RYANAIR AND BRITISH AIRWAYS

Ryanair and British Airways

Introduction3

Organisation Structure and Design4

Organisation Structure and Design of Ryanair5

Structure5

Degree of Formalization5

Centralization6

Specialization6

Organisation Structure and Design of British Airways6

Structure6

Degree of Formalization7

Centralization7

Specialization7

Organisational Culture7

Organisational culture of Ryanair8

Values and Beliefs8

Ceremonies8

Harrison and Strokes9

Slocum and Hellriegel9

Organisational Culture of British Airways10

Values and Beliefs10

Ceremonies10

Harrison and Stokes10

Slocum and Hellriegel11

Conclusion11

References13

Ryanair and British Airways

Introduction

The objective of this report is to analyze and compare Ryanair and British Airways in relation to the organisational structure and organisational culture. The organisation structure and design of both companies will be evaluated using appropriate theoretical models while focusing on types of structure and degree of formalization, centralization and specialization. Moreover, the organisational culture of both Ryanair and British Airways highlighting their values will also be discussed.

Ryanair was set up in 1985. The first service of the company was commenced that year with flights on daily basis on a 15-seater airliner. Ryanair functions low fare planned passenger airline serving short drag, direct point forward between Ireland, the UK, and Continental Europe and Morocco. Headquarter of Ryanair is in Dublin, Ireland and employed 8,388 employees. Ryanair offers over 1500 planned short distance flights per day operating just about 160 airports largely all the way through Europe and flying around 1500 routes. The distinctive business model focusing on low operational cost enables Ryanair to achieve stable financial performance and high asset utilization (MarketLine 2013, pp 3-18).

Image Source: Group 1. (2012). Group 1- Strathclyde Business School-MBA

It also presents a variety of other supplementary services and connects in other actions that are linked with its central part air passenger services. These comprise of non flight planned services, sale of beverages during flight, commodities and internet associated services. A part from its non flight planned and internet linked services, the corporation also grants lodging services and travel insurance.

British Airways is a part of International Airlines Group and is one of the leading scheduled premium international airlines. It was formed after the merger between British Airways and Iberia. It operates primarily in US and Europe. As of December 31, 2012, it has employed around 38,761 people. British Airways further provides worldwide cargo services, largely in conjunction with its scheduled passenger services. It serves more than 400 destinations worldwide. The key services of British Airways include air cargo services and scheduled passenger services. It also provide engineering services to its clients that includes interior and safety services, avionic component services, aircraft maintenance, line maintenance and ground handling etc.

During the financial year ended December 2012 (FY2012), British Airways recorded revenues of about £10,827 million. The chief amount of revenue of British Airways is generated through airline business (96.5%) and all other different segments (3.5%) of the total revenues. The strong brand image of British Airways gives its substantial competitive advantage that helps it to register higher sales in domestic as well as international markets (Market Line 2013, pp. 3-11).

Organisation Structure and Design

Organisational structure identifies how job tasks are officially separated, grouped and synchronized. Organisation chart is used to visually represent the organisational structure highlighting the division, grouping and coordination within ...