Professional Documents
Culture Documents
1. Strategy of Ryanair
Ryanair started in year 1985 with only 57 staff members and with
one 15 seater turboprop plane from the south of east of Ireland to London-
Gatwick which carried 5000 passengers on one route (Harrison, 2002). In
1986, inspired from the story of David and Goliath the company go after
the big guys for a slice of the action and end up smashing the Aer Lingus
or British Airways high fare cartel on the Dublin-London route. The staff
increased from mere 57 to 120 staff members and the plane carried for
about 82,000 passengers on two routes. In 1989, the company employed
350 staff and their average maximum passengers increased to 600,000. In
1990-1991, the company has 700,000 passengers.
In 1997, the EU air transport deregulation allowed the airline for the
first time to open up new routes to Continental Europe with over 3 million
passengers on 18 routes carried. Ryanair launched services to Stockholm,
Oslo, Paris and Brussels and took time out to float Ryanair plc on Dublin
and NASDAQ Stock exchanges. The company was awarded as Airline of
the Year in 1999 by the Irish Air Transport Users Committee.
2. Strategic Options
The case study has provided the problems and issues encountered
by the Ryanair, in spite of its strategies. One of the problems is in terms of
handling customers or target market. In addition, another problem is
assuring quality service. In this manner, the strategic option that can be
used by the company for satisfying both internal and external customers
and marketing environment is the use of total quality management. The
industrial competitions in airline industry worldwide are at brisk, making
companies in this field across the globe search for extensive strategic
management procedures that would keep them in on the business world.
The tasks of crafting, implementing, and executing company strategies are
the heart and soul of managing business enterprise. A company’s
strategy serves as the game plan management and is use to stake out a
market position, conduct its operations, attract and please customers,
compete successfully, and achieve organizational objectives. Thus, TQM
as a strategy is certainly appropriate for such situation.
Total Quality Management is a philosophy of management that is
driven by the constant attainment of customer satisfaction though the
continuous improvement of all organizational processes (Robbins, 1998).
It is a management philosophy that seeks to integrate all organizational
functions such as marketing, finance, design, engineering, production,
customer service, and others to focus on meeting customer needs and
organizational objectives (Hashmi, 2000).