Irish Airline: Ryanair

1229 Words3 Pages
bulb-icon

Recommended: Ryanair case study and strategic analysis

Ryanair an Irish airline founded in 1985 has seen huge growth with workforce of just 25 to now over 9000 skilled professionals, branding themselves as Europe’s only ultra-low cost airline they are always looking for new ways too save on costs and increase on profits. This essay will draw upon, at what point they become ‘un-ethical’ i.e. the extra charges they add to the total bill e.g. a £160 charge for a name change in high season (Ryanair.com 2014,a), They have even been accused of carrying less emergency fuel to improve both fuel efficiency and competiveness (The Economist, 2013). Then justify what is morally right and wrong from the views of different ethical theories and stakeholders, in particular egoism and utilitarianism because these two theories will exhibit totally different views. Which will show different perspectives of a single action can be both ethical and un-ethical at the same time depending how you look at it.

Smith argues that there are two fundamental goals in nature in all life forms: “the preservation of the individual and the reproduction of the species” (Bragues, 2009, p. 453, para 2). Essentially the theory is based around the form of compulsive selfishness. This is similar to Michael Friedman’s approach to individualism because of the similarities between the self-interested motives of the egoist, and the legal obligation of a firm to produce the highest profits and shareholder wealth that it can, which is exactly what Ryanair are doing, adding extortionate charges for example a 2% charge to the total bill when using a credit card (Ryanair.com, 2014, b). According to this theory Ryanair is acting ethically because they are composing a morally appealing result for society through the ‘invisible hand’ o...

... middle of paper ...

...nair.com/en/terms-and-conditions#regulations-tableoffees [Accessed: 26 Mar 2014]. (a & b)
Ryanair.com. 2013. Code of Business Conduct & Ethics. [online] Available at: http://www.ryanair.com/en/investor/code-of-business-conduct-and-ethics [Accessed: 26 Mar 2014].
The Economist. 2013. Flying into more flak. [online] Available at: http://www.economist.com/blogs/gulliver/2013/08/ryanair [Accessed: 26 Mar 2014].
The Economist. 2014. Price or quality—pick one. [online] Available at: http://www.economist.com/blogs/gulliver/2014/02/ryanair [Accessed: 26 Mar 2014].
Wright, O. 2013. Exclusive: Safety warning as budget airlines such as Ryanair cut fuel levels for flights. [online] Available at: http://www.independent.co.uk/travel/news-and-advice/exclusive-safety-warning-as-budget-airlines-such-as-ryanair-cut-fuel-levels-for-flights-8749046.html [Accessed: 26 Mar 2014]. (a & b)

Show More
Related

  • Analysis Of Journey Into Night By David Sedaris

    706 Words  | 2 Pages

    Many people have issues with flying. Some are nervous that the plane might not make it to its destination while others think of flying as an overpriced, uncomfortable, and unpleasant experience. Than there are those who can afford to make their flight experience much more luxurious which are the passengers flying in business class or in first class. These are passengers that get the champagne in the plastic glasses and the chairs that stretch all the way out. David Sedaris is able to paint this picture of entitlement and lack of comfort throughout his article “Journey into Night.”

    Read More

  • Rhetorical analysis of Michael Gerson's article

    1048 Words  | 3 Pages

    The transition from a convenience based to a cost conscious economy has certainly been a rough path for the western world especially the United States. After the recent economic turmoil that received extensive media coverage during the first decade of the 21st centaury, budget trims is a common knowledge from small business organizations to large multi-national corporations. This is evident in the privileges and conveniences consumers and employees receive at an establishment. A classic example of revenue management and optimization is in the airline industry. With smaller seats, higher passenger load and fees and charges levied on peanuts and baggage, most airlines are in fierce competition to reduce fair prices. The issues with regard to budget cuts in first world nations has a profound impact on less fortunate third world and other dependent countries; This is especially true with regard to human development and sustainability programs sponsored by wealthier nations. In the article "The real-world effects of budget cuts" by Michael Gerson an argument and reality check is imposed on inconceivable and in the author's mind irrational withdrawal of capital on life supporting programs. The author also makes a personal appeal especially for those of us who believe in the ideology of pro-life.

    Read More

  • Australian Airline Oligopoly

    2191 Words  | 5 Pages

    333-355. Hocking and Waud 1992, Oligopoly and Market Concentration' in Microeconomics 2nd Edition, Harper Educational Publishers, NSW, pp. 315-342. Kathleen Hanser, The Secret Behind High Profits at Low-fare Airlines'. a href="http://www.boeing.com/commercial/news/feature/profit.html">http://www.boeing.com/commercial/news/feature/profit.html/a> [accessed 15 May 2003]

    Read More

  • United Airlines Code Of Conduct Analysis

    692 Words  | 2 Pages

    As one of the world’s largest airline, United Airlines employs over 80,000 people and transports over 143 million people a year ("United Airlines newsroom," 2017). These staggering numbers equate to billions of interactions between the public and United Airlines employees and subsidiaries. It is understandable that a company with such a large public audience and employee base would have a code of ethics statement to help its employees so that they can make decisions that are in line with company expectations.

    Read More

  • Case Study: Qantas

    1629 Words  | 4 Pages

    According to the International Air Transport Association, 2001 was only the second year in the history of civil aviation in which international traffic declined. Overall, it is believed that the IATA membership of airlines collectively lost more than US$12 billion during this time (Dixon, 2002).

    Read More

  • Tesco and The Horsemeat Scandal

    1398 Words  | 3 Pages

    The focal point of this essay revolves around Tesco’s issues with Corporate Social Responsibility (Hench forth know as CSR) as they didn’t hold themselves to the stakeholders and society in general. These issues with CSR can be explained through applying agency theory and various ethical theories. Furthermore the actions taken by Tesco will be examined; both how they handled the scandal and the repercussions for...

    Read More

  • Social, Cultural and Ethical Issues Relevant to Tesco Plc's Operation

    1475 Words  | 3 Pages

    There are many different factors which affect the way companies operate and the policies they adopt. This essay will investigate and outline some of the different social, cultural and ethical issues which are relevant to Tesco Plc’s operation. This essay will begin by investigating into social attitudes of the customers and also the social trends of customers which affect the company’s social policies. It will explain why there was or is a problem, how it could be solved by adopting a particular policy. It will then investigate into cultural tastes and preferences of the customers, as well as the low unemployment of UK culture which affect the company’s cultural policies. It will explain why these cause cultural issues and suggest polices which provide a solution. Finally it will analyse the waste creation and disposal of the company and also their farming supplies which are two ethical problems the company has faced and explain the policies that were used to solve the problems.

    Read More

  • Business Ethics: McDonnell Douglas' Lack of Solidarity

    1798 Words  | 4 Pages

    The reason I chose to write about this company McDonnell Douglas is because I felt that what they did was appalling and demonic. They dehumanized the passengers and only seen profit margins. One may say that McDonnell Douglas imps did not know the meaning of the word “solidarity”: Solidarity is a principle of Catholic Social Teaching. This principle means the firm and preserving determination to commit oneself to the common good. This principle incorporates other principles like Human Dignity, Community, Common Good, Stewardship, and Option for the Poor, that is what we are to demonstrate in our actions. This principle does not always come into play with many corporations; Furthermore when things like this come into play, one may say that a company is participating in unethical business practice. This is the reason why an American commercial aircraft industry company named McDonnell Douglas failed to reach their full potential in designing aircrafts. Their lack of ethical appropriate behavior has shown many that the expense of a change of a product is more important than losing lives over something that could have been prevented. There are three ways this situation could have been avoided but yet was not: First, finding an ethical way of putting the consumer long term goals first and increasing profitability (ex. maintaining a good company image). Secondly, look at the short term effect of being unethical, and receiving high profitability and long-term effect of being caught and having to file bankruptcy finally; McDonnell Douglas has an ethical responsibility for the lives of the people who use their product. McDonnell Douglas had a responsibility to the people to provide them a quick trouble free flight to and from their chosen...

    Read More

  • IT Governance in Airline Industry Case Study

    1556 Words  | 4 Pages

    Airline and travel industry profitability has been strapped by a series of events starting with a recession in business travel after the dotcom bust, followed by 9/11, the SARS epidemic, the Iraq wars, rising aviation turbine fuel prices, and the challenge from low-cost carriers. (Narayan Pandit, 2005) The fallout from rising fuel prices has been so extreme that any efficiency gains that airlines attempted to make could not make up for structural problems where labor costs remained high and low cost competition had continued to drive down yields or average fares at leading hub airports. In the last decade, US airlines alone had a yearly average of net losses of $9.1 billion (Coombs, 2011).

    Read More

  • Strategic Analysis of Ryanair

    4040 Words  | 9 Pages

    The aim of this report is to carry out a strategic analysis of Ryanair. This will involve investigating the organisation’s external environment, to identify opportunities and threats it might face, and its strategic capability, to isolate key strengths and any weaknesses that need dealing with. Finally, a SWOT analysis will be carried out to assess the extent to which Ryanair’s strategies are suitable to what is happening in its task environment.

    Read More

  • Royal Dutch Shell Case Analysis

    716 Words  | 2 Pages

    While our organization prides itself in a well-defined and thorough code of ethics, there are occasions where situations arise, but the solution is not clearly defined within our code. In such a case, it is critical to develop a decision making framework that allows our employees to make a decision while operating within the moral guidelines of our corporation. In the hope that we can eliminate discrepancies, Royal Dutch Shell has created an ethical decision strategy that will make clear the ethical standings of our corporation and ensure a consistent decision making process. Our decision making process is focused on our stakeholders, and how we can maximize their benefit.

    Read More

  • Airline Sustainable Competitive Advantage

    1432 Words  | 3 Pages

    Wharton Unicersity of Pennsylvania. (2007, December 12). Maurice Flanagan’s Emirates Airline: Flying High and Treating Customers like Sheikhs. Retrieved from Wharton Unicersity of Pennsylvania: http://knowledge.wharton.upenn.edu/article/maurice-flanagans-emirates-airline-flying-high-and-treating-customers-like-sheikhs/

    Read More

  • PEST Analysis: The Indian Airline Industry

    1922 Words  | 4 Pages

    The airline industry is very susceptible to changes in the political environment as it has a great bearing on the travel habits of its customers. An unstable political environment causes uncertainty in the minds of the air travellers, regarding travelling to a particular country.

    Read More

  • Culturally Sorting Airline Passengers

    2296 Words  | 5 Pages

    As the airplane levels off at it’s optimal cruising altitude of 38,000 feet, you pull out the in-flight magazine, whose cover is filled with images of fame and happiness, from the seat-back pocket. Through all airlines providing the same service (flights), branding is the key to achieving a competitive advantage. The in-flight magazine becomes a vital product through which airlines can promote their brand, sell products and build relationships with their passengers. The magazine offers advertisers a highly desirable and attentive audience given that both on-board matters and airport transfer information require reference to the magazine. The reach of these magazines is also broad, which makes them very appealing for advertisers. For example, Qantas carries more than 13 million passengers annually, and each month 65,000 magazines are printed (Geels). In-flight magazines, however ideologically benign or innocent they may seem, prove to be powerful by illustrating the values to which a traveler should adhere. Advertisements mirror society and the people they advertise to, therefore, they convey meanings and messages about what is normal social behavior. Flying, although less expensive now than in the past, is reserved for the better off in society; those who have the freedom and means to travel by plane. Airline magazine advertisements are subtle ways of sorting passengers into those who are socially and culturally acceptable airline travelers and those who are not.

    Read More

  • Managerial Ethics

    1607 Words  | 4 Pages

    In today’s fast paced business world many managers face tough decisions when walking the thin line between what’s legal and what’s socially unacceptable. It is becoming more and more important for organisations to consider many more factors, especially ethically, other than maximising profits in order to be more competitive or even survive in today’s business arena. The first part of this essay will discuss managerial ethics[1] and the relevant concepts and theories that affect ethical decision making, such as the Utilitarian, Individualism, Moral rights approach theories, the social responsibility of organisations to stakeholders and their responses to social demands, with specific reference to a case study presenting an ethical dilemma[2], where Mobil halts product sales to a garage, forcing the garage owner to stop selling solvents to young people. The second section of this essay will focus on advice that should be given to any manager in a similar position to the garage owner with relevance to the organisational strategic management, the corporate objective and the evaluation of corporate social performance by measuring economic, legal, ethical and discretionary responsibilities. It will address whom to think of as stakeholders and why the different aspect could cost more than a manager or an organisation could have imagined.

    Read More

More about Irish Airline: Ryanair

Open Document