Introduction
Modernity is the era of production characterized by the rise of industrial capitalism and the hegemony of bourgeoisie. Thus it centered on the production of commodities and products which in the Marxian perspective modernity becomes oriented with production and materialism.
On the other hand, Baudrillard interprets modernity as a process of explosion of commodification, mechanization, technology and market relations and further, characterized by an increasing differentiation of spheres of life. Since modernity characterized by industrial revolution leading to an era of production, capitalism acquired the powerful status in an economic system. Although the remnant of Marxist economy is still preserved in some communist countries, undeniably, the proliferation of capitalism as an economic system made the grounds for globalization of economic, cultural, and political spheres.
This significant condition became fundamental in the global economy wherein every capitalist thrives to advance their business tied in with the pervasive and effective strategic planning in order to adapt with such phenomenal change within the basic spheres of the society. Moreover, this rapidity affected the modernization of the society, wherein it pushes itself to the post modern ideology. Thereby our society today, as most of the scholars and researchers would put it, is on the verge of post-modernity.
In this case, let us examine the internal environment of Ryanair using different approaches and method to reveal its status and condition.
Ryanair Airlines
Cathal and Declan Ryan founded the competitive Ryanair on July 1985 with the financial assistance of their father Tony Ryan. As a neophyte commercial carrier, its operations began with 25 staff and a single 15-seat Bandeirante turbo-prop flying between Waterford and London. Later on, regulatory authorities permitted the Ryanair Airlines to have at least four flying flights a day on Dublin-London route, now with more seating capacity. Now, Ryanair, with its rapid growth occupied a most sought position in its own field, being “Britain’s favorite airline”.
Resources and Capabilities
Resources and capabilities of any firms can be measured through identifying its tangible and intangible resources and capabilities within. Tangible and intangible resources are significant in implementing firm’s strategies. It ranges from financial, physical, technological and organizational; while intangible can be human, innovation and reputational assets.
Ryanair operates 74 aircraft including 41 Boeing 737-800 with 189 seating capacity, 21 Boeing 737-200 with 130 seating capacity, 6 Boeing 737-300 and 6 BAE 146 both are buzz fleet. Ryanair with 2500 personnel offers approximately 475 scheduled short-haul flights per day serving i84 locations in the UK, Ireland, and continental Europe. In the latest data gathered as of 2004, Ryanair carried 23 million passengers overtaking Easyjet airlines, declaring their being number one for passenger growth with 50% plus rate. Moreover, Ryanair has now 149 European routes and 11 bases and desire to increase its planes by 112 in the next ten years.
VRIO – Value, Rarity, Imitability, Organization
Ryanair Airlines (RA) valued the high service performance. The airline is known for its strict observance on punctuality, high rate of flight completion, and low baggage loss. It purchased modernized fleet which leads to less expensive maintenance with uniform brands used while high aircraft utilization strengthens its business and financial sheet. The rarity of RA based primarily on its strategic positioning and management operations. Its implementation on low fares service and high level of customer service delivery made RA strong and competitive compared to other firms in the same field. Other firms in the same industry hardly find their ways in imitating the same operations and strategic planning. RA produced effective planning and management operations in which lead others to imitate. Not all of the tangible and intangible resources like software, fleet designs, infrastructure, organizational culture, and knowledge management can be imitated. Causal ambiguity, time compression diseconomies and path dependencies are factors which affect the difficulty of other firms to imitate effective plans of successful firms like RA.
Systematic, healthy and good organization contributes much to the success of a certain business firm like RA. An organization with clear objectives and capable to draw everyone to work with these objectives will lead to firm’s success.
Value Chain and Action Plan
The analysis on infrastructure, human resource, technology development, procurement, inbound logistics, operations, outbound logistics, marketing and sales and service of RA provides us its value chain system. The low cost but quality training and limited crew help RA’s financial status grow. The opening of internet website brought significant financial figures in RA’s services while purchasing aircraft in one or two suppliers can decrease financial budget on procurement. Low cost promotion, free publicity, internet sales and yield management aid the marketing and sales operations.
The management’s action plan has two fundamental branches namely: the marketing plan and provision of service. The marketing plan covered product planning, price, place and promotion while provision of service is geared towards negotiations to suppliers and sub-contractors.
Conclusion
The paper seeks to identify important factors in the internal environment of RA’s operations and management. The use of methods and instruments like resources and capabilities, VRIO framework, value chain, and action plan help us understand its operations within.
Furthermore, the bases of using the methods effectively offered more venues for growth and improvement within. Continuous analysis and examination of these internal factors can help support firm’s constant struggle for competition and economic growth. Whereas, proper use of instruments and employment of strategies are more important in order to achieve specific goals and objectives.
Credit:ivythesis.typepad.com
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