Ryanair Strategic Analysis And Recommendations For The Future

Ryanair Strategic Analysis And Recommendations For The Future Ryanair is the first budget airline in Europe. Based on the case study of Ryanair by Eleanor OHiggins, a role of a management consultant is assumed to conduct a strategic analysis on the company. The report consists of the initial Environment Analysis conducted on Ryanair prior to the detailed strategic analysis that will be conducted in the future in order to provide the company with strategic recommendations for the future. The Environmental Analysis conducted consists of both an extensive analysis on the external environment and the internal environment. The external environment analysis is conducted in order to identify the nature of the environment Ryanair operates in and its impact on the strategic situation of the company. Through PESTEL, External factor and Industry analysis conducted, rejection of Aerlingus offer and rules and regulations imposed by governments etc. are recognized as the critical external environmental factor affecting Ryanairs strategy. An analysis of the internal environment through Value Chain model and SWOT analysis reveals the key issues hindering the strategic success of the firm; poor customer service and human resource problems. While this initial environmental analysis is used to assist the strategic analysis that is to be conducted on Ryanair, the importance of taking necessary actions regarding the critical issues is highlighted, CONTENT EXECUTIVE SUMMARY 1 CONTENT 2 1INTRODUCTION 3 2 OVERVIEW OF RYANAIR 4 3 CRITICAL ISSUES 5 4 EXTERNAL ENVIRONMENT ANALYSIS 6 4.1 MACRO ENVIRONMENT ANALYSIS (Appendix 1) 6 4.2 INDUSTRY ANALYSIS (Appendix 2) 8 4.3 EXTERNAL FACTOR ANALYSIS (Appendix 3) 8 5 INTERNAL ENVIRONMENT ANALYSIS 9 5.1 VALUE CHAIN ANALYSIS 9 5.2 SWOT ANALYSIS 11 Strengths 12 Weaknesses 12 Opportunities 12 Threats 13 6 CONCLUSION 14 7 RECOMENDATIONS 15 8 REFRENCE 15 INTRODUCTION Ryanair is the first budget Airline in Europe inspired by the U.S Budget Airline, Southwest Airlines. The report is based on the case study by Eleanor OHiggins, University College Dublin, and Republic of Ireland in 2007. The case by Eleanor OHiggins is based on the Strategy of Ryanair against the backdrop of the European airline industry and the burgeoning budget sector. The case discusses the opportunities and challenges faced by the industry and the firm. Leadership of Ryanairs CEO, Michael OLeary is highlighted. I will be assuming the role of management consultant identifying strategic management issues of the company. According to the contract between my consultancy firm and Ryanair my role is to conduct a strategic analysis of the environment, the industry, company in order to recommend new strategic initiatives and areas of improvement for the senior management team of Ryanair. Therefore an environmental analysis consisting of a macro environment analysis, industry analysis and internal analysis is carried out initially, in order to conduct detailed strategic analysis and provide recommendations in the future. 2 OVERVIEW OF RYANAIR Ryanair was founded in 1985 by the Ryan family to provide scheduled passenger airline services between Ireland and the UK, as an alternative to the then state monopoly carrier, Aer Lingus. Initially, Ryanair was a full-service conventional airline, with two classes of seating, leasing three different types of aircraft. Ryanairs objective was to maintain its position as Europes leading low-fares airline, operating frequent point-to-point flights on short-haul flights, mainly out of regional and secondary airports. The heart of its strategy was based on providing a no-frills service with low fares designed to stimulate demand, particularly from budget-conscious leisure and business travelers, who might otherwise have used alternative forms of transportation, or who might not have travelled at all. Company Vision- To firmly establish itself as Europes low fare, schedule passenger airline through continued improvements and expanded offerings of its low fare service.(Ryanair, n.d) Company Mission- To become Europes most profitable low cost airline by rolling-out proven low fare, no-frills service in all markets in which we operate to the benefit of passengers, people and stake-holders. (Ryanair, n.d) 3 CRITICAL ISSUES The critical strategic issues faced by Ryanair can be identified as follows based on analysis; Poor Customer Service where the customers are unsatisfied and face episodes of dissatisfactions due to the poor services provided by the unfriendly staff of Ryanair has been identified as the critical issue that can be identified by reading the case. The high insurance charges and the lack of services regarding safety terms, lack of comfortable seating and other facilities has lead to this negative word of mouth spreading with regard to customer dissatisfaction which is clearly identified. The other main issues that can be recognized can be unwillingness and failure to recognize unions where Ryanair is also fired for providing poor working conditions for its workforce. In July 2006 the Irish high court found out that Ryanair had bullied pilots and forced them to agree to a new contract, pilots had to pay à ¢Ã¢â‚¬Å¡Ã‚ ¬ 15000 for retraining on a new aircraft if they left the airline. In 2006 pilots of Ryanair lodged a pay claim stating that there is significant difference in take home pay between Ryanair and Aer Lingus pilots it also claimed that training pilots were working for nothing. Understanding that employees and the customers are the factors that decide the success of the company Ryanair should solve these critical issues. 4 EXTERNAL ENVIRONMENT ANALYSIS External Environment analysis in conducted to analyze the nature of the environment the firm operates in. It identifies the forces in the environment affecting the firm and its degree of impact. It also identifies the opportunities, threats and challenges faced by the company. The external environment analysis for Ryanair consists of a macro-environment analysis, industry analysis and external factor analysis. The macro environment scans and indentifies the general environment factors that can have an impact on the organization whereas the industry analysis focuses on the competitive situation of the company. 4.1 MACRO ENVIRONMENT ANALYSIS (Appendix 1) The macro-environment is composed of major external and uncontrollable factors that influence an organizations decision making, and affect its performance and strategies. These factors include the Political, Economical, Social, Technological, Environmental and Legal forces (PESTEL). These forces do not change frequently, but when it does, it has a major impact on the organization. The PESTEL analysis looks at the general environment in which the organization is operating in and helps to realize the risk associated with the market growth or decline. PESTEL is the abbreviated form of the following factors respectively Political factors that can be identified that will have a great impact on Ryanair are; Aer Lingus rejection to amalgamate with Ryan Air, security measures and restrictions, stable political situation and the new EU regulation compensation law. Economical factors include the depreciation of US Dollar, availability of efficient substitute transport methods and also reduction in distribution costs from customers adapting to online check-ins where identified as the factors that has high influence regarding the economical influence. Social factors are important to be identified as firms to be aware of these factors because they can directly affect the way the organizations manage the operations, more importantly human resources and marketing. Technological is also playing a vital role as many new advances in technologies can affect the way businesses are carried on. Technological developments represent a real opportunity for the skillful people who can understand and apply them appropriately and the key factors identified that would have a high influence are environmental- friendly aircrafts and availability of online transactions. Environmental factors for Ryanair include noise level controls, global warming, green house gas effects and corporate social responsibility policies and environmental protection laws. 4.2 INDUSTRY ANALYSIS (Appendix 2) The second stage of the external environmental analysis is to assess the industry environment and the aim of this analysis is to identify those factors that could contribute to or affect the industry profitability. To aid in the industry analysis, Porters Five Forces Model will be used. Porter developed a technique analyzing five forces that affect industry profitability known as Five Forces Model. These forces shape the industry and increase the intensity of competitiveness, and therefore, the profitability and attractiveness of the industry. This model helps to indentify the dynamic factors of the industry and the market to compete effectively. 4.3 EXTERNAL FACTOR ANALYSIS (Appendix 3) The EFAS table is one way to organize the external factors into the generally accepted categories of opportunities and threats as well as to analyze how well a particular companys management responds to the specific factors in light of the perceived importance of these factors to the company. The factors which were identified as important were put in to this table to determine if they were opportunities or threats for Ryanair. According to EFAS, the key threat imposed on the company is the current political and legal factors and the increasing oil prices. The customer attitudes towards Ryanair is positive and the friendly environment of aircrafts which are seen to be key opportunities that can help lessen the effects of threats faced by the organization. 5 INTERNAL ENVIRONMENT ANALYSIS The internal analysis aids in discovering the strengths, resources, capabilities and activities that the organization possesses in order to perform better than their competitors and those that add value to customers. To indentify the key strengths, weaknesses resources and capabilities of Ryanair, the Resource-Based View and the Value Chain Analysis will be used. 5.1 VALUE CHAIN ANALYSIS The vale chain is a set of activities that the organization undertakes or organizes to deliver the product to the customer. A value chain has two broad categories: primary activities and support activities. Primary activities represent the sequence of activities inbound logistics, operations, outbound logistics, marketing/sales and service through which raw materials are converted into benefits enjoyed by customers. Support activities are those tasks that contribute or assist the firms primary activities and include -procurement, technology development, human resource management and infrastructure. A value chain analysis performed for Ryanair is shown in appendix 04. Each activity executed is value-adding to the organization and its customers. 5.2 SWOT ANALYSIS Strengths Company reputation first cheapest budget airline in the European industry Innovative cost reductions Use of new environmental- friendly aircrafts Substantial market growth Largest web site in traveler industry 5thmost recognized brand. Labor force of diverse cultures to better serve customers No fuel charges imposed on customers Work-life-balance practiced to prevent overflying for pilots and unnecessary accidents. Establishment of a safety committee. Weaknesses Refusal to recognize unions Decreased customer satisfaction Poor customer services no refund for cancellations, no accommodation provided for flight delays, etc. Over dependency on Michael OLeary Opportunities By merging Ryanair with Aer Lingus it gives them better advantages such as being more efficiency in the industry, will be able pay to lower tax and operation cost as well as will be able fly to more destinations. By choosing Sub-Main Airports to reduce Airport Charges Rather than choosing main air port and paying more money to them. It facilitated the introduction of new consumer oriented innovative Service. Threats While new service was introduced it was rejected 72% by poll readers of the Financial Time. As well as passengers have resisted paying à ¢Ã¢â‚¬Å¡Ã‚ ¬8 to rent a games and entertainments console, probably because it was not worthwhile for short flights. Keeping the staff training and aircraft in a fleet commonality makes the Ryanair in a probable condition Due to noisy environment customers will avoid choosing Ryanair mean time it would be only a second choice for them. Gurdidian Newspaper say that insurance fee Ryanair charge from each passenger is very much high. Such shocking news avoids customers to book their own ticket. 6 CONCLUSION The external environment analysis is conducted for Ryanair in order to assist the future strategic analysis assuming the role of a management consultant. Both the external and the internal environments of the company is critically analyzed using tools such as PESTEL, Five forces model, Value Chain and SWOT analysis. The critical issues facing Ryanair can be identified as poor customer service and human resource management issues. With regard to Ryanairs external environment, the following forces can be identified as having a critical impact on the firm; rejection of Aerlingus offer and rules and regulations imposed by governments etc. According to the Value Chain Analysis, Ryanairs core competency and critical success factor is identifies as its low cost. SWOT Analysis further confirms that and also points out the weaknesses such as poor customer service and inefficient human resource practices which may eventually prove to be costly for Ryanair and hinder the effectiveness of its competitive advantage. 7 RECOMENDATIONS The environmental analysis is used as an initial analysis for the detailed strategic analysis which will provide recommendations to Ryanair. However based on the environmental analysis some initial recommendations can be made. The critical issues facing Ryanair is identified as poor customer service and human resource management issues. It is important that Ryanair attends to these critical issues immediately. Therefore Ryanair could Recognize labour unions; be more people oriented to improve employee relationships and encourage career development in order to efficiently manage their Human Resource in the future and there by achieve high employee commitment leading to a successful workforce. Improve the customer service they offer while minimizing cost. This could be achieved through improving the quality of training given to frontline employees and managing through a TQM (total quality management) 8 REFRENCE Beamish, H. R. (2008). Strategic Management. (3rd edition). New South Wales, Australia: Pearson Education Australia. BusinessDictionary.com (2009). Retrieved August 20, 2009 from http://www.businessdictionary.com/definition/macro-environment.html Hill, C. (2007). Strategic Management: An integrated Approach, (2nd edition.). Australia: John Willey Sons Australia, Ltd. Hubbard G. et al. (2008). Strategic Management. Pearson Education Australia. OHiggins, E. (2004). Ryanair Report. Wheelen T. L. Hunger J. D., (2000). Strategic Management and business policy. 7th edition.

Business Loan Procedure

Investigation On Business Loan Procedure: In activity 2, we have been asked to do investigating business loan procedure in three high street bank. We have been through some high street banks like HSBC, Barclays, Lloyds TSB, Santander, and Halifax. Among the five popular high street bank we have got three banks which are helping investor about business loan. They are- 1. HSBC 2. Lloyds TSB 3. Barclays Process Of Business Loan Application:In order to give a business loan every bank follows some specific criteria, which are given below. 1. Deciding on business finance 2. Contacting with bank 3. Building a finance application 4. Application’s assessment 5. Business manager makes initial decision 6. Business manager works with credit team 7. The credit manager role 8. Business manager explains the decision. Key Features and benefits of Three High Street Banks: Barclays: 1. Barclays bank offers ? 1,000 to ? 25,000. 2. Loan repayment term is 1- 10 years. . Interest rate is fixed. 4. 6 months repayment holiday available. 5. No early repayment fees. HSBC: 1. Business loan limit is ? 1,000 to ? 25,000. 2. Loan repayment term is 1to 10 years. 3. Fixed interest rate. 4. Funds can be credited on the same day when agreed. 5. Rebate facilities for the early repayment. 6. ?100 loan arrangement fee. Lloyds TSB: 1. ?1,000 to ? 1,00,000 business loan limit is available. 2. Loan repayment term is 12months to 10 years. 3. Fixed interest rate. 4. 1. 5% loan arrangement fee. . Fund availability is not guaranteed on the same when agreed. In conclusion, the basic process to get a business loan is almost similar for every bank. However in order to prefer a suitable business loan should be considered on maximum limit of the loan, interest rate of the loan and how flexible to repay the loan. After go through all of these criteria we think Barclays is the most suitable bank for our business to get the loan as they have repayment holiday facility, and good public support.

Collocation Examples For English Learners

A collocation is made up of two or more words that are commonly used together in English. Think of collocations as words that usually go together. There are different kinds of collocations in English. Strong collocations are word pairings that are expected to come together, such as combinations with make and do: You make a cup of tea, but you do your homework. Collocations are very common in business settings when certain nouns are routinely combined with certain verbs or adjectives. For example, draw up a contract, set a price, conduct negotiations, etc. Collocation Examples Here are a number of common collocations in English: to make the bed I need to make the bed every day. to do homework My son does his homework after dinner. to take a risk Some people don't take enough risks in life. to give someone advice The teacher gave us some advice on taking tests. Verb Collocations Some of the most common collocations involve verb noun collocations used in everyday situations. Here are some examples of the types of verb collocations you will need as you continue learning English. to feel free Please feel free to take a seat and enjoy the show. to come prepared Make sure to come prepared for the test tomorrow. to save time You'll save time if you turn off your smart phone and concentrate on the lesson. to find a replacement We need to find a replacement for Jim as soon as possible. to make progress We're making progress on the project at work. to do the washing up I'll do the washing up and you can put Johnny to bed. Business Collocations Collocations are often used in business and work settings. There are a number of forms including adjectives, nouns and other verbs that combine with keywords to form business expressions.  Here are some business collocations for specific situations. to open an account Would you like to open an account at our bank? to forgive a debt Do you think the bank would forgive a debt? to land a deal We landed a deal worth $3 million. to key in a PIN Just key in your PIN at the ATM and you can make a deposit. to deposit a check I'd like to deposit this check for $100. hard-earned money Once you get a job, you'll know what hard-earned money really is. to close a deal I closed a deal on a new account last week. to write up a contract Let's write up your contract. counterfeit money Be on the lookout for counterfeit money in circulation. Common Expressions Collocations are often used as short expressions to describe how someone feels about a situation. In this case, collocations can be used in the adjective form, or also as emphatic expressions using an intensifier and a verb. Here are a few examples using some common  collocations: positively encourage someone to do something We'd like to positively encourage you to buy this stock. deeply regret the loss of someone / something I deeply regret the loss of your loved one. to be in an utter fury over something Tom's in an utter fury over the misunderstanding with his wife. to go to great lengths to do something He went to a great length to explain the situation. Learn more of these common expressions. Common Adjective CollocationsEmphatic Expressions - Strong Collocations Get a Collocation Dictionary   You can learn collocations from a number of resources. Academics and teachers like to use collocation databases to help study common collocation uses. However, for students one of the best tools is a collocation dictionary. A collocation dictionary is different from normal dictionaries in that it provides you with collocations commonly used with key words rather than a definition. Here is an example of a few of the collocations used  with the verb progress: Progress Adverbs: nicely, satisfactory, smoothly, well  - You are progressing smoothly in this course.| further -  As you further progress, you will learn more.  Verb Progress: fail to -  Hes failing to progress at work.Prepositions: beyond -  She failed to progress beyond high school.  | from, through -  Students should progress from this class with an improved knowledge of the subject.  I highly recommend using the Oxford Collocations Dictionary for Students of English published by Oxford University Press to begin using collocations as a means of improving your vocabulary skills in English.

Nixon A Presidential Unraveling - 1547 Words

Corruption in politics has never been more notably observable by the American people than that of the Watergate Crisis. Though Nixon’s involvement of the actual break-in has never been proven, his cover-up of the event and his misuse of Presidential power were clearly established. Over the course of several years, America would bear witness to scandalous events, the first resignation of a President, conviction and imprisonment of twenty-five officials within the Nixon administration, and undoubtedly the most severe constitutional crisis in recent history. In November of 1968, Richard Nixon claims the presidency for the Republicans in one of the closest elections in U.S. history. His election to office was bolstered by the middle-class†¦show more content†¦In total, $420,000 was found to have been given to the convicted Plumbers in exchange for their silence of any White House involvement. In that same month, evidence surfaced that John Mitchell, then attorney general, was in control of a Republican fund to be used toward intelligence gathering against the Democrats. The ties to Watergate are quickly established by FBI agents and information linking the White House to the break in was solidified. Though the Watergate scandal is becoming a prominent news story everyone is clinging to, it did not sway the public from reelecting Nixon in November of 1972 with votes in excess of sixty percent making it a total victory. President Nixon’s celebration would be short-lived as members of his staff are being indicted and convicted of conspiracy, burglary and wiretapping in the Watergate incident. The first being convicted in January 1973 was aide G. Gordon Liddy and James W. McCord Jr. with five others pleading guilty. Add to that the resignation of top White House staffers, H.R. Haldeman and John Ehrlichman, in addition to Attorney General Richard Kleindienst, the dominoes were beginning to fall. For three months, the American public will develop a fixation on the televised hearings of The Senate Watergate committee, and prosecuted by Archibald Cox, in May 1973. In June, John Dean reveals the untruth of President Nixon’s earlier statement that he learned of the cover up in March 1973 when in fact he hadShow MoreRelatedThe Stains of Watergate1568 Words   |  6 Pagesburglarize the DNC. The men, one who was an ex-CIA agent, were convicted of conspiracy, burglary, and illegal wiretapping. However, what started as a third-rate burglary unravelled into a broad network of political corruption and espionage within the Nixon administration that became known as Watergate. Before the summer of 1972, the term â€Å"Watergate† meant nothing more than a luxurious complex in Washington, D.C., but because five highly cunning men were somehow caught by an average, $80-per-week securityRead MoreRichard Nixon s Impact On The Nation1214 Words   |  5 Pages In his first couple of months in the oval office, Richard Nixon positively impacted the nation. As did most previous presidents do, Nixon had put himself right into action making sure he could build up and maintain and good reputation in office. But soon after completing his first term, disaster struck just as reelection was coming up. Nixon had destroyed his reputation, and by doing so showed the people how easy it was to be successful at a point and then lose it all due to one event, WatergateRead MoreThe Watergate Scandal Essay2240 Words   |  9 PagesWatergate was among the worst. The Watergate scandal had everything. From Nixon disgracing the presidency by lying to the country and abusing his power, to his committees being involved in illegal acts and a big cover up. All leading to little side roads of corruption and lies. Watergate is by far one of the worst presidential scandals in the history of the United States. In the story of Watergate,Read MoreOn April 29, 1974 A Relatively Unknown Freshman Member1790 Words   |  8 PagesOn April 29, 1974 a relatively unknown freshman member of the House Judiciary Committee cemented her place in history when she gave a dynamic, honest and edifying speech regarding President Richard Nixon and the illegal and unethical activity surrounding what is now known as â€Å"Watergate†. That woman was Barbara Jordan. After the Watergate scandal broke wide open, the American people had their faith in politicians shaken to the core and trust was at an all-time low. How, then, could the people trustRead MoreThe Government And The Media2441 Words   |  10 Pagesbroadcasting to win the approval of the â€Å"New Deal† agenda. The New Deal was a series of social liberal programs enacted in the United States between 1933 and 1938, and a few that came later. They included both laws passed by Congress as well as presidential executive orders during the f irst term (1933–1937) of President Franklin D. Roosevelt. The programs were in response to the Great Depression, and focused on what historians refer to as the 3 Rs, Relief, Recovery, and Reform: relief for the unemployedRead MoreThe President And International Relations2761 Words   |  12 PagesRoosevelt and his legendary group of soldiers known as the â€Å"Rough Riders†. It is here with Teddy Roosevelt that I will begin my case study of individual presidential policies and how they would shape foreign policy in both the United States and globally. During President Roosevelt’s term from 1900 to 1908 he seized upon the ever expanding scope of presidential power and used it to forward the power of the office of the President and expand the power of the nation as a whole. When Roosevelt ran for reelectionRead MoreEisenhowers Containment Through Action by Inaction During the Suez Canal Crisis3848 Words   |  16 Pageslittle to push the limits; an image that would certainly help him in his reelection bid. Indeed, Eisenhower’s careful strategy in the Middle East, especially in lieu of the Crisis that happened to unfold during the final few months of the 1956 Presidential election, would help carry the â€Å"Peace President† into his second term of one of the most highly regarded Presidencies of all time. This would be done through maintaining relations (between politicians at home and abroad, as well as with the AmericanRead MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition Ne w Jersey: Prentice Hall393164 Words   |  1573 PagesMitra, University of Northern Iowa Linda Morable, Richland College Paula Morrow, Iowa State University Mark Mortensen, Massachusetts Institute of Technology Lori Muse, Western Michigan University Padmakumar Nair, University of Texas at Dallas Judy Nixon, University of Tennessee at Chattanooga Jeffrey Nystrom, University of Colorado at Denver Alison O’Brien, George Mason University Heather Odle-Dusseau, Clemson University Miguel Olivas-Lujan, Lujan Clarion University ACKNOWLEDGMENTS xxxiii