.
Opportunities In order to expand the business
opportunities, they have taken the help
form the Bank of England Covid
Corporate financing facility from
there, they have taken the loan around
800 million euros. They have purchased different
airlines form the different
manufacturer as they are facing huge
Threat
 They are not having any control over
the rules and regulation of the
government and this is the big threat
for the company for their easy
operations.
 Another threat is they are facing very
less traffic in air due to the huge impact
of COVID-19 and this can be resolved
till the time then the vaccine is available

looses due to COVID restrictions. across the world.
TASK 2
P2 Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks
Strategic capabilities
It provides the method in which all the action and implementation of plan can be made so
as to enhance the benefit of the company and also to maximise the profit and competitive
advancements. It involves all the major features like values, vision, action plan, tools etc. all
these plays a major role in making the work and the strategy being accomplished in operational
manner.
Resource Based View
This is the method through which the company can make different kind of strategies as
through which they can maintain the growth and the sustainable advancement and the
competitive edge in the analysation of business practises. It generally are of two types they are
like tangible and intangible. Ryanair can efficiently use all their services and resources to be used
in better manner so as to gain the advancement and all the unique offers can be made for them.
Mckinsey's 7S model
It generally gives the ideas and the design in which the company can work and maintain
their identification with effective design and the strategies that will help out to maintain the goal
and the targets. As in context of Ryanair they are mentioned as follows: Structure- This generally provides an important tool and the units in which the division is
being made by the organisation for their benefits. As in context to Ryanair they use to
follow the hierarchical structure and their flow of information is from top to bottom. As
it gives a long chain process and command by superiors (Ross, Beath, and Sebastian,
2017). Strategy- Ryanair use to focus on the most important strategy of making and
implementing such flights which will help out to maintain the low cost fare to all the
customers through which they can choose their company as the important source and
manner. This generates and make them to maintain all the market upliftment and raising
more customer towards it.

 Skills- It focus in providing all the customers the most efficient training in order to make
them highly trained towards their working and also to make them confident towards
working in the company. As Ryanair use to focus on making general training sessions to
all their employees as according to which they can maintain the high growth and help the
organisation to work better. System- It generates and give the idea about the procedure which is being used by the
company so as to maximize the profit and the growth. As Ryanair use to make and apply
variable technical and the manual advancement in their working by using both in
adequate manner this helps in smooth functioning of the company. Staff- The members who are being involved in making the company to be run
successfully are covered in it. As Ryanair use to have so many employees being working
under it, as it is of now are about 17500 employees working in order to make the
organisation work in better manner. Style- It is the working process which is being involved by the company as to make it
know about their targets and goals. In Ryanair they use to focus on transformational
leadership style in which all the staff ,members are being handled by the one leader and
that person is authorised to make all big decisions of the company so as to make them
work and analyse all the means of working in proper manner (Macchi, Savino, and
Roda, 2020). Shared value- It is the ethical norms and the standards which are being implemented by
the organisation in their company so as to make the working smoother and to implement
all the variable methods for focusing on the growth and upliftment. Ryanair, generates
the low price value as to save money and to make the value of money being applied ion
their organisation.
VRIO Framework
This tool generates four important elements in which the specification and the function of
the company is bifurcated. As in context to Ryanair, this is being mentioned thereunder: Valuable- The things or the resources which are being valued by the company so as to
make it more used and advanced for all the working companies are considered in it.
Ryanair use to value the financial resources which are being used by them. The points
will get fixed and require to be utilise in a maximisation manner. Hence, it is their basic

key set of duties of the business of management to develop an effective plan of actions as
according to the allotment of resources to move out the high resulted section in return as
effectively. Rareness- This involves all the unique and the important products which are being opted
by them as the rare ,material and help for the company. In case of Ryanair they use to
provide training sessions to all their employees so as to make the benefit and try to make
the efficient staffing with the help of human resource so they tends to be their rare
resource (Aluchna, 2018). Hence, they are highly able to accomplish several resources
by the term of having a lot of monetary stocks. The business of management that have
involves with several competent and activities of individuals who are having several
abilities that are related to the execution of managerial activities in an effective manner
with the support of utilising various resources in an increasing statement of the manner as
effectively and efficiently. Imitable- This involves all the affordability made by the company so as to copy all the
resources. Ryanair use to provide customer community as the important affordable
resources who use to frame and imitate all the cultures which are used by the company
for betterment. As it required a tremendous amount of money of funds to adopt an
economic sections that are connected with the methods like managerial information and
the suitable set of the structure as due to which their challengers might ascertain high
term of thoughts to simulate their manner and tools for their own benefits and advantages
as effectively.
 Organisation- This use to generate all the resources which are being framed and properly
organised by the company as to make all the services and the efficiency to be made in
fully organised functional provide the general working more easy. The staff faculty are
require to have an effective set of term of skills on performing their suitable section with
advanced and adapted application that will supports in declining the loss of points from
the organisation.

TASK 3
P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given market sector
for an organisation.
This is a tool which strategies so as to make the company to work by keeping all the
advancement and also to analyse the competition of the market channels. This is generated to
avoid all kind of issues and risk which make their competitive areas to lose all the edge and the
advancement. As in context to Ryanair this is being mentioned there under: Bargaining power of suppliers- It provides the suppliers power in the company to raise
their prices and the dominant position of the suppliers in the company. As for Ryanair the
bargaining power is ultimately High as when researched they have just two areas as their
resources they are like Boeing and Airbus, and Ryanair use to to take all the resources
from Boeing so they can maximise they prices at any time when needed (Lacy-Nichols,
Scrinis, and Carey, 2020). With the support of basic set of variations and development
to evaluate the result and make higher supplier to extract the cost. Threat of new entrant- This is the easiness which is been seen in the market to adapt all
the same business being settled by some other person. It means the competition of
starting the same business in the company, as Aviation company use to be highly
expensive and they require lot of paperwork so this generates a barrier in the companies
to start such business. Threat of this to Ryanair is Low as they are not more concerned
about it. The business of management have a lot of sections that preset the term of threat
of new entrants that are working on major and innovative models in the management. Threat of Substitute- This is the substitute products which are being used by the
customers in order to make the work easy and also to change their loyalty and shift to any
other company. This threat is Low for Ryanair as they already focus on providing the low
fare strategy in which it is easier for customers to manage all of it in variable time. So
they are not much concerned about it(Pramanik, Maiti, and Maiti, 2018). All of such sort
of sections that are related to effective value of statement and create the relations and
variations to measure the result to the business of management. Again this threat are
working as the high substitute of the market in the field of management. Bargaining power of Buyers- It involves the power of the customer towards the
company and their working as by bargaining according to their needs and requirements.

Ryanair have High threat of this force as they majorly have to plans regarding to increase
the prices of their facilitates in order to make their customers being loyal towards them,
switching cost they have is zero and which creates a major threat as in case if the
customers shift it will create a major problem(Cardoni, Kiseleva, and Lombardi, 2020)
(Blank, 2019). This might be related to effective and suitable section of the development
and advancement to measure the results and make effective maximisation in discounts
and offers for the development of the business of management as effectively.
 Rivalry in existing competition- It involves the competition the same market segment as
in caparison to all all other organisations, Ryanair have High power force as they tend to
operate low cost airlines and there are so many airline facility which are being available
in it. This created a huge threat and issue as in comparison to all. Such sort of factor can
be related to major formulation and developing demand to make rivalry in the present set
of the competitors. It will be related to fall of cost, maximisation of the global productive
and make accessibility as effectively and efficiently.
TASK 4
P4 Applying a range of theories, concepts and models, interpret and devise strategic planning for
a given organisation.
Porter's Generic Strategy
This is an important tool which helps out to give the ideas about the competitive
advancement in all the chosen areas. This focus on knowing all the important values and
depiction as for product, enterprise and the services which are been given initiated. As in Ryanair
services and the products are been given as under: Differentiation- It involves the innovative approach of the company as according to
which the company can opt and gain more customers and this can help out to evaluate
and make all the adaptive strategy through which the offerings can be implemented.
Ryanair can apply this strategy as by using soke uniqueness and the innovative approach
which will make the companies to gain more customers as by attracting them with some
specific features(Cosenz, and Noto, 2018). Cost leadership- This uses different kind of offerings which are being made available by
the companies as it generates the advancements and also make the edge in the market