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Course: Strategic Management in Action Author: Jos Miguel Tejedor Fernndez

Outline

Ryanairs Vision & Values The Leadership in Ryanair Evolution of Ryanair Contingency/Situational Manag. Key performance indicators. Recommendation
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Ryanair

Started in 1985 Leading European carrier flying 72 million passengers, 80% passenger loading on aircraft $ 528 million net profit 2011 Currently in 26 European countries, 1000+ routes 289 aircraft

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Vision
be the Low

Cost Leader high punctuality

and

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Business Ethics

Unethical Human resources management


Taoiseach described OLearys orientation

toward labor as tooth and claw capitalism

compensation for pilots and flight attendants based on efficiency issues

Poor customer service


refusal to supply wheel chairs for disabled

passengers
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2004, the European Commission ruled that 4

Charismatic Leadership

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butopen to interpretation

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Michael OLeary on Ryanairs Stakeholders European Commission morons BAA overcharging rapists UK air traffic control poxy Travel agents

Transformational leadership

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Transformational leadership

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Pre 1990 Airline Industry


Little chance of new entrants High ticket prices Limited availability of purchasing tickets-Travel Agents, Airports Limited choice of departure airports No choice of airline

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The Airline Environment-pre 1990


No aggressive competition Sharing Routes Fixing Prices Dominated by a few global players Government intervention Generally aimed at the business flyer
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Pre-1990 Airline Industry

Dominated by big national airlines Cartels Route Monopoly

1990s-change in the environment


Privatisation Deregulation

Relatively free market More choice for the consumer!!


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Birth of the Low Cost Airline


On-Line Booking No Seat Reservation Pay for Seat only Led to: Entrance of new players-Go, Wizzair, Easyjet and Ryanair
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The No Frills Industry


60 across Europe Easyjet, Ryanair, BMI Baby (U.K.) Air Berlin, Germania Express (Germany) Wizzair (Poland & Hungary) Air One, Volare (Italy)

2007 22.7% growth in seats


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The airline environment now


More competitive Lower Prices Alliances between big players Emphasis on short-haul due to decline on long-haul Increase in low cost carriers Many airlines copying low cost model-e-booking
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Milestones

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Contingency/Situational Management

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Personnel. Cabin Crew

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Personnel: Pilots

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Airports

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Contingency theory through Ryanairs success

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Performance measures

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KPI - Key Performance Indicators


Service Indicator
Passenger Seats Occupied No. of partners in supply-chain No. of accidents Percentage of Flights Departures Delayed > 15 minutes Crew productivity and cost Crews per aircraft Amount of lost baggage on connecting flights

Financial Perspective
Revenues Expenses Profits Fuel Costs

Ryanairs performance

Customer Perspective
Types of cuisine offered Baggage rates Response Time for queries Cancelled Flights No. of complains Satisfaction

Flight Operations
Flights Passengers Available Flying Time Aircraft utilisation

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BSC Designer PRO

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Final assessment

Balanced Scoreboard Performance: 46,02%

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Ryanairs performance

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Multiple tables

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Customer satisfaction assessment

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Recommendations

more focus on leadership vision reflected in useful mission develop culture values to place customer service at the heart of their business put employees in first place serve customers with better quality of service
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adapt to business changes if

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