Business environment is define as all those factors that affect a company's operations, and
also includes customers, competitors, stakeholders, suppliers, industry trends, regulations,
other government activities, social and economic factors and technological developments
or shortly as the external forces influencing the business decisions.
Part A
Task 1:
AC 1.1 Explain the strategic context of Ryanair using its purpose, mission
statement, vision, objectives and core competencies.
Every company has its vision, mission, goals, philosophy to be in the top of the business
or simply we can also say to make a profit as much as it can.
Vision is define as a image of the future that an organization is aiming to achieve. Ryan
Air vision is to committed to ensure that all consumers to take advantage of it's low fares.
Their policy is to increase the number of vision impaired customers able to travel with
them. Mission is define as a company's function, markets and competitive advantages; a
short written statement of our business goals and philosophy. A Ryan Air mission
statement defines what an organisation is, why it exists, its reason for being. The
company believes that any worthwhile passenger service commitment must involve a
commitment on both pricing and punctuality, that's why Ryan Air is committed to
publishing Customer Service Statics each month which confirm that Ryan Air position
for Customer Service is in number 1 with unbeatable prices and punctuality. Its mission is
based on the betterment of the customer. Company offer low fares at all time and on all
route is also one of the mission of the company.Simply Ryan Air philosophy is just giving
customer a service and made huge profit i.e. “smile, charge and serve”. They don't care
about the passenger's baggage, security, health, food, water and cleanliness of a plane.
Their theme is passengers pay money, they buy a tickets and Ryan Air doesn't care.
1.2 Review the issues involved in the strategic planning process of Ryan Air.
Strategy of Ryanair is to provide services with cheaper price. So the competitive
advantage of ryanair is cheaper price than other airlines. For maintaining their
competitive advantage Ryanair faces different issues those are as follows:
1. There are lots of airways which is provide cheap fare of flight such as easy jet, Virgin
express, Air Berlin and so on. As minor airways use the same routine, minor airports get a
purchasing power from the airlines competition. It is hard situation for Ryan air to
minimize the fare. 2. The aviation turbine fuel costs fluctuated as economic and political
situation changes and increasing demand of fuel. Also, the fuel should be paid by US
dollars, so change of exchange rate affects to the fuel cost. Ryan air had not added
surcharges like other airlines so that they could maintain lower fares. But increasing fuel
cost makes hard to maintain lower price for Ryanair. 3. As I mentioned earlier, there are

Action plan for Ryanair includes three activity. Objective can be corporate. Process and Physical evidence. Also.the ANSOFF’s matrix. bmibaby. To set objective for Ryanair. People. These strategies are used to fulfil Ryanair’s objective to expand and grow its profitability in the market T stands for Tactical Development Tactics are the techniques to achieve the objective of Ryanair through the chosen strategy. Place. .Allocating tasks and responsibilities. Air Berlin. SMART criteria can be used. Tactics development includes the use and manipulation of 7P’s. Promotion. marketing objective includes increase their market share through their extensive marketing campaign. The planning process involves some steps which are generally called SOSTAC Model. The major competitors of Ryanair were easyJet. A stands for Action Actions are required to take when strategy and tactic has been set for Ryanair. It involves conducting a marketing audit which is a comprehensive and periodic examination of Ryanair’s marketing activities so as to identify problem areas and then propose solution for overcoming problems. Wizz Air and Aer Lingus. AC 1. C stands for Control When the chosen strategy with the correct tactics has been implemented for Ryanair control is required which means taking corrective measures if things are going according to plan. SkyEurope. O stands for Objective Setting Objectives are what the company wants to achieve through its activities.3 Explain the different planning techniques that could be used by Ryanair to increase the effectiveness of its strategy. Price.Product. S stands for Strategy Development Strategies are the means to achieve Ryanair’s objectives. Corporate objective for Ryanair includes increase their profitability. there were other low cost substitutes like train and tram services in Europe.. Scheduling of marketing activities and Setting the marketing many airlines offer cheap fares in Europe. Boston Consulting Group (BCG) matrix. Strategy can be developed through various techniques such as. business and marketing. S stands for Situation Analysis Situation analysis answers where the business is right now. Control includes benchmarking and balanced scorecard method. which is used to implement and monitor plan’s progress.

enhance capability to take risk and face new challenges and competitive price on aircrafts parches. Secondary and regional airports allow cost reduction and fast turnaround.1 Produce an organizational audit for Ryanair using appropriate techniques. The Economist (2005) argues that compared with most forms of transport. as many from less affluent Eastern European countries have migrated to west. . prone to bad press I that its top management is perceives as arrogant and provocative. world political crisis also has an effect on Ryanair’s performance. increase capability to attract finance. Reduce barriers to its entry in new market.AC 2. the distance between secondary airports to the main location. deregulation of aviation opened up opportunities for airlines across Europe to compete with each other. Ryanair is being forced to divert its flights from Trapani airport in Sicily. despite operating internationally. However. Poor customer service is one of the big weaknesses of Ryan air.2 Carry out an external environmental audit for Ryanair using appropriate technique. Market extremely sensitive to price elasticity. social. Ryanair is influenced by external factors that include. aviation is under taxed. and are likely to prefer to return home regularly on cheap tickets (Creaton 2005). legal and environmental factors. Strong balance sheet and cash generation allow facing eventual problems. Formation of EU is opening up the market still further. AC 2. Too much exposed to outsourcing. Lacking of appropriate frequency in certain routes and brand is strictly linked to a low cost model and maintain the position could be challenging. Social: Migrant workers has expanded the market for Ryanair. For examplebecause of military operations in Libya. Political: In 1997. technological. economic. Weakness: Exposed to regulation on airport deals and passengers compensation. Oil price and tax policy are an issue for all airlines. Strengths: Strong pan European brand (36 bases). However. political. Biggest and most profitable LCC Europe and Focused aggressive and innovative management system. Economic: As a European operation. increasing its operational expenses (Paris 2011). so many of its operations are not affected by exchange rates. while contributing to increase barriers to new entrants.

In return.3 Explain the significance of stakeholder analysis for Ryanair. Legal The legislation has the most impact on Ryanair. assets on liquidation.internal. At present. The stakeholders of Ryan Air are: Shareholders Shareholders are person who have shares in the company. Because of European Commission ruled that subsidies from Charleroi in Belgium were illegal (Creaton 2005). 2008. connected and external. inspection of company books. but this is expected to rise to 25% by 2030 (The Economist 2005). Therefore. The shareholders participate in distribution of additional stock offerings. In 2009 European Commission again blocked the acquisition of AerLingus (29. knowledge and abilities give contribution in the success of the organization. in some cases. the Court upheld the Commission’s decision (United States Securities and Exchange Commission 2009). Aircraft technology offers opportunities. Employees Employees are believed to be a source of competitive advantage. profits. have reduced fuel burn and CO2 emissions by 45% (Wikinvest 2009). The employees' skills. Moreover. Ryanair is subject to international. Ryanair has invested €17bn over the past 10 years on its latest aircraft replacement. legal issues are more complicated than within a domestic operation. national and. There are three types of stakeholders . Stakeholders are the people who are affected by or can affect the activities of the firm. the European Council of Ministers has put a cap for CO2 emissions. Ryanair's share price dropped by 30% (The Economist 2004b). election of board of directors and other rights established in the contract with the firm.8%). AC 2.Technological: The internet has enabled Ryanair to keep costs down by allowing customers to book tickets and check in through its website rather than through an agent and employees. local noise regulation standards. Moreover. will be effected from 2012. the . aviation accounts for roughly 5% of the UK's emissions. as Ryanair employing staff across Europe. Environmental The main environmental issue facing Ryanair is that of greenhouse emissions. On November 19.

social and psychological satisfaction in the place of employment. The customers purchase the firm's products and services in exchange with satisfaction of needs. J. Competitors competitors are also important stakeholders.employees expect economic. Suppliers The suppliers are part of the firm's value chain. and receiving goods and services. purchasing. London . (2005). Ryanair: How a Small Irish Airline Conquered Europe.. In exchange with the suppliers P. The government expect the firm to pay taxes. Governments the national government and other governmental departments are important stakeholders that have direct impact on the firm's strategies. wants and requirements. References: Creaton. They expect the company to observe the norms of competitive conduct established by society and industry. Shalowitz.. R. (2008). J. services or expertise the firm is expected to be a source of business and facilitate a professional relationship in contracting for. S. Strategic Marketing for Health Care Organizations: Building a Customer-Driven Health System. discharge of legal obligations.essay. Customers The customers are the source of the firm's earnings. to adhere to the letter and intent of public policy dealing with the requirements of fair and free competition. Stevens. San Francisco http://www.