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

Ryanair assignment - analysis and enviromental concerns

Extracts from this document...


Chapter 1: Question 1 1.1 Introduction In 1985, Ryanair was founded 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. In its fight to survive, the airline went through a dramatic re-style to become Europe's first low fares, no frills carrier, built on the model of Southwest Airlines. 1.1.1 Business Objective of Ryanair Ryanair's objective is to establish itself as Europe's leading low fares airline, operating scheduled passenger airline pursuing continued improvements and expanding product offerings of its low-fares service. 1.1.2 Business Model & Strategy of Ryanair Ryanair's business model is stated to be a disruptive model within the European aviation sector, challenging the strategies used by the existing, often well-established businesses in the market. Flouris & Oswald (2006), describes a disruptive business model as one that is so different than "business as usual" that it brings disruption to an entire industry causing more of a market "revolution" instead of the normal market "evolution." Disruptive business models usually lead to massive market upheaval, tectonic shifts in customer behaviour and the shifting of large chunks of market share as the innovators with the new, disruptive model roll out their revolutionary product or service. Ryanair's primary strategic focus has been on price sensitivity of customers, providing a no frills service with low fares designed to stimulate demand, particularly from budget conscious leisure and business travellers who might otherwise have used alternative forms of transportation or who might not travelled at all. 1.2 Environment Analysis 1.2.1 Government Regulation According to (All� and Schmitz, 2004) EU deregulation has removed barriers to entry for airlines based in the EU. As a result airlines can operate anywhere within the E.U. without restriction. An area that has received much publicity lately is the subject of State Aid to airlines operating in secondary/regional airports. ...read more.


Responding or Adapting to Change Thompson et al (2008) also stated that, "a company's strategy evolves over time as a result of changing circumstances and ongoing management efforts to improve the strategy. This condition makes the task of crafting a strategy 'a work in progress', not a one-time event". Since there are a number of airlines competing with each other, over the years Ryanair has modified its business model/strategy on several occasions to add offerings that are unique to allow them stand out of the competition. v) Creating Ancillary Income Sources It has introduced new product offerings on its flights to create more differentiation, for example the creation of ancillary income sources. Cavendish (2006) underscores how Ryanair makes profit outside its main source of income of flying airplanes. Activities at Ryanair's website include sale of life assurance, travel insurance, online gaming and advertising & marketing to generate additional revenues and also create closer relationship with the over 15 million customers that visit the website every month (Air Scoop, 2007). Ancillary revenues alone generated more than �110.5m in 2003 and �149.6m in 2004. In 2007 more than 42 million passengers contributed to ancillary revenue in excess of �362m, and that works-out to �8.50 per passenger carried by Ryanair, (ARAC, 2008). This ability of Ryanair to quickly adapt to change has kept its basic model still attractive, viable and profitable. vi) Ability to Establish Model as Money-Maker and also Adopting a fluid Flat inexpensive Structure Thompson et al (2008), elucidate that a "company's business model explains the rationale for why its business approach and strategy will be a money maker. In the absence of the ability to deliver good profitability, the strategy is not viable and the survival of the business is in doubt". This situation is the reverse of the Ryanair experience, as it has shown the ability to continue to use its business model to deliver good profitability over the years. ...read more.


People work very hard and get a lot out of it". Certainly his vision has turned into a reality as Ryanair has grown and the 'public's insatiable appetite for bargain fares has continued to deliver record profits at Europe's biggest no frills airline", Davey (2006). 3.4 Finding Expression for O'Leary's Leadership Style O'Leary leadership style at Ryanair does not easily find expression in the characteristic criteria that Finlay (2000) described for a leader. His style does not fit rigidly into a particular criterion. The diagram below, adapted from Cook et al (1977) shows the types of leadership styles that Finlay (2000) believes to be the more dominant ones. One would place O'Leary in the 'Enrolling' criteria - i.e. High Task and High People orientations. TASK RELATED ORIENTATION PEOPLE RELATED ORIENTATION LOW HIGH LOW Laissez faire Autocratic HIGH Human Relations Enrolling O'Leary is highly task orientated, concentrating on tasks such as cost cutting, aircraft acquisition and route development. He is also (arguably) highly people orientated, both with customers and staff. O'Leary easily gets people involved and empowers them to create strategic changes; from cost cutting issues, punctuality to many others. At the same time however, because of his obsession with the task, he is poor in handling these same people and can be very abrasive and aggravate everyone, including even industry officials, customers and the media. 3.5 Conclusion and Recommendations Ryanair should be wary of the fact that their CEO does not seem to enjoy smooth sailing situations and rather thrives well on adversity. Whilst some school of thought would value O'Leary's relentless energy to thrive on adversity, Finkelstein et al (2009) however points this out as a danger signal. He concludes that O'Leary's capacity to irritate may bring about conflict and change that could dearly cost Ryanair. Since Ryanair is no longer in the era of adversity and has matured successfully from a market revolutionary transition, (which was effectively led by them), it is time to change for a 'manager' (Finkelstein, et al 2009), to consolidate their gains and position in the industry, (O'Higgins, 2004). (Total Word Count: 4019 words) 4. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Management Studies 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 University Degree Management Studies essays

  1. Donner Company is a Service oriented Manufacturing Company that makes printed circuit boards as ...

    should cut down on the cycle-time of order to delivery. * The uneven workload in the 1st half of the month compared to 2nd half is a pure scheduling issue. Once the jobs are scheduled in an orderly fashion in Flow shop (with less interruption from small orders breaking the queue)

  2. Leadership Theories - this review seeks to determine which theoretical perspectives, theories and schools ...

    Thirdly, I describe in depth the eight categories of perspectives proposed in this study: personal growth, psychodynamic, cognitive, competence-based, critical theory, systems, strategic and consolidative. Finally, I delineate the role that self and identity constructs play in each of these categories.

  1. Strategic Management - CARREFOUR CASE ANALYSIS

    attempts to buy a French subsidiary had been stymied since its abortive courtship of the Auchan and Carrefour chains in 1999. (p. C 74) o In order to increase its profitability, in 2000 Carrefour created the GNX online supply platform with Oracle and Sears, whereby suppliers and retailers can exchange

  2. ITC - diversification strategy

    In 2007, it entered the Salty Snacks market with the launch of the Bingo! range of potato chips and finger snacks. 4. Confectionery: ITC entered confectionery segment with the acquisition of the "mint-o" trademark. The segment is doing well with a business of more than Rs100 crores.

  1. The 21st Century Jet - The Boeing 777

    This multimedia case study documents the reasons behind the overhaul of the design/build process at Boeing, the changes themselves as well as the methodology used in accomplishing those changes. The information was collected from the general media including articles and public television documentaries about the 777.

  2. Strategic Analysis of Burberry Ltd. In this report three models will be used: PEST ...

    It is assumed that they are made by the same manufacturer and sold for less than half the price. On the basis of the external factors (macro and micro levels), threats and opportunities for Burberry can be identified: Opportunities Threats 1.

  1. Zara Case Analysis

    The just-in-time strategy and high number of products does not work well in many retail or fashion sectors. These sectors rely on economies of scale, standardized products, and predictable shipments to reduce costs. There is generally a large amount of outsourcing, both in logistics and production/manufacturing.

  2. Swot & 5 forces analysis for Zara.

    Thus we find that Zara because of its business model operates in favourable conditions according to the Porter?s Five Forces Analysis Model. Ans 2: Strengths Weaknesses Vertically Integrated System Centralized Production Fast Fashion Tag of Imitators Many stores around the world Lack of Advertising Strong Distribution Channels/ Supply Chain Euro-Centric

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