A Case Study Report

On

“Business Environment”
 Table of Contents
Introduction:..................................................................................................................................2

Section 1:.........................................................................................................................................3

Business overview:......................................................................................................................3

Size:..............................................................................................................................................3

Sector and industry of operation:.................................................................................................3

Direct and indirect competitors:...................................................................................................4

Organisational structure and leadership team:.............................................................................4

Section 2..........................................................................................................................................4

The Impacts of Brexit and Covid-19 Pandemic on Ryanair’s internal environment:..................4

The impacts of the UK government’s recovery plan on Ryanair’s internal environment:..........5

Section 3:.........................................................................................................................................5

The impacts of the UK government’s recovery plan on Ryanair’s micro-environment:.............5

The impacts of Brexit and Covid-19 Pandemic on Ryanair’s micro-environment:....................5

Section 4:.........................................................................................................................................6

The impacts of PESTLE factors on Ryanair’s operations:..........................................................6

Conclusion:.....................................................................................................................................8

References:.....................................................................................................................................9
Introduction:
The aim of this case study is to understand the significance of analyzing the business
environment and its impact on the performance of a company. The case study highlights the
importance of constant analysis of the business environment due to its complex nature and the
need to deal with contemporary socioeconomic, political, and legal factors. The analysis helps
organizations to better understand the environment in which they operate, the types of
organizations they compete and interact with, and the dynamics of different markets. The goal is
to help organizations make informed decisions and improve their performance (Tebloyeva,
2018). The internal business environment refers to the factors and conditions within an
organization that directly affect its operations and performance (Thompson, 2018). It includes
elements such as company culture, management structure, employee attitudes and behavior, and
resource allocation (Tengtarto, 2020). The micro business environment refers to the immediate
and local surroundings in which a small business operates. It encompasses factors such as the
local economy, customer behavior, competitors, and government regulations that directly affect
the day-to-day operations of a small business. These elements have a significant impact on the
success and growth of micro-enterprises and are typically easier to observe and respond to than
larger, more macro-level influences (Horiguchi, 2021). The macro business environment refers
to the larger external forces and conditions that impact an organization, such as economic trends,
technological advancements, political and legal systems, and social and cultural factors
(Webster, 2018). It represents the broader context in which an organization operates and must
consider to be successful. Both the internal and macro business environment play a significant
role in determining a company's success and competitiveness, and it is important for
organizations to understand and continuously monitor both in order to make informed decisions
and stay ahead in their respective industries (Kinra & Kotzab, 2008).
Section 1:

Business overview:
Ryanair is a low-cost Irish airline that was established in 1984. It operates a single type of
aircraft, the Boeing 737, and offers flights to over 200 destinations in 40 countries (Angwin, et.
All, 2017). Ryanair is one of the largest European low-cost airlines and is widely recognized for
its low fares, point-to-point route network, and no-frills business model.

Size:
In terms of size, Ryanair generated over €7 billion in revenue in 2020 and employed over 19,000
people (McMahon, 2020).

Sector and industry of operation:

The company operates at a large scale, with a market share of approximately 20% in the
European low-cost airline market. Ryanair operates in the airline sector and the transportation
industry.

Direct and indirect competitors:

The company's direct competitors include other low-cost airlines such as EasyJet and Wizz Air,
while its indirect competitors include full-service airlines like British Airways and Lufthansa.
The organizational structure of Ryanair is hierarchical, with a CEO at the top and several layers
of management below. The company's current CEO is Eddie Wilson, and the leadership team
includes a CFO, COO, and several executives responsible for different departments such as
marketing, operations, and HR (van der Linden, et all 2010).

Organisational structure and leadership team:

Ryanair has a reputation for its cost-saving measures, and its business model is based on offering
low fares to attract price-sensitive customers. The company has implemented various cost-
cutting measures over the years, including charging for additional services such as checked
baggage and priority boarding. Despite its low-cost strategy, Ryanair has been successful in
maintaining profitability and has become one of the largest airlines in Europe. In recent years,
Ryanair has faced various challenges, including labor disputes, environmental concerns, and the
impact of global events such as Brexit and the Covid-19 pandemic (Bhat, et al., 2012). Despite
these challenges, the company has remained focused on its low-cost strategy and has continued
to grow its route network and expand its market share.

Section 2

The Impacts of Brexit and Covid-19 Pandemic on Ryanair’s internal environment:

The impacts of Brexit and the Covid-19 pandemic on Ryanair's internal environment have been
significant. Brexit has caused uncertainty in the regulatory environment, making it difficult for
Ryanair to plan and operate its business in the UK. The company has had to adapt to changes in
customs and immigration procedures, as well as navigate the complexities of negotiating new
trade agreements between the UK and EU (Johnson, 2021). The Covid-19 pandemic has also had
a major impact on Ryanair's internal environment. The global travel restrictions and declining
demand for air travel have resulted in significant financial losses for the company, as well as
disruptions to its operations and supply chain.

The impacts of the UK government’s recovery plan on Ryanair’s internal environment:

To mitigate the impact of the pandemic, Ryanair has had to implement cost-cutting measures and
reduce its workforce, which has likely had a negative impact on employee morale and company
culture. The UK government's recovery plan could also impact Ryanair's internal environment in
various ways. For example, if the government invests in the travel and tourism sector, it could
help to boost demand for air travel and improve the financial performance of the company. The
impacts of Brexit and the Covid-19 pandemic on Ryanair's internal environment are complex and
multifaceted, and the company will need to be proactive in addressing these challenges if it is to
maintain its competitiveness and ensure its long-term success. This may involve making changes
to its business model, organizational structure, and leadership team, as well as adapting to the
changing regulatory and market environment (Scholes, 2017).
Section 3:

The impacts of the UK government’s recovery plan on Ryanair’s micro-environment:

The impacts of the UK government's recovery plan and Brexit and the Covid-19 pandemic on
Ryanair's micro-environment refer to the effects of these events on the company's immediate
operating environment (Zwanenburg, 2018). Ryanair's micro-environment includes factors such
as its suppliers, customers, and the local market in which it operates. The UK government's
recovery plan may have a direct impact on Ryanair's micro-environment if it includes measures
that affect the airline industry, such as changes to tax and regulatory policies, or investment in
infrastructure.

The impacts of Brexit and Covid-19 Pandemic on Ryanair’s micro-environment:

The effects of Brexit on Ryanair's micro-environment will depend on the specific terms of the
agreement between the UK and the EU, as well as the wider economic and political impact of the
Brexit process (Whittington, 2017). The Covid-19 pandemic has had a significant impact on the
airline industry, including Ryanair, as travel restrictions and changes in consumer behavior have
led to a reduction in demand for air travel. It is also important to consider the indirect impacts of
these events on Ryanair's micro-environment. For example, Brexit and the Covid-19 pandemic
may lead to changes in consumer behavior and preferences, such as a shift towards more budget-
conscious travel or a preference for travel by road or rail , (Abena Aidoo, 2019). This could
impact Ryanair's market position and its ability to attract and retain customers. Ryanair's
suppliers may also be impacted by these events, and this could in turn impact the airline.

Section 4:

The impacts of PESTLE factors on Ryanair’s operations:

Ryanair's operations are impacted by a range of PESTLE factors, including political, economic,
social, technological, legal, and environmental factors. Political regulations and policies can
significantly impact the airline's operations and profitability. Ryanair is also sensitive to changes
in economic conditions and social trends, such as concerns about the environmental impact of air
travel. Technology plays a critical role in Ryanair's operations and advancements or failures in
technology can impact the efficiency and cost structure of the airline. Ryanair is subject to a
range of legal regulations and changes in these regulations can impact the airline's operations and
profitability. Environmental concerns and pressure to reduce the environmental impact of air
travel are also a major factor affecting Ryanair's operations (Zwanenburg, 2018).

PESTLE Factors Impact on Ryanair's Operations

Political Ryanair operates in a highly regulated industry,
subject to government regulations and policies.
Changes in government policies and
regulations can significantly impact the airline's
operations and profitability.
Economical Ryanair is sensitive to changes in economic
conditions, such as changes in fuel prices,
exchange rates, and consumer spending
patterns. Economic downturns can lead to a
decline in demand for air travel, which can
negatively impact Ryanair's operations.
Social Ryanair's operations are affected by social
trends and attitudes towards air travel. For
example, increasing concern about the
environmental impact of air travel may lead to
reduced demand for flights.
Technological Ryanair is heavily dependent on technology,
including its booking systems and its fleet of
aircraft. Advances in technology can improve
the efficiency of the airline's operations and
reduce costs, while failures or obsolescence of
technology can lead to disruptions and
increased costs.
Legal Ryanair is subject to a range of legal
regulations, including employment law, health
and safety regulations, and consumer protection
laws. Changes in these regulations can impact
the airline's operations and profitability.
Environmental The airline industry is a major contributor to
greenhouse gas emissions and other
environmental impacts. Ryanair is subject to
increasing pressure to reduce its environmental
footprint and may be impacted by future
regulations to address this issue.
Conclusion:

To improve its relationship with its stakeholders, Ryanair can focus on enhancing its customer
experience by improving its in-flight services and offering more flexible booking options. It can
also build stronger relationships with its suppliers by improving communication and developing
long-term partnerships. To improve its internal operations, Ryanair can focus on streamlining its
processes, reducing costs, and investing in new technologies. This could help the company
become more efficient and increase its competitiveness in the market. This will help the
company to quickly adapt to changes and maintain its competitiveness. Ryanair can also invest
in research and development to find new ways to reduce its carbon footprint and increase
sustainability (Felipe Martinez, 2018). Take advantage of investment in infrastructure: Ryanair
can benefit from any investment in aviation infrastructure by improving its operational efficiency
and reducing costs (Shah et al., 2021). Partner with local tourism authorities: By working with
local tourism authorities, Ryanair can help promote destinations and increase demand for air
travel.

Overall, by focusing on these areas, Ryanair can improve its operations, build stronger
relationships with its stakeholders, and benefit from the UK government's tourism recovery plan.
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