A Good Example Of Environment

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An industries ' environment allows organizations to survive and strive by undertaking the opportunities presented to them and overcoming the threats that may come in its way. A good example of environment influence would be the opportunity presented to smartphone application writers created by organizations such as Apple and Samsung with the lines of smart phones Iphone and Samsung Galaxy and at the same time a threat to newspaper companies, as the usage of online sources of information increases. The study of strategic management, through the use of various frameworks, gives organizations the possibility to identify their position in the industry in respect to its competitors. Moreover this allows them to set realistic goals to pursue…show more content…
Firstly the political environment refers to the influence governments may have on the industry’s environment. When looking at Ryanair, an airline with 1,600 routes around the european union and north africa, legislation varies between governments of different countries, forcing them to adapt to the different tax policies between countries such as Spain and Morocco, however government taxes don’t vary as much given most flights are within the EU however there is passenger service charge, which some airports have which “is a charge made by the airport authority to an airline for the use of the terminal, runway, emergency services, security facilities”(Ryanair, 2015). Furthermore there is a legislation on the maximum hours a pilot can fly for, which forces Ryanair to hire more employees. Additionally any passengers on flights which are delayed or cancelled have the right to refund, hence the self pride Ryanair have on being the best on time airline with “91% OF RYANAIR FLIGHTS ON-TIME IN JUNE”(Ryanair,2015). Secondly the economic influences of the framework can vary from the exchange rates to taxes to economic growth. Due to the economic crisis suffered by the EU, oil prices have seen a rise in recent years, fuel for low-cost airlines is considered the biggest expenses, therefore a system of,
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