Internal And External Factors Controlling Ryanair Commerce Essay
The following report analyses how internal and external factors control to the strategy that Ryanair Plc is following. This report undertakes a detailed study of Ryanair which include a brief outlining of the company’s products and services. Mission, vision and values of the airline will be also explained. It evaluate company’s current strategy and the management of that strategy. It also gives a brief evaluation of Ryanair’s financial structure as well as an environmental analysis of the European airline industry and how this affects Ryanair.
Each section of the following report represent the key findings. Introduction to company section includes Ryanair’s background, mission and vision statements, Corporate Social Responsibility policy, company’s stakeholders.
External environment section include SWOT analysis. This analysis explain Internal (Strengthens and Weaknesses) and External (Opportunities and Threats) factors. Furthermore, PEST analyse is described. In order to understand company’s profitability in relevance to the competitors, the Porter’s Five Forces framework is used.
In Financial sector the turnover , profit margins, operating profit, current ratio, solvency ratio, gearing ratio and the comparability of these during 2006-2008 period is explained.
Using the Ansoft’s growth matrix the main strategic direction that Ryanair follow was indentified.
The methods of development such as low cost, no- frills model, finding new markets for existing products, opening new routes are outlined and analysed.
Conclusions and recommendations was explained using a SPACE .
Introduction to Company
4.1 The largest low-fare European company Ryanair was set up in 1985 by Cristy and Tony Ryan and Liam Lonergan. Company started working only with 25 members of staff. Ryanair replicated the American