Table of contents

Chapter-1...............................................................................................................................1-3 Chapter-2................................................................................................................................3-5 Chapter-3...............................................................................................................................5-6 Chapter-4...............................................................................................................................7-9

References...............................................................................................................................10

Chapter-1 Q1 (a): identify the purpose of different types of organizations and Ryan air: Ryanair is an Irishlow-cost airline with its head office at Dublin Airport, and with primary operational bases at Dublin Airport and London StanstedAirport.Ryanair operates 300 Boeing 737-800 aircraft on over 1,100 routes across Europe and Morocco from 44 bases. The airline has been characterized by rapid expansion, a result of the deregulation of the aviation industry in Europe in 1997 and the success of its low-cost business model.Ryanair has grown since its establishment in 1985 from a small airline flying a short hop from Waterford to London into one of Europe's largest carriers. After the rapidly growing airline was taken public in 1997, the money raised was used to expand the airline into a pan-European carrier. Revenues have risen from 231 million in 1998, to some 1843 million in 2003 and net profits have increased from 48 million to 239 million over the same period. Purpose of different types of organization and Rynairs corporate mission: Normally the purpose of different types of organization is to serve the target customer so that they can survive as well as be in the competition with the greater competitive advantages. Obviously purpose should be done with the greater satisfaction of customers ultimate desired need and wants. As it is for Ryanairs purpose to deliver minimum standard of particular service with the lower price strategy cutting the avoidable cost for gaining competitive edges. RyaniarPurpose: 1. 2. 3. 4. 5. 6. Low cost service to customer satisfaction and capture the market Expand the market and market leadership Effective practice of TQM To maintain the low cost of stuff Reduce the maintenance cost of Ryanair Effective and efficient management and flexible control over the expanding business

Q1 (b): describe the extent up to which Ryaniar is meeting the objectives of its stakeholders Ryanair takes critical consideration of its stakeholder's interest. All stakeholders listed on the diagram above are vital; however, the key stakeholders to the company are shareholders, government, passengers and suppliers. Anorganization is a social entity which affects the welfare of many people. 1. Stakeholders can be instrumental to corporate success and have moral as well as legal rights and their claims should be considered by corporate leaders. Spitzeck (2009). 2. An organization such as Ryanair belongs to stockholders and their interest must be met (generally to maximize return on investment) (Chilosi&Damiani, 2007).
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3. Shareholders have different time horizons, subjective discount rates and propensities to risk (Chilosi&Damiani, 2007).

Like others Ryanairs objectives is also to maximize its shareholders wealth and continuing the coordinating behavioral consistent chain management linkage to its all suppliers, customers group, others clients and whatever stakeholders it has ,it always try to keep sustainable relation with developing different strategies at respective level. Therefore its main strategy to serve its service at minimum standard in lower price to be more competitive and more sustainable for consistent survivor. Its initiative of like differentiation mode of segment management and strategic manner.

Q1(c): explain the responsibilities of Ryaniar and in general of an organization and the strategies employed to meet them Strategies followed by the Rynair Company: 1. 2. 3. 4. TQM Strategy CSFs Strategy Cost reduction strategy Porter generic strategy

Ryanair Strategy Ryanair's objective is to firmly establish itself as Europe's leading low-fares scheduled passenger airline through continued improvements and expanded offerings of its low-fares service. Its strategy to achieve this is: 1. 2. 3. 4. Low fares Industry-leading customer service Frequent flights on short-haul routes Low operating costs, addressing aircraft and equipment, personnel productivity, customer service costs and airport access fees 5. Taking advantage of the internet and 6. Commitment to safety and quality maintenance Porters Generic Strategy: Ryanair has also been able to use Porters generic strategies to position itself in the marketplace. Accordingly, a company positions itself by leveraging its strengths. Today, more and more people and organization are striving to be recognized in the business arena. With this objective, these organizations had been able to competently and effectively adapt to the situation in the
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market place by using generic strategies that enhanced their competitiveness. There are five different generic strategies that a business can choose. These include cost leadership, differentiation, focused cost leadership and integrated cost leadership/differentiation. Each generic strategy helps the company to establish and exploit a competitive advantage within a particular competitive scope. Cost Reduction Strategy: To achieve its goal of being competitive in the airline market, Ryanair uses a cost reduction strategy. Such cost reduction strategy relies on five main aspects like fleet commonality, contracting out services, airport charges and route policies, managed staff costs and productivity and managed marketing costs. Rynair Responsibilities: 1. Corporate social responsibilities 2. Stakeholder demand meeting 3. Awareness about overall benefit of the company and customer satisfaction

Chapter:-2

Q2 (a): explain how economic system attempt to allocate resources effectively (UK budget) from 2001-2005 there has been a fiscal stimulus to the UK economy through substantial increases in government spending on transport, and in particular heavier spending in the twin areas of health and education. This fiscal stimulus will come to an end in the next couple of years as the government slows down the rate of which its own spending is increasing. Q2 (b): assess the impact of fiscal and monetary policy on business organization and their activities in the UK. Fiscal Policy Effects From 2001-2004 there was a huge fiscal stimulus to the UK economy through substantial increases in government spending on transport, and in particular heavier spending in the twin areas of health and education. The real level of government spending grew from 364 billion in 2000 to 488 billion in 2004 a rise of 34%. The share of GDP taken up by government spending has also increased from 38% in 2000 to 41.4% in 2004. This significant increase in government spending has helped to maintain Britains short-term economic growth at a time when some components of AD (notably export demand and investment) have been weak.
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Impact of fiscal policy on the composition of output Monetary policy is often seen as something of a blunt policy instrument affecting all sectors of the economy although in different ways and with a variable impact. Fiscal policy changes can to a degree be targeted to affect certain groups (e.g. increases in means-tested benefits for low income households, reductions in the rate of corporation tax for small-medium sized enterprises and more generous investment allowances for businesses in certain regions).Consider the effects of using either monetary or fiscal policy to achieve a given increase in national income because actual GDP lies below potential GDP (i.e. there is a negative output gap) 1. Monetary policy expansion: Lower interest rates will (ceteris paribus) lead to an increase in both consumer and business capital spending both of which increases equilibrium national income. 2. Fiscal policy expansion: An expansionary fiscal policy (i.e. an increase in government spending or lower taxes) adds directly to AD but if this is financed by higher borrowing, this may result in higher interest rates and lower investment. Government finances have moved from surplus in the late 1990s to a deficit of over 2.5 % of GDP in 2003-04. The emergence of a rising budget deficit has been due to a weaker economy and the effects of substantial increases in government spending on priority areas such as health, education, transport and defence. Both current and capital spending are rising sharply in real terms. Critics of Gordon Brown argue that he risks losing control of the budget deficit if tax revenues continue to come in below forecast whilst public sector spending remains high. Gordon Browns reputation of fiscal prudence has come under pressure both before and after the most recent election

Q2(c): evaluate the impact of competition policy and other regulatory mechanism on the activities of Ryaniar Competition policy of Ryaniar:

1. Effectively Managing the Firms Resource: Ryanair keeping their cost down and offer low prices than the competitors. 2. Exploiting and Maintaining Core Competencies: 3. Ryanairhad to build a low cost culture amongst competitorsworkforce. Over the years, this low cost culture embedded into everyone at Ryanair and hasbecome one of the key competencies of the firm.

4. Developing Human and Social Capital:This is probably one area where Ryanair leadership could improve. Ryanair does not seemto pay attention to the individual employee, except state that they are one of the best paid inthe low price airline industry. In the long run, if enough attention is not paid to develop andnurture employees, Ryanair could experience low morale in the work. 5. Sustaining an Effective Organizational Culture: Ryanair has built and sustained a low cost organizational culture and this culture is the coreof Ryanair and influences on how it operates. Chapter-3

Q3 (a): explain how market structure determines the pricing and output decision of business and Ryaniar in particular. Market structure with different criteria where service or product provider company having more competition with more provider or moderate competition with some provider or one provider having no competition determine variable mode of pricing level( different business pricing strategies-lower or moderate or so competitive pricing and also there is more different as well as unique pricing model with differentiation strategies having rare competitive edge of particular advantages) and obviously output of the organization will differ basis on lots of factors. If following the market structure and considering the need & want of particular market segment and pricing is adjustable or bearable , accordance with the income level of customer sells of the service or product of in that industries where particular companies are facing different level of competition from each other having different selling level. Here output decisions depend on crucial coordination between marketing strategies & production strategies of particular product where many product lines are available as well as EOS is important. More selling with strong compliance marketing strategies tend to more production of product or tend to deliver more service means according to level of selling because as a company you are not there to produce good quality product ( service is periodical ) but cannot sell even single one , it should not be the situation also because you are not staying with those all the year round without selling. So output & selling in between pricing is must adjustable coordinating factor tend to be forward and make the produced product or service sold or served with expected profit margin as it should go in favor of companys desired level. In case of Ryanair, itsoperating in a competitive market scenario where everyone is doing something to survive and to make itself profitable to meet its goal. According to market trend Ryanair taking its own strategy over competitors strategies. It takes cost reduction strategy but not with the compromising of basic service standards what are expected byRyanairs target customers. Ryanairs main idea is to profitable survive with target customers providing must services (not lots of services, whatever services it will provide should be fair enough & standard) maintaining the particular quality with fair & bearable price by handling the business following the strategy of total quality management (TQM) in every
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departments consistent development so that they can continue their profitable business journey. And for this Ryanair implementing CVP (cost-volume-profit) with fair service pricing by reduction of avoidable cost strategy in its every department & aspects. Q3 (b): illustrate the relation between the market forces of organizational response with at least 4 factual examples. According to Porter's five Forces for industry analysis and business strategy to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Here Ryanair is focusing on pricing attractiveness in this context refers to the overall industry profitability. These forces as the micro environment, to contrast it with the more general term macro environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally, requires a business unit to re-assess the marketplace given the overall change in industry information. The overall industry attractiveness does not imply that every firm in the industry will return the same profitability. Firms are able to apply their core competencies, business model or network to achieve a profit above the industry average. A clear factual example of this is the airline industry. As an industry, profitability is low and yet individual companies like Ryanair, by applying unique business models, have been able to make a return in excess of the industry average. Competition is there, threat of substitute products, the threat of established rivals, and the threat of new entrants; and the bargaining power of suppliers ( adjustable price should be there) and the bargaining power of customers( in case of Ryanair customers are demanding lower price).

Q3(c): discuss how business and cultural environment shape the behavior of an organization in context to ryniar: Its variable as business and cultural environment varies through over time as well as situation. Its new era business world is changing rapidly, not want to say gradually because now you have to take spot decision. Customers do not wait, they will divert by others lucrative offerings if you do not offer before those closely competitors. In previous timeRyanair was different than what it is now. They were in somehow high price with no headache of cost and they served vast services with basics to enhance its offer more luxurious. But now days economic condition is not so good as well as the incomes of customers. So customers are more conscious regarding price of offers of different airliner. Also customers are careful about core services which airline offers. On the other hand business world in changing trend. Competitors are growing with their offerings and strategies to get more market share. Also overall cost in airline industry is rising because of different variable factors which are very much cost related. So in these circumstances, Ryanairbring some changes in its strategies as others are doing but differently. It takes cost reduction strategy for serving lower price service but not lower quality. Total quality management is one of its priorities. Ryanair is now more prices oriented as the customers are price sensitive

Chapter-4 Q4 (a): discuss the impact of international trade global market on Ryaniar. Ryanairs in between strategies coordinating the international trade and global market compliance. Business Level Ryanairs Profit Models Low-cost design profit model .Focus on the correct low-cost business design. No focus on building cumulative experience to gain lowest cost After-sale profit model. Not the sale of product/service generates the profit. Focus on after-sales (the ancillary revenues) Time profit model (former). Focus on first mover advantages to generate excess returns before imitators. As the profit warnings in 2004 indicates the Time Model stopped working Customer solutions profit model. Focus on knowing your customer (the trends of customers behaviors on the web). no frill Internet ticketing. Converting web traffic into ecommerce & advertising revenues.Ryanair has lost almost 60% of its visibility online since September 2009, reveals independent research by Greenlight, the UKs leading award winning search marketing agency. The report, Flights Sector Report Issue 4, analyzed key search terms used when UK consumers go online to find a flight. It determined the best positioned and hence most visible websites in this sector based on the volumes for each keyword. Ryanair held fourth position in the visibility stakes in Q3 2009. However Q4 saw a dramatic shift. EasyJet landed in at fourth position as Ryanair was relegated to 32. It was not the only casualty. CheapFlights also saw a 25% decrease in search visibility dropping from position two to eightThe International Transport Workers Federation today launched a new initiative to protect the rights of workers at Ryanair. In what it called a new kind of campaigning the ITF has set up www.ryan-be-fair.org, a website that will give Ryanair staff the freedom to discuss their work, conditions and any problems they have.Air carrier Ryanair are considering buying Russias brand new Superjet 100 medium-haul airliners and MS-21 planes, Kommersant business paper reported on Thursday, 25-06-2011. So this is how all aspects of interrelated issues of international trade & global impacts are involved and have significance on its potential growth.

Q4 (b):nalyse the impact of EU policies on the business of Ryaniar. European Merger Regulation Allows Ryanairs Partial Acquisition of Aer Lingus Despite Prohibition.The European General Court has today announced two judgments in relation to the Commissions prohibition of Ryanairs hostile bid to acquire Aer Lingus. Both decisions support the Commission but only one judgment is based on good economics. That is the decision to uphold the prohibition. The worrying judgment is the one that allows Ryanair to retain a 29.8% stake in its rival duopolies out of Dublin airport.Recall that the UK Competition Commission decided in 2007 that BSkyBs 17.9% shareholding in ITV meant it could have a material influence on its competitor, and was required to reduce its stake to 7.5%. In particular, the CC found that BSkyBs ability to block a special resolution would limit ITVs strategic options, for example its ability to raise funds. And what has Ryanair been doing with its near
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30% stake? It has blocked a special resolution relating to an increase in Aer Linguss capital, demanded talks with the Aer Lingus management, and requisitioned two extraordinary general meetings with the aim of reversing strategic decisions. While none of these actions appears yet to have had decisive influence, they are clear attempts to influence. One of the purposes of the introduction of the EC Merger Regulation in 1989 was stop trying to use Art.101 in cases of minority shareholdings Unfortunately, the outcome is likely to be worse for Irish flyers. Eventually, the management teams of both firms will find life more comfortable and profitable if they begin to coordinate so as not to fight too hard in the market. Consumers will lose out. This was also apparently the view of the stock market as shares in both firms rose on the news that Ryanair would not have to sell down its stake. The ECMR needs urgent revision to eliminate this loophole before others try the same tactic to intimidate rival management teams.Ryanair's no-email policy in breach of EU rules.Budget airline must allow customer complaints via email under EU law.By failing to offer its customers an online complaints service, budget airline Ryanair is in breach of European Union rules, according to the European Commission.Under the European E-commerce Directive, any company selling goods online must offer customers the opportunity to complain via e-mail. Ryanair currently has no e-mail contact listed on its website, instead requiring disgruntled customers to contact them by fax, letter or premium rate telephone number for urgent inquiries. In a letter to a Member of the European Parliament, the Commission said that this failure to provide an e-mail address breached Article 5 of the directive and it falls to Ireland's consumer rights authority, the National Consumer Agency, to investigate and ensure that the rules are enforced.Ryanair claims that passengers accept that all complaints must be made in writing when they click on the terms and conditions to make a booking. The airline added that almost all complaints are handled within seven days and that they receive fewer complaints than most airlines. Sceptics argue that this is precisely because Ryanair makes complaining more difficult by not providing an e-mail address. Any Commission decision to aggressively enforce the directive is likely to have a positive outcome for online consumers as national authorities make sure that companies comply with the rules. Compliance must be there to accomplish the success of Ryanair with EU business policies. Q4(c)analyzethe impact of global factors on UK business and Ryaniar on particular Ryanair started off as full-service conventional airline, with two classes of seating, which are business class and economy class, while the fleet was leased with three different types of aircraft. Then in 1990 when OLeary took office, the company under his supervision changes its business model dramatically, implementing cost-leadership strategy (Snell, 2007), utilizing disruptive innovation outsourcing strategy (Leavy, 2004, Anderson & Williams, 2004), and market segmentation focus (Strategic Direction, 2006a). Providing that Ryanair currently operate under its own new single fleet of Boeing 737-800 model type planes to keep aircraft maintenance cost low as possible (Ryanair, 2009b), a business model which there have inherit from Southwest Airline (Strategic Direction, 2006a).When the world is worried about the impact of the financial meltdown and global economic slowdown, Low-cost carriers including Ryanair have been
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growing rapidly (Standard & Poors, 2009), nonetheless outperforming its competitors in term of operational trends (Reuters, 2009). Achieving revenue of 2,713 million in revenue and 390 million for year ending 2008 (Ryanair, 2008a).Whilst Ryanair has become something of a paragon of operating efficiency (Strategic Direction, 2004), but is the strategy that Ryanair has implemented is capable of sustaining its competitive advantages further into the future is the prime purpose of this paper and again is change relevant for the company.Numerous airlines, including some high profile 'flag carriers,' that are now in a precarious position are looking to larger competitors to take them over. This can be seen with speculation surrounding Alitalia, Olympic Airlines and SAS Scandinavian Airlines, the proposed merger of BA with lberia Airlines, the continued attempts of Ryanair to acquire Aer Lingus, and Lufthansa's acquisition of bmi and its purchase of significant stakes in Brussels Airlines and Austrian Airlines. Given the strong cash positions of both Ryanair and easyJet, there is evidently plenty of life in the low cost model to see this recession through. Different ways it has lots of factors impact..

Reference: 1. http://www.northumbria.ac.uk/?view=CourseDetail&page=module&code=UUFACC1& mod=FN0137accessed on 5th June,2011 2. http://tutor2u.net/economics/revision-notes/a2-macro-fiscal-policy-effects.htmlviewed on 5th June,2011 3. http://tutor2u.net/economics/revision-notes/as-macro-fiscal-policy.htmlAnalyzed on 6th June,2011 4. http://www.scribd.com/doc/47646350/Ryanair-Case-StudyAnalyzed on 4th June,2011 5. 6. http://www.articlesbase.com/online-business-articles/knock-them-out-ryanaircompetitive-strategy-4562747.html#axzz1QLw2oOowAnalyzed on 6th June,2011 7. 8. http://www.grin.com/en/e-book/87815/ryanair-and-its-low-cost-flights-ineuropeAnalyzed on 6th June,2011 9. http://ivythesis.typepad.com/term_paper_topics/2009/04/sustainable-corporate-strategycase-study-exam---ryanair.htmlAnalyzed on 4h June,2011 10. http://www.oxbridgewriters.com/essays/business/ryanair-airports-strategy.phpAnalyzed on 7th June,2011 11. 12. http://www.internationaltrade.co.uk/news.php?CID=&NID=577&Title=Ryanair+Loses+ Online+Visibility+To+EasyJetAnalyzed on 6th June,2011 13. http://www.internationaltrade.co.uk/news.php?NID=1058Analyzed on 9th June,2011 14. http://a.exportfocus.com/index.php/2011/06/23/ryanair-delta-mull-buying-russiassuperjet-100s-ms-21-planes-paper/Analyzed on 8th June,2011

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