ipl-logo

Ryanair Environmental Factors

883 Words4 Pages

4. Discuss the impact of any two (2) external environmental factor that challenges Ryanair company to remain competitive in the airline industry? (20 marks)
Political or legal processes and legislation is one of the external environment that influence decision making made a firm that must comply with regulation which is how organization try to influence government and how government affects businesses. Among the challenges that face by Ryanair is increasing legislation in Europe that give negative impact to their business model and also increasing the cost of operation of their business. The increased cost of operation in Ryanair was adverse the aim of this company that wants to offer lower fares to their customer besides lower costs- …show more content…

There is a risk to the productivity-based incentive system, due to Ryanair need to hire more employees. Other than that, Irish Aviation Authority (IAA) will oversee the safety aspects. That means government provided full security system to the Ryanair. However, the tightened security system could increase operating costs whereby it will incur regular activities of monitoring and maintenance. If Ryanair fails to fulfill the criteria of the security system, Ryanair may fail to get a Certificate of Airworthiness so they can 't run their business. This will give an advantage to their competitor due when Ryanair did not operate that 's means they can reduce their competitor in the airline industry. Besides, the Department of Transportation (DOT) was enacted legislation in response to European Union legislation requiring compensation and assistance to passengers in cases of delays or cancelled flights. Ryanair claims this matter is beyond the control of the airline. In addition, the European Union might increase the emission fees. Although Ryanair disagrees or dissatisfied with the rule and regulation of the European Union, there needs to …show more content…

Economic segment is how the economy had affected to business in terms, interest rates, taxation, general demand, exchange rate and European and global economic factors. Besides, it also indicates how the company will analyse and make strategies to deal with economic factors. Commonly, decreased in air travel will affect to falling revenue in the airline industries. The economic downturn has reduced the purchasing power of customers with fewer people travelling by air. When there are good in economic growth, consumer’s discretionary income rises and there is often an increased demand for air travel that people like to travel and spend their leisure time with vacation and others. But, when economic downturn, demand for air travel will decrease. Therefore, these economic factors have affected Ryanair’s profits. Ryanair needs to make a new strategy or adjust their plan in order to meet the economic condition. This is because to avoid wastage during low travel periods besides taking the opportunity when there is peak-time travel. When there is economic recession, customers will re-evaluate their flying choices with fewer travelling in business class rather than economy

Show More
Related
537 Words | 3 Pages

Major categories of external environment issues are political, technological, regulatory, and social. While all of these issues are important in healthcare, I think that social, political, and regulatory issues are the most important in this health care environment because those issues creates a lot of change and problems in healthcare. Health care reform, a social issue, bring forth new political and regulatory issues. Increasing aging population is another major issue in health care that will affect the system drastically. Change is inevitable in the health care industry, and this changes includes new policies and regulations as the healthcare environment shift and is a so why these issues are of most

Read More
82 Words | 1 Pages

In 2005, many industries emitted large amounts of pollutants into the atmosphere in the area of Sarnia. The Ontario Power Generation 's Lambton Generating Station was ranked number one followed by Imperial oil Sarnia refinery Plant at number two and Shell Canada Sarnia Manufacturing Centre at number three in greatest amount of air releases. These air releases include toxic contaminants and criteria air contaminants (without volatile organic compounds). Table 1 sorts the air pollution from NPRI facilities according to rank in Sarnia area.

Read More
1087 Words | 5 Pages

Case 1: San Francisco International Airport and Quantum Secures SAFE for Aviation System San Francisco International Airport is expecting a rise of passengers due to an increase of low-cost carriers. They require a new security management system to accommodate the amount of traffic expected. Their current process is inefficient and disjointed, leading to many problems. The upgrade required needs to be justified and approved by management to be funded. 1.

Read More
267 Words | 2 Pages

The External Forces that impact on the Organisation External forces are depending on Globalisation, Convergence, technology change, Value of the Dollar, Interest Rates, Political Climate and Economic Climate. Our various factors, including, but not limited to: • Changes and the effect of, laws, regulations, taxation or accounting standards or practices and government policy • the stability of Australian and international financial systems and disruptions to financial markets and any losses • market volatility of uncertain conditions in funding, equity and asset markets • adverse asset, credit or capital market conditions and changes to our credit ratings • levels of inflation, interest rates, exchange rates and market and monetary fluctuations •

Read More
1192 Words | 5 Pages

Richmond International Airport Assessment PT 2 Student’s Name Institutional Affiliation Richmond International Airport Assessment PT 2 Introduction Security is a major concern for international airports globally since they are a gateway to great trade, international relations and even tourist destinations (Attaccalite, Di Mascio, Loprencipe & Pandolfi, 2012). Richmond international airport has continually attracted more people with a turnover of about 3million travellers annually. According to Canale, Distefano and Leonardi (2005) various kind of individuals access the airport and this may expose it to various risks which include terrorism, vandalism and illegal access to the airport. This report evaluates the potential hazards that may relate to Richmond international airport how they may potentially affect business. The research also has a risk assessment matrix and the legal requirements for Richmond airport in following the right security measures plus recommendations on how to enhance its safety.

Read More
947 Words | 4 Pages

The outlook of the region is based on increase export from the region and expected increased by 7.3% over the coming years. Region is expected to export electric consumer goods, as well as industrial equipment with expected growth of 15% in coming years. The region rely on the manufacturing and transportation sector and expected to be grow at rate of 7.5% in coming

Read More
801 Words | 4 Pages

However, the company will have to prioritize their strategy and concentrate on a few important issues. The company should prioritize on progressively taping into market areas that remain untapped. The company has concentrated on offering cheaper fares in routes where its competitors charge high fares. However, they need to branch out their operating areas to sustain their brand for a longer time.

Read More
864 Words | 4 Pages

If the economy is flourishing, it tends to increase the purchasing power of the individuals and it is likely that customers will be purchasing new, perhaps more expensive cars on a regular basis. Hence, the premiums and payments would increase. So when the economy is thriving, customers are likely to have more of disposable income which they are willing to spend on the leisure activities

Read More
2091 Words | 9 Pages

Target is impacted by an external environment as much as they are affected by other competitors such as Walmart and Costco. Legal, political, economic, technological and social are the global factors that influence Target. Here are how these factors can impact Target if they expand and operate their business in the United Kingdom. 1. Legal factors may influence the Target's execution in different cases.

Read More
885 Words | 4 Pages

Economic Environment Factors such as Crude oil prices, aircraft prices, Economies of Scale may also have effect on the airline industry. Social Environment Tourists and Business travellers contribute to the growth of the airline industry. Technological The use of modern technology by the airline manufacturers can contribute significantly to the growth of the

Read More
1068 Words | 5 Pages

External Environment The Five Forces of Competitive Analysis The industry market is considering a large pool with significant of competitors competing with each other. The stronger the forces of competition, the harder it becomes for industry members to earn attractive profits. The ideal competitive environment for earning outstanding profits is when both suppliers and customers are in weak bargaining positions. Suppliers Bargaining Power Vera Bradley as a company that provides luggage and accessories industry gets raw material from many suppliers that have differentiated inputs.

Read More
1409 Words | 6 Pages

Introduction  There are many factors which shape health and safety at work and safety culture is one of them. The purpose of this paper is to explore that factors surround safety culture in an organization.  Safety culture can be define as internal and external factors which may impact an organisation negatively or positively. Some of those impact can be influence by management commitment, communication, production service demand, competence and employee representative Hughes and Ferrett, (2009).These internal factors can be portrayed differently in business and organisation because of their agenda-setting. Reason for this is that every company has what it would like to accomplish on a daily basis and some of those internal factors can influence the

Read More
855 Words | 4 Pages

2.0 Inputs - Transformation Process - Outputs 2.1 Inputs Operations management concerns with the conversion of inputs into revenue-creating outputs through the transformation process (Mahadevan, 2010, p.5). Slack et al. (1995 cited in McMahon-Beattie and Yeoman 2004, p.30) mention that inputs are divided in transformed and transforming. Transformed are those that are transformed in some way and transforming inputs are those that are used to carry out the transforming process.

Read More
724 Words | 3 Pages

POLITICAL Political factors can often give a big impact on the business of a company. Often this factor is not in the hand of the organization. Several aspects of government policies can make a huge difference. However, all firls are required to follow the law. It is the responsibility of the organization to find how upcoming legislations can affect their activities.

Read More
1438 Words | 6 Pages

These may be internal as well as external, the external ones particularly hard to gauge and hence their impact on the product or the organization comparatively uncertain to

Read More

More about Ryanair Environmental Factors

Related Topics

Open Document