Assignment Brief

Assessment 1: External Environmental Analysis of Ryanair’s Strategic Positioning

This case study identifies the various challenges faced by Ryanair – a key player in the European budget airline industry.  The challenges faced by the budget airline fall within their immediate micro environment (the competitive airline industry) and the larger macro environment (wider trends beyond the airline industry impacting on the performance of Ryanair).

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The purpose of this individual assignment will be to conduct an analysis of Ryanair operating in the European budget airline industry, to help inform decision-making regarding its current strategic position, and strategic actions that need to or are recommended to be taken. The assignment will need to offer the following:

1. A commentary and analysis based of the wider ‘macro’ UK and European environmental setting which potentially impacts on the performance and strategic actions of Ryanair. The requirement here will be to structure your commentary and analysis applying a ‘PEST’ or ‘PESTEL’ framework [30 marks max]. 

Here you will need to identify the main factors impacting on the company (i.e., key ‘drivers of change’). You may find that some macro factors exert a stronger influence over the company than other factors. You will need to make an evaluation of this through your assessment of the information presented in the case.

2. A commentary and analysis of the micro environment (i.e., industry) within which the company operates. The requirement here will be to structure your commentary and analysis through applying the ‘Five Forces’ framework to assess the attractiveness of the industry to inform business strategy development [30 marks max] 

Here you will need to identify the key stakeholders within the European budget airline industry. The key will be to identify where power lies in terms of the various stakeholders operating in the industry, and also to reach an assessment of the attractiveness of operating within this industry. Make sure to offer an assessment of the industry life cycle stage and what you think this may mean for Ryanair.

3. From the commentary developed in your situation analysis in 1 and 2 above, identify a series of a) potential scenarios and b) generic strategic recommendations for the company [40 marks max]
4. Potential scenarios should outline several possible future outcomes or ‘stories’ for which Ryanair may need to prepare. You will need to offer a ‘pessimistic’, ‘middling’ and ‘optimistic’ scenario and indicate which you reason is most likely in 2020 or beyond.
5. Generic strategic recommendations should be informed by the work of Porter and Bowman.

Please note, that you may wish to supplement the case study with more recent information beyond 2012, but that any additional sources need to be cited in the main body of your writing and also in your bibliography.

Suggested Assignment Structure

• Executive summary: summarising the key issues facing Ryanair and briefly identifying the findings and recommendations of your analysis.
• Main body: which includes a combination of description and analysis. The former should briefly outline details relating to Ryanair and identify the key issues/challenges faced by the company; while analysis and recommendations should follow from your personal evaluation of the issues presented in the case study.

Section 1: PEST(EL) Analysis (Macro environmental analysis)

Section 2: Five Forces Framework (Micro environmental analysis)

Section 3: Your Scenario Building and Strategic Recommendations (making sure tooutline the reasons for your suggestions)

• Summary and conclusion: reiterating your main findings and concluding with your strategic recommendations