BUSINESS ENVIRONMENT

CASE STUDY REPORT

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Contents
Introduction......................................................................................................................................3

Section 1..........................................................................................................................................3

Ryanair Background....................................................................................................................3

Section 2..........................................................................................................................................5

The impacts of Brexit and the Covid-19 Pandemic on Ryanair’s internal environment.............5

The impacts of the UK government’s recovery plan on Ryanair’s internal environment...........6

Section 3..........................................................................................................................................6

The impacts of the UK government’s recovery plan on Ryanair’s micro-environment.............6

The impacts of Brexit and the Covid-19 Pandemic on Ryanair’s micro-environment...............7

Section 4..........................................................................................................................................7

The impacts of PESTLE factors on Ryanair’s operations...........................................................7

Conclusion.......................................................................................................................................8

References......................................................................................................................................10
Introduction
This case study aims to introduce readers to Ryanair Group and investigate the impact of the
Covid-19 Pandemic on the company's internal environment. The internal culture of Ryanair
Group is the primary focus of this investigation, which will also investigate the company's
operations and external environment. "External factors" refers to the collection of external
aspects that may influence the overall performance and day-to-day operations of an organization.
The travel limitation had an enormous impact on the economies of both countries, and the
damage was quickly apparent. In the weeks after the imposition of travel restrictions and
quarantine periods by various governments, the number of individuals traveling internationally
and inside their own countries has decreased significantly. We will also provide you with the
data necessary to understand how the PESTLE factors impact Ryanair Group's daily operations.
Our staff will provide you with vital information at the appropriate moment. As soon as our case
study is complete, we will submit our results and any suggestions for improving Ryanair's
operations. Doing these activities within the framework of the company allows one to advance in
one's career, get more recognition, and gain valuable hands-on experience while enhancing one's
leadership abilities. It is also a chance to develop as a leader. Ryanair was able to effectively
cultivate its staff because of the information it gained via its many mergers and acquisitions.
Ryanair has made several improvements to the quality of its customer service over the last
decade to maintain and expand its market position.

Section 1
RyanairBackground

Christopher Ryan, Liam Lonergan, and Tony Ryan founded Danren Enterprises, subsequently
Ryanair. Twenty-five employees and one turboprop plane, "Bandeirante," carried fifteen
passengers and the crew. First was Waterford, Ireland to Gatwick, London. Ryanair bought
additional planes and employed more people afterward. British Airways, which exclusively flew
from Dublin to London, offered cheaper tickets than Ryanair (Waelbroeck, 2021).

Ryanair lost a lot of money because it operated just one route, Dublin to London, and charged
exorbitant rates to compete with British Airways. They bought a Boeing 737 after changing
tactics. They lowered ticket prices and changed management. It carried over a million people that
year. Since then, it's grown steadily.

Figure :Ryanair

Source: (Waelbroeck, 2021)

Later, it bought two BAW748 turboprops. 82,000 passengers have been added annually.Europe's
biggest airline, Ryanair Holdings plc, owns Buzz, Lauda, Malta Air, and Ryanair DAC, which
has over 470 aircraft.Over 2,400 scheduled flights from 82 bases carry 154 million passengers.
Over 200 destinations, 1,800 flights, and 470 aircraft serve 40 countries. 210 Boeing 737s are on
order. Lower rates and more flights will allow them to handle 200 million passengers by 2025.

Ryanair, Europe's most punctual airline, employs nearly 19,000 aviation experts. Ryanair leads
in safety with a 34-year record. They're Europe's "greenest cleanest" airline. They claim
passengers may save CO2 emissions by 50% by switching to them (Waelbroeck, 2021).
Section 2
The impacts of Brexit and the Covid-19 Pandemic on Ryanair’s

internal environment

Due to this new situation, until BREXIT is finalized, Ryanair would do well to concentrate on
expanding into other markets. Overheads, fees, and taxes are significant components of Ryanair's
operational costs. Fuel costs, airfares, and passenger volumes all have an impact on airlines' net
profit margins. The departure of the United Kingdom from the European Union (known as
BREXIT) and the aforementioned causes have all contributed to a rise in ticket costs (Ysewyn et
al., 2021).

Consumer price inflation in the UK is expected to reach 3.9% in the first quarter of next year,
almost double the goal set by the Bank of England. This has contributed to high levels of
unemployment and inflation in the country. The rate is expected to drop to 2% in 2023 if the
Bank of England begins to hike interest rates, as predicted by a respected think tank. The
unemployment rate dropped by 0.2% between April and June of 2021, coming in at 4.7%. The
first quarter rate came in at 4.9%, barely below the market's forecast of 4.8% growth.
Considering the government has eased several coronavirus regulations, this is encouraging news
for the job market. While this is encouraging, it is still 0.8 percentage points more than it was
before the outbreak (Mattioli and Scheiner, 2022).

Due to the increased number of people looking for work after the Covid-19pandemic, customers
have less money to spend. Fewer individuals traveled after CoVID-19 was declared eradicated
because of the high costs associated with quarantine and other limitations. With the advent of
collaborative tools like Webex, Microsoft Teams, Zoom, and others, once-required trips for
training, learning, and meetings will no longer be necessary.Some goods saw price hikes as a
result of the continuing trade war between China and the United States of America. As a result,
this affected people's overall cost of living. According to IATA's Economic Performance of the
Airline Industry, this also had a major effect on international commerce, causing a 13% decrease
(Geary, 2022).
The impacts of the UK government’s recovery plan on Ryanair’s

internal environment

Due to the government's shift, British tourists have more reason to be wary about traveling to the
United Kingdom than their European counterparts. Although British customers are crucial to
Ryanair's bottom line, they only accounted for only 17% of the airline's 4.2 million summer trips.
When word spread that vaccines were no-cost, many individuals lost their employment, and
businesses stopped serving customers who hadn't had the injection. Many lives were lost and
businesses were damaged, but we were able to do this (De Spiegelaere, 2020). Even though
many individuals lost their jobs and places of employment as a consequence of the relocation, it
went forward. Ryanair's websites prominently displayed warnings that customers required proof
of inoculation against the covid virus before booking flights. The Ryanair group as a whole and
its many subsidiary firms eventually settled all outstanding debts and tax obligations, restoring
regular operations.

Section 3

The impacts of the UK government’s recovery plan on Ryanair’s

micro-environment

Perhaps the current boom in the tourism business can be traced to this new approach. In doing
so, the business and the UK government will be better positioned to accommodate development.
After the vaccination is administered, UK businesses will recover to where they were before,
bringing financial security and pleasure to their owners. While many businesses suffered
financial losses as a result, those who were able to do their best to spread the message that
vaccines are free and that they would not serve anybody who could not provide proof of having
had one. Government programs were especially helpful to the commercial and tourism sectors of
the economy (Myers and Starr, 2021). If the government is serious about rebuilding the tourism
industry to pre-COVID-19 levels, it will need the travel industry to thrive. From now until
September 2021, businesses in the travel industry may take advantage of a drop in the national
VAT rate from 20% to 5%.

The impacts of Brexit and the Covid-19 Pandemic on Ryanair’s micro-

environment

The local environment of Ryanair Group has changed as a result of the tightening of travel
regulations. Ryanair has canceled service to clients who have not been immunized and reduced
service on several routes as the virus has spread. Nevertheless, preparations for expansion are
being made as these constraints are increasingly lifted (Jiniuzashvili, 2020). Current travel
restrictions seem unreasonable when measured against the progress made in the ongoing battle
against the virus. Therefore, those who have been inoculated against the illness should be
allowed to travel freely without restrictions. To stop the disease from spreading further,
vaccinations must be given to everyone. A consequence might be the launch of tens of thousands
of new companies, creating tens of thousands of new jobs. Ryanair has come a long way toward
realizing its lofty goals as a result of the company's efforts over the last several years to digitalize
its operations and simplify its procedures (Elfen, 2022). That so, the travel sector and Ryanair are
both well-positioned to continue earning money even as the epidemic spreads. It's also in the
travel agency's favor because they're in a strong position from which to protect their market
share.

Section 4

The impacts of PESTLE factors on Ryanair’s operations

These interrelated fields of research are captured by the abbreviation PESTEL, which stands for
"social," "technical," "economic," "environmental," "political," and "legal." Listed below are the
topic areas represented by the acronym (Huttunen, 2021). Given the increasing fear of travel
caused by political unpredictability, consumer opinions are more important than ever. Even when
the disease has been contained, folks remain unwilling to travel. The fact that a market may be
divided into subgroups depending on criteria such as age, income, and level of education
complicates market research. Changes in population size and general, regional, and individual
inclinations may have an influence. The ever-increasing volume of data generated by technology
breakthroughs is a factor that intensifies the influence of PESTEL, ethical concerns around data
privacy, and the likelihood of data misuse. As the tourism sector continues to expand fast, more
employment will be created and the economy will be strengthened. During the current economic
downturn, the majority of enterprises that depend significantly on tourism have seen a decline in
revenue (Prichinet and Le, 2020).

As a result of the outbreak, some companies had to lay off tens of thousands of employees.
Ryanair's bottom line might be affected by a variety of environmental challenges and concerns,
as well as the presence of numerous laws and regulations. Several weather elements might
reduce the consequences of globalization on businesses. If natural catastrophes or exceptionally
high temperatures impede the company's industrial activities, Ryanair's CO2 emissions may
decrease. The bottom line of Ryanair might be affected by a lot of issues, but politics stands out
as one of the most critical. In a worldwide, quickly expanding market such as the tourist and
recreation industry, it is essential to mitigate the systemic risks provided by the current political
environment. The government's reaction to COVID-19 was a decisive element in the degree of
openness to immigration from other nations. Due to their faith or ethnicity, several individuals
have been denied entry into Europe. Also emphasized are visitors to Europe who are doing it for
religious reasons. Ryanair complied with regulatory criteria by minimizing the number of
unvaccinated travelers. Several unethical issues, including false advertising, insufficient training
for new agents, and divergent client quality standards, affect the sector (Jenkins, 2020).

Conclusion

As a consequence, the macro research has the most influence on the Ryanair trend. National
governments are responsible for ensuring peace and order, combatting corruption and
prosecuting criminals, building efficient transport and communication networks, and
disseminating information. The innovative aviation industry needs support in resuming regular
economic operations, thus the Traveler Recovery Programme was established to meet this need.
If these plans are executed, Ryanair stands to gain in a variety of ways, including the reduction
or elimination of tax liabilities, the reimbursement of consumers, the lowering of operational
expenditures for corporate aircraft and the headquarters, and the reduction of employee furlough
pay. Numerous areas, including but not limited to digital advertising and management, business,
and social services, will benefit from the COVID-19 conference.
References

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2. Elfen, Y., 2022. Ryanair Vs. Wizz Air: revenue and cost driver analysis concerning the
Covid-19 pandemic and post-Covid implications (Doctoral dissertation).
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