RYAN AIR THE LOW FAIR AIRLINES Case Study Example | Topics and Well Written Essays - 3000 words

RYAN melody THE LOW FAIR AIRLINES - Case Study ExampleOn the one hand, in August 2006, an carry Transport World magazine reported that Ryanair was the most profitable airline in the world, based on its operation and net profit margins, and on a per-airplane and per-passenger basis (Higgins 2007 2). In November 2006, the company announced new-fangled record half-year bottom line of 329 million for the first half of fiscal 2007 (Higgins 2007 2). Furthermore, traffic attachd by 23 per cent to 22.1 million passengers, while yield jumped by 9 per cent as center revenues increased by 33 per cent to 1.256 billion (Higgins 2007 2). In addition, even as fuel be increased by 42 per cent to 337 million, Ryanairs after-tax margin increased by 1 item to 26 per cent (Higgins 2007 2). Ryanair expects high demand in the future, so it plans to expand routes and its fleet. On the other hand, Ryanair faces healthy battles and acquisition challenges for its Irish rival, Aer Lingus (Higgins 2007 1). Ryanair also faces stiff opposition for its union-busting policies and long working hours and low salary, although it claims the opposite (Higgins 2007 6). there are, additionally, environmental challenges that threaten to impinge on Ryanairs low-cost, no-frills business model. These environmental threats derriere increase operational costs. This paper analyses the case of Ryanair. It evaluates Ryanairs strategy compared to competitors, by analysing its low-cost business model with the stakeholder approach analysis. It also determines the key internal and external issues of Ryanair. Furthermore, it evaluates OLearys leaders using the transformational leadership framework. Finally, it examines the sustainability of Ryanairs future strategies. 2. Evaluation of Ryanairs strategy compared to competitors Ryanairs business strategy compared to competitors will be analysed using the stakeholder approach. 2.1 Stakeholder approach The society, in general, is becoming more concerned of the role that business plays in managing stakeholder dealings and responding to the environment. Many customers also prefer to deal with companies that actively reduce their ecological footprints (Rueda-Manzanares, Aragon-Correa, and Sharma 2008 188). Similarly, shareholders, as well as financial and insurance companies, seek to lessen liabilities associated with environmental risks that come from corporate operations, such as defilement and harmful human health effects. The European Union has, in response, as well as the get together Kingdom (UK) passed environmental regulations, sanctions, fines, penalties and legal costs for companies that are not operating in an environmentally responsible for(p) manner (Henriques and Sadorsky 1996 cited in Rueda-Manzanares et al. 2008 188). These political institutions recognise that stakeholders clearly know their rights and responsibilities and are willing to generate partnerships and networks that can result to win-win situations. Compan ies that neglect crucial stakeholder relationships, however, may compromise competitiveness in the long-run, particularly now in a globalised world, where stakeholder interests matter (Rueda-Manzanares et al. 2008 188). Stakeholder theory has rise amidst the public clamour for corporate governance and business morality (Elms et al. 2010 405). The theory can be rooted from the integration of business strategy and ethics and gained greater prudence from management scholars for the past fifteen years (Damall, Henriques, and Sadorsky 2009 cited in