STRATEGIC OPTIONS AND RECOMMENDED ACTIONS

Strategic Options And Recommended Actions

Strategic Options And Recommended Actions

Introduction

This paper presents an analysis of an individual report that includes an analysis of strategic options and recommended actions. And for this purpose the organization selection has been made from airlines industry and the selected organziation is Ryanair (Air Transport Intelligence? 2003). 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 (Clegg? 1994, 49-178). 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 (Ryanair? 2002).

PESTLE of RyanAir

Political

Some countries give preferential treatment to companies from their own country. From the case study page 703 it states that 'the French government attempted to protect Air France-KLM by forcing easyJet and Ryanair to move the staff they employ on French soil from British contracts to more expensive French ones' (Ryanair? 2002). The Ryanair is not so good in managing cost that the company has lose its money. A new management team is brought in to sort it out and re-launch as a “low fares or no frills” airline? closely modelling the Southwest Airlines model in the U.S. And in 1994? Ryanair bought its first Boeing 737 aircraft which carried over 1.5 million passengers (Clegg? 1994, 49-178). In 1995? Ryanair is the biggest passenger carrier on Dublin-London route? the largest Irish airline on every route being operate and carried 2.25 million passengers in the year. 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 (Sanctis? 1987, 589-609). 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 (Air Transport Intelligence? 2003). In 2000? they announced the launch of 10 new European routes for the summer 2000 after much deliberation and watching others burning money. The company has also jump onto the internet with the launch of their new online booking site and in just 3 months the site is taking over 50?000 bookings a week. By 2001 there are more than 1500 employees working for Ryanair and more than 10 million passengers are carried to 56 cities in 13 European countries (Clegg? 1994, 49-178). The company has opened Frankfurt-Hahn in 2002 as their second continental European base and announce a long ...