Internal Audit of Ryanair

1463 Words6 Pages
This paper is to examine the key potential drivers within the present internal environment. Several models would be applied to support the answer and they are Stakeholder Power/Interest Matrix, Cultural Web, Resource audit, Value Chain, and threshold and core competences. With using Ryanair as an industrial example, this essay would talk about how important strengths and weaknesses are to be used in designing strategy. Ryanair was founded in 1985 by Tony Ryan who already died in 2007. It was originally a full service airline and turned into a low-cost carrier in 1990s. Ryanair used a series of cost-cutting policies to attain to the target as its mission statement (Ryanair Annual Report, 1999): “Ryanair will become Europe’s most…show more content…
(Hamel & Prahalad, 1994) Quick turnaround time is one of the aforementioned targets Ryanair is focusing on. It lets passengers walk straight out through the front and back exit or entrance, and does not use the air bridges. Simultaneously it does not offer any pre-assigned seats so more possibly passengers are ready at the gate before the boarding time to choose their preferred seats. These are all arranged in order to quicken the procedures that flights get ready to disembark or embark the passengers. Additionally, it does not serve free food and drink on-board so as to speed up the cleaning process as the cabin crews could finish the cleaning more quickly during stops and complete cleaning would only be done at nights. This could not be achieved by full service airlines because of more debris and possibly trade union resistance. (Shaw, 2004) A unique cost cutting policy would be the main core competence of Ryanair. It refuses to provide any meal vouchers or hotel accommodation for flights which are delayed or cancelled for reasons beyong Ryanair’s control in order to reduce the operating cost. (Ryanair, 2011) Meanwhile, Ryanair is using LFA business model to design the size of its
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