Ryanair: European Pioneer of Budget Airline Travel

1861 Words Jun 13th, 2011 8 Pages
Ryanair: 12 June 2011
European Pioneer of Budget Airline Travel

Case Study: Read Case Study 6 in text (pp. 482-503). Prepare answers to the following questions and post them to BlackBoard by clicking on the title of this assignment. You can either type your responses directly or attached a Word document. The responses should include the title of the case, student name and e-mail address. Be sure to cite any sources used outside of the text or lecture material.
1. Carefully analyze Ryanair’s financial performance. Select two line items from the profit statement, two from the balance sheet, and two from the operating
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Organizational Capital – Ryanair has excellent organizational capital in its CEO, Michael O’Leary and in its strategy and its ability to align its strategy with its employee’s goals and teamwork. Nearly all of Ryanair’s policies and procedures are centered on cost cutting, from its internet check-in to reduce the number of employees that have to work the ticket counter to purchasing more fuel efficient aircraft. All of these measures reduce cost which is in alignment with its business strategy.
B. The case study did not go into much depth on how Ryanair is structured, so it is difficult to see how much the corporation’s structure accounted for its overall success, but one could surmise that it is in alignment with the company’s strategy or it would not have been able to be so successful. One thing is clear, Michael O’Leary is in charge and makes the decisions in the organization and is able to get the most out of his management team and employees.
C. Allocating Resources to Strategy-Critical Activities – Ryanair is very good at this. Michael O’Leary saw an issue with the fleet of older and dissimilar aircraft that Ryanair was operating and spent the money to upgrade its fleet to the newest Boeing 737 and standardized on this aircraft alone, which saved the company on maintenance and training fees. It also makes their airlines safer because the pilot is always flying the exact same airplane day-in and day-out as opposed to flying a mixed fleet of aircraft.
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