Strategic Management Case Study: By: Thomas Elias, Alison Tardie, Loren Plourde, and Brandon Plourde

Strategic Management Case
Study
By: Thomas Elias, Alison Tardie, Loren Plourde, and Brandon Plourde
April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK 1
Overview
Company Overview Strategy Formulation
• A Brief history of Ryanair • SWOT Matrix
• Existing Strategy, Mission, and Vision • Space Matrix
• Existing Objectives and Strategies • Grand Strategy Matrix
• Matrix Analysis
New Mission and Vision • QSPM Matrix
External Assessment Strategic Plan for the Future
• Industry analysis • Objectives
• Opportunities and Threats • Strategies
• EFE Matrix Strategic Implementation
• CPM Matrix • Management Issues
Internal Assessment • EPS/EBIT
• Organizational Structure • Projected Financials
• Financial Condition Strategic Evaluation
• Strengths and Weaknesses Balanced Score Card
• IFE Matrix Ryanair Update
Ryanair History
1985: The 2004: Most Popular Online Booking
Beginning
•25 Employees •Most Popular online, 2003
•15 Seat Aircraft •98% online booking
•5’2” Standard
First “Fare 1997: We go

War” Public
1986:
1995: Low Fares Win!
First Fiscal Year
1987: First •Overtakes Aer Lingus, British Airways
Jet •Largest Irish airline, Dublin
•3 BAC 1-11 Aircrafts •10th Birthday
•Opened New Destinations
1990: Rapid Growth And The Upset
•Accumulates £20M Losses
•20m invested
•Copying the Southwest Model
•Michael O’ Leary, Restructured
Ryanair History Cont’d…
8,438
EMPLOYEES
75,814,551
PASSENGERS
294
BOEING 737-800
151
EMPLOYEES
82,000
PASSENGERS 3
PROP AIRCRAFTS
Existing Strategy, Vision, and Mission
Strategy: Cost Leadership;
Low Cost
Vision Mission
Firmly Establish itself as Europe’s Ryanair seeks to offer low fares that
leading scheduled passenger generate increased passenger
traffic while maintaining a
airline through continued
continues focus on cost-
improvements and expanded
containment and operating
offerings of its low-fares service. efficiencies.
New Vision
To be the most efficient low-cost carrier in

Europe.
New Mission
New Mission: Ryanair’s mission is to become the (2) largest scheduled
passenger airline in (3) Europe for (1) international and domestic
travelers. (6)We believe by offering the cheapest fares and utilizing (4)
modern technological services, (7)Ryanair will provide the best no frills
airline service. Ryanair meets shareholders’ and employees’ needs
through (5) sustainable profits while also providing a (9) safe and
productive working environment. Furthermore, Ryanair protects the (8)
community with our efficient, environmentally friendly fleet.
1.Customers
2.Products or services
3. Markets
4. Technology
5. Concerns for survival, growth, and profitability
6. Philosophy
7. Self-concept
8.Concern for public image
9. Concern for employees
External Audit
Industry Analysis
2009 Thousands 2010 Thousands
1.
Ryanair 65,282 Ryanair 71,229
2.
Lufthansa 41,515 Lufthansa 44,460
3.
easyJet 34,593 easyJet 37,665
4.
Air France 31,256 Air France 30,882
5.
British Airways 27,844 Emirates 30,848
6.
Emirates 25,921 British Airways 26,320
7.
KLM 22,333 KLM 22,787
8.
American Airlines 19,514 Delta Air Lines 21,029
9.
Cathay Pacific Airways 18,102 American Airlines 20,356
10.
Singapore Airlines 16,322 Cathay Pacific Airways 19,723
Source: Centre for Asia Pacific Aviation and IATA
Cost Comparison
April 2013, Thomas Elias, Alison Tardie,

10
Brandon Plourde, Loren Plourde, UMFK
Opportunities
1. Success in Ancillary services ( leads to new open markets for joint ventures).
2. Open up their aviation repair service and flight training programs to operations
outside the company.
3. Customer base is expected to grow up to 85 million passengers.
4. Pursue web-based advertising and new Reservation system.
5. Start flying into 10 to 12 primary airports (European airports have shown interest).
6. Popularity increasing in Eastern Europe and Asia for tourism and business
gatherings.
7. Corporations pursuing appearance and expansion into African Operations.
8. Expand clientele during hard financial times by gaining customers who do not
desire premium flights.
9. More political and governmental influence/charges in primary airports increases
attractiveness in secondary airports (11 tax on European departures).
Threats
1. New IAA Rules on flying hours and aircraft regulations could increase
future expenses.
2. Unpredictable and uncontrollability of rising fuel costs; €350 million in
2012 regardless of hedging.
3. Greek debt crisis and unstable European economy negatively affecting
future operations.
4. Last year 14,000 Ryanair flights were cancelled due to volcanic ash
disruptions, airport snow closures and repeated ATC strikes.
5. The majority of Ryanair’s profits are subject to Irish Corporation Tax at a
rate of 12.5% and a raise may adversely impact Ryanairs' cash flows,
finances, and operations.
6. Already paid 88 million in claims last year due to the EU 261 regulations
where the airline has to cover accommodations and compensation.
Threats Cont’d…
7. In the future legislation will require airlines to pay about €1.4 billion for
emissions of carbon dioxide which will rise to €7 billion by 2020.
8. Too much growth too fast; Expansion into Eastern Europe means
competing with already existing players in the market and operating on
even tighter margins.
9. Increased competition from alternative forms of travel.
External Factor Evaluation (EFE)
Opportunities: Weights Rating Weighted
1. Success in Ancillary services ( leads to new open markets for joint ventures). 0.07 4 0.28
2. Open up their aviation repair service and flight training programs to operations outside the company . 0.05 2 0.10
3. Customer base is expected to grow up to 85 million passengers. 0.07 4 0.28
4. Pursue web-based advertising and further expansion in web services. 0.08 3 0.24
5. Start flying into 10 to 12 primary airports (European airports have shown interest). 0.03 1 0.03
6. Popularity increasing in Eastern Europe and Asia for tourism and business gatherings. 0.05 3 0.15
7. Corporations pursuing appearance and expansion into African Operations. 0.04 1 0.04
8. Expand clientele during hard financial times by gaining customers who do not desire premium flights. 0.06 4 0.24
9. More political and governmental influence/charges in primary airports increases attractiveness in
secondary airports ($11 tax on European departures). 0.05 2 0.10
Threats:
1. New IAA Rules on flying hours and aircraft regulations could increase future expenses. 0.05 3 0.15
2. Unpredictable and uncontrollability of rising fuel costs; €350 million in 2012 regardless of hedging. 0.09 4 0.36
3. Ryanair plans to ground 80 aircraft in the winter months of 2012 as opposed to 40 last year because
overall traffic is expected to be lower. 0.05 2 0.10
4. Last year 14,000 Ryanair flights were cancelled due to volcanic ash disruptions, airport snow closures and
repeated ATC strikes. 0.08 2 0.16
5. The majority of Ryanair’s profits are subject to Irish Corporation Tax at a rate of 12.5% and a raise may
adversely impact Ryanair’s cash flows, finances and operations. 0.02 2 0.04
6. Already paid 88 million in claims last year due to the EU 261 regulations where the airline has to cover
accommodations and compensation. 0.08 2 0.16
7. In the future legislation will require airlines to pay about €1.4 billion for emissions of carbon dioxide
which will rise to €7 billion by 2020. 0.05 4 0.20
8. Too much growth too fast; Expansion into Eastern Europe means competing with already existing players
in the market and operating on even tighter margins. 0.03 3 0.09
9. Increased competition from alternative forms of travel. 0.05 2 0.10
Totals: 1 2.82
Competitive Profile Matrix
Ryanair British Airways EasyJet
Critical Success factors Weights Rating Score Rating Score Rating Score
Advertising 0.06 1 0.06 2 0.12 3 0.18

Financial position 0.10 3 0.30 2 0.2 4 0.40
Customer loyalty 0.09 2 0.18 4 0.36 3 0.27
E-commerce 0.07 4 0.28 3 0.21 2 0.14
Management 0.08 2 0.16 3 0.24 4 0.32
Ticket Fare competitiveness 0.10 4 0.40 2 0.2 3 0.30
Fleet 0.11 4 0.44 3 0.33 2 0.22
Customer service 0.12 2 0.24 4 0.48 3 0.36
Market share 0.09 4 0.36 2 0.18 3 0.27
Organization structure 0.08 3 0.24 1 0.08 4 0.32
Employee morale 0.10 1 0.10 3 0.3 4 0.40
Totals: 1 2.76 2.7 3.18
Internal Audit
Organizational Structure
Income Statement
Balance Sheet
Ratio Analysis
Liquidity Ratios: Ryanair (2011) EasyJet British Airways Industry Analysis
Current Ratio 1.89 1.48 0.75 1.3 Good
Quick Ratio 1.89 1.48 0.72 1.3 Good
Leverage Ratios:
Debt to Total Assets 0.66 0.62 0.76 Average
Debt to Equity 1.91 1.62 3.08 0.79 Average
Long-term Debt to Equity 1.29 0.93 1.76 Average
Times Interest 5.48 9.3 5.2 6.9 Average
Efficiency Ratios:
Fixed Assets Turn 0.74 1.6 1.73 Bad
Total Assets Turn 0.42 0.77 0.88 0.8 Bad
Profitability Ratios:
Gross Profit 25.70% 16.50% 16.40% 23.72% Good
Operating Profit 14.20% 7.70% 8.40% 7.37% Good
Net Profit 10.30% 6.50% 6.70% 5.40% Good
ROA 4.40% 5% 5.90% 4.60% Average
ROE 12.70% 13.20% 24% 14.80% Bad
EPS 0.2514 0.52 Bad
PE Ratio 110.58 670.00 21.7 Good
Growth Rates:
Sales( 3 Year Average) 11.20% 15.40% 4.70% Average
Net Income ( 3 Year Average) -1.40% 57% -1.10% Bad
EPS ( 3 Year Average) -1% 57.10% N/A Bad
Dividend per Share ( 3 Year Average) N/A N/A N/A
Net Worth Analysis
Company Worth Analysis
1.) SE-Goodwill-Intangibles $2,907.10

2.) Net Income*5 $1,873
3.) (SP/EPS)* NI $41,423.55
4.) #Shares * Stock Price 41,424.78
5.) Four Method Average $21,907.10
Strengths
1. Modern/Low Cost Fleet single aircraft type; average plane age 2.94
and no plane older than 8 years on fleet.
2. Profits increased by 25.6% from 2010-2011.
3. Traffic grew 8% to 72 million in 2011.
4. Ancillary revenues grew by 21% to €802 million for fiscal year 2011.
5. Dividend of €500 million paid to shareholders in 2011 equaling €846
million returned in the past 3 years.
6. At March 31, 2010, the company had hedged approximately 90% of
its estimated fuel exposure for the year ending March 31, 2011.
7. Number one on-time airline in Europe.
8. Added 328 new routes to their already existing routes which gives
them a total of more than 1300 routes.
9. Revenue passenger miles (rpm) grew 14.4% between 2009 and 2010.
Weaknesses
1. Bad Public Image; Has had several complaints filed against them by
Advertising Standards Board (ASA)
2. Complex Fee System leading to customer dissatisfaction; charges fees
where others do not 52% of average final cost is in extras and fees.
3. Only arrive at secondary airports; no option for arrival at Primary
Airports.
4. Ryanair incurred a €2.2 million loss on its Aer Lingus shareholdings
due to a decline in the Aer Lingus share price from €0.73 to €0.72.
5. They do not offer round trips.
6. Fuel costs rose 37% from ‘10-’11.
7. Employee moral is poor with cabin crew.
8. Debt to equity ratio is 1.91 compared to .79 of the industry average.
9. Earnings per share is only 25 euro cents compared to main
competitor Easy Jet at 52 Euro cents.
Internal Factor Evaluation (IFE)
Strengths: Weights Rating Weighted Score
1. Modern/Low Cost Fleet single aircraft type; average plane age 2.94 and no plane older than 8
years on fleet 0.07 4 0.28
2. Profits increased by 25.6% from 2010-2011 0.04 3 0.12
3. Traffic grew 8% to 72 million in 2011. 0.06 3 0.18
4. Ancillary revenues grew by 21% to €802 million for fiscal year 2011. 0.08 4 0.32
5. Dividend of €500 million paid to shareholders in 2011 equaling €846 million returned in the
past 3 years. 0.05 3 0.15
6. At March 31, 2010, the Company had hedged approximately 90% of its estimated fuel exposure
for the year ending March 31, 2011. 0.08 4 0.32
7. Number one on-time airline in Europe 0.04 3 0.12
8. Added 328 new routes to their already existing routes which gives them a total of more than
1300 routes 0.05 3 0.15
9. Revenue passenger miles (rpm) grew 14.4% between 2009 and 2010. 0.03 3 0.09
Weaknesses:
1. Bad Public Image; Has had several complaints filed against them by Advertising Standards
Board (ASA) 0.06 1 0.06
2. Complex Fee System leading to customer dissatisfaction; charge fees where others do not 52%
of average final cost is in extras and fees. 0.08 1 0.08
3. Only arrive at secondary airports; no option for arrival at Primary Airports 0.05 2 0.10
4. Ryanair resulted in a €2.2 million loss on its Aer Lingus shareholdings due to a decline in the
Aer Lingus share price from €0.73 to €0.72. 0.02 2 0.04
5. They do not offer round trips 0.07 1 0.07
6. Fuel Costs rose 37% from ’10-’11 0.06 2 0.12
7. Employee morale is poor with cabin crew 0.07 1 0.07
8. Debt to equity ratio is 1.91 compared to .79 of the industry average. 0.04 2 0.08
9. Earnings per share is only 25 euro cents compare to main competitor Easy Jet at 52 euro cents 0.05 2 0.10
Totals: 1 2.45
Strategy Formulation
SWOT Matrix
S-O Strategies:
1. Additional routes to further increase number of passengers and total overall traffic.
(O3, O6, S3, S8, S9, S7)
2. Expand and diversify Ancillary Services both offline and online. (O1, S4, O4)
3. Teach aviation/engineering courses through a university that utilizes their assets to
start new business ventures. (S2, S1, O2)
4. Start business in primary airports. (O1, O3, O5, S3, S7, S8)
W-O Strategies:
1. Start flying into primary European airports. (W3, O8, O5)
2. Upgrade web advertising and services that are not as publicly controversial. (W1,O4)
3. Begin offering round trips at competitive prices. (W7, O8)
4. Offer package deals on ancillary fees to increase attractiveness. (O1, O8, O3, W2)
5. Hire corporate travel agents to syndicate traveling process for consumers in need.(W2,
W3, W5, W7, O1, O3, O8)
6. Incorporate marketing and HR executives to better promote company. (W1, W2, W5, O3,
O4)
SWOT Matrix Cont’d…
S-T Strategies:
1. Have a set percentage of fuel costs hedged per year in continuing to hedge fuel costs.
(S6, T2)
2. Discover new cabin layouts to seat more customers per flight. (T1, T2, T8, S2, S3, S9)
3. Start offering flights outside of Europe. (T3, T4, T6, S3, S8, S9)
4. Convert older planes and start new business in delivering freight & cargo. (T4, T6, T8,
T9, S1, S7)
5. Offer incentive programs (frequent flyer miles etc.) (S3, S4, S8, T3, T9)
T-W Strategies:
1. Start new ethical, socially responsible, and positive attitude advertising campaigns. (T4, T8, W1,
W2)
2. Diversify current asset investments. (T3, W4)
3. Ad marketing and HR Officers/ Segments to ensure all business aspects are more accurately
analyzed and coordinated. (W5, W1, W2, T1, T8)
4. Raise prices. (W6, W9, T2, T4, T6, T7)
5. Incorporate incentive programs to consumers that fly using Ryanair both ways. (W7, W3, T3, T8, T9)
Space Matrix
Financial Position rating is 1 (worst) to 7 (best) Ratings
1 Sales growth 21% Past Year 4.0
2 Quick ratio at 1.89 4.0
3 Highest Profitability Ratios amongst competitors 6.0
4 Debt to equity at 1.91 1.0
Financial Position Total 15.0
Industry Position rating is 1 (worst) to 7 (best)
1 Moderately High Government Regulation 5.0
2 Barriers of Entry are High 6.0
3 Growth Potential 4.0
4 Reliance on flight turnarounds and plane productivity 5.0
Industry Position Total 20.0
Stability Position rating is -1 (best) to -7 (worst)
1 Rising and Unstable oil prices -7.0
2 Cooperation with weather and natural disasters -6.0
3 ATC Strikes and employee walkouts -5.0
4 Price competiveness amongst other airlines -4.0
Stability Position Total -22.0
Competitive Advantage rating is -1 (best) to -7 (worst)
1 Market Share -1.0
2 Modern, Economically friendly fleet -2.0
3 Use of Modern Technology compared to rivals -4.0
4 #1 on time major airline -2.0
Competitive Advantage Total -9.0
X Coordinate 2.75
Y Coordinate -1.75
Space Matrix Cont’d…
Possible Strategies:
1. Backwards, Forward, or
Horizontal Integration
2. Market Penetration
3. Market Development
4. Product Development
X Coordinate 2.75
Y Coordinate -1.75
Grand Strategy Matrix Possible Strategies:
1. Backwards, Forwards,
or Horizontal
Integration
2. Market Penetration
3. Market Development
4. Product Development
5. Diversification (Related)
Matrix Analysis
Alternative Strategies IE SPACE GRAND BCG COUNT
Forward Integration X X 2
Backward Integration X X 2
Horizontal Integration X X 2
Market Penetration X X 2
Market Development X X 2
Product Development X X 2
Related Diversification X 1
Unrelated Diversification
Retrenchment
Divestiture
Liquidation
Market Penetration
Possible Strategies
1. Additional routes to further increase number of passengers and total overall traffic. (O3, O6, S3, S8,
S9, S7)
2. Expand and diversify Ancillary Services both offline and online. (O1, S4, O4)
3. Start business in primary airports. (O1, O3, O5, S3, S7, S8)
4. Upgrade web advertising and services that are not as publicly controversial. (W1,O4)
5. Begin offering round trips at competitive prices. (W7, O8)
6. Offer package deals on ancillary fees to increase attractiveness. (O1, O8, O3, W2
7. Incorporate marketing and HR executives to better promote company. (W1, W2, W5, O3, O4)
8. Discover new cabin layouts to seat more customers per flight. (T1, T2, T8, S2, S3, S9)
9. Offer incentive programs (frequent flyer miles etc.) (S3, S4, S8, T3, T9)
10. Start new ethical, socially responsible, and positive attitude advertising campaigns. (T4, T8, W1,
W2)
Market Development
1. Teach aviation/engineering courses through a university that utilizes their assets to start new business
ventures. (S2, S1, O2)
2. Start offering flights outside of Europe. (T3, T4, T6, S3, S8, S9)
Product Development
1. Convert older planes and start new business in delivering freight & cargo. (T4, T6, T8, T9, S1, S7)
2. Hire corporate travel agents to syndicate traveling process for consumers in need.(W2, W3, W5, W7,
O1, O3, O8)
Start Flying Increase and
Quantitative Strategic Planning Matrix (QSPM) Increase
Online/Offline
into
Primary
Diversify
Ancillary
Advertising Airports Services
Weight AS TAS AS TAS AS TAS
External Key Factors 1 to 4 1 to 4 1 to 4
Opportunities:
1. Success in Ancillary services ( leads to new open markets for joint ventures) 0.07 3 0.21 1 0.07 4 0.28
2. Open up their aviation repair service and flight training programs to operations outside the company. 0.05 - - -
3. Customer base is expected to grow up to 85 million passengers. 0.07 3 0.21 2 0.14 4 0.28
4. Pursue web-based advertising and new Reservation system. 0.08 4 0.32 1 0.08 3 0.24
5. Start flying into 10 to 12 primary airports (European airports have shown interest). 0.03 2 0.06 4 0.12 1 0.03
6. Popularity increasing in Eastern Europe and Asia for tourism and business gatherings. 0.05 - - -
7. Corporations pursuing appearance and expansion into African Operations. 0.04 - - -
8. Expand clientele during hard financial times by gaining customers who do not desire premium flights. 0.06 4 0.24 1 0.06 2 0.129
9. More political and governmental influence/charges in primary airports increases attractiveness in
secondary airports (€ 11 tax on European departures). 0.05 3 0.15 1 0.05 2 0.1
Threats:
1. New IAA Rules on flying hours and aircraft regulations could increase future expenses. 0.05 - - -
2. Unpredictable and uncontrollability of rising fuel costs; €350 million in 2012 regardless of hedging. 0.09 - - -
3. Greek debt crisis and unstable European economy negatively affecting future operations. 0.05 - - -
4. Last year 14,000 Ryanair flights were cancelled due to volcanic ash disruptions, airport snow closures
and repeated ATC strikes. 0.08 - - -
5. The majority of Ryanair’s profits are subject to Irish Corporation Tax at a rate of 12.5% and a raise
may adversely impact Ryanair's cash flows, finances, and operations. 0.02 - - -
6. Already paid 88 million in claims last year due to the EU 261 regulations where the airline has to
cover accommodations and compensation. 0.08 - - -
7. In the future legislation will require airlines to pay about €1.4 billion for emissions of carbon dioxide
which will rise to €7 billion by 2020. 0.05 2 0.1 1 0.05 3 0.15
8. Too much growth too fast; Expansion into Eastern Europe means competing with already existing
players in the market and operating on even tighter margins. 0.03 4 0.12 2 0.06 3 0.09
9. Increased competition from alternative forms of . 0.05 - - -
1
Increase and
Start Flying
Quantitative Strategic Planning Matrix Cont’d… Increase Diversify
Online/Offline into Primary Ancillary Services
Airports
Advertising
Weight AS TAS AS TAS AS TAS
Internal Key Factors 1 to 4 1 to 4 1 to 4
Strengths:
1. Modern/Low Cost Fleet single aircraft type; average plane age 2.94 and no plane
older than 8 years on fleet. 0.07 - - -
2. Profits increased by 25.6% from 2010-2011. 0.04 3 0.12 2 0.08 4 0.16
3. Traffic grew 8% to 72 million in 2011. 0.06 3 0.18 2 0.12 4 0.24
4. Ancillary revenues grew by 21% to €802 million for fiscal year 2011. 0.08 3 0.24 2 0.16 4 0.32
5. Dividend of €500 million paid to shareholders in 2011 equaling €846 million returned in the
past 3 years. 0.05 - - -
6. At March 31, 2010, the Company had hedged approximately 90% of its estimated fuel
exposure for the year ending March 31, 2011. 0.08 - - -
7. Number one on-time airline in Europe. 0.04 3 0.12 2 0.08 1 0.04
8. Added 328 new routes to their already existing routes which gives them a total of more than
1300 routes. 0.05 3 0.15 1 0.05 2 0.1
9. Revenue passenger miles (rpm) grew 14.4% between 2009 and 2010. 0.03 3 0.09 1 0.03 4 0.12
Weaknesses:
1. Bad Public Image; Has had several complaints filed against them by Advertising Standards
Board (ASA). 0.06 4 0.24 1 0.06 2 0.12
2. Complex Fee System leading to customer dissatisfaction; charge fees where others do not
52% of average final cost is in extras and fees. 0.08 - - -
3. Only arrive at secondary airports, no option for arrival at primary airports 0.05 2 0.1 4 0.2 1 0.05
4. Ryanair resulted in a €2.2 million loss on its Aer Lingus shareholdings due to a decline in the
Aer Lingus share price from €0.73 to €0.72. 0.02 - - -
5. Organizational structure lacks key executive positions. 0.07 4 0.28 1 0.07 2 0.14
6. High operating costs: fuel Costs itself rose 37% from ’10-’11. 0.06 - - -
7. Do not offer roundtrips. 0.07 - - -
8. Debt to equity ratio is 1.91 compared to .79 of the industry average. 0.04 - - -
9. Earnings per share is only 25 Euro cents compare to main competitor Easy Jet at 52 Euro
cents. 0.05 3 0.15 2 0.1 4 0.2
1 3.08 1.58 2.78
Strategic Objective
• Market Penetration:
– Addition of Human
Resources & Marketing
Divisions
– Increase Funds for
Marketing/Advertising
New Organizational Structure
Investment Figures
2 New Sectors Increased Marketing
• Increasing from 8 to 10 • 60% increase in Marketing
• Each sector costs €47M in Expense from last
Staff Costs (376.1/8) year(2011)
• €94M rough costs • 154.6 254.6 €100M
• Estimated €110 for increase
Projections
Total Investment *All Investment Costs will be
Costs: €210M funded from Cash Account
3 Year Goals
• 2012
– Organize and Implement new Organization Structure
– Increase revenues from 2011 by 20% €4,355
• 2013
– Increase revenues from 2012 by 25%€5,444
• 2014
– Increased revenues from 2013 by 25% €6,805
• 88% increase in revenues from 2011
Strategic Implementation
Management Issues
Projected Income Statement
Projected Balance Sheet
Projected Ratios
Liquidity Ratios Ryanair (2011) Projected
Current Ratio 1.89 1.88
Leverage Ratios
Debt to Total Assets 0.66 0.63
Debt to Equity 1.91 1.7
Long-term Debt to Equity 1.29 1.15
Effeciency Ratios
Total Assets Turn 0.42 0.49
Profitability Ratios
Operating Profit 14.20% 11.50%
Net Profit 10.30% 8.40%
ROA 4.40% 4.10%
ROE 12.70% 11%
Strategic Evaluation
Areas of Objectives Measure of Target Time Expectation Primary Responsibility
Customers 1.) Random Customer Yearly Evaluation Caroline Green

1. Satisfaction Survey with at Least 85% (Director of Customer Service)
2. Brand Identity Satisfaction Rate
2.) Industry Reports
Employees 1.) Online & In Class Yearly Evaluation Michael Cawley

1. Quality and Service Training Training (Chief Operating Officer)
2. Employee Satisfaction 2.) Employee Surveys (85%)
through focus groups
Marketing 1.) 2% Increase per year Yearly Evaluation Michael O’Leary

1. Number of Passengers (Chief Executive Officer)
Business Ethics/Natural Environment 1.) Upkeep on fleet Quarterly Michael Hickey

1. Waste Reduction maintenance Evaluation (Director of Engineering)
2. Ethics Training 2.) Employee Workshops
Financial 1.) Year 1 20%, Year 2&3 Yearly Evaluation Howard Miller
1. Revenues 25% per year (Chief Financial Officer)
2. Ratio Analysis 2.) Better than Main
Competitors
Ryanair Update
Stock Performance
49% Increase in Stock Price
Ryanair Update
•Ryanair named Europe's Greenest and Most Efficient
Airline
• #1 In European Airline Traffic 79M

•93% on time Arrival Rates; Closest competitor
Lufthansa at 85%
•Expanded from 44 bases to 57 bases; 1,500+ routes
from 1,200
April 2013, Thomas Elias, Alison Tardie,

47
Brandon Plourde, Loren Plourde, UMFK
Questions
References
• Ryanair. Securities Exchange Commision, (2011). Form 20f (0 - 29304). Retrieved from Ryanair website:
http://www.ryanair.com/doc/investor/2011/20F_2011.pdf
• Ryanair. (2011). Annual report. Retrieved from Ryanair website:

http://www.ryanair.com/doc/investor/2011/Annual_Report_2011_Final.pdf
• CAPA. (June, 2009 03). Ryanair swot analysis: Addicted to growth, a great model for bad times. Retrieved
from
http://centreforaviation.com/analysis/ryanair-swot-analysis-addicted-to-growth-a-great-model-for-bad-times
-7633

• Major opportunities remain in europe-ryanair route director. (November, 2010 11). Retrieved from
http://www.routesonline.com/news/29/breaking-news/97447/amajor-opportunities-remain-in-europea-a-
ryanair-route-director/
• CAPA (June, 2008 08). Delta now world’s largest carrier; ryanair stays top international airline. Retrieved from
http://centreforaviation.com/analysis/delta-now-worlds-largest-carrier-ryanair-stays-top-international-
airline-53030

• David, F. (2013). Strategic management: Ryanair holdings case. (14th ed., pp. 111-122). Upper Saddle River,
New Jersey: Prentice Hall.

Strategic Management Case Study: By: Thomas Elias, Alison Tardie, Loren Plourde, and Brandon Plourde

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Strategic Management Case Study: By: Thomas Elias, Alison Tardie, Loren Plourde, and Brandon Plourde

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Strategic Management Case

First “Fare 1997: We go

To be the most efficient low-cost carrier in

Source: Centre for Asia Pacific Aviation and IATA

April 2013, Thomas Elias, Alison Tardie,

Advertising 0.06 1 0.06 2 0.12 3 0.18

Company Worth Analysis

1.) SE-Goodwill-Intangibles $2,907.10

Customers 1.) Random Customer Yearly Evaluation Caroline Green

Employees 1.) Online & In Class Yearly Evaluation Michael Cawley

Marketing 1.) 2% Increase per year Yearly Evaluation Michael O’Leary

Business Ethics/Natural Environment 1.) Upkeep on fleet Quarterly Michael Hickey

• #1 In European Airline Traffic 79M

April 2013, Thomas Elias, Alison Tardie,

• Ryanair. (2011). Annual report. Retrieved from Ryanair website:

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