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Ryanair Holdings PLC - Strategic Audit

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Ryanair Holdings PLC - Strategic Audit Crystal Brinson 03/24/07 BMGT 495-9941 Strategic Management Professor Ribic CURRENT SITUATION CURRENT PERFORMANCE This following information is an overview of Ryanair's performance through the past year. Return on investment period ending March 31, 2007 was $577,778. Ryanair's market share is 29.9% and profit margin of 19.66%. Overall the current performance has been strong. STRATEGIC POSTURE Ryanair's current mission, objectives, strategies, and policies are clearly stated on their website; similarly their performance also implies their approach. Mission statement: "Ryanair's objective is to firmly establish itself as Europe's leading low-fares scheduled passenger airline through continued improvements and expanded offerings of its low-fares service. Ryanair aims to offer low fares that generate increased passenger traffic while maintaining a continuous focus on cost-containment and operating efficiencies." (Ryanair Ltd, 2008) Objectives included: * Keeping fare low for the customer this is designed to stimulate demand from the fare-conscious leisure and business travelers. Also, seats are sold on a one-way basis making return flexible for consumers. * Deliver the best customer service among its peer group. * Maintain frequent point-to-point flights on short-haul routes. * Keep operating costs low by reducing or controlling four main points: 1. aircraft equipment costs; 2. personnel productivity; 3. customer service costs; 4. airport access and handling costs * Taking advantage of the internet, such as reservation system, website, and flight confirmation. * Remaining commitment to safety and quality maintenance of aircraft, hiring, and training. * Enhancement of operating results through ancillary services. * Focused Criteria for Growth, like more routes and increased frequency. (Ryanair Holdings PLC, 2007) Strategies: Strategy mix consists of being an overall low cost provider. Ryanair's mission statement and objectives are consistent with its strategy mix. The internal environment of the company is enhanced by conveying the mission statement and objectives precisely as stated. The external environment is seen by its vision, through their customers, the profitability, and the market. ...read more.


E-marketing has evolved usually adjusting to the conditions in each country in which it operates for simplicity purposes. Ryanair is an airline carrier that generates most of its sales from foreign environments considering its headquarters is in Dublin, Ireland. The trends that are seen from analyzing their marketing are competitor exploitation and mainly to increase demand for low fares, punctuality, and efficiency. Example is their e-marketing of "Want to see how slow easyJet is? Click here!" This exploits their closest competitor. (Grimaldi, 2003) Past performance has shown that Ryanair's marketing trends have impacted their sales and will probably have a similar impact on performance in the future. This analysis has supported the corporation's past and pending strategic decisions based on low fares, punctuality, and good customer service. Ryanair focuses and brings out its strengths and its competitors weaknesses through their advertising, so its current marketing provides them with a competitive advantage. Compared to other corporations Ryanair's marketing is average with its marketing performance. Ryanair uses market segmentation and market research well to exploit its competitors, so marketing managers are using accepted marketing concept and techniques to improve the company's performance. Marketing managers need to consider current statistics, developing services, main objectives and other issues concerning the company and customers. They have a large role in strategic management process, because they directly influence the customers. FINANCE The corporation's current financial objectives, strategies, policies, and programs are clearly stated in their Annual reports & financial statement under Outlook for fiscal 2008, as well as being implied through performance. These financial objectives seem to be right in line and consistent with Ryanair's mission, objectives, strategies, policies of low fares, as well as with the internal and external environments. Financial analysis for Ryanair: There was an increase in profit after tax of 33%, which was because of the 7% increase in average fares, so profit margin was 19.66%. ...read more.


Appropriate standards and measures are being used within Ryanair and the reward systems are capable of recognizing and rewarding good performance. Reference: Thompson, A.A., Strickland, A.J., & Gamble, J.E. (2008). Crafting & executing strategy; The quest for competitive advantage. Boston: McGraw-Hill Irwin. Ryanair Holding PLC, (2007). The World's Favourite Airline. Retrieved April 9, 2008, from Ryanair.com Web site: http://www.ryanair.com/site/about/invest/docs/2007/070920annualreport.pdf Ryanair Holding PLC, (2007). Strategy. Retrieved April 9, 2008, from Ryanair.com Web site: http://www.ryanair.com/site/about/invest/docs/Strategy.pdf Ryanair Holding Limited, (2007). Code of business conduct & ethics. Retrieved April 9, 2008, from Ryanair.com Web site: http://www.ryanair.com/site/about/invest/docs/2007/codeOfEthics_2007.pdf Ryanair holdings PLC, (2007). About us. Retrieved April 9, 2008, from Ryanair.com Web site: http://www.ryanair.com/site/EN/about.php?page=About&culture=GB&pos=HEAD Ryanair Ltd. , (2007). About us, investor relations, the management team biographies, directors. Retrieved April 9, 2008, from Ryanair.com Web site: http://www.ryanair.com/site/EN/about.php?page=Invest&sec=bio_board Ryanair Ltd., (2007). About us, investor relations, the management team biographies, senior management. Retrieved April 9, 2008, from Ryanair.com Web site: http://www.ryanair.com/site/EN/about.php?page=Invest&sec=bio_senior Capell , K (2008, 02/04). Ryanair's Changing Altitude. Retrieved April 9, 2008, from Business Week Web site: http://www.businessweek.com/globalbiz/content/feb2008/gb2008024_830694.htm?chan=globalbiz_europe+index+page_management+%2Bamp%3B+learning Grimaldi, V (2003,10/20). French Accent - Ryanair Slow on Emotion. Retrieved April 9, 2008, from brandchannel.com Web site: http://gerstmanandmeyers.com/brand_speak.asp?bs_id=72 ITF House, (2007, 06/15). Strike in Belgium hits Ryanair. Retrieved April 9, 2008, from Ryan-Be-Fair giving Ryanair employees a collective voice Web site: http://www.itfglobal.org/campaigns/belgstrike.cfm Sara07, (2001,10/22). Human Resource Management(Ryanair's Motivation Problems) . Retrieved April 9, 2008, from Free Online Research Papers Web site: http://www.freeonlineresearchpapers.com/motivation-research-paper Pitcher, Greg (2007,11/16). Ryanair court ruling states airline staff are covered by labour laws of country in which airline is registered. Retrieved April 9, 2008, from Personneltoday.com Web site: http://www.personneltoday.com/articles/2007/11/16/43297/ryanair-court-ruling-states-airline-staff-are-covered-by-labour-laws-of-country-in-which-airline-is.html IDG Staff, (2008,02/26). New Ryanair systems struggle with demand. Retrieved April 9, 2008, from CIO Web site: http://www.cio.co.uk/news/index.cfm?articleid=2631 Thomas, Dan (2006,07/18). Ryanair to use Northgate HR software in �240,000 deal. Retrieved April 9, 2008, from PersonnelToday.com Web site: http://www.personneltoday.com/articles/2006/07/18/36460/ryanair-to-use-northgate-hr-software-in-240000-deal.html Google, (2008,0408). Ryanair Holdings plc (Public, ISE:RYA). Retrieved April 9, 2008, from Google Finance Web site: http://finance.google.com/finance?q=ISE:RYA Yahoo, (2008). Ryanair Holdings plc (RYAAY). Retrieved April 9, 2008, from Yahoo Finance Web site: http://finance.yahoo.com/q?s=RYAAY 30 ...read more.

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