Ryanair Case Study

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Ryanair Contents Introduction 2 Case analysis, identification of key issues 3 Shareholder Prioritization 3 Alignment with environment and Resources 5 Competitive Advantage Reinforcement 5 Direction 6 Scope 7 Resources 7 Organization 8 Problem statement 8 Set of possible courses of actions 9 Standing seats 9 Only one toilet in every aircraft 10 Slim staff, smaller magazines, and less ice cubes 10 New technology for gutter oil to reduce fuel costs 11 New routes flights and additional daily return flights 11 Decision criteria 12 Assessment of outcomes of courses of actions 14 Selection of one specific course of action 16 Conclusion 16 Appendices 16 Introduction Ryanair has become a strong player within the…show more content…
However, Ryanair keep pursuing for and maximizing the core value from the shareholders’ perspective. In other words, shareholder’s interest in terms of profit driven within the company takes the majority weight of the total stakeholders’ value. All strategic measures taken by the firms’ approach to fulfill a single request from its customers as “low air fare”, but to realize all means of cost saving and additional margin for the company owner. According to Casadesus- Mansanell and Recart (2007, Competing through Business Model), “a business model consist of the set of ‘choices’ and the set of ‘consequences’ derived from those choices”. At the meantime, these “choices” and “consequences” presented within a company’s business operation represent complicated loops, which ensure all consequences lead to the company’s strategic goal. With regards to Ryanair, the shareholders’ value is prioritized by a set of selected choice to drive down costs. For instance, Ryanair used to choose low fares by flying to secondary airports, all passengers treated equally, nothing is free, no meals, short haul flights, standardized fleets as Boeing 737s, low commissions to travel agencies, non-unionized, high-powered incentives and Spartan headquarters. The above choices generated direct consequences including bargaining power with suppliers, low operating costs of flights and ancillary revenue. Indirect results include lower cost of product and services,

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