Ryanair Business Report: SWOT, PESTLE, Leadership, and Ethics

This report provides a comprehensive analysis of Ryanair, a budget airline based in Europe. It begins with an introduction to Ryanair, highlighting its business model and competitive landscape. The report then conducts a SWOT analysis, identifying the airline's strengths, weaknesses, opportunities, and threats. Following this, a PESTLE analysis is performed to evaluate the impact of political, economic, social, technological, legal, and environmental factors on Ryanair's business. The report evaluates how changes in PESTLE factors affect the airline's opportunities and threats. It then compares and contrasts various leadership styles, recommending a suitable leadership style for Ryanair. Finally, the report comments on responsibility, response, and obligation in ethics and social responsibility within the context of Ryanair's operations. The conclusion summarizes the key findings, and references are provided to support the analysis.

Budget airline based
in Europe

Table of Contents
INTRODUCTION ..........................................................................................................................3
Question1 SWOT and PESTLE Analysis of Ryanair Airlines..................................................3
Question2 Evaluate how change in PESTLE affect the opportunities and threats of business. 6
Question3 Compare and contrast different style of leadership...................................................7
Question4 Recommend suitable leadership style for business. .................................................8
Question5 Comment on Responsibility, Response and Obligation in Ethic and Social
Responsibility. ..........................................................................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Airlines refers to a company which gives gives air transport services , help to move
passenger or any big commodity from one place to another. The government of respective
country provides license to provide those services.
In this report the chosen airline is Ryanair, an Irish airline founded in the year 1984. It offers low
fare charges and famous for the most budgeted airline in the world. This gives tough competition
in the airline industry. This report will discuss about the SWOT and PESTLE analysis and also
evaluate them on the basis of these macro factor to analyse the impact on opportunities and threat
of Ryanair, it also includes what type of leadership style will be best suitable for the company
and how they fulfil and manage the customer and social responsibilities.
TASK
Question1 SWOT and PESTLE Analysis of Ryanair Airlines
SWOT Analysis
It is the analysis of a company which helps to identify and evaluate the strength,
weakness, opportunities and threat of an organisation which can hinder or can improve the
performance of the company. Analysis is been presented below:
Strength of Ryanair Weakness of Ryanair
 They keep the prices of the fare low and
provide all the services to their
customer, this gives tough competition
to their competitor.
 The airlines offer many routes so it is
widely spread, it offers about 1831
routes which is considered (Filina,2019)
as the largest route provider n the
universe.
 It emphasis on environment protection ,
so for this it is considered Europe's
green and cleanest airline.
 They have high revenue, lots of
 The airline provide refund of limited
amount within specific duration, this
makes customer dissatisfied after
cancellation.
 The change in remuneration of
employees after Covid 19 can create
hindrance and affected their business.
 The workforce of company decreases,
as Ryanair cuts lots of job because of
restructuring.

shareholder because of its popularity as
renowned and cheapest airline having
good share price, this increase in their
shareholder return and stronger returns.
Opportunities of Ryanair Threats of Ryanair
 They can grab the opportunities from
the decline in the charter flight.
 They have opportunities to focus on the
customer experience, provide them good
services.
 They have talented experts, pilot, crew
so this gives an opportunity to them to
hire best and talented person for
company.
 After removing travel restriction after
pandemic, this gives a chance as the
stock market also lifted.
 Government regulations became threat
for the company as the CEO tweeted
against the laws and violate Covid
restriction.
 Video conferencing meeting can have
impact on their
(Komutanont,Pires,2016) revenue
because of less personal interaction.
 Alteration in the fuel price can threat
the revenue of company.
 Increment in the tax rate can affect the
company profitability.
PESTLE Analysis
This analysis refers to how the (Harrison,2018) macro factors affects the performance of
the company. In this is been analysed how the above mentioned factors affected the performance
of the chosen company, Ryanair Airlines. The PESTLE analysis of the company is discussed
below:

 Political factor
It describes how government policy can influence the company's performance. It can be
possible, if the government of country increases the tax for passengers then they will not prefer
travelling with airlines as this increases their ticket charges. And also, due to Covid period many
countries has banned the entry of flights from other nations so these policy can have impact om
the revenue thus also on overall Ryanair's business.
 Economic factor
It describes how interest rate and GDP can affect the company. This factor has impacted
in both positive and negative aspect. When there is decline is fuel price it is beneficial for airlines
and vice versa. Negative impact due to the decline in the value of country's currency can has
created a strong barrier and has negative impact on Ryanair too.
 Social factor
It describes how society, trends and culture have impact on business. In UK mostly
people went for holidays so they found a airlines which offers low cost fare so that it can be in
budget for them, so this can increase the sales of Ryanair. Thus, it has positive impact on their
business.
 Technological factor
It describes how technological change and innovations can have impact on business. Rise
in technological innovation benefits Ryanair's Airlines as it provide online facility to book ticket
and pay the far with less efforts and check the difference(Kowalska-Pyzalska,Kott,Kott,2020) in
the prices of different airlines to take good decision also it attracts more people towards their
services.
 Legal factor
It explains how laws and legislations can influence the firm. Difference in the rules and
regulations of country create issue and low cost fare create problem for Ryanair.
 Environmental factor
Lastly it describe how environment can affect the company. The release of pollution from
Airlines includes carbon dioxide and other gases which pollutes the air and affects its quality and
create problem for the nature and habitats. This affects its business as it harms the environment.

Question2 Evaluate how change in PESTLE affect the opportunities and threats of business.
PESTLE factor has major influence on the activities and performance of the company as
it has negative as well as positive effect on the organisation. In this is is been evaluated that how
the PESTLE analysis affect the opportunities and threats of Ryanair. The factors are been
evaluated below:
 Political factor: It is is been evaluated that as there is increase in the taxes , it can
increase he total fare of Ryanair too and it can affect their sales and chances of threat can
be increase and it affects of business. Ryanair will left with no opportunities and creates
decrement in their profitability.
 Economic factor: The fluctuation in the price of fuel can be a threat or can be an
opportunity for Ryanair airlines. If affects the threat, if the fuel price become high this
increases their threat as high cost need to be pay in contrary to fuel which affects their
profits. This can affect the opportunities of getting higher revenue.
 Social factor: Different culture and trends of of variety of routes and destination can
become threat as the airlines does not every(Li,et. al.,2017) time aware of their basic
things, this can create chance of threat. As discussed earlier, that people goon holidays
more in some cities of UK but , it cannot be possible that every city has similar no of
travellers, it may vary from destinations and routes so this can affect their threat and
sometimes they may not get opportunities for the same.
 Technological factor: this factor can affect the opportunities and threat, id Ryanair's
competitor are using advanced technology then this can increase their profits and brings
efficiency, but of Ryanair uses the same then their profits can be affected, and also it
affect the opportunities to get higher revenue.
 Legal factor: the norms differs from country to country so,in current pandemic situation
if other country banned the arrival of airlines from other country. It can affect the
opportunities as no one can move from one pace to another and even in similar city if
government is not allowing to carry huge number of passengers then Ryanair cannot earn
profits due to restrictions.
 Environmental factor: It mainly affects the nature by affecting and harming the air by
polluting. This can affect the threat if the airline uses high pollution creating charters and
aircraft then government can take step and restrict the usage of those planes if they are

harming the environment this can increase the chances of threat as it increases the chance
of global warming, and can lesser the opportunities to generate high revenue from this
and can lead to ineffective ans inefficient productivity.
From this evaluation, it is been analysed that macro factors can have deep impact on the threats
and opportunities of business of Ryanair, and it can directly and indirectly had adverse affect on
the performance, productivity and profitability of Ryanair.
Question3 Compare and contrast different style of leadership.
Leadership style are approaches or method which describes behavioural pattern that helps
to direct,motivate and guide the people in the firm. These leadership style can smooth en the
activities of management by ensuring motivation and clear their decision making responsibilities
to avoid any conflicts. There are 5 styles of leadership which are explained in detail below:
Autocratic style: In this leadership style the control is in hands of one person, does not
involve other in their decision making. This is basically seen in those firms which have very less
employees. This leadership style is adopted in those firm, which needs to take quick decision and
for business who need are going through any crisis (Müller,Kieckhäfer,Spengler,2018) or they
want to change something. The leader neither include them in decision making process, nor they
take their views. Also they do not encourage the employees to boost their morale.
Suitability : This theory will be suitable for Ryanair, as this helps leader to take decision fastly
whenever a need for change situation arises. By this, leader of Ryanair has access to control the
situation on their level and smooth en their operating activities.
Democratic style: This style of leadership is also known as Participative Style, in which
leaders motivate employees to actively take part in the decision making process and also share
their views and suggest ideas for the decision, so that there must be creation of strong bonding
between leaders and subordinates. In this style, leaders enhances the morale of employees give
them rewards and recognitions, thus it increases the productivity and profitability of company.
Suitability: This style is suitable for Ryanair airlines, because it helps in generating more
innovative ideas by by taking suggestion and involvement of employees and thus increase the
productivity and profitability of company, also maintain a healthy and friendly organisation
environment.
Delegative style: It refers to delegating the responsibilities of decision making in their
hands of group. The leader of group will provide, allocate resources and direct their group mates

to do work and complete the assigned project. This leadership style is adopted by those
organisation who are fully sure that their group and company has highly skilled employees and
they can perform their duties well.
Suitability: This style give full responsibilities and power to the group, so it is not found suitable
for Ryanair, as it can sometimes lead to ineffective decision making. This can have adverse
effect on productivity and decrement the profitability of company.
Transactional style: This type of leadership style is also known as managerial
leadership, in which the managers or leader has major focus on the performance of group,
organisation and supervise them. Companies those who adopt this style of leadership emphasis
on the task performed by their follower and in return they motivate them by giving rewards and
punish the less performers.
Suitability:This type of leadership style is suitable for companies who needs to focus on
performance of employee. But in case of Ryanair the hired(Rotondo,Corsi,Giovanelli,2019)
employees are well talented and they work with full excitement so this is also presented in the
organisation so this is optional for them to apply in their management.
Transformational style: In this style the leaders gives inspiration, motivation to the
followers so that they can create something innovative so as to bring change in the management.
They make their subordinates forward looking so as to keep future in consideration and think
accordingly. They provide training and mentoring to the employees so as to prepare them for
future leaders.
Suitability: This style is suitable for Ryanair airlines, as it build leadership qualities in employees
and employees will become futuristic, inspire from their leaders feel motivated so all this can
help in more development and this can increase their profitability and brings efficiency in their
services.
Question4 Recommend suitable leadership style for business.
Leadership style can help organisation to make effective decision which are in favour of
company , maintain efficiency in their working. Also it enables them to guide and direct
employees by motivating them resolving any issues and analyse the skill of employee and help
them in more development.
In context to the chosen airline company, Ryanair management adopts the Transformational and
Autocratic style of leadership in which the first style make leader to be futuristic and make their

followers to think creative so as to use them for the change. The second style is adopted so that
the leader alone can take decision with less or no involvement of other employees.
Recommendation
But, apart from the above followed leadership style there are other styles which can be adopted
by the management of Ryanair is Democratic leadership style.
Democratic leadership style: This style is also known as Participative style leadership,
in which the leader involves their employees for taking part in meetings, decision making
process and take their suggestion. The employee(Streimikiene, et. al., 2020) shared their views to
the leaders so that they can give more innovative ideas which can be used by them if they found
beneficial. This motivates employees of the organisation increase their morale boost their
performance make them motivated sop this can help in increasing the overall performance and
productivity of the company and this leads to increment in their organisation's profit.
Advantages of choosing and adopting Democratic Leadership Style:
 Increase staff performance: Involving staff in their managerial task and decision
making make them feel participative. This can motivate them and can lead to increase
their performance level.
 Creative ideas: Generating and receiving new and creative ideas from the employees
help senior leaders to take more corrective and effective decision, and this thing can
make employee feel happy and satisfied when they found that their opinion , views are
been listened by the superior level.
 Build a strong team: This style help in forming an effective and strong team as the
employees are working together from longer duration this develops trust and strong
bonding between them and thy collectively work together to achieve their targets.
If Ryanair airlines adopt this type of leadership style, this can help them to take
collective decision by ensuring everyone is taking active part in the management activities. This
helps the employees to build their trust towards the organisation. This style make leaders
motivate their employees by appreciating their performance by motivating them using various
ways like rewards and recognitions so that they get excited and feel encourage while doing their
task. This increases the retention of Ryanair(Szopiński,Staniewski,2016) employees and
maintain a happy, healthy and friendly environment in the management leads to arising of less
conflicting situations. As this involves participation of every employee, this can avoid partiality

and by this the employee can perform well, hence, Ryanair can get efficiency in their
productivity and has positive impact on profitability of their company.
Question5 Comment on Responsibility, Response and Obligation in Ethic and Social
Responsibility.
Social Responsibility is a theory whose motive is to fulfil the needs of the society by
doing the work by keeping the society and environmental factor in consideration by protecting
their interest. This is necessary to maintain a smooth flow between the society and business
operations so that it may be beneficial for society.
Ethical responsibilities is the responsibility to follow a right path abide by the rules and
regulations while performing the business activities.
The corporate social responsibilities is a responsibility of an organisation
(Thirkell,Scase,Vickerstaff,2018) towards the society and environment, which focuses on their
welfare. In this point, it is been discussed on 3 actions they are:
Responsibilities: In this the corporate social responsibilities of Ryanair is been mentioned, in
which it is been discussed that what responsibilities a company have towards the society and
how they fulfil their responsibility for the betterment and welfare of society. The corporate social
responsibility of Ryanair are detailed below:
 The prime responsibilities is to focus on environment. For this, they emphasis more on
investing on aircraft by using latest and upgraded technology engines which requires less
fuel and create less pollution to the environment.
 They have designed the seats of aeroplanes dense which can carry huge amount of
passengers without any issues of so that it creates less pollution and does not harm the
environment.
Response:it means that they are not just making responsibilities, but they are also implementing
in their daily basis. They put those responsibilities on action and perform them for the benefit of
environment. Ryanair airlines responding towards their responsibilities, they abide with the laws
of country regarding environment and society protection, so for that, they use less fuel
consuming engines which can prevent nature and does not pollute the air. They also provide
greenery and cleanliness in the airline by keeping the safety and hygiene of society in
consideration.

Obligation: It is most important and necessary duty of business to fulfil social obligation . In
context to Ryanair, the social obligation they need to (Vieira,Câmara, Silva,Santos,2019) so is to
be accountable for the society, they need to use the resources of society in alternative and
efficient manner and also they need to focus on the current situation of COVID 19 and ensure
distancing and proper testing of the travellers to prevent them for large spread.
CONCLUSION
From this it is been concluded that SWOT and PESTLE analysis can help organisation to
determine the factors which can hinder the performance of company and also help them to
identify what factors can proven beneficial so that it can enhance their performance. It is also
analysed that leadership style other then the adopted once, can also be beneficial to increase their
profitability,boost their productivity and morale of employees and hence, increase their overall
performance of company. Lastly, it is been analysed that company need to concentrate on ethics
and social responsibilities and fulfilling the needs of society and taking care of nature and abide
with the norms made by the government of country ,while operating their business.

REFERENCES
Books and Journals
Filina, V.N., 2019. Development strategies of the air transport services market. Studies on
Russian Economic Development. 30(4). pp.400-405.
Harrison, C., 2018. Leadership research and theory. In Leadership Theory and Research (pp. 15-
32). Palgrave Macmillan, Cham.
Komutanont, W.P. and Pires, G., 2016. INSIGHTS OF RESILIENCE TO CRISIS IN THE
AIRLINE INDUSTRY. Global Business & Economics Anthology, 1.
Kowalska-Pyzalska, A., Kott, J. and Kott, M., 2020. Why Polish market of alternative fuel
vehicles (AFVs) is the smallest in Europe? SWOT analysis of opportunities and threats.
Renewable and Sustainable Energy Reviews. 133. p.110076.
Li, Z., and et. al.,2017. Towards low carbon based economic development: Shanghai as a C40
city. Science of the Total Environment. 576. pp.538-548.
Müller, C., Kieckhäfer, K. and Spengler, T.S., 2018. The influence of emission thresholds and
retrofit options on airline fleet planning: An optimization approach. Energy Policy. 112. pp.242-
257.
Rotondo, F., Corsi, K. and Giovanelli, L., 2019. The social side of sustainable business models:
An explorative analysis of the low-cost airline industry. Journal of Cleaner Production. 225.
pp.806-819.
Streimikiene, D., and et. al., 2020. The impact of Corporate Social Responsibility on Corporate
Image: Evidence of budget airlines in Europe. Corporate Social Responsibility and
Environmental Management.
Szopiński, T. and Staniewski, M.W., 2016. Socio-economic factors determining the way e-
tourism is used in European Union member states. Internet Research.
Thirkell, J., Scase, R. and Vickerstaff, S. eds., 2018. Labour relations and political change in
Eastern Europe: A comparative perspective (Vol. 39). Routledge.
Vieira, J., Câmara, G., Silva, F. and Santos, C., 2019. Airline choice and tourism growth in the
Azores. Journal of Air Transport Management. 77. pp.1-6.