Ryanair: Analyzing Innovation, Technology, and CSR in Business Env

This report provides a comprehensive analysis of Ryanair's business environment, focusing on the impact of innovation and technology on economic progress, and the role of Corporate Social Responsibility (CSR). It assesses how Ryanair utilizes technology like online booking systems and real-time tracking to enhance operations, sales, and profits. The report also examines Ryanair's CSR activities, such as supporting student networks and sports teams, and discusses the importance of CSR for brand value, sales, employee engagement, and risk management. It concludes that embracing innovation, technology, and CSR are crucial for Ryanair's sustained growth and competitive advantage.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

Executive Summary
Business Environment of the organizations consists of the different types of dynamic
factors which can create as well as influence their working pattern. These macro factors have to
be considered by the firms so that they are able to ensure that they can maintain their level of
profitability effectively and efficiently without facing problems and issues. It is quite ever-
changing in nature and thus requires that the Business Organizations are able to adjust effectively
according to it so that they are able to attain their goals and objectives. Thus by adjusting to it
they are able to ensure that they can sustain in a highly competitive environment.

INTRODUCTION
Business Environment refers to the influence of various types of external factors and the
impact which they have on its various operations (Akhtar and Sushil, 2018). It is important for
the management of the organizations to make sure hat they analyse it effectively and efficiently
so that the attainment of the goals and objectives can be made without problems and issues. Thus
it is very important to be considered by the firms. This report is based on Ryanair. It is an Irish
low-cost airline which deals in providing low-cost services to the customers. In this report,
detailed focus will be made on assessment of the impact of innovation and technology and the
way they impact economic progress of the country. Additionally, specific focus will be made on
practical illustrations of the way innovation and technology impact operations, sales and profits
of the company.
TASK 1
Impact of Innovation and Technology on the economic progress of the country-
Innovation refers to the actions which are taken so that the new products and services can
come into existence (Bejtkovský, Rózsa and Mulyaningsih, 2018). Its use is important so that the
relevant goals and objectives can be attained by the organizations without problems and issues.
In the context of Ryanair it is important because retail sector has witnessed a lot of change and
by making the use of innovation the company can be able to attain the desired goals and
objectives.
Technology refers to application of scientific knowledge for the practical purposes (Belás
and et.al., 2019). Thus, In Ryanair its use is important so that the efficiency and effectiveness
related to the production of goods and services can be raised. For Ryanair its use is important so
that it can update itself according to the specific requirements of the dynamic situation which is
prevailing in the market.
The way Innovation and Technology can contribute to the Economic Progress of the
country is explained as follows-
 Increase in productivity- By making the use of Innovation the organizations are able to
ensure that they can effectively provide the good products and services to the various
customers (Čepel and et.al., 2018). Thus in this way it enhances the overall economic
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progress of the country leading towards an increase in productivity. An organization like
Ryanair can contribute towards the economy in this way.
 Generation of more output- By making the use of Innovation the firms are able to
ensure that they generate more output. If a big organization like Ryanair makes its use it
results in more products and services which can fulfil the needs and requirements of the
customers. Thus in this way the contribution towards economic growth of the country can
be made in an effective way within the company.
 Higher efficiency- When advanced technology is being used by the organizations it can
result in higher efficiency. Therefore big companies like Ryanair are required to display
this which will be helpful for them in contributing in a proper manner towards the
economic development of the country.
 Research & Development- Use of advanced technology by the organizations ensure
greater investment in Research & Development by the organizations. Thus, In the context
of a company like Ryanair it is crucial that its use is made so that the needs and
requirements of the customers are analysed and are fulfilled accordingly.
Use of new technologies by the business organizations in their operations-
Ryanair is a low-cost airline. It makes the use of following technologies so that it is able
to manage its operations effectively and efficiently-
 Online ticket booking system- Through the use of online ticket booking system the
airlines are able to ensure that they take and manage their bookings of tickets properly
(Gaganis, Pasiouras and Voulgari, 2019). In the context of Ryanair it is thus useful so that
the airline is able to manage its system and operations without facing problems and
issues.
 Web Check-in- With the use of Web Check-in facility the customers of the airlines are
able to ensure that they can check-in sitting at the convenience of their home. Ryanair
thus allows its customers to make the use of this facility which results in saving of time
and also allows them the flexibility of choosing their preferred seat.
Practical illustrations of the use of innovation and technology by the company and
the impact on its sales and profits-
Overview of the company- Ryanair is an Irish low-cost airline which was founded in the
year 1984. It provides its services to the customers at a low price which makes it very popular
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among them. It has made bases at Dublin and London Stansed Airports. It has subsidiaries in
Buzz, Ryanair UK and Malta Air.
New technologies used by Ryanair-
 Real-time tracking- In the new aircraft fleet which has been introduced by Ryanair an
integration has been made with Satellite tracking (Jevšenak, 2019). By using this new
technology real-time tracking of the aircraft can be made possible. Thus by making its
use the airline will be able to track its aircraft whether it is flying in any part of the globe.
 Real-time playback- Ryanair has introduced a new app in which an instant replay of any
portion of flight as an animation. This will allow the pilots to play any portion of the
flight as an animation when the post-flight briefing is being done.
Impact of the implementation of new technology on sales and profits of the organization-
Through the implementation of new technology an impact on the sales and profits of the
organization can be determined in the following manner-
The technology of Real-time tracking and Real-time playback were introduced by the company
in the financial year 2019-20. By implementing this technology a significant impact has been
seen on its sales and profits.
Prior to the implementation of the technology the Total revenue of the airline stood at 7,697
million euros. However, after the implementation of this technology the Total revenue of the
airline increased to 8,495 million euros.
Thus it can be said that New technology used by Ryanair is very effective for it in ensuring that
enhancement of revenues can be done.
However the Profit After Tax has reduced. Prior to the implementation of new technology of
Real-time tracking and Real-time playback The Profit After Tax was 885 million pounds for the
year ending 31st March 2019. However it reduced to 649 million pounds for the year ending 31st
March 2020.
Thus it can be said hat the New technology used by Ryanair has impacted the level of profits of
the company by reducing them.
With the implementation of new technology by Ryanair the company has been able to ensure
that it can achieve a higher-level of growth in the future as its implementation gives it a much-
desired strategic and competitive advantage in the market thereby allowing it to achieve its goals
and objectives. In this way it will be able to get ahead of other low-cost carriers which are
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operating within the market and thus this will help it in becoming the market leader of its
segment in the future. In summary it can be said that using this new technology has been very
beneficial for Ryanair by showing a positive impact on its operations.
TASK 2
Importance of CSR-
Corporate Social Responsibility i.e. CSR is a model which encourages the companies to
contribute in their best way towards the society. This is so because the companies make the use
of different resources which are available in the society and thus they have to do their best to
contribute towards the society in an effective manner (Ključnikov and et.al., 2016). Ryanair also
makes significant contributions towards the society which are helpful for it to make sure that it
can add value towards it.
There is an importance for all the companies. Its importance for Ryanair has been
discussed as follows-
Brand Value- When a company fulfils its CSR it results in an enhancement in the brand
value of the company. Thus, In the context of Ryanair it can be said that if it fulfils its CSR its
brand value will increase leading towards greater recognition of the company.
Increase in Sales- Fulfilment of CSR leads to an increase in sales. For Ryanair it is quite
important that an enhancement in the overall level of revenues can be brought by putting a
positive impression on the society. This will be very helpful in the attainment of the future goals
and objectives.
Employee Retention and Engagement- Fulfilment of CSR ensures that the employees
can be retained and engagement can be done in an effective manner. Thus by fulfilling it Ryanair
can make sure that these workers are able to contribute towards the airline with an enhanced
efficiency, effectiveness and productivity.
Cost Savings- By fulfilling CSR the organizations can make sure that they can save their
overall costs effectively and efficiently. In this way Ryanair will be able to identify its excessive
costs and thus use appropriate techniques and methods for reducing them so that the level of
profits can be enhanced.
Poverty Alleviation- Fulfilling CSR helps the organizations in identifying and assessing
the problem of poverty in a country and work forwards for alleviating it. Thus, it is quite
important for Ryanair that it focuses on Poverty Alleviation so that the reduction in poverty can
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be brought thereby leading towards a better society. This will contribute towards an increase in
the goodwill of the company.
Loyal customers- Fulfilling CSR leads to an organization having loyal customers. This
happens because the customers have a positive image of Brand. Therefore, In the context of
Ryanair it is quite crucial that it can enhance the loyalty in its customers by ensuring that it
contributes in a significant manner towards the cause of the society. This will not only lead
towards an enhancement of the overall revenues but also help in the increase in the profits.
Positive public attention- Fulfilment of CSR enables positive public attention from the
people which ensures that the image of the brand is enhanced positively. For Ryanair, it is crucial
that it receives a positive public attention from the people by using its CSR activities properly.
This will help it a lot in achieving its goals and objectives.
Risk Management- Fulfilment of CSR helps the organizations in dealing with Risk
Management (You and et.al., 2019). Therefore, for Ryanair it is quite important that it identifies
the risks which are associated with the society and work towards reducing them with a positive
approach. This will help in developing its Brand Image in its the society.
The CSR activities of Ryanair are detailed as follows-
 Ryanair celebrated over 300,000 Erasmus Student Network Bookings saving over 9.4
million euros in April 2019. It is offering with the students with certain benefits when
they fly in the airline. This is helping it in contributing effectively towards the cause of
the society as the students form a significant part of it.
 Ryanair supported Ireland Celebral Palsy Football Team for the 2019 IFCPF World Cup.
This initiative was taken in July 2019. This decision was taken so as to raise the
motivation and morale of the team members in a highly effective manner so that they can
perform better.
Carroll's CSR Pyramid-
It is a framework which is used by the organizations so that they are able to meet out their social
responsibilities properly. According to this pyramid there are four responsibilities which are
displayed-
Economic- This refers to the economic responsibility of a business (Kozubikova,
Homolka and Kristalas, 2017). It means that a business has to strive in order to remain profitable
in the long-run. Thus in this manner it means that Ryanair should aim to set its revenues to aim
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for higher-level of profits. In this way it would also be able to serve the society in the long-run as
by remaining profitable. For example- The company needs to make sure that it maintains its
profitability which will be helpful for it in sustaining in its business without problems and issues.
It will be able to maintain its profits in the long-run in this manner.
Application- Its application can be done by identifying the opportunities through which
the organizations would be able to expand the level of profits (Rialp-Criado and Komochkova,
2017). Ryanair thus has to identify these opportunities so that it can increase its profitability and
thus make sure that society can be served properly. In this way it will be able to increase its
contribution by adding more value to the society and thus ensuring that the society realises this
value.
Legal- This refers to the laws and other regulations of the country in which the business
operates (Shageeva and et.al., 2017). Therefore, Ryanair has to make sure that the laws and
regulations of the country regarding Employment, Competition and Health & Safety are
followed properly. Therefore this will help it to be able to contribute towards the society without
facing problems and issues. For example- The company is required to ensure that it can follow
legal rules and regulations which have been framed by the government for the airlines which will
thus help it a lot in maintaining its image in front of the customers.
Application- Its application can be done by ensuring that the laws and regulations of a
country are closely studied and analysed by a particular organization. Thus, Ryanair needs to
make sure that it can contribute towards the society by ensuring that by following the laws and
regulations they can add the desired value to it.
Ethical- This refers to the ethical responsibility of an organization towards the society. It
is quite necessary for it to follow because unethical ways should not be used by it while
providing products and services to the society (Civelek and et.al., 2016). Therefore, it is the
responsibility of Ryanair to ensure that it stays ethical and therefore is able to contribute the
desired value to the society. It must use encourage ethical practices like charging fair prices from
the customers, serving customers in a proper manner etc. Ethical Code of Conduct is required to
be followed by the organizations which can make them achieve their goals and objectives related
to Ethics. For example- Ethical Code of Conduct must be used by the airline and it must set fair
price policy so that it is able to work according to the set ethics without problems and issues.
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Application- Its application can be done by ensuring that the Ethical Code of Conduct is
set and followed by the organizations. Also the laws and regulations related to the companies are
required to be properly understood by them so that they can follow them.
Philanthropic- This refers to the responsibility of the organizations to give it back to the
society. A society has various types of resources which are used by the organizations and thus it
is desired from them that they are able to contribute some value to the society. Ryanair makes the
use of different resources of the society. Therefore the requirement from them is to make sure
that the airline is able to give it back to the society by offering them fair prices, value for their
money etc. In this way it will be able to fulfil its responsibility. For example- The airline can go
for a social cause and thus contribute the required funds to that cause which will help it a lot as it
will be able to make a significant contribution towards the society without problems and issues.
Application- Its application can be done by ensuring that the organizations are able to
identify the way in which best contribution can be made by them towards the society. Therefore,
Ryanair will be required to ensure that it is able to attain its goals and objectives related to
fulfilment of social responsibility properly. It can indulge in charitable activities and also ensure
that it is able to work towards providing a better value to the society thereby helping it in the
enhancement of its Brand Image.
CONCLUSION
From the above report, it can be concluded that Business Environment refers to a
combination of different types of factors affecting the organizations. It is quite dynamic and
everchanging in its nature and thus it is important that the desired adjustments are made
according to its needs and requirements. They are required to analyse it very closely and thus
ensure that the business activities are structured according to the influence which is generated by
these factors. In this way the companies will be able to make sure that they can generate a
higher-level of profits without facing problems and issues.
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REFERENCES
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recruitment in business environment. Polish Journal of Management Studies. 18.
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profitability: Evidence from European Countries. Economic Modelling. 78. pp.275-292.
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