RYANAIR CASE STUDY ANALYSIS
Introduction
Each organization has been affected by factors that affect the entire performance. In this regards, different companies are trying to establish organizational objectives that would cater to the growth and development of the company. Primarily, the goal of this paper is to analyze an industry in terms of its financial and non-financial objectives and analyze how these objectives conflict or compliment with each other.
Overview of the Company
One of the most recognized airline industry is Ryanair. Accordingly, the company started in year 1985 having only 57 staff members and with one 15 seater turboprop plane carrying passengers from the south of east of Ireland to London-Gatwick and carried 5000 travellers on a certain route (2002). The company continuously grows because of the determination of the management to gain competitive position in the marketplace.
Accordingly, Ryanair has been able to have some financial and non-financial objectives. For instance the financial objectives of Ryanair is to achieve revenue growth annually, increase earnings by 15% per year, increase dividends per share by 5% annually, increase net profit margins, stronger bond and credit rating, more diversified revenue based and to have stable earnings for the future. On the other hand, non-financial objectives include the aim of having bigger market share, better customer service than their rival companies, stronger business image, and reputation with clients than rivals, to be recognised as a leader among airline industries, to be able to compete in the global market and to have stable competitive advantage.
In order to achieve, this Ryanair has been able to implement different marketing approach to make the airline industry survive in the stiff competition and to be able to gain competitive advantage in this sector. It can be mentioned that the company was noted to be the most punctual airline to travel from Dublin to London. And because of their approach the company has been able to be known as the second largest airline in UK and the largest low-fares airline in the entire Europe.
The following table shows the comparison financial and non financial objectives of Ryanair.
Table 1
Comparison of Financial and Non-Financial Objectives
Financial Objectives
Non-Financial Objectives
Stakeholders
Financial Objectives
Stakeholders
Non-Financial Objectives
Achieve revenue growth annually
stronger business image and reputation with clients than rivals
Consumer, Management
Shareholders
Management, staff and employees
Have stable earnings for the future.
better customer service than their rival companies
Consumer, Management
Management, staff and employees
More diversified revenue
To be recognised as a leader among airline industries
Marketing management
Consumer
Management, staff and employees
The table above shows the comparison of the financial and non-financial objectives of Ryanair. Herein, it shows that the three financial objectives includes the achievement of revenue growth annually, having a stable earnings for the future and more diversified revenue and the non financial objectives includes the stronger business image and reputation with clients than rivals, better customer service than the rival companies and to become a leader among airline industries.
Based on the comparison table it shows that the stakeholders of financial objectives include consumer, management, marketing management and other shareholders. In this regards, it can be said that in order for Ryanair to achieve their financial objectives, the management should be held responsible for any business operations and the consumer will be the one to help them achieve such objectives. On one hand, in terms of non-financial objectives, the stakeholders involved includes the management, staff and employees of the airline industries since they are the one which directly involved in providing quality services. Although, there is a difference in terms of stakeholders, these objectives can be achieved using specific and common management approach.
Recommended strategy
In order to achieve both financial and non-objectives the company should be able to consider specific marketing and management approach. In this regard, Ryanair should implement marketing and management approach to achieve the objectives stated above. It is said that Ryanair should continuously concentrates on driving their own costs to offer the lowest fares possible and remain profitable and stable in the market. The objectives of Ryanair are to meet the demands of travelling which can sustain their financial needs.
The core mission of the Ryanair is to provide safe, cost, competitive and efficient in providing services the aviation transportation., to retain their employees’ dedication and devotion to fulfill the objectives of the industry, to maintain a minimum standard of 98% on-time performance rate while complying will all application regulations and to sustain an environments where dignity and family values are being utilized. Being at the forefront of the company’s day-to-day challenges in operations, the goal of Ryanair is to be recognized as the most professionally run, family oriented and viable airline in the entire UK.
Most people, especially those who are striving to be the best on their fields always seek ways to be developed. Most of these individuals came from the business world, since the competition on this arena is very stiff. One wrong move, may lead to total failure that may even bring you back from the scratch. In line with this, marketing strategy has been developed to have a quality services. Quality is defined as meeting or exceeding the needs and expectations of the customer. Thus, the goal of any business or industry should be to find out what their target market wants and then fine tune the process to ensure that they get it. The term ‘customer’ is used to include internal customers as well as external customers. In line with this every work group has a customer, the person who receives their output (1998). And because competition becomes tougher and tougher through the years, many industries have adopted different marketing strategy approaches to meet their missions, visions, and goals. The marketing concept states that the nature of the marketing orientated organization, whether product or service based, profit or non profit based, is the identification and genuine satisfaction of customers needs and wants, more effectively and efficiently than the competition.
In general, the success of any industry attributes to how well the management carries all its responsibilities and how well the mission, vision, and goal are being set along with the corporate approach imposed within an industry may it be non-profit or profit organisation.
Conclusion
Based on the given analysis, it can be said that Ryanair must be able to consider strategic approach to ensure that they are able to meet their financial and non-financial objectives. These strategies should be able to also meet the needs of the clients and customers to sustain competitive position in the airline market.
Credit:ivythesis.typepad.com
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