BUSINESS POLICY

Business Policy

Business Policy

Introduction

Ryan air was founded by Tony Ryan in 1985 with capital of an Irish pound (1.30 €) and 25 employees. Ryan air's main competitors in Europe are easy Jet, Air Berlin, and German wings Hapag-Lloyd Express. To save on maintenance costs and operating aircraft, Ryan air's fleet is composed of a single model of aircraft, the Boeing 737-800 (Creaton, 2007). The airline placed an order with Boeing for 306 new Boeing 737-800. The firm orders will be delivered in this year. The average age of Ryan air's fleet is 3.1 years at April 7, 2009. On October 2, 2009, Ryan air's fleet consists of 250 Boeing 737-800 with capacity of 189 passengers each aircraft (Bamber, Gittell, Kochan & von Nordenflytch, 2009). In September 2010, the fleet has 254 aircraft and in February 2011, the company has received its 300th single-aisle.

Strategic analysis of Ryan Air will be conducted in this study, in order to examine the strengths, weakness, threats and opportunities a company is facing, and what impact weakness and threats can cause on the overall performance of the company, and how company can benefit from strengths and opportunities of the company.

Discussion

Ryan air uses the market as a lever. Indeed, informing the market that its goals contribute to reducing costs and thus increasing its profitability, it provides induced rise in the price of its share price. A high stock price then put it away potential predators (predatory takeover of all aggressive) (Thompson and Richardson, 1996). It also allows him to raise capital more important in cases of capital increase. This is the phenomenon of Ryan air which plays the stock market capitalization.

It should be noted that Ryan air receives the market confidence: they are betting that Ryan air is a company of the future. Its dividend policy is such that Ryan air pays no dividend to its shareholders. They are reinvested in full in society to promote the development of the company mainly through increasing its fleet for its entry into new markets and expansion of its services (Bamber, Gittell, Kochan & von Nordenflytch, 2009). 

Ryan air Analysis

Forces

Flexibility of pricing policy permitted by an efficient yield management

Under a tariff policy as a result of sophisticated yield management performance, the profit on a flight begins beyond 50%, prices of the last seats, purchased before (Robinson, 2005).

Quality of service-consumer

Good punctuality, baggage loss very low, cancelled flights uncommon. Ryan air itself as the No. 1 airline in terms of punctuality and the remainder in 2007 airline with the lowest rate of cancelled flights.

Stock performance, financial

Growth is an absolute necessity for Ryan air. Indeed, the cost structure of these companies cannot be maintained unless it is supported by strong growth. 

Weaknesses

Social practices Mavericks

Refuse / intolerance of unions: Ryan air is also highly publicized because it has social practices unethical to meet its precept of cost savings (Thompson and Richardson, 1996). Furthermore, Ryan air's employees are required to purchase their uniforms at their own expense and we just forbid them to recharge their cell phones at their place of work to do electricity savings.

The company is too dependent on its market performance

Ireland v United Kingdom

Ryan air's business could be affected by any event causing a ...