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BIR TITLE : The effectiveness of five-performance indicators in gaining competitive advantage (a case study of Ryan air)

Abstract

This research report is a project deliverable for a 3-month marketing research project undertaken for the Master in Business Administration Program at Ealing Hammersmith College. This research is to explore the effectiveness of five performance indicators (quality, speed, flexibility, dependability, and price) in order to attain the competitive advantage in the market. In this research the case study of Ryanair is taken so that the operation management activities are scrutinize and check the relationship between the competitive advantage and the operation management activities that are currently held inside the organisation. The importance of competitive advantage, operation management and the role of five performance indicators are discussed in detail. The previous empirical researches and literature review is included to provide the insight about the topic and research query. The research investigates the preferences of management, the market condition, the comments, opinions and experiences from our respondents. The main aspect is to find out that is there exist a strong relationship or not between the operation activities and the competitive advantage therefore two hypotheses are considered, null and alternative hypothesis respectively. Each hypothesis has been validated by questionnaire response submitted by the respondents of Ryanair. The research methodology has been explained in detail while assumptions and constraints faced are also highlighted. The latter half of the report shares our key findings and results based on the rich feedback provided by sample population.

Acknowledgements

I would also like to thank my respected Professor Uddin, who guided me in different phases of this report. It is most appropriate to mention the ingenuity of respected professor who provide me an opportunity to enhance the learning and management skills from a well established organization. My indebtness and salutation to too many individuals who have helped shape this research report cannot adequately be conveyed in a few sentences. However, I must once again recall my indebtness of my friends and colleagues, who took the time and trouble during the last few days to speak to me about the ways this text, could be further improved. It is my privilege and honours to my express my deep gratitude and in calculating thanks to the administration of Ryanair especially to Mr. Paul Godfrey and Mr. Steve Jacobs who provided me an opportunity to research on Ryanair Airlines and taking out time for interviews.

Chapter One: Introduction

1.1 Introduction This research, explain about the effectiveness of five-performance indicator in competitive advantages of operations managements. (Porter, 1985) in operation performance, the effectiveness of five-performance objective gives the competitive advantage to influence the organisation. The product value is differencing quality that decides the customer willing to buy the product or not and it affects the competitors, strategies in the market. It gives reflection, shapes to the organisation, and has influence of attractiveness in the market less or more. In service industry the product development is less expensive or short lived which affect the organisation competitive strategies. A competitive advantage adds value to customer higher prices or lower prices, accordingly benefit customer and help in growing product market which insure profit for long-term.

(Mintzberg, 2003) the growth of company depend upon the suppliers, direction of buyers and substitutes good and how organisation deal with the competitors it doesnt matter whether it is new or old in the market . Organisation should maintain the product that is available in the market for the customer which will substantively lead them ahead in competitive edge in terms of cost and leadership . (Porter, 1998) To maintain growth in

the market organisation should compete the price war between the competitors by offering low fare airlines offer, which will make the organisation competitive and cost-effective for longer period. (Stewart, 2011)In any airline company, it is important that airport transport Company get low fare

benefit more than the airline company does. In this literature review, evaluating airline in European also get profitability with relationship of airline.

To understand the competitive advantage with help of five-performance objective in the Ryanair airline this is a low cost airline company. Nigel, et al., (2004) this research shows that operation management of performance have influence on stakeholder in the organisation. These have divided into different categories like

Employees, customer, shareholder, suppliers, and society. All this play major influence in the organisation Employees: It is all depending upon the operation how been designed for working. Customer: In any business, buyer is the most important for the organisation. Shareholder: Selling and buying is one of major beneficiary of the shareholder and it depends on production of good and service. Suppliers: Production in organisation of the products supply. Society: No direct economy to the company it all done individual and groups. These stakeholders are essential for the organisation as the organisations are affecting and at the same time are being affected by these stakeholders. Those operational management activities have its influence on them in either a direct or indirect mode. In order to maintain the organisation, appropriate decision need to take by the help of five performance objective factors to compete with competitors. By giving operative service to the customer and maintaining profit of margin will benefit organisation in long run of the business, and whenever there is an opportunities to give something new to the market to

attract customer. Fulfilling customer Demand available in the market and satisfying with service, quality, cost, dependability, flexibility and speed of the organization. The predictable present researches of performance objective drive research; good recognise focus and understand a different objective of operation with their competitive effectiveness in organisations. (Nigel, at el., 2004) the performance objective of operation studies shows that imperative objective. 1. Quality: Producing goods in right time with satisfaction of the customer with error free goods and service. 2. Speed: Providing service at giving time to customer for asking goods. 3. Dependability: Producing service at promise time. 4. Flexibility: Doing goods according to the customer demand in the scope of circumstances. 5. Cost: Producing facility of goods in low cost.

In operation business strategy, it did not depend everything on the cost of the product it depend on the customer demand the value of competitive factors based of business strategy.

1.1.1 Purpose of Study: The effectiveness of performance gives internal organisation to reduce cost on the product or service. The process of design gives the capacity of effective operation and innovations of the product in the operation, the process should be skilful, knowledge and having building the operation of the business in the operations management. This research shows the quality of product and importance of the objective in the operation management, and effective operations margin profit in the organisations to influence the productivity of the object. 1.1.2 Motivation: Motivation is generally regarded as stimuli that urge a person to act or behave in a certain manner. (Deci and Ryan, 1985), Basically there are two types of motivation that encourages a person; one is intrinsic while the other is extrinsic motivation. The one which occurs from inside a person is regarded as internal or intrinsic motivation whereas the one which is caused by the external environment is known as external or extrinsic motivation. To research on this topic the effectiveness of operation management in gaining the competitive advantage is the product of intrinsic as well extrinsic motivation because of the lectures of professor has an important part in drawing my attention towards this topic. The lectures excited me and I developed a keen interest in this topic therefore it has external motivation but on the other hand, my personal will to investigate the effectiveness of operation management is also a crucial factor for commencing this research study.

1.2

Aim

The aim of this research is to evaluate the effectiveness of performances of operation management in the internal and external environment and competitive advantage in the market. (Epstein and Manzoni 2006) to achieving goal of effective performance in the establishment react and effect of situation demand in appropriately. This research trying to search, empathetic and important of objective in operations performance management in the case study of Ryanair. The strength of Ryanair is low fare airline super brand in the market they

have habits to convert weakness into strength, which create cost effectiveness in the market and promote more oppturnity for the organisation. 1.3 Objective of Study: The main research aim of this paper is to evaluate the effectiveness of five operations indicators in gaining competitive advantages. Objectives: 1. 2. 3. To identifying the basics of five-performance objective. Identify competitive advantage in operations. Evaluate the relationship between operations and competitive advantage.

1.4 Scope of the Research: The further scope of this research includes the expected time frame for this research and the target audience. This research is mainly to find out the effectiveness of operation management in gaining the edge in the market over competitors therefore requires a detail survey about the process and the performances of different operational activities. The expected time to cover the target audiences that are the Ryanair faculty and employers, and the experts of market is approximately 40 days excluding the holidays. The questionnaire will be circulated through the friends circle and meeting will also be arranged through mutual friends. The views of customers about the operational performance will be generated through monkey survey. 1.5 Relevance to MBA: In my masters program at Ealing Hammersmith College, the lectures were given on various topics out of one was the operation management and competitive advantage in the hospitality sector. My Masters in Business Administration program mainly focus on the hospitality industry and in lectures we were briefed about the contemporary issues related to hospitality sector which was indicating towards the performances and competitive advantage . This research therefore has a very close relevance with my studies as it covers the most topics of my MBA program. Furthermore, this piece of research investigation will be vital for the future as it will prove a first step towards practical know how about the operation management.

1.6 Structure of the Report: The structure of report is to explain that which chapter focuses on what. This dissertation consist of five different chapters, each segment explains the detail about the steps and procedures considered. 1.6.1 Chapter 2 Literature Review: In second chapter, Literature reviews I have discussed in detail the theories relating to operation management and competitive advantage. I furthermore, have included the review of previous empirical researches that has offered a basic foundation to commence my research. The results of past investigations are covered in a thorough manner. 1.6.2 Chapter 3 Research Methodology: This chapter covers the design, problem,

hypothesis and the chosen style to conduct a research. This chapter describe various methods and ethical issues regarding the collection of data. Research methods include the generating of hypothesis and establishing the grounds for commencing a study investigation. 1.6.3 Chapter 4 Analysis, Findings, and Discussions: In this chapter I have included the critical appraisal of literature review, graphical representation of data, and I have sorted the data in a meaningful form so that interpretation helps in answering the research questions. This chapter also evaluates the existing results with the previous empirical researches. 1.6.4 Chapter 5 Conclusion: In last chapter, the results are concluded after the interpretation of data. On the basis of findings, analysis and discussions, the hypothesis is evaluated whether it is null or not. This chapter also includes the recommendations and the limitations of the results.

Chapter 2 Literature review


Introduction This chapter focuses on various type of theories and empirical researches conducted in past, furthermore the chapter is focusing mainly on questions of research study at hand. The following five are the main aspect of this research to explore: 1. Identify and investigate the purpose of core five performances currently going on in airline sector. 2. Explore the link between the ongoing operations and competitive advantage. 3. Elucidate, transmit and demonstrate the five performances that are speed, cost, quality, flexibility and dependability respectively and link them to accomplish the competitive advantage in the dynamic aviation market. 4. Create a general understanding about the impact of forces on the overall performances of operation management. 5. Techniques and equipments use to indicate the performances in operation management at airline industry. 2.1 Theories: Theories are the basic foundation to establish the platform for generating the hypotheses and connect those hypotheses with the help of empirical researches conducted in the past. Kumar says that literature review is an examining and analysing the literature in detail is a continuous process and a prolong one. The process is lengthy in nature as it begins with the identification of a problem or query and carry on until the research investigation is finished. In the commencing of literature review there are four steps which are as following: 1. Examine the literature available related to your current research study at hand. 2. Next, re examines the literature that is selected. 3. Design a framework of exploratory nature for the elected literature so that the research is in more detail. 4. The final step is on the basis of strong concepts construct a solid structure.

2.1.1 Growing Significance of five performance objectives: Five performance objectives have been considered as constructive tool rather than simple indicators of a performance in recent times. With the passage of time, the competition in the market has immensely increased and organisations have primarily focused on attaining the edge over their rivals in dynamic market. To gain competitive advantage, the more focus is on the improvement and measuring the performances of organisations, therefore, five performance objectives has attracted more and more the analysts, marketers, manufactures and employers to indicate that how well is their respective organisation performing as compare to their rivals. Five performance objectives in an organisation are Quality, Speed, Dependability, Flexibility, and Cost respectively. On the basis of categorizing factors, these objectives can be split into order winning, order qualifying and less important factors. (Slack et al, 1995, p72) factors that are directly contributing to the wining of a business is order winning. This reflects the idea that business is performing well therefore; it is better placed than its competitors. The performances of operation which makes the organisation to be as first choice by the customers, in other words, the customers consider the particular organisation better than others are the dimension of competitiveness, is regarded as the qualifying factors that makes organisation to be considered by customers (Slack et al., 1995 p72). Those factors which do not win order nor makes organisation qualify for certain prospects are known as less important factors (Slack at al., 1995, p72). In other words, these factors do not make strong impact on the customers. (Peters, T., 1998) suggest that organisations must learn to design and develop the flexible strategies so that they can accommodate with the change and respond to the dynamic of business environment in a fine manner. It also observed that only those organisations stay in the market for longer time period which has the ability to change according to the demands posed by the environment. 2.1.2 To identify the basics of five-performance objective. (Lewis, 2011)in operation management the performance objective purpose give the organisation to compete and understand the demand of customer by developing the source that keep them forward to its competitors in the future but on the other hand, (Pycraft, 2000)

suggest that operation performance objectives play a significant part in

any type of

establishments in a long run. It gives the idea and advantages to organisations by the basics of performance objective. To understand the more about the five-performance objective in the organisations with competitive advantages to doing things rights, doing fast, doing on time, doing things according to the time, doing cheaply all this function of the objective in the relating to quality, speed, dependability, flexibility and cost in the organisations. 2.1.2. (a) Quality Quality gives the dependability on the product to reduce the cost and give the service to customer, maintain the standard of the organisation in the market. (Johnston, 2003) doing thing rights without errors and maintain the quality of the product in market it makes external satisfactions to customers and it make life in operations easy as well. Quality inside the operation

(Pycraft 2000),In the operation quality, reduce the cost if the fewer mistakes happen to producing the goods in the market it takes less time to process the work and get benefits to the organisation. For example if Airline Company gives the goods service to customer, it will increase their brand name in the market it will benefit to operations and benefit the organisations. Considering the case study at hand, Ryanair thinking about their quality to improve them doing well but know time has come to look the business in different way to growth the company and move further. They already done free mouth publicity of paying for foods, doing toilets this all crazy thing but it works for them. Ryanair now move from small airport to big airport the growth of sales has come down 3%to 2% .shareholder will need their return (Brown, 2010). 2.1.2 (b) Speed (Pycraft, 2000), a speed is delivery product on time by the giving customer for their product. It gives the organisations value to reduce the inventories, and external customers getting their product on time it means more customers can be can be deal and satisfy customers means explore the operations objective. Speed inside the operation

(Johnston, 2003), speed is the important function of the performance objective in the operations it gives external customer getting thing fast; it gives the operations management to

make-decision and makes their availability of the product to reach the customer without error it helps the organisations to reduce the inventories and reduce the risks of the demand. Ryanair believe if they have to make profit this will be the major performance objective to organisation and satisfy passengers needs and demand in the short period. They flight are short haul and turnaround time is important to earn the profit. It will attract the customers and fulfil the demand of the passengers. The advertising of Ryanair is quick by mouth publicity of there no frills, standing travel it all make the news for the customers and get benefit for them. 2.1.2 (c) Dependability (Lewis, 2011) it gives organisation to doing thing on time which customer has been demand without error fulfils the promise to the customer getting the product or service on give time. In micro customer, the operations of objective give the organisations to save time, save money and gives stability of dependability in the operations objective. Dependability inside the operation

(Slack, chambers, and Johnston, 2004), internal operation having the similar effect in dependability the customer judge the operation organisations according to the service or product getting to them at giving time. It makes the micro dependability higher and effective in the operations. The performance objective of dependability is save time according to operations fulfilling the demand of the internal customer on time without mistake. It helps them in save money as if ineffective time makes extra cost to satisfy the customer for the product and it gives the stability on the operations to improve their own area of responsibility. In operations, everything is perfect and a level of dependability is increase it makes more satisfaction customer get their product on time. For EX: if want travel with the Eurostar the price high and time of reaching is long but if you book ticket of Ryanair the passenger will reach their destination in short period than train and it has low price fare for the same destination. 2.1.2 (d) Flexibility objective. In operation, flexibility is something changes of doing work (slack, chambers and Johnston, 2010), in this objective of operation effects and increase the ability of doing things for different customers. It gives the organisation ability to produce high volume of product that means high variety. If the producing of goods is high in mass, customization it will reduces

the costs low. It gives the organisation dependability of the product, save time. (Pycraft, 2000), flexibility gives the new idea of working and advantage to the organisation making more customers in the market. Flexibility inside the operation (Johnston, 2003), it makes operation more interest willing to produce more product or service. The internal advantages of flexibility give operation to doing thing in different circumstances and doing quickly Ryanair provides the flexibility to passengers that they can change the name of the passenger who is flying and can change the flight time. It gives them more flexibility to their passenger they can travel according to the passengers comfort. It said by sales manager Scotland Kathryn Munro just phones call can change the passengers name that is travel.

Ex: If Manager of the company calls sick, than the assistant manager can replace the travel ticket on his name and he can fly for the important meeting in Dublin. It show the flexibility of the Ryanair in the last minute change of the passenger, they always been low fare, on time, reliable

2.1.2 (e) Cost objective (Slack, chambers and Johnston 2004), in the organisation cost is effective objective it gives the internal production to maintain the quality of the product under production and it gives the compote direct impact on price, operation having an attention in low cost with their quality, speed, dependability and flexibility with maintain customer demand. It shows how will is the operation working in the organisation. Productivity is maintain reduce costs and having a inputs level to outputs level its all depend upon the transforming of product in and out. (Johnston 2003), maintaining the cost of product is gives you the good advantage of the product in the operations. It shows the high quality of the product without waste time and maintains the quality of product. It helps in the inventory of the product in the process and out of the process. Cost reducing the internal effectiveness of the operation to maintain dependability and flexibility of the product or service. Ryanair start promoting themselves and cutting cost in advertising agency, Online booking has been start for the passenger so they do not have to go travelling agency, saving money of

customer and profit for the company so the customer only need to take passport and booking reference, seat no with them while travelling. To understand the marketing of Ryanair five-performance objective the internal and external of market need to know, we have to explore the macro environment and microenvironment to analyze the marketing of the Ryanair airline. In the operation to analyze, the effectiveness of Ryanair the four V will help to understands and they stand for Volume, Variety, Variation and Visibility. 2.1.3 Order-winning and qualifying objectives The performance of organisation need to know what the competitors are doing to attract the passenger and needs of the customers it make the airline to fulfil the demand of the

customers and it will make the demand qualifying factors. Those aspects of competitiveness where the operations performance has to be above a particular level just to be considered by the customer (Slack et al. 1995). The effective to the organisation make them forward form another organisation to move head for any aviation organisation and show the ability of their own company this factor called order winning . Those things which directly and significantly contribute to winning business (Slack et al. 1995). The passenger demand need to fulfil but does not affect the company programmes. Neither order winning or qualifying. They do not influence the customer in any significant way (Slack et al. 1995).

2.2 Results of various empirical researches:


In order to create a better understanding about the operation management and competitive advantage, the studies conducting in past will be examined here to show how it has been perceived in past and how further understanding can be created about it. According to Coyne and Kevin (1986), competitive advantage helps every organisation to sustain its operations in the market and does affect the internal and external environment. On the other hand, (Barney, 1991), argues that firm uses its resources from operational activities to sustain the edge in the market. The idea of (Bharadwaj, Sundar, Varadarajan, and Fahy, 1993) is that in service industries the operation performance assists the organisation to attain the sustainibilty for a short run. Considering the research of previous studies of (Bradley and Hill, 1983), it is essential for every organisation to identify properly their core competencies which can attain them edge over their rivals in market. 2.2.1 Identify competitive advantage in operations. (Porter 2001), in organisation having exceptional advantage to over the competitor to understand the competitive advantage with business tools like swot and pestle it gives the micro and macro environment to analyze the organisation against to the competitors operations strategy. COMPETITIVE INDICATOR. PERFORMANCE OBJECTIVE RYANAIR. QUALITY Its according to passenger Aircraft exceptions SPEED DEPENDABILITY Short haul Reach according to schedule. maintained. Quick turnaround of aircraft. Arrival and departures on time. FELEXIBILITY COST Variation in time. High volume /high profit. Viability of flights. Reasonable tickets. should be OF PASSENGERS NEEDS FORM RYANAIR.

Ref: Adapted from Slack et al (2001)

Above improving the competitive indicator from performance objective of Ryanair through passenger of Ryanair. The competitive factors speed, quality, flexibility, dependability, cost. (Pycraft 2000)In operation management, product or service of organisation is influence the customer demand and satisfactions. The customer like low price on the product it effect on the cost of the product and service. If the customer needs the low product quality, it effect on the operation flexibility of the product but the quality will not be satisfying the customer. The dependability of the product and service to customer is delivery on time is important with speed of the product and service. 2.2.2 Competitor influence on performance objective (Porter, 2001) influences the customer with product or service it depends the value of cost against potential customer. (Slack, chambers and Johnston 2004) competitor influence is imperative in the performance objective. Design of product, location is add to value of the customer, influence the competitive advantage to the organisation delivery of product, and repair maintenance implanted to the object. (Porter and Millar, 1980) lower the cost having impact on technologies of the value chain flexibility of the product in the large scale of the organisations. Performance objective gives the organisation to influence the marketing strategy and understand the customer demand with help of their competitor in the market. Ryanair is the European low cost airline company they do not promise if delay happen they gone give free voucher, Ryanair is low budget airline they believe their turnaround of flights they believe flexibility and dependability of the object. Cost is the main influence objective in the Ryanair value chain is the cost affected strategy in the organisation to understands the competitors it gives you the idea about they compote .( Johnston 2003) design of the product is gives you the competitive edge in the organisation influence the product quality. The process of the delivery gives the speed and dependability on the product with saves cost on the product. The Michael o Learys The low cost always win in the market. The economical year of march 2009 it shows well in the market have the big company were not doing well in the recession time but they did well in that time. 1. New aircraft net 18.

2. 15 %to 58.5 million rise in the number of passenger. 3. 8.5% to EUR 2.93billion rise in operation revenue. 4. New bases like Bournemouth, Bologna, Cagliar, Edinburgh and Alghero. Ryanair is the world largest low-cost fare airline in the international passenger carrier. They are operating from 39bases and 1,050 routes having around 1,250 daily departures around 25 countries, to some 154 destinations and have traffic growing to 73 million consumers in fiscal 2011. Ryanair is the most famous airlines in Europe countries because of their market strategic and the brand reputation of the company in market. The costing fare is attracting to the customer and it gives more publicity in the market against the biggest brand available in the aviation industry. It gives the consumers the value of their money and has flexibility of the traveling in the Europe countries and marketing strategic of the airline is creative and resourceful for the customer it help them in costing and quality of the resource on board entrainment and sale. Ryanair carried 4.56 million customers in jan2011and increase of 5% and load factor rise 71%. 2.2.3 Evaluate the relationship between operations and competitive advantage. The operations function play vital role in the organisation and competitive advantage gives the organisation to understand the value of product in the market. In operation, there are various strategies like implement strategy, support strategy and drive strategy of business. Implementing business strategy

(Barney 1986), in competitive strategy influence of product should firms the economic but the strategy of environment should construct the market of cost to implementing the strategies. To analyze the product in the market the rating factor should improve the source of strategies. (Duran, 2010, P7), Product performance ensures that operations are running in a smooth manner. The competitive strategic is source to make value of economic and necessary implementing strategy acquired. (Lewis 2010) the basic role of strategy is to implementing in the operation, organisation having some kind of strategy practice. To having, effective implementing strategy used always-best strategy ineffective. (Porter 1980) in strategy, the

most important thing is low volume and high margin profit. The managing skill should be high to resource the implementing strategy. Ryanair have strategy of doing business online service which operation function having supervise of design the process, which makes customer access online information, availability tickets, online booking ,check credit details and documentation so on Supporting business strategy

These strategies give the organisation economic growth and refine their goal of organisation. Growth of economic in organisation it improving the quality of growth and having flexibility of competitive to the performance of the operation it makes the organisation growing up in the market against the competitors. (McGarahan and Schoemehl, 2000)in operational organisations having to understand the customer demand to influence the product in the market.(slack, chambers and Johnston, 2004) supporting strategy gives resources developing the capability of the organisation.(porter, 1985) supportive strategy reflecting the cost leadership of organisation and gives the idea of firms the industry. It gives the organisation productivity of the growth in the market; cost leadership makes innovation of the product and develop process against the compote. Ryanair gives the customer new offer available in the market better than their competitors and low cost of travelling attracting the customer to fly with Ryanair than others. It shows the operational flexibility in the market of Ryanair to improving their margin profit in the organisation. It shows the support of operations business strategy with their competitive advantages to organisations strategy.

Driving business strategy

This is third strategy in operations function about drive strategy its long-term advantage and exceptional. These give competitive advantage of the organisation to performance objective according to strategy plan of the organisation.( Lewis 2010) when organisation reached they place in the market of doing thing in unique away and satisfactions customer relationship and supplier relationship in the innovation new product and development of the product. Then it is impossible to competitor to imitate in market, it only possible if they operation having capability to doing thing unique and organisations having operational strategy to drive the business strategy

Ryanair operations strategy is different for another organisation in the aviation industry they believe in speed of doing thing they do not believe in quality but they have different strategies of doing business in the organisations. The do not believe in make relationship but them believe in fulfil demand of the customer in their own strategy. Four stage model of operations contribution

(Woodruff, 1997) the competitive advantages in the operation function having ability to play within the company aims of the operations function. (Hayes and wheelwright, 1984) the fourstage model is analyzing the contribution towards the competitors of the operations function. The first stages shows the lower level of the organisations ,second stages shows the level of the organisation work with operational functions in the organisations with competitive performance ,third stage is the upper level of the organisations and fourth stage is central level of competitive strategy of operations functions. Stage 1: internal neutrality. The operations functions on this level were low and it shows the operational management have to work hard to run the organisations it lacks of strategy have to effected to move the organisations. The competitive performance is not able to get the organisation move forward with positively towards the function of the operations. Stage 2: External neutrality. This is first level were the operation function trying to improve the brand in the market with the product and their competitive marketing strategy to success in the market and measuring them with other competitors in market. It shows the competitiveness of operation is so important that organisation have to be using their strategy function to achieve the organisation position in the market. Stage 3: internally supportive. This shows the increasing operations capabilities in the market with increasing strategic impact of the operations in the organisations with their supporting strategy from operation function to growing up in the market and having clear view of the competitors in the market. It shows how good operations functions have been used are in competitive advantage of the operations. Ryanair having good operations functions in the market and utilising their performance object in the operations were well to run the business and having good view on their competitors in the industry to analyze the organisation towards the future, as there low cost airline company they are doing well in this positions of the market.

Stage 4: Externally supportive. In this stage operations functions is high level, and doing thing unique and head over the competitors in the market it understand the customers demand and having good relationship with suppliers of the organisations. (Hayes and wheelwright 1984) the capabilities of the organisations functions it shows how they competitive used the effective way to forward the organisations in the operations functions. 2.2.4 Strategic Dimension: The performance indicators helps organisations in building a strong foundation for developing the strategies in various dimensions as it ensure that everything is going as per the plan of top management. The strategic dimensions are formed on the basis of scientific principles of management Huczynski, A., Buchanan, D., 2001). These strategic dimensions are also essential in capturing the market as it helps organisation to ensure that the operation management is securing the winning or qualifying orders. (Vida and Firhurst, 1998), argues that the inhabiting factors that grows inside the firm has the potential to affect the decisions regarding the invasion of a new country. This shows that the strategic dimension is essential part and is closely linked with the operation management. While in process, these decisions may alter the external operations and lead to plans of innovative execution. 2.2.5 Competitive analysis: The main objective of every business is to maximize profit and attain the customer satisfaction; the operation management is linked with customer satisfaction in a close connection. Since the market has high number of competitors therefore, one of the business levels objectives is to take edge over its competitors. (Peteraf, 1993) suggest the four components that serve as keystone. (1) Heterogeneity is one component resulting due to the competitive edges existence in the economic market. (2) Ex post barriers to competition to control and categorize the charter in the market. (3) Mobility to sustain the firms and (4) Ex ante limits to competition so that rents are not mixed with the costs and expenses. Furthermore, the advantage itself requires being in a mode of sustenance or justified. The two runs in the market are short and long run, when a company seeks to have suitability, it is possible in short run to achieve it but in long run it is possible as advantage gradually evaporates in the long process. The evaporation of sustainability occurs due to either shifts in pattern or due to the overtaken advantages by the competitors. Due to these two factors the

competitive advantage eventually become out dated or wants to contend feature. (Grant, 1991), suggest that sustainability is subject to be affected by four factors such as durability, transferability, transparency and replicability. So firm should respond to any of the following factor which is rationally in target to have an impact on the advantages sustainability. (Taylor, 2009) innovation in the process of producing and differentiating a product from the rivals are of great importance in a competitive industry. 2.2.6 Conclusion: After the analysis of various empirical researches and journals regarding the operation management and competitive advantage, the objectives of the research are linked with the literature to commence research in a practical way. The various results of previous studies explain that competitive advantage is in close consideration with the operations as every component of operation is strategically designed to carry out plan in order to gain the competitive edge over rivals. Furthermore, the companies who have operations executed in a definite and adequate way leads to attract the customers more which not only gain the competitive edge over rival but also increase the business efficiency. The five performance indicators are helping organisations in finding their strengths and ensuring that their competencies are as per plan of the management. It helps organisations in winning and qualifying in the market against their rivals. Thus, the core function of these performance indicators are ensuring that the performance of an organisation is up to the mark or similar to the standards set by the top management. Furthermore, the operation management assist the firms in attaining both, the customer satisfaction that is linked with the competitive advantage and increase their performances. The performance indicators are identifying source which helps organisation to respond and cope up with the internal and external environment. Various theories and empirical researches conducted in the past have explained that there is a relationship between the operation management and competitive advantage but it has not clearly identified the practical linkage for aviation industry. Therefore, in this research the main focus is to critically evaluate the link between operation performance objectives and the competitive advantage in the airline industry. Furthermore, one basic assumption was not considered in previous researches that when there are economic downturns, how companies can use these operation performance objectives to their advantage in order to sustain the competitive advantage in the market.

Chapter 3 Methodology 3.1 Introduction: This main purpose of this chapter in research study is to elaborate, clear concepts and justify the methods that are use in the research studies by researchers to collect the information required for research purpose. Different types of techniques are discussed to provide a support for particular course of action chosen for this research study. With research strategy we began this chapter, followed by research design, techniques, and procedures to gather data. Later, the evaluation and analysis of collected data is explained along with the ethical issues related to research investigation. (Goddard, 2004)It is research process show that objective of the topic is important and understand the value of research, effective it give as an idea about the topic and putting your own view of understand the research and share knowledge with others in the research process. Analysis data and collect information of data for the research it helps to move you further in research process. It show how the improvement of research is done well using a data analysis and research of primary data and secondary data, of the objective how well you have improved your sources to get information for the research. It takes a lot of time to writing process and taking care of process in the work, you are talking about each objective of the topic. It is important part of the research to carry forward the research in details. To understand the research in deep and putting our view about the topic and why we have selected this topic will be explained in this chapter. It gives the all information available of research analysis the data and moving further in the research process and clear talking about the objective have been taken. 3.2 Research Design: 3.2.1 Research Problem: Research problem is based on its uniqueness since it is problem so therefore, it has not been experienced before by organisation. The problem in this research investigation is the determination of five performance indicators in the operation management activities and how do they affect the business in the market. It is not clear that how competitive advantage is gained by chosen organisation in the market. Furthermore the assumption is not very clear

that operation management is linked closely with attaining the competitive edge therefore, the main reason is still not known to us. 3.2.2 Style of Research: Qualitative research and Quantitative research: The two basic kinds of research are qualitative and quantitative research respectively. Quantitative is easy to express in numeric whereas qualitative cannot be express in the numeric form but both researches by nature are empirical researches. In other words quantitative is empirical research that is determined on the basis of quantity and it is collected, generally analyzed, and represented in numbers whereas qualitative is type of empirical research determined on quality basis therefore information is represented after gathered and analyzed in the non numeric forms. We opted for the combination of both styles which means the qualitative and quantitative data approach would be used in this present investigation. Qualitative is beneficial especially in identifying the purpose of objectivity of research at hand. Moreover, it assisted us in defining parameters, and to measure various variables in order to critically evaluate the information on the basis of quality. Quantitative approach is significant in identifying and pointing out the data in statistical mode and evaluating the sum up based on the analysis of data in numeric form. 3.2.3 Hypothesis: Since this research investigation is applied research by nature therefore it is based on problem. Assuming that there could be various factors involve in the process which is affecting the performance on an organisation. Now that research methods are elaborated in detail, it is right to explain the need of hypothesis for current study investigation. Hypothesis is basically an assumption that this could be a possibility. It is not guaranteeing anything but providing an assumption as a base to further investigate in detail.

In this research there is an assumption at the start of research that there exist a relationship between the activities of operation management and competitive advantage and furthermore it is assumed that this relation is strong by nature. To check the credibility of our assumed hypothesis I have developed Ho (Null hypothesis) and H1 (Alternative hypothesis).

Null Hypothesis: Ho is a null hypothesis which means there exist a strong relationship between the operation management and the competitive advantage. In this Ho is a variable that is affecting the performance of company to attain the competitive advantage in the dynamic market.

Alternative Hypothesis: H1 is alternative hypothesis that suggest that no strong relationship exist between the operation management and competitive advantage. Furthermore, this alternative hypothesis (H1) is a variable which is not affecting the firms performance in attaining competitive advantage.

3.2.4 Research Questions: We will commence a present research investigation with the help of these questions that are stated below and put an effort to find adequate answers to questions that we are using as a foundation for research. Q1. Is competitive advantage is the most important factor for airline industry? Q2. What are the core competencies of operation management that affects the Ryanair? Q3. Is there prevailing a strong relationship between the competitive edge and the operation management? Q4. How effective is the five performance indicators in achieving the competitive advantage as Ryanair?

3.2.5 Sample size: Due to time constrain the three individuals from top management has been interviewed and the close ended questionnaire was circulated among 30 employees considering their experiences and knowledge as most of the interviewed employees have prior to five years of experience. The sample size is short one so the findings are limited to current investigation. 3.2.6 Pilot testing: Pilot testing is done before commencing a research that few individuals were selected and asked questions to make sure that question are understood in a proper manner and they are able to respond to queries in adequate manner so that actual findings can be generated and

reach to appropriate conclusion. In this research study also the pilot testing was done by selecting random members to check that questions are understood correctly. 3.2.7 Credibility It is essential to check the credibility of respondents because the sample size is small and in this research it was done through viewing the work experience of employees along with their educational background which ensure that respondents credibility is there and vital information can be attained from them. Furthermore, the questionnaire is self administered by the researcher so that accurate findings can be attained.

3.2.8 Analysis Method: For critical evaluation of this present research investigation we would select the case study approach. The most renown players in the airline industry of United Kingdom is examined and study in depth like British Airways, Virgin, Kingfisher, and Ryanair. Since the main focus is on Ryanair so there adopted strategies will be examined by help of environmental scanning tools so that how their operational activities are carried out and how are their performances in the market currently could be further understood. We also have telephonic interview with the manager and few members of top management. The survey method is used to reach the employees of the organisation. In survey, the close ended questionnaire is used so that responses can be easily categorised. Furthermore, the observation method is used at the department of operational management to observe the different functioning. Moreover, two tools are used for the analysis, one is SWOT analysis tool and the second one is Z- TEST respectively.

3.2.9 Data Sources: After setting the objectives and clearly stating the problem, it is vital to define well the means and techniques for gathering the information. Keeping objective in mind, the data collection methods are decided. It should always be rational and achievable within mentioned time frame such as objectives. It is essential that data is easily accessed, adequate, valid and applicable to the questions.

Main two sources are Primary and secondary sources. Primary is in direct mode that researcher gathered on first had whereas secondary is already gathered by someone and researcher use it to his need. The past records, face to face interviews, partial or direct participation, observation, collection of documentations are all part of primary sources. Books, articles, websites or journals about competitive advantage or aviation industry are part of secondary sources. Primary sources for research: Case-study Method: Sine case study has steps like selection of appropriate case, preliminary research, phase of data, analysis followed by reports construction; it would be very rational to select case study approach. These steps are the exact pattern that we will follow of Cohen and Mansion (1995, p123).But there are limitations to this method as determination of researchers perception and elements of personal choices (biasness). The case studies of Virgin, British Airways and Ryanair is undertaken to understand the five performance indicators in gaining competitive advantage. Telephonic Interviews: Case study has limitation therefore we included a telephonic interview with the managers and crew members. Its advantages are that it is cost effective and at the same time conversation with individual. It is again qualitative data. We are using it as the expert will respond on the basis of experience and level of competency in particular field. Those questions which were not clearly answered by employees were asked from the top management. Questionnaire: Valuations of questionnaires is depending on what type of research is carried out, in this research the close ended questionnaire is used which is self administered by the researcher so that there is more assurance of accuracy in findings. In this research close end questionnaire is used to have ease of evaluating the responses and further categorisation. It is a degree based so the responses are shown in degree. In this a scale is used to attain the response on the scale of 1-to-5.

Secondary data collection This research based on five-performance objective in operation and gets their literature review of research done on secondary data. The information knowledge has taken from article, newspaper, journals, studying books, magazine and library. Search engine like Google, and yahoo taken care of objective used in the research of studying this topic and design the accurate knowledge of study to explore the view about this research. 3.2.10 Research ethics: The information about this topic is taken according to moral rules which means that the information collected from various sources are by the consent of the right person and research of publication knowledge kept under the privacy. In ethic we observe qualitative research and conversation of the objective done on the base of the telephoning interview, conversation interview, recording interview it all source of gathering information and take care of the information in privacy, so the filling about their own opinion doesnt hurt others should be take care (woods.P,2006)

Chapter 4 Finding and Analysis 4.1 Introduction


In this chapter we are going to finding and analysis of the objective have been taken research is based on secondary data of the topic. To analyzing the objective form the literature review it show how importance of effective indictor of five performance objective in the operation management of the establishments. Finding based on Ryanair case study showing the competitive advantages of the operation in the European low cost airline company. In research the data collection of Ryanair show that operational management of the organisation having effective process of the organisation depend upon the performance objective and it matches with the findings of study conducted by Bradley and Hill, (1983). The competitive finding of the object shows the Ryanair is doing were well in follow short haul travel for the customer it makes profit for them and low fare to the buyers of the airline tickets of the Ryanair which resembles with the empirical research conducted by Bharadwaj and Fahy (1993) (Appendix A). Ryanair have 10th position of ranking in the world of airline. Aviation industry compare to their other organisation. Ryanair have profit of 16% in half year this second their confident of going higher profit. The fuel prices are going high but they Ryanair carrier, have good sales of summer tickets and turnover of passenger have been increase, big airline company trying to cover the fuel and cost. The prices of kerosene have been increase and fuel prices is go high its effect the big airline company the 17% of increase high in hole year (Appendix B-i). 4.2 Findings Findings from the research are quite inclined and are clearly strengthening one of the hypothesis developed, it is tough task to summarise the details of the survey and state the result of the survey as there are number of respondents each of them giving a different opinion for the same question, for obtaining the result of the survey majority is taken into consideration with some inclusions from the articles, journals, and the interview.

Q1. Is competitive advantage the most important factor for airline industry?

8 7 6 5 4 3 2 1 0 Very Important Important Not so Important Not Important

8 7 6 5 4 3 2 1 0 Very Important Important Not so Important 2 1 0 Not Important 7

Respondents:
Very Important 21

Important Not so Important Not Important Total respondents out of 40

6 3 0 30

Interpretation: The first question of the survey asked the respondents the importance of competitive advantage in airline industry and most all the respondents accepted that the competitive advantage is very important for the airline industry and there were no respondents who said that the competitive advantage is not important for the airline industry, this clearly proves the point that it is very important and the points mentioned by the crew member are also taken into consideration for making this conclusion about the question. The findings are similar to the management literature, particularly the findings of Peters, (1998) (Appendix A). Q2. How effective is Quality as performance indicator in determining the competitive advantage?
10 9 8 7 6 5 4 3 2 1 0 1 2 3 4 5

10 9 8 7 6 5 4 3 2 1 0 1 2 3 4 5

Interpretation: The second question was to rate the importance of the five factors in regards to Ryanair and the rating for each of the factor was different and all the factors were almost equally rated and the rate for the factors were all positive, which means that all the factors are considered equally by the employees and the interview with the crew has also depicted the same thing but he considered price and quality the most important, even the survey results show the same thing, the range varying from 3-5 say that the factor is important and above 3 suggest that it is very important, whatever the rating is above 3 the factor is then at least considered important, from the survey, it can be concluded that all the factors are important but for Ryanair it is the price that always gave ahead start in leading the competition in situation, where it lead the competition (Appendix A).

Q3. On the scale of 1 to 5 how much speed as performance indicator is essential to accomplish the competitive advantage?
9 8 7 6 5 4 3 2 1 0 1 2 3 4 5

9 8 7 6 5 4 3 2 1 0 1 2 3 4 5

The third question for which the percentage of the respondents who feel that the relation is strong were more than 90 percent and the respondents who said that there is no relation are just 10 percent , the way the crew member explained the relation is very simple and striking in developing the result, this explains us that the employees feel that the operations backdoor

are important in portraying the companys image in the market and give them a push for excelling and taking over the rivals with the best(Appendix A). Q4. What is role of Dependability in achieving the competitive advantage?
14 12 10 8 6 4 2 0 1 2 3 4 5

14 12 10 8 6 4 2 0 1 2 3 4 5

Interpretation: Dependability is rated with least importance by 2 respondents, 1 respondents dependability is of low importance, 7 of them rated it as a moderate factor, 8 rated it with high importance and

12 respondents feel that dependability is the key factor with highest importance in the operations management(Appendix A). The fourth question explains the most important factor in operations management for gaining the competitive advantage and the responses were very confusing and to find out the exact factor, the perspective of every employee is different and the every thinks everything is important but to rate they have gone for the most important thing in their view(Appendix A). However price and quality have got the highest number of votes, this is because any customer before he decides the experience of the product or service, he will analyse the quality of experience that he gets from the product or service based on the amount of money spent on it (Appendix B-i). Q5. How important is Flexibility for operation management activities to strive for competitive edge?
10 9 8 7 6 5 4 3 2 1 0 1 2 3 4 5

10 9 8 7 6 5 4 3 2 1 0 1 2 3 4 5

Interpretation: The five performance indicator has proven to be a very essential and unavoidable thing in the current competitive market, if this indicator is not taken in to consideration, companies may not know where they lack in getting their competitive edge and they will not be able to outperform in getting the competitive edge over their rivals, all the factors in the competitive performance indicator are individually assessed in the questionnaire to find the importance of the each of the aspect, the most important thing in the five performance indicator was not clear by the survey because all the aspects are as important as each other, there is no factor that is very important and there is no factor that is less important, in the survey we have clearly found the importance of the indicator and the strength of the relation between the five performance indicator and the growth of the company in relation to attaining the competitive advantage (Appendix A). It is clearly found from the interview and the survey that Ryanair has competitive advantage over the rivals but the company has its own limitations too, the strengths of the company is well established in the market, with the company being known for its best low fares all over and the other factors are also concentrated by the company in attaining the top position in the market as each of the factor is distinguished operational functions that it should concentrate to make the customer happy and the management happy, after all this is a profit oriented company and the final outlook is to get the most out of everything, this survey has really helped in finding the relation between the advantage and

the operations, the background operations really matter in displaying the companys commitment in the market and establish a good relation with the customers(Appendix B- ii). Q6. How vital is the determination of Price in attaining the competitive advantage in the market?
16 14 12 10 8 6 4 2 0 1 2 3 4 5

16 14 12 10 8 6 4 2 0 1 2 3 4 5

Interpretation: Price is considered as the most important factor by most of the respondents and the percentage of respondents who say that price is not very important and moderate are less than 20 percent (Appendix A). Q7. What is the Relation between Operation Management and Competitive Advantage?
14 12 10 8 6 4 2 0 Very Significant Significant Moderate No relation

14 12 10 8 6 4 2 0 Very Significant Significant Moderate No relation

Very Significant Significant Moderate No relation Total Respondents

8 12 6 4 30

Interpretation: Most of the respondents has answered that it is the important factor which shows there exist a strong relationship between the operation management and competitive advantage (Appendix A & B-ii). The second best is that there is most significant relationship between these two variables. These shows that 16 out of 30 respondent indicates that there exist important linkage between operation management and competitive edge (Appendix A).

Q8. Which is the most important factor in operations management for attaining competitive advantage?
9 8 7 6 5 4 3 2 1 0 Quality Speed Dependability Flexibility Price

9 8 7 6 5 4 3 2 1 0 Quality Speed Dependability Flexibility Price

Respondents
Quality Speed Dependability Flexibility Price Total respondents 8 6 5 4 7 30

Interpretation: The top most answer according to the answered sample frame was quality which means that the most essential indicator to identify the performance of operation management to gain competitive advantage is quality. Surprisingly the 7 respondents opt for price as an indicator as compare to dependability. But this reveals the psyche of the sample about gaining the edge in market, the cost effective policy is more vital (Appendix A).

4.2 Interviews Results: Here is an interview conducted with a Crew Member of Ryanair Mr. Paul Godfrey. 4.2.1 Question 1. Is Ryanair capable of taking over major market share in this competitive market? It has the potential to do so as it is one of the leading airline operators in the EU. Discussion: Speaking to us about the competitive edge of Ryanair in the market, he explained the performance of the company based on statistical data, he adds in to the point saying that Ryanair is one of the leading airline operator in the EU. If we look at the statistics in comparison to its rival, it clearly states that Ryanair is capable of increasing its market share due to the recent performances. It carried 73 million people in the last year, the current market position of the company is the best indicator of the competitive edge that a company has in the market. (Appendix B, iii). 4.2.2 What is the contribution of operations management in gaining competitive edge? Activities of operation management have a strong correlation with the attainment of competitive advantage in the dynamic market. Discussion: In the literature review also we have examined that order wining, order qualifying or less important categories are there and operation activities are functioning on either of these three (Slack et al, 1995, p72). The manager explains the relation between the operations and competitive edge in a cycle, operations have a direct affect on the competition, he says winning competition in this industry is giving the best possible experience to the customers, to make this happen all the operations have to be unified and then presented, an small deviation in the operations may result in ruining the experience of the customers, making it difficult to get them back, in vice versa when the operations meet the expectations of the customers, it is easy to get hold of a good market share (Appendix B, iii). 4.2.3 What do you think is the major factor contributing to its advantage? Price is the most important factor for Ryanair. Discussion: This answer reflects the idea of (Peters, T., 1998) who also suggested that though organisation needs flexibility so that they are able to respond to the continuously changing environment but the one factor which is very essential is the determination of price. If price is

determined in a correct manner that it is easy to compete in the market and even attain the edge over rivals. The company should have ability to adjust its price factors quickly so that they are quick enough to respond to changes in the environment and stay for a long period (Appendix B-iii). 4.2.4 Are these factors helpful in analysing and implementing plans to gain competitive advantage? Yes all of the performance indicators are essential for Ryanair in order to gain advantage over its rivals. Discussion: Mr. Paul confirms that all the factors that indicates the performance of company are important. If we refer to our reviewed literature, he find that these indicators has its undeniable significance for organisations because according to (Pycraft, 2000) in various types of establishment a company want to make, these operation performances perform an essential part in the long run to attain the edge over competitors. It provides notion and edge to firm by the performance at a basic level and making it easy to understand the core parts of operations and work on them to enhance the performance of the company in each segment (Appendix B-iii). 4.2.5 If you have to put the factors in ascending order of their importance, how would that be? 1 Quality, 2 Price, 3 Flexibility, 4 Dependability, and lastly Speed. 4.2.6 Is Ryanair leading the competition in the market, are there close any close competitors to the company? It is one of the leading brands in airline industry and like other good airlines; it is also facing a competition from rivals, particularly Easyject and Airlingus. Discussion: Every airline company who offer the lower price deals to the customers are competitors to their company and the all the airline companies that perform very well in exceeding their targets and making more profits in the market, the net income of ryanair is 3.63 billion during the last year, whereas the competitors could not even near this figure, Ryanair influenced market, the most common rivals are Easyjet and Airlingus, most of the times it is them who win the low fare battle, the prime motto of the company is to avail flying

facility to the passengers at the lowest rate possible, there were other competitors before like the GO airlines, but this are no more considered a tough competitors now (Appendix B-ii). 4.2.7 What do you think Ryanair should improve on? Ryanair need more Flexibility in its approach. Discussion: According to (Johnston, 2003), flexibility creates operation to be willing at the process of production. The advantage at internal of being flexible provides firms to be more prompt in its operational activities in numerous types of circumstances. Ryanair provides the flexibility to passengers that they can change the name of the passenger who is flying and can change the flight time. The fact that the flexibility factor for Ryanair is limited as it is a low cost airline, which should be alternated, for Example the flights are majorly based on the secondary airports to cut down costs, which make loose a great share of market (Appendix Biii).

4.3 Telephonic Interview: Here is a telephonic interview with the operations team member of Ryanair Mr Steve Jaccobs: 4.3.1 Does five factor indicators contribute to analyse situations and develop strategies accordingly? Yes, indeed five performance indicators are vital for firms especially when firms are about to develop strategies. Discussion: Competitive advantage is always dependent on the performance of the company, whatever the name of the performance it may be it is very important for the company in attaining a better position in the market, if the five performance indicator of the company is very important as it brings in the each and every factor that is involved in making the company stronger in the market, all the five factors that are involved in the operations are distinguished and rated in this five performance indicator report, all the factors are as important as each other, he makes it clear that there exists a strong relationship between the factors in the operation in performing better, the performance of the company is directly proportional to the competitive edge that it is gaining over its competitors, he says that there

is no competition when you dont know where do you stand, when your performance is indicated in the five performance indicator by distinguishing every factor, it can be un avoidable to gain the competitive advantage over the rivals. As understood in the literature review, According to (Slack, chambers and Johnston 2004), cost is essential for the organisations so that quality is maintained in the operations internally. They further described that quality production has impact on the price, speed, flexibility and dependability directly so that demands of customers are maintained. It shows how will is the operation working in the organisation. In defining strategies regarding productivity, it is essential to reduce the cost and enhance the level of output by the help of performance indicators (Johnston 2003). Therefore, in maintaining the cost of product, is gives you the good advantage of the product in the strategies to develop operations (Appendix B, iii). 4.3.2 Being a low cost airline, what factors do you keep a track on, the most? All of the factors do contribute, but the most vital one for Ryanair is quality and then determination of price. Discussion: Since there is no such formula for concentrating and developing on particular factors as every factor contributes its own level for indication of the performance, if the company starts to develop strategies on the factors, it can never grow up, there are strategies developed based on the performance of the company, it also depends on the market situation of the company where the company is targeting. Price is vital one along with the quality, if quality product is offer to customer, the more market share can enhance. Since in literature review, we studied that for Ryanair visibility, volume, variation and variety (Appendix B-iii). 4.3.3 Has Price helped Ryanair by promising the lowest fares anytime? To a great extent yes price has helped airlines. Discussion: Considering the fact that Ryanair has made a profit of 26 percent during the last year even though there was an increase in the fuel prices, Price to the customers has always helped Ryanair in taking it away from close competition. The price to the company is still more sensitive and it is important to make the most of the available, to make this happen all the factors have to come together, if this operations fail to comply with the strategy of the airlines, it can no more serve as a low cost airline because the survival of the company can come in to a dilemma, if all the other operational factors fail, all the factors make the company excel in the field, but if u have an outlook you cannot judge because the strategy is

the thing people focus mostly on, but to put forth and carry forward this strategy of the company(Appendix B. iii). 4.3.4 Do you think that Ryanair takes in to account the five performance indicator in their day to day operations? Ryanair do take five performance indicators in its day to day activity because it helps in informing about the progress and growth towards achieving strong market position. Discussion: Five performance indicators is a tool to understand the performance of the company and develop relevant strategies in executing the plans for a particular period of time. If we review the literature regarding this, we see that Those phases of competitiveness where the operations excellence has to be above a meticulous point just to be measured by the client (Slack et al. 1995). the five performance indicator helps in finding the key areas of improvement for the company in order to develop a very good plan of action for the commencing period of time, day to day operations are planned by the strategy developed by the management based on the previous indications of the reports, there is no particular involvement of the five factor performance indicator in daily operations, but the main thing is that the strategies are developed on the basis of the indicators and the day to day operations are handled accordingly, these indicators do not have any direct impact but there are shades of the indicators (Appendix B, iii).

Z-Test: Ratings Responses


Most significant Significant Moderate No relation

1
1 4 0 1 6

2
2 3 0 1 6

3
1 2 2 1 6

4
2 1 3 1 7

5
3 2 1 0 5

Total
8 12 6 4 30

Expected

1
0.004903 0.0015065 0.00245 0.002775

2
0.047035 0.002945 0.00245 0.00277

3
0 0.00217 0.00245 0.002771

4
0.0050765 0.00021 0.00245 0.002784 Pvalue=

5
0.0027825 0.02585 0.00278 0.0029825

Total
0.0174925 0.005815 0.01258 0.0140825 0.04994

The Pvalue is 0.04994 which means it is less than 0.05 therefore there the null hypothesis is accepted and alternative hypothesis is rejected. There exists a strong relationship between the five performance indicators in attaining the competitive advantage in market (Appendix B-ii).

SWOT Analysis of Ryanair:

Internal
Strengths

External
Opportunities

Weaknesses

Threats

SWOT According to Johnson and Scholes (2002) SWOT is a model that classify the important issues having an impact on the organisation from the external business environment (opportunities and threats) and the ability to use tactics (strengths and weaknesses) of a firm which are going to have a strong influence on development of their strategies.

As this form centre thought and discus on the four vital problems prevailing within a firm, its execution can be beneficial in the following ways.

Well-organized and effective usage of the resources at hand can be planned. Features affecting the profitability of a firm can be rationally and efficiently determined. Measuring the level to which a company is proficient of keeping away from decisions that are not good, eventually due to the internal weakness being overlooked. Recognizing the strengths of a firm that has contributed to the success of a firm.

Every coin consists of two sides which mean it has both the aspects positive and the negative one too. SWOT has some drawback which makes this tool to possess limitations. It is by nature a subjective one therefore this model contains a data which may be less accurate and even less informative to use in a process. Strengths Overall cost minimisation model Low fares leading to increased seat occupancy Standardised model of aircraft Brand extension strategies Slots at major airports

Above mentioned critical evaluation reveals that they are cost effective model in their approach since this model in practice with Ryanair has reduced the overall cost for a company. Model is helpful for them in the severe times of economic pressures especially at times of recessions. It offers low fares to the travellers which is an attractive policy. This strategy has gained them edge over competitors in the aviation industry. One of the most effective internal strategies is the strategy of differentiation strategy which has resulted extension of a brand and also helped the Ryanair in maintenance of a prime models of aircrafts. It has gained a very secured place in the UK aviation market due to the positive image of its brand.

Weaknesses Continued sustenance of cost leadership can be difficult in a dynamic market Highly sensitive to any additional taxes or charges imposed by governments or airport authorities No long-term strategies in place for expansion plans outside of Europe Unionised labour force may lead to industrial actions

Spending on the strategies for leadership is one of the major weaknesses that it is currently facing. It is due to the rapid changes in the environment and unfortunately it lacks that ability

to maintain the long term sustenance in the aviation market therefore spending a huge amount on leadership strategies. It lacks back up strategies due to its internal weaknesses in the policy formation and it is quite sensitive to charges imposed by the government. It expansion is limited to Europe due to the fact that its marketing strategies still lack creativity. Though employees are regarded as the internal strength but creation strong labour unions and lobbies usually create a problem like picketing, strikes and boycotts which can hinder the growth and development process of a firm.

Opportunities Vertical and Horizontal expansions Further e-Business in social networking sites Demand for low-cost fares not as adversely affected during recession

There is an opportunity to expand in both dimensions such as vertical and horizontal direction. By this we mean that more outlets should be established in the vertical expansion and should invest in buying more aircrafts so that the horizontal expansion also takes place. This will increase both market share and profitability. Ti increase its social network, the business can be done through the means of electronic media in the upcoming future.

Threats Rising fuel costs Terrorism leading to lesser air travel Impending increases in environmental taxes Gradual saturation in demand for airline travel is expected to happen in Europe in about 7-10 years Increased regulation in air travel

Security hazards, rising fuel prices in international market and increase in the air passenger duty are some of the threats posed by the external environment. Since it is in external environment therefore, it is out of the firms direct control. One of the reasons of threats are out of control is the fluctuation in the international market. A minor fluctuation can lead to increase or decrease in the prices of fuel and other important things for the aviation industry. The firms cannot demand for high profits because there are other players in the market too and if they try to reduce the profit they can attain the high market share. It is a threat for Ryanair to cop up with. Hijackings and terrorist threats are another dreadful threat to the company as it has to increase its security budget which further reduces its profit margin. Most of the families stop travelling via air due to the taxes imposed by regulating authorities. It is a threat which is affecting the firms growth, progress and profitability.

Chapter Five: Conclusion and Recommendations 5.1 Introduction: This is the last chapter of this research investigation. It contains the entire research in a nutshell and also explains constrains that can in the way of commencing the research investigation. Later part of this chapter contains the recommendation for the selected organisation about how each of performance indicators can ensure the excellence in the operation management activities and help the organisation to attain the competitive advantage in the aviation market. 5.2 Conclusion: The performance of Ryanair has been good in the operations management to continue their strategy of being the low cost airlines, it has developed competitive strategies in managing the operations of the company, it is has established itself as one of the leading operators of low cost airlines in the |European market, though there is a tough competition in the market with the premium airlines dropping down their fares, it has still managed to be the airlines that is offering the lowest fare in the EU market, this explains that their operations management is very good and considerate in offering the customers the best price in the market, the most important thing about the low cost airlines is the planning and considering the operational costs in order to match the prices and attain the targeted profit, it is very hard to match the targeted profit having the strategy of being a low cost airline, to match this Ryanair has explored and performed very well in the operational management as the financial performance of the company is very good. The five performance indicator is very important for keeping a track of the operational management of the company, five performance indicator distinguishes all the factors of the operation which influence the performance of the company both financially and operationally, the survey has also been helpful in understanding the importance of the operational management and influence of the five performance indicator in gaining the competitive advantage in the market, this survey has focused on the importance of this relationship, after the survey the results were clearly inclined in saying that the relation is very strong and it helps in the improvement of the company in particular factors where there is lack in the strategies of getting better and outperforming.

When these factors are individually gauged with Ryanair in point of view, most of the factors are satisfactory according to the survey and the current scenario according to happenings is also the same, this gives an additional support to the survey conducted as the results are more or less matching to the real time and these are driven in meeting the hypothesis that is developed for the research, Ryanair has some backlogs in the operational management, while considering the five performance indicator of the Ryanair there were some places, where it needs improvement, the speed, dependability and the quality of the services should be improved to make the company go in to better profits. This research has explored in depth the factors of operational management and Ryanairs approach towards these factors in order to get a greater competitive edge over their rivals, though it is at its peak in handling these indicators, research showed some gaps and appropriate recommendations are suggested, it is now clear that there is a relationship that exists between the operations management and the competitive advantage in the market. 5.3 Limitations of Research: In this research investigation there are some limitations that may have hinder the actual outcome but it is hope that in the selected sample space effort is made to maintain the accuracy of findings and an effort is made to avoid the personal biasness. The major constrain in this research study is the time frame for the research. Since the research was done in a short period of time therefore it is subject to time constrain, if more time was involved the results could have been more precise one. The second limitation of this research is that the sample set was selected on the basis of convenience which means that if random audience were target, might there is a chance that the responses could have been different. Only 30 respondents were considered in this study, if the sample size was large one, more generalizability would have incurred. The research finding could have been more precise if the face to face interview would have opted. Moreover, the study was made only from one airlines perspective, if more airlines were involved there could have been chances of finding more variations in the outcomes but it is the study that shows that to certain extent there is a relation between the operation management and the competitive advantage in market and there is a strong link between the performance indicators in attaining the edge in dynamics. This research will be beneficial for the future researches as an empirical research conducted in the aviation industry to find the effectiveness of five performance indicators in achieving the competitive advantage in market.

5.4 Recommendations Recommendations for Ryanair are given based on the survey, it is very apt to frame the recommendations according to the factors of involved in the operations management.

Quality Developing a quality control plan about the aircraft maintenance will be very useful in knowing the current status of the aircrafts. The quality of the service at Ryanair is not expected of high standards as it is a low budget and no frills airline, but the current standards are not competitive as they are of a basic level and just satisfactory in the current generation everybody looks for a wow factor in the service, which makes it more competitive and to get a better reach in the customer market, to resolve this it has to come up with some good services on board like the refreshments, which are just basic, this will make them get a good market. The quality of the service is dependent on the motivation levels of the staff, the recent revolt by the employees against the management show that the management is not acting responsibly towards the needs of the staff, this can hinder the performance and may also result in delivering poor quality services to the customers and the work of the staff is also not of high levels, to eradicate this and develop a healthy working environment Ryanair has to act instantly and give the employees enough importance. Flexibility Flexibility is the biggest concern for Ryanair, being a low cost airline, it has some limitations in terms of the service availability to the customers and destinations it covers, to overcome this issue it has to develop plans and design strategies in reaching a wider level of customer base. Here are some recommendations to overcome the issue. Destinations it covers is mostly of secondary airports which charge less compared to the popular destination airports, this makes the customers choose another airlines, if it takes a step forward in landing the popular destination airports or primary airports,it can have a greater market, this can be done in step by step process, in which it has to choose the most commonly travelled airports by the passengers in its targeted area and try introducing limited

flights for a limited time with its USP(Unique selling point ) low cost no frills to find out how is it working, if it works out, it can be great success, the time of the flights should also match the busiest times of travel to make more market in limited time and availability with the brand image that it has, it should definitely do well. Flexibility should be given to the customers in terms of the luggage and services, there is bad propaganda about the airlines that it charges too much for the luggage and services, which makes the passengers end up paying as much as it is for the other leading airlines economy class, if this flexibility of allowing the customers taking some luggage and offering additional services may give it a good turnaround in the business, Variation in the times of the flights is also very important, for this the company has to plan and develop a strategy where in the passengers can choose the time that is most suitable for them for flying before they book the ticket and give them suggestion of the flight, which is flying at the nearest time, this is advantageous for both the airlines and the passengers. Speed: According to an article in BBC, Ryanair has cut down its cost very effectively by the quick turnarounds, the turnaround of Ryanair are far better than the leading airways, which is the British airways, Ryanair has stunning turnaround time of 25 minutes, where as the turn around time for the british airways is 2 times that of the Ryanair, though it is doing very well in meeting the turnaround timings, from the passenger point of view it is lacking in speed due to the hauls, as the flights cover more than 2 destinations, to make the customers it has to take challenges, here are some recommendations for a better turn around making the customers happy. Speed is the utmost important factor in the current scenario as the life is getting busier and everybody treats time as money, to make this work out in the operations, Ryanair has to plan single destination flights which do not let the customers wait during hauls, these destinations should be of shorter distance and most travelled destinations, to make sure that it doesnt loose on the number of passengers, it can be even more easier if it puts on flights which have lower passenger capacity on short distances, this makes the customers happy as they dont have to wait during the hauls. The turnarounds can also increased as the single destination flights picks up passengers while it turns around, if this is correctly planned according to the time, and perfect places are

chosen then the objective of the passengers and company in this factor are fulfilled as the passengers dont have to wait and the company gets enough passengers at the same time in as many as destinations as it covers, with quick turnaround. Dependability Dependability is the most important factor for Ryanair, being a low cost airline with no frills, it has to have a strict monitoring process on the dependability of their flights, as there are no services expected from the company this is the basic thing that is expected from the company, dependability is the is concerned for both the customers and the company because the dependability factor affects the turnaround of the flights. There has to be a monitoring service established in order to make the dependability of the company more, this will also create a faith in the customers about the dependability of the company, the monitoring has to be developed online to make the customers look at the performance of the company, there should be strict implications on the crew for not meeting time standards, accepted only in unavoidable circumstances, if this is made public, employees and the management will be more responsible in making the company more dependable and delivering things on time. There is a responsibility developed in the management in terms of being dependable, this monitoring service helps in meeting the expectations from both ends satisfying the customers by reaching on time and satisfying the management in controlling the fluctuations. Price: Price has been the most advantageous factor for the company, it has gained the competitive edge in the market being a low cost airline, the strategy and the objective of the company is all focused on giving the customers the most affordable or in other words the cheapest fare in the market, this factor has been the pick of the five factors for the company, but with the competiton getting high in the market as many airlines which are not considered as low cost are also offering packages to the customers in most affordable prices, this is a serious concern for the survival of the company as the rivals tend to provide better services than Ryanair. Ryanair has to develop deals with the regular passengers of Ryanair and offer them the low cost on the flights, this can be done by designing a loyalty programme to passengers of Ryanair, where in the customers are given membership based on the frequency of their flying through Ryanair, there should discount services provided to these passengers, the price range

of Ryanair cannot be matched, but some additional benefits in terms of price can be advantageous to the company for grasping the market and making frequent flyers their loyal customers.

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(Goddard, Melville, 2004 .pg160)Research methodology: An introduction.

Appendix A- Questionnaire: Effectiveness of five performance indicator in gaining competitive advantage: Hospitality Survey Thank you for taking part in survey. The objective of this research is to find the effectiveness of five performance indicators (quality, price, dependability, flexibility, and speed) at Ryanairs operation management to gaining completive advantage. Your survey responses will be kept strictly confidential and data from investigation will only be reported in the aggregate. We thank you for being a part of this research and appreciate your Valuable time and support.

Q1. Is competitive advantage is the most important factor for airline industry?

Very Important

Important

Not so Important

Not Important

Q2. How effective is Quality as performance indicator in determining the competitive advantage?

Weak __________ x___________ x __________x__________ x __________Strong 1 2 3 4 5

Q3. On the scale of 1 to 5 how much speed as performance indicator is essential to accomplish the competitive advantage?

Weak __________ x___________ x __________x__________ x __________Strong 1 2 3 4 5

Q4. What is role of Dependability in achieving the competitive advantage? Weak __________ x___________ x __________x__________ x __________Strong 1 2 3 4 5

Q5. How important is Flexibility for operation management activities to strive for competitive edge?

Weak __________ x___________ x __________x__________ x __________Strong 1 2 3 4 5

Q6. How vital is the determination of Price in attaining the competitive advantage in the market?

Weak __________ x___________ x __________x__________ x __________Strong 1 2 3 4 5

Q7. What is the Relation between Operation Management and Competitive Advantage?

Very Significant

Significant

Moderate

No Relation

Q8. Which is the most important factor in operations management for attaining competitive advantage?

Quality

Speed

Dependability

Flexibility

Price

Appendix B Statistical Concepts (i) One sample t-Test for population mean Step 0. Conditions for the one-sample t-test to be valid for testing one population mean: Data follows a normal distribution or the sample size is large.

Step 1. Set up the hypotheses as one of:

One-sided

One-sided

Two-sided

Step 2. Decide on the significance level, Step 3. Compute the value of the test statistic with the one sample t-test:

Step 4. Find the appropriate critical values for the tests using the t-table. Write down clearly the rejection region for the problem. Alternatively, compute the p-value if you are using the p-value approach. Step 5. Check to see if the value of the test statistic falls in the rejection region. If it does, then reject Ho (and conclude Ha). If it does not fall in the rejection region, do not reject Ho. Alternatively, compare the p-value to if you are using the p-value approach. If p-value < = , reject Ho (and conclude Ha). If the p-value > , do not reject Ho. Step 6. State the conclusion in words.

Z-Test for one population proportion Using the same concept as above, z-test for one population proportion is applied as follows: Null hypothesis: H0: p = p0 Test statistic:

p p0 . p0 (1 p0 ) / n

Ha p =! p0 p > p0 p < p0

p-value 2P(Z >= |z|) P(Z >= z) P(Z <= z)

Rejection region |z| >= za/2 z >= za z <= - za

The tests are valid if np0 >= 10 and n( 1- p0) >= 10.

(ii) Coding scheme:

Is competitive advantage is the most important factor for airline industry?

a Very Important

b Importan t

c Not so Important

d Not Important

How effective is Quality a 1 as performance indicator in determining the competitive advantage? On the scale of 1 to 5 how a 1 much speed as

b 2

c 3

d 4

e 5

b 2

c 3

d 4

e 5

performance indicator is essential to accomplish the competitive advantage? What is role of a 1 Dependability in achieving the competitive advantage? How important is a 1 Flexibility for operation management activities to strive for competitive edge? How vital is the a 1 determination of Price in attaining the competitive advantage in the market? How vital is the a Very determination of Price in Significant attaining the competitive advantage in the market? Which is important operations for attaining advantage? the most a Quality factor in management competitive b 2 c 3 d 4 e 5

b 2

c 3

d 4

e 5

b 2

c 3

d 4

e 5

b Significa nt

c Moderate

d No relation

b Speed

c Dependability

d Flexibility

e Price

The data is gathered through the help of questionnaire and on the basis of experts from the particular field were interviewed so that accurate and reliable sources are included in this research. The data is gathered from the respondents through questionnaire was sorted out on the bases of coding scheme. The individual 30 responses were distributed on chart by signing each answer one particular name and the similar results were put together in one block. This is how the information was distributed and divided on the basis on responses. Once the data was distributed and channelized. We use a technique of z-test (Chi-test or t-test) if was considered that 0.05 was a value that was hypothesised and if the overall value generated

from the coded result is higher than 0.05, if will be categorised as alternative hypothesis and therefore, the null hypothesis will be rejected. Similarly if the final value is less than 0.05 that the null hypothesis will be considered and alternative hypothesis will be rejected. The formula to calculate the results and findings are mention above.

Appendix B (iii) Interview with the Manager: Q. Is Ryanair capable of taking over major market share in this competitive market? Speaking to us about the competitive edge of Ryanair in the market, he explained the performance of the company based on statistical data, he adds in to the point saying that Ryanair is one of the leading airline operator in the EU, carrying 73 million people in the last year, the current market position of the company is the best indicator of the competitive edge that a company has in the market, he concludes. Q. What is the contribution of operations management in gaining competitive edge? He explains the relation between the operations and competitive edge in a cycle, operations have a direct affect on the competition, he says winning competition in this industry is giving the best possible experience to the customers, to make this happen all the operations have to be unified and then presented, an small deviation in the operations may result in ruining the experience of the customers, making it difficult to get them back, in vice versa when the operations meet the expectations of the customers, it is easy to get hold of a good market share. Q. What do you think is the major factor contributing to its advantage? Without hesitation he says it is price, the average price per passenger last year was just 39 euros, because Ryanair markets itself as a low cost airlines and they always in the competition when it is the matter of fares, it guarantees the lowest price in the market and the customers are also happy with experience as they get to meet all their basic requirements in flying safe and comfort to their destinations.

Q. Are these factors helpful in analysing and implementing plans to gain competitive advantage? Mr. Paul confirms that all the operations are important, that are included for gaining a competitive advantage are as important as the other ones, further in explanation he says these factors contribute the largest part in the operations management, making it easy to understand the core parts of operations and work on them to enhance the performance of the company in each segment. Q. If you have to put the factors in ascending order of their importance, how would that be? Quality Price Flexibility Dependability Speed Q. Is Ryanair leading the competition in the market, are there close any close competitors to the company? He says that Every airline company who offer the lower price deals to the customers are competitors to their company and the all the airline companies that perform very well in exceeding their targets and making more profits in the market, the net income of ryanair is 3.63 billions during the last year, whereas the competitors could not even near this figure, Ryanair influenced market, the most common rivals are Easyjet and Airlingus, most of the times it is them who win the low fare battle, the prime motto of the company is to avail flying facility to the passengers at the lowest rate possible, there were other competitors before like the GO airlines, but this are no more considered a tough competitors now. Q. Finally what do you think Ryanair should improve on? He says that this is a difficult question adding his explanation, because she takes initiative in correcting things at the point, where she feels it is not correct, but she accepts the fact that the flexibility factor for Ryanair is limited as it is a low cost airline, which should be alternated,

for Example the flights are majorly based on the secondary airports to cut down costs, which makes loose a great share of market.

Telephonic Interview: Here is a telephonic interview with the operations team member of Ryanair Mr Steve Jaccobs: Q. Does five factor indicators contribute to analyse situations and develop strategies accordingly? He explains that the five factor indicator is a power tool to manage the operations and help in improving the performance of the company, Competitive advantage is always dependent on the performance of the company, whatever the name of the performance it may be it is very important for the company in attaining a better position in the market, if the five performance indicator of the company is very important as it brings in the each and every factor that is involved in making the company stronger in the market, all the five factors that are involved in the operations are distinguished and rated in this five performance indicator report, all the factors are as important as each other, he makes it clear that there exists a strong relationship between the factors in the operation in performing better, the performance of the company is directly proportional to the competitive edge that it is gaining over its competitors, he says that there is no competition when you dont know where do you stand, when your performance is indicated in the five performance indicator by distinguishing every factor, it can be un avoidable to gain the competitive advantage over the rivals. Q. Being a low cost airline, what factors do you keep a track on, the most? The toughest part of competition according to Mr. Steve is to have to satisfy both the management and the customers, and explains that the flights are not always fully booked and are making the most trips to almost every destination that is under the belly in a day, end of the day what matters is how much money the company makes, make out of the extensive operations that are being handled all the day, the factors that they concentrate depend on the situation (Appendix B). There is no such formula for concentrating and developing on particular factors as every factor contributes its own level for indication of the performance, if the company starts to develop strategies on the factors, it can never grow up, there are

strategies developed based on the performance of the company, it also depends on the market situation of the company where the company is targeting, if there is serious increase in the handling charges at the airports, then the turnaround which is the speed factor that matters, if there are too many complaints from the customers about the services then it is the flexibility factor that matters, there is a down fall in the market and competitors start to give low fare packages, then it is the price factor that matters, as a low cost airline we always concentrate on the factor that is currently of the most importance and which gets the operation costs cheaper, he concludes the explanation saying that the all these factors are important be it a low cost or premium airline. Q. Has it helped Ryanair by promising the lowest fares anytime? he explains that though we are the leading low cost airline operator, we have made a profit of 26 percent during the last year even though there was a increase in the fuel prices, Price to the customers has always helped Ryanair in taking it away from close competition says Jacob, the strategy of the company of serving as a low cost airline has always been fulfilled with the factors taking shape with the help of each other. He adds that the price to the company is still more sensitive and it is important to make the most of the available, to make this happen all the factors have to come together, if this operations fail to comply with the strategy of the airlines, it can no more serve as a low cost airline because the survival of the company can come in to a dilemma, if all the other operational factors fail, all the factors make the company excel in the field, but if u have an outlook you cannot judge because the strategy is the thing people focus mostly on, but to put forth and carry forward this strategy of the company. Do you think that Ryanair takes in to account the five performance indicator in their day to day operations? Five performance indicator is a tool to understand the performance of the company and develop relevant strategies in executing the plans for a particular period of time, the five performance indicator helps in finding the key areas of improvement for the company in order to develop a very good plan of action for the commencing period of time, day to day operations are planned by the strategy developed by the management based on the previous indications of the reports, there is no particular involvement of the five factor performance indicator in daily operations, but the main thing is that the strategies are developed on the

basis of the indicators and the day to day operations are handled accordingly, these indicators do not have any direct impact but there are shades of the indicators.

Appendix C- Reflect Statement:

This research investigation topic was chosen by my personal will to find out about the operation management activities going on in the Ryanair. The reason for selection of this topic was because I was in the Ryanairs marketing team to gather the data for the marketers in order to attain the competitive advantage over rivals. Most of the time I was busy in gathering the information about the competitive edge but in sessions I had a chance to meet the members of operation management and frequently discus different indicators that identify the performance of operational activities. Gradually a keen interest arouse in me to find more about the performance indicators and the management of operational activities. When I was in the middle of my MBA program I had a bright opportunity to carry out a research investigation in the hospitality sector but being from marketing background I had more focus and interest in the marketing world. Therefore, when I had to select the

dissertation I opted for this topic because I knew that I have formerly worked in same organisation, my friends are still working in it so the access to data will be easy. Secondly, I have know-how about the operation management activities so I could have clear more of my concepts about it. I also knew the market position of the selected organisation therefore I took this topic so that I can strive more in it. It was a very fine experience as I had to personally meet and communicate to experts of field. I had friends from marketing world who have more professional expertise about the different marketing strategies that are essential to gain competitive advantage, I too those advices and designed my questionnaire so that the outcomes of the survey are more accurate one. I must mention a very close incident that played a part in selecting this topic. In the recent recession the hospitality industry have to suffer a serious loss and I was working in online marketing department of Ryanair so most of the time we were assigned to gather information about the quality and the consumers behaviour about the brand, working continuously for long sessions I developed a keen interest to find more as I wanted to know has the economic downturns has affected the performance of selected firm and how the competitive advantage can be attained. These queries draw my attention more towards this topic and therefore I picked it as a challenge to uncover the hidden reasons.