Ryanair-The Southwest of European Airlines Case Essay Example for Free

Ryanair-The Southwest of European Airlines Case Essay Ryanair was founded in July 1985 by the three brothers, Catlan, Declan, and Shane Ryan, with the financial assistant of their father Tony Ryan. As a beginner commercial carrier, its operations began with 25 staff and a single 15-seat turbo-prop commuter plane between Waterford in the southeast of Ireland and Gatwick Airport, the second busiest airport in London after Heathrow. Later on, regulatory authorities permitted the Ryanair Airlines to have at least four flying flights a day on Dublin-London route, with more seating capacity. Nowadays, Ryanair, with its rapid growth, occupies the most sought position in its own field, being Britains favorite airline and the oldest-low cost air carrier in Europe. The goal of my internal analysis on Ryanair is to focus on resources and capabilities as internal sources of uniqueness that allow firms to beat the competition. This analysis is often called the resource-based view of the firm. By theory, a firm gains an advantage by obtaining valuable and rare resources and developing the capability to utilize these resources to drive customers toward their products and services at the expense of competitors. As a result, firms with superior resources and capabilities enjoy competitive advantage over other firms. Value Chain AnalysisFirms make products or provide services by engaging in many different activities. The basic structure of these activities is embodied in the firms value- chain. Value-chain activities are of two types: primary activities and supportive activities. Primary activities include inbound logistics, operations, outbound logistics, marketing and sales, and services. Support activities include human resources, accounting and finance operations, technology, and procurement. All the activities -primary and support are potential sources of competitive advantage or disadvantage of any firm. In Ryanair case, parts of the inbound logistics are Ryanairs low-cost deals, negotiated against promise of large and growing volume of business. Also, they include dependency on suppliers to deliver fuel as well as food, drinks and duty-paid products to be sold on-board; they need to be stored, handled and controlled upon delivery. The other important element of the primary  activities includes the operations. Ryanair fast turnarounds of 25 minutes are the companys core competencies. This is the most important cost advantage that enables high aircraft utilization. More frequent departures of two more per day than competitors with few planes, increases Ryanairs revenue. Point-to-point flights mean no interlinking with other carriers. Raynair offers direct non-stop journeys, avoiding the cost of providing through services for connecting passengers and delays caused by late arrival of connecting flights. Ryanair uses the standard model plane- Boeing 737, which means that company, is a ble to obtain spares and maintenance services on favorable terms, to limit the cost of staff training and to offer flexibility in scheduling aircraft and crew assignments. A relatively young fleet reduces maintenance, spare and fuel costs. Also, Ryanair placed resources to strengthen its core business such as satellite television, Internet service and arcade game, so the passengers can enjoy the trip. For outbound logistics, Ryanair uses isolated secondary airports, which often require further transport arrangements for customers. Also, some destinations are so geographically obscure that they cant support regular services to customer, as evident on some Scandinavian routes for example. This limits the level of market share Ryanair can achieve. EasyJet does the opposite and flies to big cities, but then have to pay higher landing charges which are reflected in their higher prices. However, using regional airports saves costs as charges are lower, facilities cheaper and Ryanair can negotiate favorable deals. It also enables fast turnaround times, and more on-time departures as the airports are less congested. 95% of Ryanairs flights are punctual compared to 88% for EasyJet. As I already mentioned, under primary activities are also marketing and sales. Ryanair considers branding virtually irrelevant as it believes that price is most important to customers. This reflects on companys image which isnt always so good in the press. In contrast Southwest Airlines, contribute a large part of their success to theirs well established brand values, and EasyJet has won awards for its brand. Ryanair invested resource to establish website for passengers. It made passengers more convenient. Spending on advertising and promotions to expand its market is reduced as most advertising takes place on the website. There promotion is also used to sell excess capacity, such as two-for-one offers, which creates market awareness. Over 90% of bookings  are made directly, either on the website or through reservations centers. The website saves on staff costs, agents commission, while significantly contributing to growth. Travel agencies are used on a small scale as necessary when opening new routes in unknown markets. Under services, Ryanairs virtually no-frills- lower costs considerably. The company enables fast turnarounds and offers very low ticket prices. But with less flight attendants, usually only two per flight, compared to five for the competitors, the quality of the services drops. The philosophy of Ryanair is that for passengers the price is more important than the quality. The low quality services could damage the brand name and this could lead to business reduction. Under support activities- the procurement, the purchasing power of the company enables negotiation of favorable deals with suppliers. However, these demand large and growing volumes based on passenger numbers. Although growth is slowed down new planes has been ordered aiming to double the fleet by 2009. Ryanair keeps good buyer-supplier relationships which ensure reliability and low-cost procurement of services. Many functions of the company are contracted out. Under human resource management, Ryanair aims to control its personnel cost by continuously improving the productivity. The staff is working under big pressure set by an overhead person and most commonly with feelings of dissatisfaction. The technology development factor of the support activities indicates that Ryanair uses its website (www.ryanair.com) to monitor bookings and to see how full planes are, all minute by minute. Also, the company uses its internet site as the major part of the business, which saved them about $6 million a year on an average. Resource AnalysisResources and capabilities are the fundamental building blocks of a firms strategy. The resource-based view presents a perspective of competition that portrays the value of a resource or capability as derived from the dynamic interplay of market forces. While the market and environment establish external constraints and pressures, a firms response through resource allocation and capability development become a source of competitive advantage. The resource-based perspective views a firm as an organization that has a bundle of protective resources and capabilities.  Resources are tangible and intangible assets a firm uses to choose and implement its strategies. Capabilities are the skills a firm uses to bring its resources to bear. Ryanairs tangible resources include all Boeing 737 airplanes the company uses, as well as the companys headquarter building in Dublin and all other buildings the company uses. Part of the tangible resources also are all of the supplies, food, drinks and duty-paid products company holds in inventory, as well as fuel. Intangible resources contain bigger part of the business. They include all the intellectual capital, like expertise and accumulated knowledge, experience, skills, abilities and talents that every employee in Rayanair possesses. Here I could include also the companys brand recognition, customer loyalty, investors confidence and the good reputation. Charismatic personality of the companys CEO- Michael OLeary is part of the organizational culture under the intangible resources. The capabilities of Rayanair are:-The lowest airfare rates, simple processes (no frills), large brand awareness, clear offer (focuses on particular market segment), the innovative strategies on cost cutting, and quick turnaround time-Learning curve (early entrant), accumulated much knowledge/experience, outstanding marketing and PR skills of the CEO OLeary- The company ability to bargain and get beneficial deals with suppliers; the efficiency and high turn-around rate, fast luggage handling and high punctuality- The ability to think strategically and assertively and to act on it: acquisition of Buzz-The expansion of new hubs and new added routes-The ability to control and cut costs, which are crucial to survive and succeed in the industry!-The ability to build and sustain brand (loyalty). Financial AnalysisRyanairs current financial objectives, strategies, policies and programs are clearly stated in their Annual reports and financial statements for 2008, which I have attached in the separate file. These financial objectives seem to be consistent with Ryanairs mission, objectives, strategies, policies of low fares, as well as with internal and external environments. There was an increase in profit after tax of 33%, which was because of 7% increase in average fairs, so profit margin was 19.66%. There was an increase in fuel costs by 50%, and staff costs rose  32%. The operating margin decreased by 1% (to 21% from 22%), which lead to an increase in operating profit by 28% compared to 2007. Total operating revenues increased by 32%. Maintenance costs increased by 12%, marketing and distribution costs increased by 71%, and aircraft rental costs increased by 23%. (Ryanair Holdings PLC, 2007). From this financial analysis, I could conclude that costs are increasing, but profit is also increasing leading to gains in the company. The statements are calculated in Euros, and there could be some differences based on the floating Euro/US Dollar exchange rates. In addition, this financial analysis supports Ryanairs past and pending strategic decisions, based on being a low fare air carrier. Ryanairs profit margin in 2007 is 19.66%, compared to EasyJet with 8.47% (2007), Air Lingus with 8.19% (2007) and British Airways with 5.48% (2007). If most companies in the same industry report decrease in profits, Ryanairs financial performance indicates that the company is in competitive advantage. (Ryanair Holdings PLC, 2007)Analysis of Strengths and WeaknessesStrengths and weaknesses are the major internal characteristics of firms, derived from the SWOT analysis. Firms within an industry generally have different strengths and weaknesses, and those differences often have a strong bearing o n which firms win competitive interactions. Ryanair strengths are:-Brand name: Ryanair through its 24 years in the Low Cost Carrier (LCC) market has developed a very well recognized brand name. -Benefits from low airport charges: These aid the low cost base Ryanair benefits from. -Has first mover advantage on regional airports (e.g. Charleroi): Acts as a barrier to entry-Internet site (94% bookings) www.ryanair.com : Lowers the cost of distribution as over the phone bookings are more costly. Eliminates the need of travel agents. -High seat density. -All Boeing aircraft: A uniform fleet saves on maintenance and training costs. -Fast turn-around. -High Service performance: Punctual, high rate of flight completion, low baggage loss, which give a good image of the companys reliability. -Modernized fleet which leads to less expensive maintenance: Will become more uniform with only one model (Boeing 737-800), also newer planes will require less maintenance. -High aircraft utilization: Ryanair flies its planes for longer thus generating more revenue from its assets. -Fuel and other risks hedging. -Small headquarters-Point to point flights: No hub and spoke, lowers cost as no through services requiredRyanair weaknesses are:-Prone to bad press: Rayanair is perceived as arrogant and the slightest incident with the scandal commercial gets a lot of press coverage. -Niche market: Restricted expansion possibility. -Distance of some regional airports from advertised destination: Over time customers may find this a big inconvenience. -Poor service: Ryanair decreased the number of flight attendants per flight, which decreased the service quality. -Ryanair is extremely sensitive to changes in charges (increase in fair value)In conclusion I would like briefly to summarize the strengths and weaknesses I mentioned above. Ryanair carries out its routine checks and repairs on its aircraft using its own engineers which means that some maintenance costs are included in the staff cost. Also the company has cost advantage, because of its ability to achieve 25 minutes turnarounds and therefore can run two more flights a day in its schedule than rivals such as British Airways. Their use of secondary airports means that they are able to negotiate deals with the airports, in contrast to larger airlines unwilling to split their operations between two or more airports. Ryanair does not pay dividends to its shareholders. All profit is reinvested back into the business, which means a higher profit margin. Ryanair is unable to expand its home market industry, because of airport taxes. Passengers having their own luggage carried at their own risk could mean a loss of reputation if any major scandal is to occur in terms of loss of luggage. Increasing its fleet could mean that it might incur more losses. Reference: Thompson, A.A., Strickland, A.J., Gamble, J.E. (2008), Crafting executing strategy;The quest for competitive advantage. Boston: McGraw- Hill Irwin. Ryanair Holding PLC, (2007). The Worlds Favorite Airline. Retrieved May 20, 2009,from Ryanair Web Site:http://www.ryanair.com/site/about/invest/docs/2007/070920annualreport.pdfRyanair Holding PLC, (2007). Strategy. Retrieved May 20, 2009,from Ryanair Web Site:http://www.ryanair.com/site/about/invest/docs/Strategy.pdfGoogle (2009). Ryanair Holdings plc (Public, ISE: RYA). Retrieved May 20, 2009, from Google Finance Web site: http://www.finance.google.com/finance?q=ISE:RYALavarack, M P. M. Brown. (1992) Benchmarking: Learning from Best Practice. Business Studies, Vol 5, No.2. Thompson, J. L. (1997) Strategic Management. International Thompson Press: London. Carpenter, M.A. and Sanders, W.G. Strategic Management: A Dynamic Perspective Concepts and Cases, 2nd edition. Upper Saddle River, NJ: Pearson Prentice Hall, 2009

Story Of A Dead Man :: essays research papers

Story of a Dead Man My name is Pierce Montgomery. I hail from a small village town just outside of London. Seven years ago I was a young boy who set out for adventure to the new world. Today I write this as an old man. The following is my story of our colony at Roanoke and the series of tragic events that beset it. The journey to the new world was a long and tedious one. I was part of an expedition under the authority of John White. From what I remember if my journey I sailed on a ship named Dorothy. The quarters were very cramped and smelled of mildew. The ship was full of a variety of different people. There were carpenters, like myself, farmers, fisherman, and explorers. There were also some people who wad no real business being on the expedition. Aristocratic people, who had no concept of work, but were there just to have a good time, hunt, and search for spoils of the new world. These people were one of the main reasons we struggled so much founding a colony. It took over three months to reach the new world and when we did I had never been so glad to see land in my life. It was summer when we arrived so the weather was very cooperative. The first order of business for us was to build shelters and find a fresh water source. Luckily for us there was a stream near by. I being a carpenter helped build makeshift homes out of wood and rope. Farmer’s tilled fields and fisherman found the best spots to throw their lines. By fall the colony was up and running relatively smoothly. Everybody did their share of work except for the people from aristocratic people from England. There were fights almost daily about the laziness of these people. They took far more from the colony than they put back in. On the other hand they were the ones who financed our trip to this beautiful new world. Winter was a very tough time for us. Our crops died and we were very low on food. Our shelters collapsed under the weight of the snow and we didn’t have enough warm clothing. Fourteen colonists died during this time. It was then that we made first contact with the savages. They called themselves the Croatoan and were apparently from a small island located in the bay.

War Destroys Trust: a Long Way Gone

War Destroys Trust In the book Long Way Gone Ishmael Beah struggles between trust and survival in the midst of a gruesome war. He laments how, â€Å"the war had destroyed the enjoyment of the very experience of meeting people† throughout the book there are many examples of this upsetting truth. The consequences of this mistrust in people are clear as he travels through Sierra Leon while being incessantly threatened and assumed a member of the RUF. Most of this book is about the ongoing struggle within Ishmael between trying to stay alive and deciding who to trust.The phenomena of war and trust can coexist only if you have an ability to differentiate your friends from enemies. Ishmael struggles throughout the book to stay alive, and thus decides to trust no one, but this could be detrimental to his survival. Ishmael gives an example of the repeated mistrust he encounters saying â€Å"Many times during our journey we were surrounded by muscular men with machetes who almost kill ed us before they realized we were just children running away from the war†. A repose old man in a village once told Ishmael and his friends, â€Å"My children this country has lost its good heart.People don’t trust each other anymore† explaining just how much trust had been destroyed and replaced with fear and accusation. Because of the continuous mistrust in the country when Ishmael has any contact with a new person they automatically suspect each other, and things become very tense. In chapter fifteen Ishmael and his travel companions come across the ocean for the first time, but the excitement is short lived. They soon find themselves in a virulent fishing village which heard the rumor about the, â€Å"seven boys† and believed them to be rebels.They attacked the boys and took away their shoes, chased away from the village they were forced to walk on burning sand for hours. The mistrust of the fisherman caused these boys great pain and suffering, but lu ckily they got through it with the help of a benevolent fisherman, â€Å"we stayed in the hut for a week. Our host brought us food and water every morning and night†. After spending months in the forest a morose Ishmael finally comes into contact with some young people his age, Alhaji, Musa, Kanei, Jumah, Saidu, and Moriba.They all immediately froze in fear until Ishmael smiled to break the tension, and then talked about how they were going to Yele and he decided to follow them. This was most likely a lifesaving decision, he decided to trust them and in turn they trusted him and helped each other survive. They provided emotional support for each other throughout their journey such as when Kanei tried to talk to Ishmael for the first time, â€Å"He tapped me on the shoulder as if he knew what I had experienced.Circumstances will change and things will be fine, just hold on a little more, he said, tapping my shoulder again and nodding†. Mistrust and war are two inseparab le concepts, mistrust leads to war and war leads to mistrust. This is clearly shown throughout the novel; Ishmael conveys how war and fear combined can lead to savage thoughts and behaviors. He did not recognize himself any longer because he did not trust others or even himself. Through what he had seen and what he had done he was permanently separated from who he once was. Within a three year span Ishmael became in his own words, â€Å"a long way gone†.

Should Welfare Be More Charity Impact On Homeless, Hungry,...

Driving to the mall one Saturday morning, there was an older gentleman on the corner with his small family, Wife and young son, with a cardboard sign that read, â€Å"HOMELESS, NEED FOOD, MONEY FOR DOCTOR BILLS.† The man was rugged and could obviously use help. His right leg had been amputated, so he definitely needed assistance. One may wonder in this instance, â€Å"Where are the charities?† The groups are nowhere to be found. There should be more charity impact on homeless, hungry, and such because of instances like this. For poor or less fortunate families, philanthropic groups should finance programs such as medical assistance, housing, and food. First, philanthropic groups should finance programs for medical assistance. While most middle and upper-class workers can afford health care for themselves and their children, the lower-class families cannot even fathom the thought of being committed to a nowadays expensive payment because when they go out and look for in surance, the monthly payments exceed the amount that the family pays for its rent in two months time. There are many charity foundations that can help those unable to afford insurance, but one in specific is the Charity Care Policy at North Mississippi Medical Center in Tupelo, Mississippi. It is a local charity organization that benefits the less fortunate. If a patient is below one-hundred percent of the poverty guidelines, which is he or she is eligible to have his or her medical expenses taken care of for a tenShow MoreRelatedVictims of Poverty and Hunger2181 Words   |  9 Pagesmillion children who may very possibly live in poverty. 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