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Developing Management - Assignment Example

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The company has a successful low-cost strategy which makes it difficult for competitors to operate. In other words, this low-cost strategy is Ryanair’s unique selling point. The…
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Developing Management Answer Ryanair is claimed to be one of the leading airlines of the world which caters to masses. The company has a successful low-cost strategy which makes it difficult for competitors to operate. In other words, this low-cost strategy is Ryanair’s unique selling point. The organizational culture of Ryanair is closely linked to its employees. The airline considers its employees as a strong asset. Hosseini et. al (173) states that the employees of Ryanair are an essential component of the airline’s success and that they very fond of its promotion policies. In addition, Ryanair is famous for its cost minimizing operations such as: lack of air bridges and first-come first served basis model for seat allocation (Ganusauskaitė, 12).
The organization has set a strong corporate culture and highly focuses on its management style. The CEO, Micheal OLeary is popular for his candid yet strict leadership styles which lead to the revolution of Ryanair (Ganusauskaitė, 16).
One problem in Ryanair’s organizational culture is lack of good customer service. Although the airline is close to its employees, it is not very reputed to have good relations with its customers (Sparrow). According to Nwagbara (207) Ryaniar has hostile relations with the public and makes little attempts to satisfy them. In addition, the company does not focus on providing an experience to its customers rather it aims to reach the destination in a safe manner. In my opinion, Ryanair should change this culture and shift towards experiential marketing. The airline should offer some basic facilities to passengers that can improve their flying experience. Like thee blogger Sparrow states, Ryaniar should learn from JetBlue which provides highly committed customer service.
Answer 2
Ryanair is Europe’s carrier which offers aviation services at the most affordable (low) prices. The company claims to offer lowest fares to all of Europe’s destinations (Ryanair Ltd). Ryanair’s cost cutting strategy has been its USP. The company has troubled its competitors using this cutting cost plans. It focuses only on the core offerings and rest of the facilities like hotel accommodation, car services etc are charged (Nwagbara, 207). In this way the airline is able to offer fares that are 40% lesser than its closest competitor (Nwagbara, 207). Ryanair’s decision to cut costs by completely E-tailing its air tickets ensures quick service and profit maximisation. Moreover, the decision to provide short haul routes and point-to-point services ensure non-stop routes and services are offered to a large number of customers simultaneously.
Since it is able to draw large traffic of customers to airports, Ryanair has the advantage of negotiating airport services charges. The cost cutting objective also involves the outsourcing of airport facilities like ticketing, aircraft handling etc due to which travel agents’ commissions are avoided-leading to the maximization Ryanair’s own profits (Ryanair Strategy, 3). I believe that airline’s main focus it to reach its destination in a safe manner. Luxurious facilities can be availed on the ground as well. Therefore, Ryanair’s cost cutting decisions are the source of its success and should continue to take place.
Works Cited
Ganusauskaitė. R, 2014, ‘Improving “Ryanair” Brand Image In Europe,’ International Business and Communication programme, n.d Web 13 October 2014.
Hosseini. M. et al, 2011, ‘Top Managements Role in Coordinating Human Resources with Corporate Strategy,’ International Journal of Business and Social Science, Vol. 2 No. 12, n.d Web 13 October 2014.
Nwagbara. U, 2011, ‘Homing in on Paradigm Shift: Ryanair Leadership in the Age of Expensive Air Travel,’ Leadership Review, Vol. 11, n.d Web 13 October 2014.
Ryanair Ltd, 2014, ‘About Us,’ n.d Web 13 October 2014.
Ryanair Strategy, n.d, ‘Strategy,’ n.d Web 13 October 2014.
Sparrow. J, 2013, ‘Can Ryanairs New Culture Take Off?’ The Huffington Post, Accessed on 13th October, 2014, n.d Web 13 October 2014. Read More
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