Ryanair's business model

Ryanair's business model depends on a reduced cost strategy. A cost-cutting approach is employed by
Ryanair so that it can stay relevant and compete in the airline market. Some key aspects of a cost
leadership strategy explain below:

Ryanair's choice to float just one kind of plane has reduced its operational costs. This has
Standardization made addition to Ryanair boosting its servicing engineers' organisational knowledge, which
policy has led to advancements by engineers to enhance the functionality of the aircrafts.
Ryanair tries to avoid big gate as well as landing processing fees by main airports by trying
Secondary airports to fly to secondary airports. This also reduce overcrowding at large airports, allowing it to
optimise aircraft turnaround times and set the standard for timely landing and take-offs.
Point-to-point Flights from one location to another Flight point-to-point allows Ryanair to minimise major
extra operations such as luggage transfers, enabling it to flip round the aircrafts quickly.
Cost-cutting culture Ryanair's reduce cost culture has penetrated most of its staff members and disperse across
all the organisation, making it a crucial component of a company's culture.
Contracting-out Ryanair utilises intermediaries for managing planes, tickets, as well as other tasks. Engine
work and massive maintenance are indeed contracted out to save money, whereas Ryanair's
employees perform routine maintenance.
Instead of charging same price across all segments, Ryanair gives an opportunity to the
Price differentiation consumer to choose among a multiple choices. It is a fact that consumers carry variable
value propositions means that even consumers within the same segment could have
differing views on the value of the product. As a result, Ryanair associated cost to benefit
rather than product in order to better serve its customers.
Another way Ryanair reduce costs is by managing labour costs and productivity. As a
result, employees get paid a modest income, however the company has implemented a
Low Labour Cost compensation structure that rewards them for flying as many sectors as possible each day. It
is through this method that Ryanair is able to manage productivity while also lowering
labour costs.

There are the following strategies that makes the Ryanair business model successful in the airline
industry.
 Due to its "least cost model," productive minimum cost maintenance techniques,
disaggregating airline travel components, integrating price to value, affordable pricing fences
as well as variable pricing by Ryanair, the airline was able to attract a large proportion of
consumers over time and dramatically increase its profitability.
 Its entire business model is based on cutting costs while simultaneously increasing
productivity. Ryanair's low-cost mentality has permeated the company as a whole.
 By putting systems and policies in place, Ryanair is ensuring the viability of its corporate
culture. Because of magnitude and dominance in the market, Ryanair will be able to operate
successfully at a minimal price because of its size.
 Despite there are no complimentary or additional items such as drinks, free meals,
entertainment etc. on the Ryanair airlines, however the airline prioritises the major
characteristics for other airlines that are essential to its intended audience. A few examples of
such features are frequent flights, bookings made in advance, luggage handling, and services
that arrive timely.
 However, the Ryanair airline also face some serious challenges.

Laws and regulations is a major issue for an organization. Aside from government fees
Government Regulation imposed on the airports, the firm is also willing to keep its low-cost activities
contained. As a result, the company's leadership denounced these fees as air travel
taxes.
Apart from that, Ryanair had a hard time trying to find a shareholder because of
Investment common issues. The company does not have the resources to make investments in
order to maintain the high quality and low traveller costs. Poor investment in the airline
puts it at risk.
In addition, the rising price of jet fuel is a significant issue. Price stabilisation poses a
Rising Price of Oil challenge to the company's administration team. A euro is being used as the functional
currency, and the devaluation of the euro has a negative impact on the company's
bottom line.
The company also requires appropriate slots for landing and take-off, but this is
Increased Slots challenging for company to obtain due to fierce competition. If terminals charge more
for these timeslots, Ryanair would have to increase its fares accordingly. In order to be
successful in this market, the company must take into account a number of factors that
go well beyond its original mission statement.
Because jet airline prepares for another round of strike action that might have a
Union Strikes negative impact on its reduced price business model, union members are suing it for
allegedly breaking employment laws throughout a dispute with workers.

There are following recommendation be briefly discussed.

In 2019, soaring fuel costs as well as the possibility of a Withdrawal of the United Kingdom
were predicted to be problems for Ryanair and disadvantage the UK stockholders. In light of
these developments, Ryanair should implement structural changes to reduce the likelihood of
a drop in profits. Ryanair should also look at its rivals' quality of service, client strategy, as
well as issue solving methodology to see what they are doing right and what they can do
better.
Ryanair could gain more passengers' attention with more innovative marketing strategies and
promotional events. Additionally, Ryanair must prepare its own staffs in order to boost its
satisfied customers ranking. Moreover, in terms of advancement, the prize system must be
tied to profitability. Because of importance of strategic thinking, rewards should be tied to
company profits
The company has a few viable expansion strategies that will help it remain competitive in the
small but growing airline industry. The company's first development strategy could be buying
new planes and opening new pathways. As a result, increasing the company's market share is
a key growth strategy. The company should invest in the current market to enhance travellers,
incorporate new market segments, and distinguish the procedure in order to gain market
share. This airline's best advice would be to keep up with and preserve adjustments as time
passes. Ryanair must adhere to quality management in order to maintain a competitive
advantage.
 Ryanair should also incorporate corporate governance to manage the relationships among its
various stakeholders. Using effective governance, they will be able to better protect the rights
of all parties, which will benefit the organisation in the long run. Through this they can better
resolve the conflict of the labour union and financial stakeholders.
The aviation sector has seen drastic drop in demand as a result of the covid-19 outbreak. This
will increase the major financial loss in their cash flow. There are numerous strategic options
on which the aviation industry must concentrate, including travellers safety, constructing long
- term consumer relationships, responsiveness to technological advances, and establishing
some financial breathing room in order to heal from the current recession.

Part 2
1) Sharing a personal experience/observation, please do analyse strategy and the strategic
decision using the relevant models in the theme in focus

After completing my undergraduate studies, I worked at a small community college in my

hometown. While working there, I became aware of a principal who oversaw the college's
operations on behalf of the owners. The principal is in charge of establishing the college's
rules and regulations, including those pertaining to student admission, college staff hiring,
resource allocation, and so on.
To make sure everything was running smoothly, the owner made frequent trips to campus to
see what was going on. At the end of each month, management transferred the profits and
losses to the owner's account. Instead of making a large investment, the college has to bear
the loss, which surprises the owner. It was for this reason that the owner decided to conduct
an audit of the college's financial records to ensure that the management was operating
honestly.
A thorough investigation of the account revealed embezzlement of funds and other fraudulent
activities. Thus, the shareholders were furious. As a result, they changed the company's
management to one that would better protect shareholder rights. Later, the shareholder
implements a strict rule of governance for college operations, which changes the college's
structure and management.
2) In your opinion, what were the most valuable learning outcomes from today´s
theme/session, for you as student and for strategic managers/leaders?

A good number of topic was wrapped in order to achieve strategic choice in the last meeting,
which was fascinating. Consequently, my knowledge expands tremendously, perhaps the
greatest outcomes for me would be grasp on stakeholders' concepts and their significance to the
company. If a company does not efficiently fulfil the rights of the stakeholders, this is a
disaster. Thus, Organizational goals and objectives must be tied up to stakeholders' interests,
and vice versa.

An organization requires to choose a business model according to the resources it possess.

Because of this, I now understand how important it is for all of our stakeholders including
internal employee, economical, technological as well as customers to be properly assessed.
Thus, the stakeholders are individuals who serve as the basis for a company's strategic plan.

In order to fully comprehend a concept, it is necessary to be able to incorporate diverse opinions

so that everything makes sense. Multiple perspectives placed together within one platform paint
a vivid view of the situation at present. It was difficult at times to remain focused upon that
actual theme due to varying perspectives. An action plan can only be designed if managers are
aware of the organization's vision, mission, and primary goal

For instance, Nestlé established a Company policy that provides a point of reference for
interacting with all situations that could emerge. Staff members should request help while in
confusion, act lawfully and genuinely, and prevent any conduct that might harm Nestlé's
public image they should also give priority to the benefits of the company over their own or
other self-interests.
3) What (There is always something anything) did you pick up from discussing or
working with your fellow students/peers that you did not know or think of before
coming to class and that can help you to grow as strategic manager/leader
With regards to stakeholder planning, there are several rarely complete explanations.
Knowledge and assessment are strongly influenced by the template in which they are
undertaken. If the pattern of observations is taken into account, various potential responses
can be given
Individuals and circumstances vary markedly among themselves, but most individuals strive
to keep inside the statement of work of conversation. For instance, we discussed the various
stakeholder models. When it came to Airline Company, an organisations had been put
through a variety of business model analyses.
Nevertheless, the meeting was complicated due to the limited scope of discussion that could
be had due to the surrounding circumstances. Many of the students talked about the
company's business model and the strategic options they have to choose from in this lesson.
It's been fascinating for myself to explore how we can refine in on a particular aspect of
someone's concept before delving deeper.
Start with the generic model, then implement stakeholder models as well as corporate
governance to get a clearer picture of organization's business model, in my view. After that,
I'd consider how it will help to stakeholders to earn a great return on their investment in the
company. There was a full stakeholder model as well as shareholder model to demonstrate
how well these models enable an organization to construct a strategy that is appropriate for
the key partners. The final analysis relies on the organization's current problems and issues,
as well as possible solutions.

4) Using the reflections you have, please select on databases ONE scientific article from
2015 or later, and a) do a short synthesis of the knowledge gained, b) share how this new
knowledge sustain or not classical models and theories
Low Cost Business Model in Airlines Industry (A Study on AirAsia) (Monira Alam Kanta1,
2017). The study's goal is to shed light on how airlines would benefit from embracing the
reduced price Model, and whether or not sales would decrease or increase significantly, while
bearing in mind the comfort level and data given. This research aims to find out what kind of
effect while using business model would have on the airline industry.
Low Cost Business Model in Airlines Industry
(A Study on Airasia)
The research answered the following queries:
 To investigate potential revenue-boosting options.
 To what extent low Price Model raises sales?
 Enshrining constant assistance and comfort standards
 Providers and level of comfort
It can deduct from this that this model has been a success in the aviation industry thus far,
and customers recognise this because they charge less.
 Under the correct situation, the reduced price model has indeed been effective for
airline industry, and can be stated that it could proceed to be like this for a
comprehensive airline after making a few modifications.
 There are more downsides to code exchange than benefits, particularly for travellers.
Inside the airline business, customer experience and customer service are critical to
the business' achievement. That is why removing or even reducing the negative
impacts of the model while providing travellers with the high level of service they
have grown to expect would've been vital to economic growth, according to airlines.

B) This paper examines the potential pitfalls a low-cost airline might encounter due to its
business model.
The strategically framework of Ryanair airline is one of low cost. There are huge benefits to
this particular design, which makes it popular with passengers. The company was able to
position itself in the market thanks to its relentless pursuit of lower fares and focus on short-
haul, point-to-to-point routes. Ryanair's main goal was to satisfy the fundamental
requirements of the consumer, which is to travel for the lowest possible price. The
mentioned important points that could be referred to as vital strategies, were utilised by
Ryanair in an effort to match these aims and outcomes:
 Low prices are the key objective of a strategy.
 Being trustworthy in business
 Regularity, convenience and service
5) How do you assess your involvement and contribution to class discussions, and what
can you do better to contribute to the discussion next time you are in a similar
situation?
I think I have contributed decently in explaining Ryanair's standardisation strategy and the
point of corporate governance for resolving the conflict in the organisation. It's a
comprehensive look at how firms used the low-cost business model to advise their strategic
choices. Model and implementation for accomplishing the set goal were both better
understood.
My level of involvement in class has grown steadily over time. We owe a gratefulness to a
mentor, who inculcates in us the courage to speak up and tell our narration. While this is true,
I am not always correct or appropriate in what I say because many of the points I make have
already been raised by others in class.
The case studies, in particular, help me gain a thorough understanding of all the issues
discussed. Though my knowledge of the subject matter had dwindled, I had enjoyed learning
about other people's points of view.
My biggest fear has been that someone will guess exactly what I'm thinking, and then we'll
change the subject until I can say it. In the last meeting, I tried to put my hand up earlier so
that I could express more thoughts. We have learned a lot from these workshops and they
have opened up new horizons of understanding and connection between business strategies
for me. Workshop reflection is a particularly valuable learning experience, even apart from
the theory.
References
Monira Alam Kanta1, A. R. (2017). International Journal of Science and Research (IJSR) ISSN (Online):
2319-7064 Index Copernicus Value (2015): 78.96 | Impact Factor (2015): 6.391 Volume 6
Issue 3, March 2017 www.ijsr.net Licensed Under Creative Commons Attribution CC BY Low
Cost Business . International jornal of science and research.

UKEssays. (November 2018). Nestlé Corporate Governance Business Principles. Retrieved from
https://www.ukessays.com/essays/management/nestle-corporate-governance-business-principles-
management-essay.php?vref=1

Whittington, R. R. (2020). exploring strategy text and cases. pearson UK.