BMS0072 Strategic Management Assignment Sample 2024
Introduction
In this report, the company of Ryaniar has been explored, where the company is of Airlines services with the headquarters located in Ireland. The airlines industry in the United Kingdom (UK) has been explored in this report, with reference to the external environment that Ryanair operates in from the year of 2014 to 2015. Thus, the time bound methodical process the company follows to have a better competitive advantage in the airlines industry of the UK has been discussed with reference to the timeframe after 2013 changes in the company.
Ryanair has been one of the companies criticised for poor customer service mostly because of the lower focus of the company on the custom service area which has developed better after 2014 due to the adaptation of business strategies, which has been explicitly defined in this report.
Strategic framework of Ryanair for sustainability in current changes
Factors for better sustainability of Ryanair in aviation industry
Ryanair have transformed through the development of several business strategies in the modern times, mostly after the year of 2014 due to the better focus on the areas of lacking where the criticism has arrived against the company. The cost structure of Ryanair made the company to take a differentiated route and thus follow a competitive different route, having greater competition in the market to Air France, British Airways, Flybe and variabl other major competitors in the aviation industry.
The sustainability in the aviation industry for Ryanair has been one of the most difficult due to the lack of the company in the customer service usually during the year of 2013, which have immensely improved after the company has assumed the role of being one of the major airlines with lower price per seat strategy.
Ryanair has been more active on the sustainable development of the company in the long run during the current periods of time where the company has been more committed to reduce the pressure of the environmental impact and establish a green aviation experience for the people. Ryanair has been reported to have invested more than $22 billion for achieving the greater weightage of sustainability where the consumption of non-renewable fuel has been much less (Refer to Appendix 1).
The maintenance of the sustainability strategy on the aviation industry becomes difficult due to the single fact that the policy issue by the industrial guidelines often faces a larger contrast with the policy guidelines with the allied partners, where environmental sustainability necessarily has the policy of decrease in the rate of fuel consumption (Rotondo, 2019).
Ryanair has the suitability objectives that target the various factors in the industrial cohesion of setting up several objectives to be achieved in the future years to have a better state of environmental sustainability, which are the larger margin of investment in the carbon emission reduction, increasing the commissary investment on the suitable fuel required in aviation (Ryanair, 2022).
The plans of Ryanair that align with environmental sustainability are mostly due to innovate to have a more energy saving technology with the new plan of Always getting better (AGB) introduced in 2014. The aviation industry has been accelerating towards the approach of sustainability with the innovative technology that helps to improve to a better level of environmental care. It may be said that the strategic goal of the aviation industry has been for the reduction of the direct impact on the environmental biosphere where there exists several challenges such as higher cost and threat of new competitors (Amankwah-Amoah, 2020).
Ryanair has set the social priorities of sustainability to achieve a harmonious level of impact in the global business plan where the social characteristics have been one of the major protections of an environment of diversity and inclusiveness. Ryanair has been targeted to achieve the social sustainable goal where the employee engagement has been prioritised to a better level by prompting the nature of a diversification in the nature of operations.
The target areas of development for Ryanair in the fields of developmental career are the setting and perfection of the customer interest, such as the listening and planning to improve the experience of the consumers. Ryanair has been creating a better mode of travelling in the airways of the different customers by facilitating the complex aviation operations, which are the sustainable goals of Ryanair in the consumer field.
It may be said for Ryanair that the nature of systematic development in the aviation industry to have a leading position of recurring nature of the profits lie in the better strategic development advised by the Human Resource Management (HRM) (Harvey, 2020).
Sustainability policies and strategic plans of Ryanair
Environmental sustainability strategy of Ryanair
The aviation industry in the UK have been active in reduction of the carbon emissions and thus carte the alkylation with the lowering of the carbon and other greenhouse gases by a considerable amount as stated in the Paris Agreement, which have been followed to great ease by Ryanair.
Ryanair to create a better future for the green environmental suitability have based the operations in such levels that the emission in the carbonated particles is compressed to more than 32%, where the technological developments have been a prime factor (Refer to Appendix 2). The aviation industry has one of the leading prospects in terms of reducing the fuel emissions ad create healthy environment place, because Ryanair have innovated and invested to have the fuel based operation time more on Sustainable Aviation Fuel (SAF) which is a path breaking development in the fuel in the aviation industry, getting Ryanair a major lead in the industry progress.
The aviation industry has wider prospects in terms of the operations that have been taken by the several airlines services to achieve a sustainable environmental impact, which makes for the case of including the use of substitute fuels that have lower carbons, and advanced technology of air trafficking systems (Yilmaz, 2021). Ryanair has partnered with several nations of Portugal, Turkey and Uganda and similar more to uphold a better quality for the working condition, and have contributed towards the governmental tax policy of €630 million (Ryanair, 2022).
Social sustainability strategy of Ryanair
The sustainability in the consumer sector of Ryanair has been a developmental phase of experimenting with the different new modes of employee retention policies, and the factors such as a salary structure that is competitive to the market based salary and have the stabilised work guarantee (Efthymiou, 2021). The objectives of Ryanair in the customer developmental experience lies clearly in the maintaining the score of 90% in CSAT, and the experiencing of better improvements in the consumer experience where the company, especially after 2014 have been constantly struggling to have better consumer reviews (Refer to Appendix 3).
Ryaniar have been developing the approach of improving the net carbon emissions per kilometres since the year of 2019 to improve the customer experience, where the objective of achieving the carbon emission of 62g to the fullest level by the nearest year of 2026 have been set by the company (Refer to Appendix 4).The development of the sustainable business model in the long term, immensely helps a business to survive where the nature of the sustainability is more impacted by the effectiveness in the team management and innovation (Rotondo, 2019).
There have been several achievements in the aviation industry of Ryanair which includes multiple achievement criteria such as the reduction of the atmospheric noise in the aeroplane of New Boeing 737 by most compression level of per passenger seat for improving the customer experience (Refer to Appendix 5). Sustainability has been an important factor especially in the aviation industry where the reports of sustainability extend to decrease the cost structure to a large extent, where the advice usually goes to the board of directors to prepare reports of annual sustainability for effective results (Karaman, 2018).
One of the major sustainability strategies of Ryanair in terms of the operational management is the development of the 1600-plus flights with the 800 airplanes after the year of 2015. The developmental approach in the sustainability of the social sector for Ryanair has been the creation of education training programs such as EASA where the training extends for more than 50 hours, and having the division of days from foundational training day to graduation in the aviation skills (Refer to Appendix 6).
Critical analysis for competitive position of Ryanair in the UK
Strategy taken by Ryanair to have competitive advantage
The competitive advantage that has been secured by Ryanair in the industry of aviation is through the effective cost leadership approach in reducing the costs and thus having a better focus on the nature of operational management. The cost structure of the UK based airline services have been expensive, where the competitive advantage and matter presentation have been securely gained by Ryanair through the mechanism of creating a cost reduced approach till the year of 2013.
The company has been following the strategy of Low Cost Approach, where such strategic approaches have involved the special service to the region of Copenhagen in 2015. The starting phase of the modern globalisation of the year of 1990 has taken lower priced airline services as one of the strategies that have become most successful and thus train more customer base switching from the traditional means of transport (İnan, 2018).
The strategy that has been followed by Ryanair to have an extensive base of customers is the price discrimination strategy, where the value of the company has been reflected by larger customer base of 9394 in 2014. The price differentiation strategy have been subjected to more dynamism according to the affordability of the consumers and the practice of third degree price discrimination have remains one of the most important element of study.
The digital transformations that have taken place in the aviation industry have been more influential in the style of evolution, thus helping the aviation industry to evolve by a larger margin (Lakemond, 2020).
Ryanair has the benefit of covering most of the customer base and thus has an extensive base of charging different prices to the different customers, thus building the degree of flexibility and developing better ways of maintaining the extensive range of customers. The facilities that the customers get after engaging in the subscription of the Flexi Plus is the advantage of having the easier checking in facility, less security interrogations and more space to fit the luggage (Refer to Appendix 8).
It may be said, thus, that the premium benefit of Flexi Plus is necessarily one of the most important factor that implies a third degree price discrimination and hence achieve a target based of customer coverage depending on the nature of the demand of the customers and the season of the year.
The aviation sector in the UK has been much more differentiated and is more exposed to the dynamism where the process of such quick changes have mostly arisen due to the strengthening of the European airlines industry and several other political factors. The aviation industry is usually bounded and thus facilitated within the decisions that have a multidimensional approach, thus the airlines industry may be more developed within the processes that are hierarchical (Dožić, 2019).
The company of Ryanair has been mostly in the strategic development of creating the facility of charging no extra commissary fees while there is a change in the flight booking cost.
Factors leading to competitive advantage of Ryanair
The competitive advantage that has been gained by Ryanair have offered the service of differentiated price means and created the service of segmentation in the base ticket price instead of having the price to be a single base. Ryanair have introduced the essential program of Fare Finder to outperform the most competitors in the market, where the service of Fare Finder aids most of the consumers to have a quick look at the different ticket price and compassion of the existing slab of ticket price.
The digitalisation of the whole pricing strategy by Ryanair to have a better way of showcasing the lower pricing by developing mobile apps and thus securing the market to live in the rivalry of other UK based airline sues have been impressive (Refer to Appendix 7). Ryanair has introduced new methods to have a leading seat in the theatre of excessive rivalry in the UK aviation industry, where the company has come with the differentiated program of Family Plus, which is one of the major factors to have a better idealised gaining of customers on a broad margin.
Family Plus service of Ryanair has been mostly addressed as one of the ideal conditions for the families that need lower pricing strategies to venture in foreign lands, where there are different discounts offered to such families and there are no ticket fares for children under the age of 12 years (Refer to Appendix 8).
There has been the observation of the business models in the terms of evolution where the lower cost services in the aviation industry have been most popular due to the benefit of providing holiday benefits (Rodríguez, 2018). Ryanair has made several different strategies other than the low cost strategy to make a better advancement in terms of the global competitive advantageous position, where the creation and development of Ryanair LABS have been a major decision that puts Ryanair in the first grade service class.
Ryanair LABS usually improves the different ideas to innovate the existing technologies within the company structure. Ryanair LABS has the unique beneficial motive of the creation and development of different mobile based application projects and undertakes ventures to have a more detailed track record of the different flights in real time data (Refer to Appendix 9).
The experience of the customers have significantly improved Ryanair where in the recent times the company has been functional on the outlook of the customers have transformed positively after the year of 2016 (Griffith Ph D, 2021).Ryanair has been in the most effective transformative ways to gain a competitive share of the market in the aviation industry, where there has been a reduction in price and better access to the digital platform of the company (Refer to Appendix 10).
Ryanair has the better method to create a conscious way of allocation the financial resources in the development of the base industry, where the company has adopted a hybrid phase of revenue earning by differentiating between the specific location of seats and random location of seats.
Conclusion
The cost structure of the UK based airline services have been expensive, where the competitive advantage and matter presentation have been securely gained by Ryanair through the mechanism of creating a cost reduced approach. Moreover, the company of Ryanair has had such improvements that have been achieved by Ryanair upon the continuous set of skills that the digital innovation in aviation requires which have been stated by Ryaniar in the report of 2015 were it has reflected continuos growth.
In this report, the strategy of having a lower cost structure by Ryanair has been discussed where the advantage of attracting the larger base of customers in the UK and the effectiveness of the transportation route that usually has been chosen is described in respect to the strategic theories.
References
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