Ryan Air Business Environment
Explain chosen organizations major objectives and indicate the order of priority. What criteria were used to decide on the priority and why?
The chosen organization is Ryan Air. Ryan Air, an airline industry that has undergone considerable trade structuring with certain opportunities in the airline industry business. Ryan Air’s market stature is becoming competitive, global market base of Ryan Air is expanding. Ryan Air is first prioritizing the human capital workforce as the main asset of its business operation. Next, is the customer service quality in bringing low cost airlines effective mode and then, achieving an ample level of sales and profit in the business zone of other airlines that are rival with Ryan Air. Ryan Air’s business environment is considering also tough caliber management and team wherein competition is in the context of improving services and products Ryan Air offer to its many passengers, the emphasis put forward on the low cost fair travel prices and Ryan Air’s known business marketing mix (Driver, 2000). Ryan Air was Europe’s original low fare oriented airline. Ryan Air’s steady growth is achieved in environment friendly and sustainable way by investing in the latest aircraft and engine technologies and the implementation of certain operational and commercial decisions that help to further minimize environmental impacts, additional 10 percent between 1998 and the year 2008. Ryan Air was the industry leader in terms of environmental efficiency and working towards further improving its performance. Ryanair is investing some €17bn on its fleet replacement and expansion program, which commenced in 1999. There was focus on Ryan Air’s future growth plan providing acquisition of about 100 brand new aircraft of Ryan Air’s type. Another priority was on its fuel emission as the organization have minimized and continued to reduce fuel burn and CO2 emissions per passenger kilometer by means of combining fuel saving measure as well as commercial measure aimed at maximizing passenger numbers per flight to spread the fuel use and CO2 emission over number of Ryan Air’s passengers. Ryan Air’s business model includes usage of secondary airports and point services, which help to increase fuel efficiency and limit emissions. Ryan Air avoids long taxiing times and holding patterns at congested primary airports, and delivers passengers to their destination directly on one flight opposed to forcing passengers onto connecting flights through congested hub airport. The criteria on human capital priority, people working is the core asset of Ryan Air is through human resource related criteria such as the balanced scorecard looking on feedback and performance level of Ryan Air staff and management. For the customer service quality, the criteria on weighing the needs of every passenger at Ryan Air by various investigation, studies and surveys. For the sales and profits, there has been presence of financial assessments and Ryan Air global logistics forecasts and several statistics linked to its overall business environment. For the environment linked priority, there has been adaptation of effective CSR or the corporate social responsibility wherein Ryan Air is committed in reducing fuel emissions to keep a safe and sound environment for the rest of the community. The policy based criteria that connect to Ryan Air’s policy on business and its environment taxation. Ryan Air proves that air transport can be environmentally friendly whilst continuing to deliver huge economic benefits in terms of the lowest cost air travel for consumers, increased tourism, regional and social cohesion, job creation, inward investment and many others.
Identify the organizations main stakeholders. Suggest how the organization can improve its stakeholder management and explain your reasoning.
Moreover, business organizations usually set their mission, vision, and objectives in the purpose of serving the society, as well as benefitting the community throughout their business cycle. When it comes to airlines, the determination of the demands, tastes and preferences of the people are still valid. The opinions of every people around the organization are also important to create a just and comprehensive strategy. The main mission of every airline is to deliver the safety of their passenger, but how did the Ryanair attract the tourists and other individuals to travel is because of their undertaking to make air travel the most simple, convenient and inexpensive form of transportation in the world. The idea of low cost airlines are based on the idea and probably demands of the people to fly more often if the expenses is not that high or affordable for everyone. Engaging in the low cost strategy is to fly mostly to and from airports that are not necessarily the busiest place which is also referred as the secondary airports. Ryanair proved that operating in the secondary airports is cheaper than the bigger major airports and also less complicated to make a maneuver on their aircraft. And with this strategic approach, Ryanair is the most suggested airlines when it comes to low-cost marketing. Ryanair has a vision of a world where the fare could drop to lower rates to bring the steady traffic of business people and tourists to their region. Their concept is not new in every airlines and their vision only underpins their mission. The broader vision in building an effective business and push on the tourism is more applicable (Phillips, Chang and Buzzell, 2003). Bringing the fares down is not a common action on the airline business especially in the monopolistic type that usually pushes the fees up. It’s a major challenge for the Ryanair to sustain their mission and yet with accordance of their vision in promoting tourism. Ryanair will be tight on relationship with the stakeholders. Ryan Air use opinion of powerful stakeholders to shape business strategy and tactics respectively. Ryan Air have managed to gain support from their key stakeholders and winning their favor to make their plans possible. It is part of the organizational culture to understand the importance of each stakeholder and the benefits they might realize in working with them. And in a broader sense, anticipating the people’s reaction in their project may be build a strong relationship and winning their support. Ryanair’s Stakeholders are given much attention and priority in terms of their opinions and decisions in handling the business. The stakeholders are individuals or groups who have an interest in an organization’s ability to deliver intended results and maintain the viability of its products and services. The marketing strategy of the Ryanair had been critically assessed by its stakeholders and formed a market busting strategy that made the entire organization of the Ryanair that made them one of the premier airlines in Europe. Aside from the low cost and secondary airports offered by the organization, there are other business approaches that Ryanair applied to fill up some of their losses. The no frill method used by Ryanair has also improved the efficiency and productivity. The traditional flight services like seat allocation, complimentary drinks and meals, and free newspapers have been eliminated. Instead, Ryanair exchanged it with charging the services they offered to the customers for in-flight services and other travel expenses such as travel insurance (2009). Ryanair’s cost advantage is very significant and other low cost operations began to emerge and pushing the traditional way of offering services.
Using selected products and / or services from your organization as examples, critically evaluate the impact of changes in conditions of demand. How does the organization respond to these changes?
Ryan Air implies to the service oriented category, Ryan Air management team through HRM effectiveness and shareholder presence. Ryan Air rapport through the use of customer values and chain was the responsibility of Ryan Air. Thus, in delivering the tourists and the other individuals to their point of destination with full of satisfaction. There was about customer services rooted from the values of customer satisfaction and trust which is not just based on the affordability of the flying tickets but also on the experience that the airlines will leave to the clients especially when persuaded by first time flyers. Ryan Air’s competitive advantage, the outcome of strategy capable of helping the business to maintain and sustain favorable market position and translated into higher profits compared to those obtained by competitors operating in the same industry. The implementation of Ryan Air strategy an edge and not destroyable by its rivals. The change within Ryan Air success is outcome of the latter’s ability to respond to business related threats and opportunities within the airlines environment in which Ryan Air is an expert and operate completely. The customer base and quality service being influenced by changing market situation. Ryan Air has developed certain system on business objectives, adopting complex of airline functional policy on high quality base and standards of service. Ryan Air’s adaptation to business environment requirement has been dynamic in form, constantly adapt to shareholder actions upon control of negative changes that might hit the airline in the long run. The emphasizing need for Ryan Air to change focus in switching from analysis of business success and commitment. Ryan Air management must study the way low cost fare operates and put ample mechanism into the business process of choice (Ghemawat, 2000). Ryan Air have intended to replicate shareholder based strategies whereby opportunity comes into the picture more easily and more flexible in crafting an ideal decision making process into Ryan Air’s overall products and service environment. Ryan Air should recognize when it would be better to change any business driven strategy and when to continue striking a balance in its mission, vision and priorities respectively (Toh and Hu, 2001). Furthermore, Ryan Air will have to better understand the shareholder base and the process of human capital resource for Ryan Air’s core social competence into an enduring business approach. Ryan Air as a low cost airline can improve service quality image by communicating these attributes to passengers through variety of means. Recognizing of excellent service quality and continuing of upgrading fleet into the business hub. Ryan Air, formulating effective strategies for achieving business goals as important concern of Ryan Air shareholders and management leaders (Doganis 2001). Even if Ryan Air managed to be low airlines producer, some of its rival carriers may defeat priorities by pursuing other domain on business strategy, targeting low cost airline scaling and composition. The evidence of low fare price service as being practiced by Ryanair with introduction of business fares which has open fares, suited to meet the ticket flexibility needs of Ryan Air passengers (Company Barclaycard, 2000). The increase in fare at some time will find Ryan Air service prices significantly higher than others such as on dawn and morning departure.
Compare and contrast transitional and emerging economies. Use examples to support your answer. What do you conclude?
There is about transitional and emerging economies which Ryan Air act upon on certain circumstances since Ryan Air started in year 1985 with only 57 staff members and with one 15 seater turboprop plane from the south of east of Ireland to London-Gatwick which carried 5000 passengers on one route (Harrison, 2002). There was EU airline transport deregulation allowed Ryan Air to open up new routes to Continental Europe. Ryan Air launched services to Paris and Brussels and took time out to float Ryan Air plc on Dublin. The booking of Ryan Air web accounts have increased, probably with opening of other 26 routes. There facilitate the rapid European growth plan (Binggeli and Pompeo, 2002). Ryan Air implement different marketing strategy to make the company survive in the competition and to be able to gain competitive position in the airline market. It is said that the company was regarded recently as the most punctual airline between Dublin and London, In addition, Ryanair offer minimum standards of service and very low prices for point-to-point, short haul flights. The goal of Ryanair is to meet the needs of travelling at the lowest price. The success factor linking on strategic focus of airline prices, reliable for Ryan Air base and service frequency, Ryan Air on featuring adaptability like reservation, baggage handling and consistent service. Ryan Air use cost reduction strategy. Such cost reduction strategy relies on five main aspects like fleet commonality, contracting out services, airport charges and route policies, managed staff costs and productivity and managed marketing costs. In terms of fleet commonality, the company used only one kind of plane which limits the cost for staff training, maintenance services and facility of obtaining spares, facility in scheduling aircraft and crew assignment. Ryan Air has made judicious choice of dealing with secondary and regional airports, where the traffic is not jammed and fees incomparably lower. Since Ryanair, is a true windfall for such airports, the airline company has a bargaining power which enables it getting favourable access fees. In addition, Ryan Air provides only a point-to-point service, thus, it has no cost concerning connecting passengers and focus on time departures because it means maximizing airline utilization. Managing staff costs and productivity is another factor used for reducing the cost for Ryanair. In this manner, the company pays its staff on modest salary but has set up a performance related pay structure which urges employees to maximize the number of sectors flown daily. This way, Ryanair both controls productivity and keeps staff costs down.
Using the business cycle model as an analysis framework describes the current economic climate in either the UK or USA and identifies its origins. Discuss the steps that the UK or US government might take to influence the economic climate.
Business cycle model help Ryan Air to establish and exploit competitive advantage within a particular competitive scope (Phillips, Chang and Buzzell, 2003). By applying these strengths, three generic strategies are resulted: cost leadership, differentiation and focus. The strategies used include cost leadership, differentiation strategy and focused differentiation. Cost leadership strategy is based upon a business organising and managing its value-adding activities so as to be the lowest cost producer of a product within an industry (Robbins and Barnwell, 2002). Cost advantage may achieve in terms of how product or services is designed or in terms of its quality. Differentiation strategy is based upon persuading customers that a product is superior to that offered by competitors. The value added by the uniqueness of the product or services may allow the company to charge a premium price for it. However, the danger associated with differentiation may include imitation by competitors and changes in customer tastes. The focus strategy is aimed at a segment of Ryan Air business for services rather than limiting business potentialities of Ryan Air possible market led operation. Ryan Air has become a focuser because it concentrated on a narrow customer segment which include Irish and UK business people or travellers who could not afro to fly major airlines. Ryan air has restyled itself and shifted from a full service conventional airline to the first European low fares, no frills carrier.
Identify the advantages and disadvantages of price intervention in the EU agricultural sector. What do you conclude?
The advantages of price intervention in the EU agricultural sector can relate to Mason (2000 p. 28) have written: “low cost airlines are more successful in attracting business travelers from small and medium sized companies and these companies are more likely to book directly with the airline, but these airlines will find it more difficult to attract travelers that work for very large companies”. There can be advantage placing cost leadership base wherein Ryan Air seeks to be lowest cost producer by selling standard, mass products. Enough price differentiation where the airlines introduce unique dimension that is considered to be important to the market. The targeting certain segment of Ryan Air market and be adopted by EU airlines. Ryan Air industry is unique and fascinating industry and has capture the interest of a wide audience because of its glamour, reach and impact on the large and growing numbers of consumers worldwide. The disadvantage can affect certain industry figures on Ryan Air culture base. Disadvantage for Ryan Air being at the heart of travel and tourism, employing culture innovation, also on business planning, strategic move in pricing market and be able to provide good customer services to the customers like by having discounted flights and value promotion to keep the competitive advantage at stable mode within its competitors and will need to focus more on the core competencies that allow those low cost airlines to practically and wisely design suitable airline operations within the bracket of their marketing network services in Ryan Air market on a standard perspective. Ryan Air need to be goal oriented and must not stop to rejuvenate and change their marketing plan strategies from time to time in order to re-invent the performance process upon the upgrading of rules and regulations of these airlines as mandated by the state and should adhere to further liberalization in price market along with the commoditization of airline travel, the enduring decline in sales and profits due to prices posed by Ryan Air sales centers (Doganis 2002).
Discuss the factors that might cause international mergers and acquisitions to fail. Describe and discuss the main cultural factors that would influence an international organization starting to do business in your country.
The failure on the part of Total Quality Management is a philosophy of management that is driven by the constant attainment of customer satisfaction though the continuous improvement of all organizational processes (Robbins and Barnwell, 2002). Ryan Air quality base adhere an array of dysfunctional management system if not given ample attention and monitoring throughout Ryan Air environment and there was limitation on ensuring that Ryan Air has to continuously level up an ideal merger acquisition requirement. The airline culture is changing from time to time wherein business strategies fall short of Ryan Air focus on the process of desirable business and customer empowerment. There failed to recognize culture standards and instrument, applicable in Ryan Air service and airline industry. The lack of management related philosophy that seeks to integrate every Ryan Air functional tenet such as marketing, finance, design, engineering, production, customer service, and others to focus on meeting customer needs and organizational objectives (Doganis, 2002). That, total quality management involve planned procedure for satisfying internal and external customers and suppliers by integrating Ryan Air’s business environment, continuous upgrading, through with advancement, growth and safeguarding business cycle while changing organisational culture. Furthermore, the lack of attention on service quality and unified support and decision on the party of merging and acquiring companies. The presence of improper delegation of job roles and responsibilities on the part of Ryan Air management. The culture factor on what are the values and preferences of passengers and tourists and the general public. The culture difference in terms of language spoken and written and the lack of culture related communication system that can be used for moving further and positively into Ryan Air’s overall business impact in the US and UK society. The limited access on entrance power, as there can have political and legal issues along with Ryan Air business operation. Fierce level of competition coming from giant airlines can also affect merger and acquisition process thus affecting deeply on cultural norms and beliefs of involved parties.
References
Company Barclaycard (2000) Travel in Business Survey, Company Barclaycard, London
Doganis, R. (2002) Flying off Course: The Economics of International Airlines, Routledge London
Driver, J.C. (2000) Airline marketing in regulatory context”, Journal of Marketing Practice: Applied Marketing Science, Vol. 5 No.6
Ghemawat P. (2000) Commitment: the dynamic of strategy, Free Press, New York
Mason, K. (2000) The propensity of business travellers to use low cost airlines, Journal of Transport Geography, 8(2), pp. 107 – 119.
Phillips, L., D. Chang and R. Buzzell (2003) Product Quality, Cost Position and Business Performance: A Test of Some Key Hypotheses, Journal of Marketing, 47 pp. 26-43.
Robbins, S. and Barnwell, N. (2002), Organization Theory: Concepts & Cases, Sydney Prentice Hall
Toh, R.S., Hu, M.Y. (2002) A multiple discriminant approaches to identifying frequent flyers in airline travel: some implications for market segmentation, target marketing and product differentiation, The Logistics and Transportation Review, pp.179-97
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