Introduction This article is focusing on the Ryanair case study in addition to understand the main model and values in the strategic management field. In addition, Ryanair is founded in 1985 and it’s an Irish low cost airline which has become Europe most popular aviation providers (Eleanor, 2016). 1. Resources The resources of an organisation are those assets that deliver value added in the organisation (Lynch, 2015). According to the resource-based view, firm performance is achieved through competitive advantage that derives from the application of resources that are valuable, rare, difficult to imitate and unable to substitute (Barney, 1991). 1.1 Types of Resources Tangible resources A secure financing capability allows the firm to guarantee …show more content…
Ryanair increase the number destinations operated because of the creation new branches located in different countries. Ryanair management has a control system that supports the implementation of leadership, this includes tight cost control system, performance objectives, long run goals and objectives, activities to deliver a unique mix value, flexibilities and cost, operational strategy modernised, commitment to low cost travel and in addition, allocation of resources for carrying out extraordinary growth of the business. 1.4 Conclusion To be successful in an increasingly competitive environment, Ryanair has to be more adaptive and innovative than ever before in providing superior quality service. Ryanair should develop its market globally. Ryanair resources and capabilities combined them to make more competences in low cost strategy to enjoy profit margin. However, the current strategy focuses on the benefit of a cost leadership generic …show more content…
Moreover, power and market cultures have not altered since its formation and the CEO transformed the company’s cultural artefacts, values and basic assumptions. Control- the CEO, Michael O’Leary makes all the control roles and Ryanair management adopts a strict power over its employees. Ritual and Routines- the daily tasks are completed in less time. However, Ryanair empowerment remains an integral part of a strategy for motivation and commitment. The Paradigm- cost cutting policies are applied in every organisation aspects. The introduction of the self-sustaining and self-enforcing culture are the collective experience of competition in the airline industry. 3.5 Conclusion In conclusion, it is established that the sustainability of Ryanair depends on the fact that some employees are driven to work in this major carrier firm as they feel associated by culture and style of the occupation. However, autocratic leadership style of Michael O’Leary known for strict decision on employees and has the total command of the team. In addition, good culture within organisation remains important building block that requires to gain
Ryanair was established in the year 1985 by the RYAN family and has grown from a small airline flying a short hop from Waterford to London, into one of the Europe’s largest carriers. The company expanded and within 4 years it had 350 employees, 14 aircraft, and carried 600,000 passengers a year. It is currently serving to 26 European Countries with 148 destinations. It operates on 794 different routes daily serving by more than 1050 flights in a day. It has totally 169 aircrafts running for different routes with 5986number of employees working in it However, Ryanair’s costs rose drastically and it recorded losses of £20 Million sover four years despite its growth. Although consumers were continuing to fly Ryanair
Cathal Ryan and Declan Ryan have started Ryanair since 1985. For nearly a year, Ryanair had operated a 14-seat turboprop between Waterford and Gatwick Airport on the outskirts of London. The airline targeted low-fare segment market. It initiated service from London’s secondary airports. In terms of competition, Waterford and Gatwick didn’t pose any challenges.
This paper is to examine the key potential drivers within the present internal environment. Several models would be applied to support the answer and they are Stakeholder Power/Interest Matrix, Cultural Web, Resource audit, Value Chain, and threshold and core competences. With using Ryanair as an industrial example, this essay would talk about how important strengths and weaknesses are to be used in designing strategy.
Michael O Leary uses a centralized management style in the company which is also used a functional structure. The organisation structure of Ryanair is tall. As illustrated in my diagram Michael O Leary is the CEO of Ryanair and he deals directly with the chief financial officer, head of marketing, head of customer service, head of pilots union and all the other departments displayed in the structure. A functional structure is a structure that groups people in different departments or functions because they all share common skills or they can make use of the same resources. The members of these teams working in these different departments become very skilled and become more specialized within each function. My reason for choosing functional structure for Ryanair is that there no real hierarchy in the organisation, this improves the channels of communication and ensure there is no confusion. Michael O Leary makes the decisions in the firm and uses a very hands on approach in the business by dealing with other managers in the business on a day to day basis. If any problems are ever encountered Michael O Leary would deal with the problems internally. Staff within the company are also matched with their expertise and assigned to a certain group such as marketing, finance etc. A functional structure helps organisations to group tasks into functions to increase their effectiveness in which the company will be allowed to reach their company goals such as providing customers with cheap flights with excellent customer service. As Ryanair grows in size there may well be more departments added to the structure as there will be more employees and more roles and responsibilities to be
The strategic plan of Ryanair has been to establish itself as Europe’s leading low-fares airline.” Ryanair aims to offer low fares that generate increased passenger traffic while maintaining a continuous focus on cost-containment and operating efficiencies.” (www.ryanair.com)
The resource-based view was developed to help emphasize internal capabilities as a means of creating competitive advantage (Henry, n.d.) In this view, the organization is comprised of a series of resources that are used by management. These resources are the source of new products and the internal improvements that help companies to better compete in the marketplace. There are two different types of resources tangible and intangible. The former category consists of physical assets, and is characterized as physical resources, human resources and capital resources. So physical resources are the buildings, machinery, materials and productive capacity. At Coca-Cola, the company's physical resources
Generally speaking, the launch strategy of Ryanair was not the best one for that moment in time. They began operations between Dublin and London, in a very saturated market, which was already served by two competing and very experienced companies owned by the governments:
Ryanair consists of a centralised functional organisational structure. Normally, employees positioned within a centralised functional
The airline industry has always been a fiercely competitive sector. Since the invention of low-cost carriers, also known as no-frills or
Michael O’Leary, Ryanair’s charismatic boss and one of the most successful business man in the world. Starting from a single plane company, in about 30 years he has made Ryanair the largest airline in Europe. With turnover of €5 billion and a profit of €591.4 million in 2014 (Ryanair on top1000.). He achieved this through his masterful leadership and with an attractive business model with central focus on cheap costs. So how did Michael O’Leary
Prior to 1991, Ryanair had suffered from continuous losses from 1985 to 1989. The first reason that put it into this situation was that it tried to position itself as a low fare airline with the first rate services. It tried to keep low and unrestricted fare, while keep focusing on the best customer service and relationship. This mixed model was proven inefficiency. The low price could lure number of
Set up in the year 1985 at a capital of 1 pound with a staff strength of 25, Ryanair is today the World’s favourite and most commonly used airline which operates more than 1,400 flights per day from 44 bases and 1100+ low fare routes across 27 countries, connecting 160 destinations. Ryanair operates a fleet of 250 new Boeing 737-800 aircraft and is expected to increase it by another 64 in 2 years. Ryanair currently has staff strength of more than 8,000 people. Its passenger base has been increasing
The aim of this report is to carry out a strategic analysis of Ryanair. This will involve investigating the organisation’s external environment, to identify opportunities and threats it might face, and its strategic capability, to isolate key strengths and any weaknesses that need dealing with. Finally, a SWOT analysis will be carried out to assess the extent to which Ryanair’s strategies are suitable to what is happening in its task environment.
1. In-depth environmental analysis of the European Airline industry and discuss the implications for the budget sector and especially for Ryanair. 2. An integrated understanding of the functioning of a company – its human and technical operations, leadership, customer relationships and financial structure. 3. Implications of the internal functioning to create viable strategic positioning and discuss any changes to Ryanair’s approach to ensure an improved sustainability 4. Evaluate the strategic leadership style of Michael O’Leary
The purpose of this report is to comment at the first part how Ryanair achieve its competitive advantage through the RBV analysis (Barney,1991), the second part will assess its approach to the diversification through the Ansoff matrix , the third part will discuss the company’s organisational culture using the cultural web modeland last part its internationalization strategy.