Strategic management: Ryanair
- Apply appropriate theory, models and concepts assess both the macro and competitive environment impacting upon the strategic situation of Ryan Air. From this analysis identify the key opportunities and threats facing Ryan air
- The layer of the business environment
- The macro-environment
- Five forces framework model
- The opportunity
- The threat
- Based upon your analysis above and by considering, key trends and forces of high uncertainly, develop two or three future world scenarios facing this firm in the next 5 to 10 years
- Benign changes in the environment
- Hostile future
- Perform an internal audit on Ryan Air tangible and intangible resources. From this analysis identify the threshold and core competences and resources of Ryan Air. What are Ryan Air's dynamic capabilities. Summarise the salient strengths and weaknesses of Ryan Air?
- The tangible resources
- Revenue and profit tend
- The intangible resources
- Briefly explain why it is important to have a strategic vision and mission for an organisation. Taking into account this organisation culture develop a new vision together with mission statement and strategic objectives for Ryan Air
- From your mission and strategic objectives and based upon your internal and external analysis develop fully evaluate, using appropriate analytical and evaluative techniques, three alternative possible strategic directions for Ryan Air. Which of the three options would you recommend the Board at Ryan Air pursue?
- Business or competitive strategies
- Corporate and international strategy
- Directions and methods of development
- The strategy Clock
- Critical assess, by relating to appropriate leadership theory, the leadership style of Ryan Air's Chief executive. How does his leadership style contribute to the success of Ryan Air?
Ryan air was born in 1985. To build its strategy, obtain competitive advantages and to become a leader on this market, the company had to study different elements that the organization had to face. These are shown by the graph "layers of the business environment".
With the PESTEL method, we can determine the general environment of which the strategy business units are composed. Strategic business unit: This is a part of the organization for which there is a distinct external market for goods or service, which is different from any other strategic business unit. (Johnson and Scholes, 2005).
The company has many constraints to respect in carrying out its strategy. These factors can generate exceptional costs, changed dynamics, and notorious effect on the market: atomization, customer’s service, passenger volume. Then, she must make good forecasts to adapt their budget and she must find new strategies to reinforce their position.
To face this external environment, Ryan air must understand the Key drivers of change: competition/rivalry in UK, and the growth of the market and the consumer demand. From that, and with the analysis of the five forces framework model, the company can identify the source of competition, and create competitive advantages.
[...] fluctuation of money, and risks of transaction exposure. Technology High level of technology available: better qualities of planes, better comfort, better safety, speed improvement and use of less fuel. Development of Internet: lower cost of reservations, marketing and better comparisons on the companies. Social Terrorism (September 11, 2001), war (Iraq), epidemic Change of the consumer’s tendencies: more spare time translating into more regular travel. Moreover, perception of the new pricing policy is that customers will always pay less and expect quality. [...]
[...] Resources and competences are essential to face the market, the new entries and the competitors because they translate the strategic capability. All these factors allow the company to evolve, to innovate, to be flexible and to be able to adapt its company to the external environment. The resources and competencies also permit it to make the Ryanair strengths and the weaknesses obvious. Strengths Its strategy (low price) is a frightening force. The other companies cannot compete with it. Its profit permits it to increase his fleet, his number of road and to increase his competitiveness. [...]
[...] The Strategic objective is the quantification, or more precisely, the statement of the goal. (Johnson and Schole 2003) The major objectives of Ryanair are to do profit by increasing its fleet and its destinations, increasing the market share, and increasing the consumer base. The goal remains to gain more, and to be able to invest the maximum to satisfy the customers, the supplier, the employees and the shareholders. It still ordered 125 planes over 10 years, of which the new Boeing plane is more comfortable, safer, faster and more viable, and began the no-frill service. [...]