• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Boom and Bust and Ryanair. Compare the challenges to selected business activities within a selected organisation, in two different economic environments.

Extracts from this document...

Introduction

Compare the challenges to selected business activities within a selected organisation, in two different economic environments. The organisation I selected for this assignment is Ryanair. Ryanair is an Irish low cost airline. The head office is located at Dublin Airport, Ireland with the operational bases at Dublin Airport and London Stansted Airport. Ryanair is one of the largest airlines in Europe. The features of a boom economy: * Full Employment * Business doing well * More people spending money * More services being provided * More jobs available * Increase in prices * Increase in wages * Higher incomes * Less unemployment * Increase in consumer spending Boom: Boom is the opposite of a recession. Boom occurs when more goods are being produced and consumed and incomes are rising. The impact of a boom economy on Ryanair: Ryanair is growing as a result of the effects of the boom. They are planning a major expansion in Scotland after announcing new routes and that it is going to build its biggest maintenance base there. This will create more jobs locally. Ryanair will also need to invest in more aircrafts and equipment. ...read more.

Middle

The impact of the boom is to recover from the things that didn't work from the previous recession and investments they have made will be more efficient. This will enable the company to make changes within the operation of the business. Rising productivity: The impact of the company being in boom is that the flights they provide being improved and new employees will be employed. This shows that more goods are being produced so this means that its productivity is rising. The impacts of the boom on the company include being able to expand the company, investing across the countries and employing more people. The number of employees increased because of the fact that the business is doing well and needs for new recruitment for new flights to be made; this will increase wages. The features of an economy in recession: * Lower incomes * Higher unemployment rates * Decrease in consumer spending Recession: Recession occurs when people involved in business become more cautious and customers cut back on spending, and start to save more; manufacturers and sellers cut back on their orders, produce fewer goods and start to cut back costs in general, including by laying off workers. ...read more.

Conclusion

The impact of the recession was added to by the ash cloud. Due to the ash cloud, thousands of passengers were stuck at airports and Ryanair had a duty to provide them with food and shelter. They have to pay back the money for the people who booked tickets for flights that passengers could not get on. Ryanair was accused of failing to take travellers and repay expenses almost four months after the volcanic ash led to cancelled flights. Positive: Ryanair have taken on extra staff to deal with complaints due to the volcanic ash incident. This will help the local economy because they can provide short term jobs for the local people. Ryanair insists it will continue to expand across Europe. Some companies went bankrupt so this will lead to more opportunities to get new customers. More customer's mean more profits so there's more money to invest. This will help Ryanair to survive the recession. Some airlines will go bankrupt which is good because Ryanair will have less competition on the market. The impact of recession upon Ryanair is that it makes aircraft purchasing cheaper because there will be less demand in the market. The number of Ryanair passengers will increase because there will be less competition for customers. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Structures, Objectives & External Influences section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Structures, Objectives & External Influences essays

  1. Introduction to Business Assignment

    if a retailing company demanded a lighting product such as household appliances, then they would have other types to suit their needs and wants. Also as G.E lighting are distributed within different regions on the planet, their chances of maximising profit would be high as they have a wider field to attract retailing chains.

  2. Btec National Business Level 3 Year 1 - Exploring Business Activity

    software purchasers want their software to be the best available within a particular bracket. They like to see improvements that give them better value for money. * Microsoft want a customer to access to online by giving them discount price with promotional code and to increase their business profits or benefits and to take business to the advantage.

  1. Applied Business Studies Unit 1: Investigating Business

    An operating profit of 10% is our strategic goal. About us (Section on the martinproffesianl.co.uk website) Martin Professional is the world market leader in intelligent lighting for entertainment and architectural applications. Martin has always possessed the unique ability to combine innovation and efficiency in product development with quality and value.

  2. Interdependence in functional activities in any business organisation

    The head of each area is called a director. The chain of command is the formal line of communication that starts with the Board of Directors and the Managing Director, who make the firm's decisions. Below them are the department managers, then the section heads and finally to the shop floor or office staff. This is a hierarchical structure.

  1. For my portfolio, I was asked to do an assignment on two businesses. I ...

    items they sell should contain the country of origin, manufacturing and expiry date of the product. Tesco and Vectone Gnanam Telecom need to monitor the prices what they published in the catalogues because according to law in United Kingdom they have to sell the product for the price they published.

  2. Describe the influence of two contrasting economic environments on business activities

    Inflation If McDonalds have high levels of inflation then they will have the lack of confidence in the future, as they will not be able to take on new things because the business is not able to buy many things for the money they have.

  1. Identify how government policies impact on a selected business - Currys.

    Supply-side policies may include improving education and training, reducing the power of trade unions, removing regulations and so on. Economic policy covers economic growth, inflation and unemployment. It is very important to have economic growth as this benefit the population?s living standards and will encourage more people to be contributing to the UK economy by spending which causes growth.

  2. Investigating Business. Tesco PLC. I will be describing the aims and objectives of ...

    product then Tesco?s can make a considerable amount of profit, and if they?re making profits on the products they product, then it shows that they are strong in selling these products. Competitors simply mean the price that is charged for the product by the competitors.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work