1 INTRODUCTION 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. Ryanair is Europe’s largest low-fares, no-frills short-haul carrier. The organisation was founded in 1985 as a conventional airline but re-launched itself in 1990/1991 as a low-cost carrier, replicating American Southwest Airlines’ business model. Since then Ryanair has grown substantially and successfully. The company currently has 146 routes to 84 destinations in 16 countries, and carries more than 15 million customers annually. Ryanair aims to be Europe’s largest airline in 8 years (www.ryanair.com). 2 ANALYSIS OF THE EXTERNAL ENVIRONMENT This is a crucial part of a strategic analysis because ‘…organisations do not exist in a vacuum, they are part of a complex world’ (Bowman 1987:61) and many factors can influence operations, beneficially and unfavourably. However, these can be difficult to comprehend due to their complexity, diversity and fast changing nature. Necessarily a number of techniques have been developed to facilitate the process and to ‘…contribute to answering the key managerial question…’of what ‘…opportunities and threats might arise in the future’ (Johnson & Scholes 2002:99). 2.1 PESTEL analysis This identifies the main micro-environmental influences by classifying them into six groups: Political, Economical, Sociocultural, Technological, Environmental and Legal. By applying this framework to Ryanair it is possible to summarise the key forces in the general environment (see appendix A) likely to present opportunities and threats to the organisation (Johnson & Scholes 2002). Political · ‘Saturday May 1 will mark one of the most important days in recent European history’ (http://europa.eu.int). The continent will see the biggest expansion of EU to date when ten states become new members. For Ryanair new markets will open which suits its growth plans (www.ryanair.com). · Stansted airport, owned by BAA, is one of the most rapidly growing airports i... ... middle of paper ... ...al Times Gow, D. (16/02/04)’Ryanair plans zero frills and fares’, The Guardian Hotten, R. (13/03/04) ‘No-frills deal has impact on bmi’, The Times Insley, J. (18/01/04) ‘Happy New Year for second homes’, The Observer Insley, J. (08/02/04) ‘You can make it if you try’, The Observer Newman, C. (03/12/03) ‘Travellers face big rise in air passenger levy’, The Financial Times Pratley, N. (05/02/04) ‘Clipped Wings’, The Guardian Tait, N. (03/12/03) ‘Ryanair in court over wheelchair fee’, The Financial Times Tran, M. (03/02/04) ‘Ryanair’s airport subsidies’, The Guardian Wright, R. (01/12/03) ‘BA threat to sue if Stanstead gets runway’, The Financial Times PESTEL ANALYSIS APPENDIX A Political · The expansion of the European Union (EU)· BAA’s proposed Stanstead expansion· CAA’s new regulations on airport charges Economical· High oil prices Sociocultural· Increasing second-home ownership· Europe’s increasingly ageing population Technological· New satellite technology Environmental· The Global emissions-trading scheme Legal · The European Court of Justice ruling
A strategic analysis provides an examination of both the internal and external factors impacting on the organisation (Papulova & Gazova, 2016). City
3. Fortunately, there are several opportunities in the airline industry of which companies will be able to take advantage. First, the airline industry is reviving and passenger levels are now returning to pre-9/11 status. Companies can offer high degrees of service and reduce costs through the use of the Internet, such as online ticket sales, flight seating charts, and plane infor...
As airline industry is a competitive marketplace, the airline companies use new technologies to improve their efficiency and decrease the overhead costs, including ‘advanced aircraft engine technology, IT solutions, and mobile technology’ (Cederholm 2014). The technology changes including technology improvement, new innovation and disruptive technology. The disruptive technology need to meet the characteristics of ‘simplicity, convenience, accessibility and affordability’ (Christensen 1995). The technology changes would bring both opportunities and threats to airline companies. Since Labour cost and fuel costs occupy 50% of most airlines operating cost (Groot 2014). Therefore, if new technologies could be disruptive in the two aspects, there will be important changes to current airline
The objective of this paper is to analyze and discuss some of the Boeing Company's business decisions using their strengths, weaknesses, opportunities and threats, also known as an S.W.O.T. analysis which is defined as, "a planning tool used to analyze an organization's strengths, weaknesses, opportunities, and threats. (Nickels, McHugh, McHugh, page 216)". This is a very powerful tool usable by any business that is just starting out, going through a change in direction, or in the process of a major merger. The SWOT analysis consists of a few simple steps which can provide valuable insight for direction and decision making. This paper will use The Boeing Company as an example of SWOT analysis application.
To calculate the valuation of Ryanair, the firm's future revenues and costs, as well as the firm's current accounting value must be calculated. To account for a range of possibilities, three different valuations have been calculated through 2012. These are called Annual Report, Valuation 1, and Valuation 2. Descriptions of each of these valuations will develop as the revenue and cost modeling are discussed. A description of the valuations will conclude the Analysis portion of this document.
...leader. Certainly, it has to take into account the implications of completion from both the direct and the indirect competitors. That is why EasyJet centers on the cost management strategy and the differentiation strategy (Hanlon, 2007). Through an analysis of EasyJet Airplane company strategies and performance, it is clear that they are ambitious and strive for the best. They not only survive in an industry that is intensely competitive, as shown through the analysis by Porter's Five Forces, but also succeed in terms of offering their customers the best that they have to offer in terms of value for money. The advantage this airline gains over its oligopolistic competitors stems from flexible ticketing and complete access to all primary routes. However, in keeping airline industry, there is room for improvement and growth as the analysis using Ansoff Matrix reveals.
Dynamic strategic management encompasses the approaches, tools and activities organizations utilize to determine direction, increasing the likelihood of organizational goal attainment. It is an approach that suggests organizations operating in uncertain environments require a flexible plan to minimize risk and take advantage of opportunity As a tool developed to analyze a firm’s position within its operating environment, a Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis provides insight into how internal and external factors are inhibiting or facilitating advancement toward reaching organizational objectives within a dynamic environment. This paper aims to understand how a SWOT analysis assisted the Calgary International Airport Authority create a competitive business plan for their future in an uncertain environment.
Founded on 31st march 1974 after the merger of two nationalized airline companies and two regional airlines, British Airways is the largest airline in the world in terms of number of aircrafts, international destinations and flights. It ranks second in terms of passengers transported per annum. It operates from Heathrow Airport that prides itself in serving the largest number of international passengers in the world and the third busiest worldwide. The company ran as a state corporation in its first 13 years of existence before it was privatized in 1987. The company has expanded through mergers and acquisitions. Its merger with Iberia in 2011 formed the International Airlines Group that is among the top three airlines in the world in terms of revenue generated yearly. Its headquarters are in Waterside, Harmondsworth in England. The airline is one of the major players in the tourism industry since it flies to more than 150 cities in 75 countries around the world. Many tourists travel by air and the airline connects tourists to the various destinations they wish to visit in the world.
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.
We can also identify the weaknesses of Ryanair in accordance to scientific management. From what we have previously discussed in the essay we now know that there are a few points from Douglas McGregor’s theory X that can relate to scientific management. However these key points also have influences on Ryanair, which can come across as
Various macro- and micro-environmental factors influenced the way British aviation industry and specifically British Airways organizes its business operations nowadays. This in turn has strong implications on the way the company approaches its workforce arrangements. In this section the main environmental forces that are in a continuous state of flux will be presented – political, economic, industrial, legal, social and technological issues (The Times, 2010).
Ryanair has created a low cost culture and its whole organization has bought into this philosophy. The leadership at Ryanair practices what it preaches and it helps further reinforce the low cost message throughout the organization. But Ryanair needs to pay close attention to the risks highlighted in the Risk dashboard as it keeps on growing. Ryanair need to start planning for the future after Michael O’Leary. A low price strategy is a maintainable strategy as we can see from other and similar organizations like Ikea, Southwest, and Aldi etc. Ryanair’s low price strategy is a best fit for them and the future looks very bright for Ryanair.
The beginning of establishment of emirates airline, they only hire a Boeing 737 and an airbus A300B4. As the open and positive policy of Dubai, Emirates airline is developing and expanding to maintain a competitive advantage. From the beginning to the third year they had gotten a profit. In the first ten years, it had an effort to double in every three years.
London Heathrow Airport is one of the major airports owned and operated by privatized company formerly known as British Airport Authority (BAA plc), now Heathrow Airport Holdings. Heathrow Airport Holdings owns and operates four major airports in the UK, including London Heathrow, Aberdeen, Glasgow and Southampton. However, in this case study, London Heathrow would be the writer’s main interest as to look at the effect of its privatization and find the possible impacts that it might have on the economy and society in general.
...rket share and most importantly loss of life (Appelbaum, 2004). In order to achieve Qantas objectives and goals as an airline, which includes opening gateways to the world, growing with Asia, building a strong, viable business and being best for global travellers, strategic management has to be implemented. Strategic management is defined by Thompson and Strickland as ‘the process whereby managers establish an organisation’s long-term direction, set specific performance objectives, develop strategies to achieve these objectives in the light of all the relevant internal and external circumstances and undertake to execute the chosen action plans’ (Stone, 2014). Qantas has to achieve a competitive advantage through precise and concise strategic management in order for them to have an edge as well as to manage environmental influences as compared to their competitors.