Research Topics: Financial Liquidity Examples

Ryanair and Marketing Strategy: Segmentation

Ryanair and Marketing Strategy: Segmentation Introduction             Ryanair was established by the Ryan family with a capital share of just £1, and a staff of 25. The company launched its first route in July with daily flights on a 15-seater Bandeirante aircraft, which operate daily from Waterford in the southeast of Ireland to London Gatwick. In order to operate in the tiny cabin of the aircraft, the first cabin crew of Ryanairs is less than 5ft. 2 ins. tall (Ryanair, n.d.).             Ryanair is the world’s favorite airline and operates more than 1.400 flights daily from 44 bases and more than 1100 low fare routes across 27 countries, which connect to over 160 destinations. It is operating a fleet of 250 new Boeing 737-800 aircraft with firm orders for a further 64 new aircraft, which will be delivered over the next 2 years. Ryanair currently has a team of more than 8,000 people and expected to carry more or less 73.5 million passengers in the current fiscal year (Ryanair, n.d.).   Marketing Strategy             Marketing strategy is very important in order to maintain competitive advantage. It is important in order to maintain good relationship with the customers. This is particularly important in the service industry, as well as the hospitality and tourism sector. This is because of the fact that the entire industry is characterized by intensive competition, because of the growing number of competitors in the global market. In addition, the services being offered as well as the products being produced are hard to differentiate, because the products and services to be offered towards the customers are almost the same. As a result, it is vital for company in this industry or sector to focus on maintaining strong and high quality of services in order to maintain and improve competitive advantage, thus maintain satisfaction and loyalty of the customers.   Marketing Strategy of Ryanair             The charismatic boss of Ryanair, Michael O’Leary mainly focuses on establishing a business model which focuses on reducing cost. For the last 20 years, Ryanair had been able to evolve from single plane operation to the largest airline company in Europe. The company focuses on offering lower fare and costs for the customers. With this, it shows that in the Porter’s Generic strategy theory, the company focuses on cost leadership strategy. This generic strategy focuses on being the low cost producer in the industry for a given quality of service. The company sells its products and services at average industry prices in order to earn higher profit than its rival, or they offer below the average industry prices in order to gain share in the market. As a result, in the event of price war, the company can still maintain some profitability, while the competition will suffer losses (QuickMBA, n.d.).             In order to achieve this, the company offers low cost and no frills air travel to different European destinations. Meaning, there are no foods or drinks being offered onboard, but it had become income streams, therefore, the customers have to buy them onboard, or don’t take them if they like. As a result, the company can offer 70% of seats sold at the lowest two fares; 30% of seats are charge at higher fares, while the remaining 6% are sold at the highest fare. Furthermore, the company does not use travel agents in marketing their products and services; therefore, by removing third parties, the company will no longer have to pay for commissions, thus, taking all of the revenues and sales by itself. As a result, majority of the tickets are being booked and transact online. As a result, it enables the customers to book and transact with the company in easier and faster manner.             In terms of promotion, the company spends as little as possible in advertising. Thus, the company focus on the most effective advertisement or marketing strategy, and that is the word-of-mouth. In addition, some of the few advertisements are being done in-house (Marketing Teacher.com, n.d.).             In terms of segmentation, the company prefers on the mass public, or the general public. This pertains on offering the lowest fare in the market. This enables the company to come up with the strategies in the current social and economic changes in the environment, particularly the current problems in financial crisis. However, just like other airlines, the company also offers services and products targeting the premium customers, who are willing to pay higher price for better quality of services.   References Marketing Teacher.com. Ryanair case study. Retrieved 10th November, 2010, from marketingteacher.com/case-study/ryanair-case-study.html Ryanair. History of Ryanair. Retrieved 10th November, 2010, from www.ryanair.com/en/about QuickMBA. Porter’s generic strategies. Retrieved 10th November, 2010, from www.quickmba.com/strategy/generic.shtml. Credit:ivythesis.typepad.com

Ryanair and Marketing Strategy: Segmentation

Ryanair and Marketing Strategy: Segmentation Introduction Ryanair was established by the Ryan family with a capital share ...

Liquidity in Financial Market in Pakistan Research Proposal

Liquidity in Financial Market in Pakistan Background of the Study Contemporary economies of developing countries are changing due to rapid changes in the world economy. The emergence of international financial industry for worldwide network of transactions altered the role of international economy. Increased financial flows have altered the role of private capital and subsequently effect resource allocation. The economies of developing countries are witnessing changes in the composition of capital flows because world equity market is expanding rapidly. Foreign direct investment (FDIs) and stock market boom are the indicators of the changing world economic order. Earlier, most of the developing nations were facing serious liquidity problems thus compromising economic growth. Now, it is important to study how the changes in financial sector contributed in the overall growth of the economy, particularly in Pakistan (Shahbaz, Ahmed, & Ali, 2008). Statement of the Problems Based on assessing the facts presented in the background, the study identified two problems: ·         What is the essence of working capital management in the financial market? ·         How important the liquidity in a firm? Research Aim and Objectives The main aim of the study is to investigate the impact of working capital of the companies and its importance in the idea of liquidity. In order to facilitate the investigation, there are three objectives that should be considered. First is to describe the companies and their nature of working capital. Second is to determine the management of working capital in the organizations’ success. And third is to discover the other intervention or working capital policies the firms created that can play an important role in their profitability and liquidity. Research Questions There are three questions that can help the researchers to align their investigation. 1.      What is nature of working capital within the Pakistani companies? 2.      What is the impact of managing the working capital in the organizations’ success? 3.      What are the other intervention or working capital policies the firms created that can play an important role in their profitability and liquidity? Literature Review Working capital management (WCM) is a very important component of corporate finance because it directly affects the liquidity and profitability of the company. It deals with current assets and current liabilities. Working capital management is important due to many reasons. For one thing, the current assets of a typical manufacturing firm accounts for over half of its total assets. For a distribution company, they account for even more. Excessive levels of current assets can easily result in a firm’s realizing a substandard return on investment. However firms with too few current assets may incur shortages and difficulties in maintaining smooth operations. Efficient working capital management involves planning and controlling current assets and current liabilities in a manner that eliminates the risk of inability to meet due short term obligations on the one hand and avoid excessive investment in these assets on the other hand (Raheman & Nasr, 2007). Even the small businesses are using the idea of WCM because of their characteristics with limited access in long-term capital markets but with needs on the continuous financial investment. Also, failure among the firms in terms of financing is foreseeable due to the weak financial management – particularly poor working capital management and inadequate long-term financing. Although there are internal and external factors that might contribute to the success or failure of a firm, still the efficient working capital management plays a significant role (Padachi, 2006). In understanding the WCM, the requirements should include the maintenance of the optimum balance of working capital components. Optimization of working capital balance means minimizing the working capital requirements and realizing maximum possible revenues. If there is an efficient WCM, it will definitely increase the growth of the opportunities and return to the shareholders (Ganesan, 2007; Afza & Nazir, 2007). Methodology The suggested method in the study is the use of secondary information. The materials that can be used are the information coming from the Pakistani companies and will give the study the idea on how well the firms use the opportunity on working capital as a good foundation in their success and increase their profitability. In addition, the study can also use the previous studies to expand the knowledge over the liquidity and its importance in the organization.   References: Afza, T., & Nazir, M.S., (2007) Is it Better to be Aggressive or Conservative in Managing Working Capital? [Online] Available at: https://editorialexpress.com/cgi-bin/conference/download.cgi?db_name=SERC2007&paper_id=107 [Accessed 26 October 2010]. Ganesan, V., (2007) An Analysis of Working Capital Management Efficiency in Telecommunication Equipment Industry, Rivier Academic Journal, 3(2) [Online] Available at: http://www.rivier.edu/journal/ROAJ-Fall-2007/J119-Ganesan.pdf [Accessed 26 October 2010]. Padachi, K., (2006) Trends in Working Capital Management and its Impact on Firms’ Performance: An Analysis of Mauritian Small Manufacturing Firms, International Review of Business Research Papers, 2 (2) [Online] Available at: http://www.bizresearchpapers.com/Kesseven.pdf [Accessed 26 October 2010]. Raheman, A., & Nasr, M., (2007) Working Capital Management and Profitability – Case Of Pakistani Firms, International Review of Business Research Papers, 3(1) [Online] Available at: http://www.bizresearchpapers.com/Paper%2019.pdf [Accessed 26 October 2010]. Shahbaz, M., Ahmed, N., & Ali, L., (2008) Stock Market Development and Economic Growth: Ardl Causality in Pakistan, International Research Journal of Finance and Economics, 14 [Online] Available at: http://www.eurojournals.com/irjfe%2014%20shahbaz.pdf [Accessed 26 October 2010]   Credit:ivythesis.typepad.com

Liquidity in Financial Market in Pakistan Research Proposal

Liquidity in Financial Market in Pakistan Background of the Study Contemporary economies of developing countries are changing due ...