Ryanair is a low-cost Irish airline that has experienced tremendous growth and success since it was founded in 1984. The company has consistently ranked as one of the most profitable and efficient airlines in the world, and its unique business model has been emulated by other companies in the industry. However, Ryanair has also faced criticism and controversy due to its aggressive cost-cutting measures and sometimes contentious relationships with employees and customers.
One key factor in Ryanair's success has been the leadership of its founder and CEO, Michael O'Leary. O'Leary is known for his no-nonsense approach to business, and he has implemented a number of cost-saving measures that have helped the company maintain low fares and high profit margins. He has also been willing to take risks and make bold decisions, such as entering new markets and launching new routes, which have helped the company expand and grow.
However, O'Leary's leadership style has also been controversial. He has been criticized for his confrontational approach and for making inflammatory comments in the media. Some have accused him of being disrespectful and dismissive of his employees and customers, and there have been numerous labor disputes and strikes at Ryanair over the years. Despite these challenges, O'Leary has remained a powerful and influential figure in the airline industry, and his leadership has played a significant role in Ryanair's success.
In recent years, Ryanair has made efforts to improve its reputation and address some of the criticisms of O'Leary's leadership. The company has made changes to its policies and practices, such as improving working conditions and offering more flexible schedules for pilots, and has taken steps to improve customer service. These efforts have helped to improve the company's public image and strengthen its relationships with employees and customers.
Overall, the leadership of Michael O'Leary has been a major factor in Ryanair's success as a low-cost airline. While his confrontational style has sometimes caused controversy, it has also helped the company to achieve its goals and maintain a competitive edge in the industry. At the same time, the company's efforts to address criticisms and improve its reputation suggest that it is open to change and willing to adapt in order to meet the needs of its employees and customers.
Solved Ryanair (RYAOF) Shared Leadership Analysis
It helped the company to serve over a million customers every year. Rothwell 2011 notes their fuel costs climbed 49% in 2011. The factors which were identified as of import were put in to this tabular array to find if they were chances or menaces for Ryanair. The main advantage of these techniques is that they do not require large-scale computers except for complex situations. Shared values It is prudent to choose shared leadership among partners who have shared values and those values are consistent with the values of the organization. New competitors may find it difficult to gain access to delivering service, which will make it difficult to provide their service to customers or obtain the inputs required or find markets for their outputs. By briefly examining a number of strategic management models it is possible to see how successful Ryanair have become.
Ryanair SWOT Analysis 2020: Everything You Need to Know
This industry saw four major players United, US Airways, Delta, and Northwest file for bankruptcy protection in the last decade or so. These can lead to a third strategy i. The board of directors play a critical role in setting up the common objectives of the organization. This strategy could be a tactic of a planned strategy to minimise costs. Bookmark this article and comeback to it later.
Case Study And Analysis Of Ryanair Management Essay
One thing is for sure, the model is creating the pipeline of talent for the airlines such as Virgin that are getting the people and customer agenda right. This has a direct influence on the reputation of the organization. Current Problem Diagnosis Increased competition on the international arena threatens profitability of such giants as Ryanair. However, in order to compete with other LCCs and maintain its continued market share growth in the future, Ryanair needs to improve its poor customer relations. Infrastructure is affected, as are all types of institutions within the country. Therefore, obviously, that Branson wants the employees to bring the personalised attitude to clients. The following criterion addresses each aspect of the company on how to improve its performance.
In doing so, they might not bother checking offers from other providers as they know that Ryanair will still be cheaper. These helped in the understanding of the focus in Ryan Air as a Cost Leader and their cost methods that have complimented their business with a demand for their service. This strategy will help Ryanair to survive and remain competitive in spite of market changes and economic crisis. Since the business model is unlikely to change, Ryanair would have to cope with these issues for the foreseeable future. This aligns with the second quotation by Goldsmith 1996 i. Ryanair's Weaknesses EasyJet is Ryanair's main competition.
Relevant Leadership Theories In Relations To Ryanair Management Essay
Quick turnaround and Reliable service both helps Ryan Air to enhance their efficiencies in their value systems to maintain outbound logistics at a efficient pace. In Ryanairs culture the people were seen as the problem, not the solution. VALUE CHAIN ANALYSIS The valley concatenation is a set of activities that the organisation undertakes or organizes to present the merchandise to the client. His driving forces often were much stronger than his restraining forces. That might indicate some similarity with the emergent approach i. It is of import that Ryanair attends to these critical issues instantly. Many UK based companies fight for survival in markets faced global competitor ion.
Quite clearly, the primary activities draw on a wide variety of support activities in their on-going management Gardiner, 2005. The Chief financial Officer and the Chief Operating Officer reports directly to the CEO together with the the HR manager, Legal Scretary and ground operations officer. Its high capacity utilisation enables it to reduce overhead costs Capon and Hulbert 2007. For the purpose of this report, the focus is on the research conducted by Stogdill, 1974. The success of Ryan Air is not possible without a strong commitment by one of executives of the company. The airline flight coverage is to regions that are within five hours margin of flying from Dubai. Since the organizational structure is the way activities are arranged, structure does not directly affect performance of the company.
Therefore its focuses are to accommodate passengers and customers to select a purely low budget airline over its competitors as mentioned above. Intranets allow industry to react faster delivering customer satisfaction. Industry structure and market position of Ryanair suggests that threat of entry is low. As well, Lufthansa also operated with higher labor costs than low-cost players or emerging market competitors — years of union advocacy, pension fund obligations, and industry regulations forced these airlines to devote a larger share of revenues towards labor benefits. However, Baum 2011 notes that Ryanair do not recognize trade unions and notes the problems this can bring in Human Relations Management HRM terms e. Porter 1985a, cited Stonehouse and Snowdon 2007 also noted the importance of the value chain.
This approach may not be suitable with head office staff as it will de-motivate employees. An appearance of unity People at the organization are quick to identify differences, when the two CEO are having difference of opinion. Shares Market: Morgan Stanley forecasts a surge in Southwest Airlines stock if travel restrictions are lifted and air traffic went back to normal. However, this strategy may be problematic if it is not evident as to where fuel prices may go in the future e. Economic Forces — Economically, the crew was doing great.
But he is quite close to becoming a true and effective leader of a level 5 leader. However, Ryanair needs to improve its current low level of empathy for employees if it is to retain them in the future. We must rely on our leaders to help bridge that gap and drive the desired cultural shift by employing the techniques that help drive organizational culture such storeytellting and focused recognition. The Achilles heel of Ryanair is their greater aircraft utilization through super quick turnaround times. They were stealing from the rich and giving directly to the poor.
However based on the environmental analysis some initial recommendations can be made. Ryanair is profitable corporation but it will require changes in competitive strategy to remain in an industry and, under some circumstances, it can occasion the decision to exit a business or an industry. Their strategies are entirely based on being the Cost Leader in its segment. As cost leader Ryanair strives to undercut all its rivals but this means very low income per fare and requires maximum utilization of its resources. Ryanair was established to take full advantage of these market conditions.