Research Korner: Ryanair Low Fares

Ryan Air Business Environment

Ryan Air Business Environment   Explain chosen organizations major objectives and indicate the order of priority. What criteria were used to decide on the priority and why? The chosen organization is Ryan Air. Ryan Air, an airline industry that has undergone considerable trade structuring with certain opportunities in the airline industry business. Ryan Air’s market stature is becoming competitive, global market base of Ryan Air is expanding. Ryan Air is first prioritizing the human capital workforce as the main asset of its business operation. Next, is the customer service quality in bringing low cost airlines effective mode and then, achieving an ample level of sales and profit in the business zone of other airlines that are rival with Ryan Air. Ryan Air’s business environment is considering also tough caliber management and team wherein competition is in the context of improving services and products Ryan Air offer to its many passengers, the emphasis put forward on the low cost fair travel prices and Ryan Air’s known business marketing mix (Driver, 2000). Ryan Air was Europe’s original low fare oriented airline. Ryan Air's steady growth is achieved in environment friendly and sustainable way by investing in the latest aircraft and engine technologies and the implementation of certain operational and commercial decisions that help to further minimize environmental impacts, additional 10 percent between 1998 and the year 2008. Ryan Air was the industry leader in terms of environmental efficiency and working towards further improving its performance. Ryanair is investing some €17bn on its fleet replacement and expansion program, which commenced in 1999. There was focus on Ryan Air’s future growth plan providing acquisition of about 100 brand new aircraft of Ryan Air’s type. Another priority was on its fuel emission as the organization have minimized and continued to reduce fuel burn and CO2 emissions per passenger kilometer by means of combining fuel saving measure as well as commercial measure aimed at maximizing passenger numbers per flight to spread the fuel use and CO2 emission over number of Ryan Air’s passengers. Ryan Air's business model includes usage of secondary airports and point services, which help to increase fuel efficiency and limit emissions. Ryan Air avoids long taxiing times and holding patterns at congested primary airports, and delivers passengers to their destination directly on one flight opposed to forcing passengers onto connecting flights through congested hub airport. The criteria on human capital priority,  people working is the core asset of Ryan Air is through human resource related criteria such as the balanced scorecard looking on feedback and performance level of Ryan Air staff and management. For the customer service quality, the criteria on weighing the needs of every passenger at Ryan Air by various investigation, studies and surveys. For the sales and profits, there has been presence of financial assessments and Ryan Air global logistics forecasts and several statistics linked to its overall business environment. For the environment linked priority, there has been adaptation of effective CSR or the corporate social responsibility wherein Ryan Air is committed in reducing fuel emissions to keep a safe and sound environment for the rest of the community. The policy based criteria that connect to Ryan Air’s policy on business and its environment taxation. Ryan Air proves that air transport can be environmentally friendly whilst continuing to deliver huge economic benefits in terms of the lowest cost air travel for consumers, increased tourism, regional and social cohesion, job creation, inward investment and many others. Identify the organizations main stakeholders. Suggest how the organization can improve its stakeholder management and explain your reasoning. Moreover, business organizations usually set their mission, vision, and objectives in the purpose of serving the society, as well as benefitting the community throughout their business cycle.  When it comes to airlines, the determination of the demands, tastes and preferences of the people are still valid. The opinions of every people around the organization are also important to create a just and comprehensive strategy.  The main mission of every airline is to deliver the safety of their passenger, but how did the Ryanair attract the tourists and other individuals to travel is because of their undertaking to make air travel the most simple, convenient and inexpensive form of transportation in the world. The idea of low cost airlines are based on the idea and probably demands of the people to fly more often if the expenses is not that high or affordable for everyone.  Engaging in the low cost strategy is to fly mostly to and from airports that are not necessarily the busiest place which is also referred as the secondary airports. Ryanair proved that operating in the secondary airports is cheaper than the bigger major airports and also less complicated to make a maneuver on their aircraft. And with this strategic approach, Ryanair is the most suggested airlines when it comes to low-cost marketing.  Ryanair has a vision of a world where the fare could drop to lower rates to bring the steady traffic of business people and tourists to their region. Their concept is not new in every airlines and their vision only underpins their mission. The broader vision in building an effective business and push on the tourism is more applicable (Phillips, Chang and Buzzell, 2003). Bringing the fares down is not a common action on the airline business especially in the monopolistic type that usually pushes the fees up. It’s a major challenge for the Ryanair to sustain their mission and yet with accordance of their vision in promoting tourism. Ryanair will be tight on relationship with the stakeholders. Ryan Air use opinion of powerful stakeholders to shape business strategy and tactics respectively. Ryan Air have managed to gain support from their key stakeholders and winning their favor to make their plans possible. It is part of the organizational culture to understand the importance of each stakeholder and the benefits they might realize in working with them. And in a broader sense, anticipating the people’s reaction in their project may be build a strong relationship and winning their support. Ryanair’s Stakeholders are given much attention and priority in terms of their opinions and decisions in handling the business. The stakeholders are individuals or groups who have an interest in an organization’s ability to deliver intended results and maintain the viability of its products and services.   The marketing strategy of the Ryanair had been critically assessed by its stakeholders and formed a market busting strategy that made the entire organization of the Ryanair that made them one of the premier airlines in Europe. Aside from the low cost and secondary airports offered by the organization, there are other business approaches that Ryanair applied to fill up some of their losses.  The no frill method used by Ryanair has also improved the efficiency and productivity. The traditional flight services like seat allocation, complimentary drinks and meals, and free newspapers have been eliminated. Instead, Ryanair exchanged it with charging the services they offered to the customers for in-flight services and other travel expenses such as travel insurance (2009). Ryanair’s cost advantage is very significant and other low cost operations began to emerge and pushing the traditional way of offering services. Using selected products and / or services from your organization as examples, critically evaluate the impact of changes in conditions of demand. How does the organization respond to these changes? Ryan Air implies to the service oriented category, Ryan Air management team through HRM effectiveness and shareholder presence. Ryan Air rapport through the use of customer values and chain was the responsibility of Ryan Air. Thus, in delivering the tourists and the other individuals to their point of destination with full of satisfaction. There was about customer services rooted from the values of customer satisfaction and trust which is not just based on the affordability of the flying tickets but also on the experience that the airlines will leave to the clients especially when persuaded by first time flyers. Ryan Air’s competitive advantage, the outcome of strategy capable of helping the business to maintain and sustain favorable market position and translated into higher profits compared to those obtained by competitors operating in the same industry. The implementation of Ryan Air strategy an edge and not destroyable by its rivals. The change within Ryan Air success is outcome of the latter’s ability to respond to business related threats and opportunities within the airlines environment in which Ryan Air is an expert and operate completely. The customer base and quality service being influenced by changing market situation. Ryan Air has developed certain system on business objectives, adopting complex of airline functional policy on high quality base and standards of service. Ryan Air’s adaptation to business environment requirement has been dynamic in form, constantly adapt to shareholder actions upon control of negative changes that might hit the airline in the long run. The emphasizing need for Ryan Air to change focus in switching from analysis of business success and commitment. Ryan Air management must study the way low cost fare operates and put ample mechanism into the business process of choice (Ghemawat, 2000). Ryan Air have intended to replicate shareholder based strategies whereby opportunity comes into the picture more easily and more flexible in crafting an ideal decision making process into Ryan Air’s overall products and service environment. Ryan Air should recognize when it would be better to change any business driven strategy and when to continue striking a balance in its mission, vision and priorities respectively (Toh and Hu, 2001). Furthermore, Ryan Air will have to better understand the shareholder base and the process of human capital resource for Ryan Air’s core social competence into an enduring business approach. Ryan Air as a low cost airline can improve service quality image by communicating these attributes to passengers through variety of means. Recognizing of excellent service quality and continuing of upgrading fleet into the business hub. Ryan Air, formulating effective strategies for achieving business goals as important concern of Ryan Air shareholders and management leaders (Doganis 2001). Even if Ryan Air managed to be low airlines producer, some of its rival carriers may defeat priorities by pursuing other domain on business strategy, targeting low cost airline scaling and composition. The evidence of low fare price service as being practiced by Ryanair with introduction of business fares which has open fares, suited to meet the ticket flexibility needs of Ryan Air passengers (Company Barclaycard, 2000). The increase in fare at some time will find Ryan Air service prices significantly higher than others such as on dawn and morning departure. Compare and contrast transitional and emerging economies. Use examples to support your answer. What do you conclude? There is about transitional and emerging economies which Ryan Air act upon on certain circumstances since  Ryan Air started in year 1985 with only 57 staff members and with one 15 seater turboprop plane from the south of east of Ireland to London-Gatwick which carried 5000 passengers on one route (Harrison, 2002).  There was EU airline transport deregulation allowed Ryan Air to open up new routes to Continental Europe. Ryan Air launched services to Paris and Brussels and took time out to float Ryan Air plc on Dublin. The booking of Ryan Air web accounts have increased, probably with opening of other 26 routes. There facilitate the rapid European growth plan (Binggeli and Pompeo, 2002). Ryan Air implement different marketing strategy to make the company survive in the competition and to be able to gain competitive position in the airline market.  It is said that the company was regarded recently as the most punctual airline between Dublin and London, In addition, Ryanair offer minimum standards of service and very low prices for point-to-point, short haul flights.  The goal of Ryanair is to meet the needs of travelling at the lowest price. The success factor linking on strategic focus of airline prices, reliable for Ryan Air base and service frequency, Ryan Air on featuring adaptability like reservation, baggage handling and consistent service. Ryan Air use cost reduction strategy. Such cost reduction strategy relies on five main aspects like fleet commonality, contracting out services, airport charges and route policies, managed staff costs and productivity and managed marketing costs. In terms of fleet commonality, the company used only one kind of plane which limits the cost for staff training, maintenance services and facility of obtaining spares, facility in scheduling aircraft and crew assignment.  Ryan Air has made judicious choice of dealing with secondary and regional airports, where the traffic is not jammed and fees incomparably lower. Since Ryanair, is a true windfall for such airports, the airline company has a bargaining power which enables it getting favourable access fees. In addition, Ryan Air provides only a point-to-point service, thus, it has no cost concerning connecting passengers and focus on time departures because it means maximizing airline utilization.  Managing staff costs and productivity is another factor used for reducing the cost for Ryanair. In this manner, the company pays its staff on modest salary but has set up a performance related pay structure which urges employees to maximize the number of sectors flown daily. This way, Ryanair both controls productivity and keeps staff costs down. Using the business cycle model as an analysis framework describes the current economic climate in either the UK or USA and identifies its origins. Discuss the steps that the UK or US government might take to influence the economic climate. Business cycle model help Ryan Air to establish and exploit competitive advantage within a particular competitive scope (Phillips, Chang and Buzzell, 2003). By applying these strengths, three generic strategies are resulted: cost leadership, differentiation and focus.  The strategies used include cost leadership, differentiation strategy and focused differentiation. Cost leadership strategy is based upon a business organising and managing its value-adding activities so as to be the lowest cost producer of a product within an industry (Robbins and Barnwell, 2002). Cost advantage may achieve in terms of how product or services is designed or in terms of its quality. Differentiation strategy is based upon persuading customers that a product is superior to that offered by competitors. The value added by the uniqueness of the product or services may allow the company to charge a premium price for it. However, the danger associated with differentiation may include imitation by competitors and changes in customer tastes. The focus strategy is aimed at a segment of Ryan Air business for services rather than limiting business potentialities of Ryan Air possible market led operation. Ryan Air has become a focuser because it concentrated on a narrow customer segment which include Irish and UK business people or travellers who could not afro to fly major airlines. Ryan air has restyled itself and shifted from a full service conventional airline to the first European low fares, no frills carrier. Identify the advantages and disadvantages of price intervention in the EU agricultural sector. What do you conclude? The advantages of price intervention in the EU agricultural sector can relate to Mason (2000 p. 28) have written: “low cost airlines are more successful in attracting business travelers from small and medium sized companies and these companies are more likely to book directly with the airline, but these airlines will find it more difficult to attract travelers that work for very large companies”. There can be advantage placing cost leadership base wherein Ryan Air seeks to be lowest cost producer by selling standard, mass products. Enough price differentiation where the airlines introduce unique dimension that is considered to be important to the market. The targeting certain segment of Ryan Air market and be adopted by EU airlines. Ryan Air industry is unique and fascinating industry and has capture the interest of a wide audience because of its glamour, reach and impact on the large and growing numbers of consumers worldwide. The disadvantage can affect certain industry figures on Ryan Air culture base. Disadvantage for Ryan Air being at the heart of travel and tourism, employing culture innovation, also on business planning, strategic move in pricing market and be able to provide good customer services to the customers like by having discounted flights and value promotion to keep the competitive advantage at stable mode within its competitors and will need to focus more on the core competencies that allow those low cost airlines to practically and wisely design suitable airline operations within the bracket of their marketing network services in Ryan Air market on a standard perspective. Ryan Air need to be goal oriented and must not stop to rejuvenate and change their marketing plan strategies from time to time in order to re-invent the performance process upon the upgrading of rules and regulations of these airlines as mandated by the state and should adhere to further liberalization in price market along with the commoditization of airline travel, the enduring decline in sales and profits due to prices posed by Ryan Air sales centers (Doganis 2002). Discuss the factors that might cause international mergers and acquisitions to fail. Describe and discuss the main cultural factors that would influence an international organization starting to do business in your country. The failure on the part of Total Quality Management is a philosophy of management that is driven by the constant attainment of customer satisfaction though the continuous improvement of all organizational processes (Robbins and Barnwell, 2002).  Ryan Air quality base adhere an array of dysfunctional management system if not given ample attention and monitoring throughout Ryan Air environment and there was limitation on ensuring that Ryan Air has to continuously level up an ideal merger acquisition requirement. The airline culture is changing from time to time wherein business strategies fall short of Ryan Air focus on the process of desirable business and customer empowerment. There failed to recognize culture standards and instrument, applicable in Ryan Air service and airline industry. The lack of management related philosophy that seeks to integrate every Ryan Air functional tenet such as marketing, finance, design, engineering, production, customer service, and others to focus on meeting customer needs and organizational objectives (Doganis, 2002). That, total quality management involve planned procedure for satisfying internal and external customers and suppliers by integrating Ryan Air’s business environment, continuous upgrading, through with advancement, growth and safeguarding business cycle while changing organisational culture. Furthermore, the lack of attention on service quality and unified support and decision on the party of merging and acquiring companies. The presence of improper delegation of job roles and responsibilities on the part of Ryan Air management. The culture factor on what are the values and preferences of passengers and tourists and the general public. The culture difference in terms of language spoken and written and the lack of culture related communication system that can be used for moving further and positively into Ryan Air’s overall business impact in the US and UK society. The limited access on entrance power, as there can have political and legal issues along with Ryan Air business operation. Fierce level of competition coming from giant airlines can also affect merger and acquisition process thus affecting deeply on cultural norms and beliefs of involved parties.   References Company Barclaycard (2000) Travel in Business Survey, Company Barclaycard, London Doganis, R. (2002) Flying off Course: The Economics of International Airlines, Routledge London Driver, J.C. (2000) Airline marketing in regulatory context", Journal of Marketing Practice: Applied Marketing Science, Vol. 5 No.6 Ghemawat P. (2000) Commitment: the dynamic of strategy, Free Press, New York Mason, K. (2000) The propensity of business travellers to use low cost airlines, Journal of Transport Geography, 8(2), pp. 107 - 119. Phillips, L., D. Chang and R. Buzzell (2003) Product Quality, Cost Position and Business Performance: A Test of Some Key Hypotheses, Journal of Marketing, 47 pp. 26-43. Robbins, S. and Barnwell, N. (2002), Organization Theory: Concepts & Cases, Sydney Prentice Hall Toh, R.S., Hu, M.Y. (2002) A multiple discriminant approaches to identifying frequent flyers in airline travel: some implications for market segmentation, target marketing and product differentiation, The Logistics and Transportation Review, pp.179-97

Ryan Air Business Environment

Ryan Air Business Environment Explain chosen organizations major objectives and indicate the order of priority. What criteria were u...

VALUATION METHODS

This paper analyses the feasibility of a takeover bid of the commercial aviation company Ryanair Holdings PLC by a North American airlines firm through determination of the appropriate method of valuation which the latter can adopt to verify the practicability of bidding for the takeover of Ryanair Holdings. Financial factors need to be taken into consideration when deciding for any decision to bid for takeover. Generally, the target company’s financial statements, such as the balance sheet and profit and loss statement are the basis for such financial analysis. There are non-financial issues that must be carefully weighed as well. These issues are those that need to be sorted out in order to come up with a decision which will lead to either taking the takeover bid forward or not. The valuation methods available for utilisation may produce different results as they are based on a variety of variables. The approach deemed most fit for the situation of Ryanair is the earnings-based model which assumes that the value of an entity is equal to the present value of future earnings that will be generated by the business. This approach is applicable to the Ryanair case, as the company’s financial documents offer the year when they have observed a decline in net profit, it will be most useful to use this type of approach to company valuation. INTRODUCTION             With a North American airline’s plan to takeover Ryan air PLC, it is imperative that the latter be valued either formally or informally. Owing to asymmetry in terms of the underlying financial incentives, it is fundamentally important for the purchaser to understand the principles of business valuation so as to anticipate and, more importantly, to interpret the other's offer. Valuation, as a science, deals with, among other things, the following: (1) adherence of general accounting principles for the organization and presentation of the financial data of the business; (2) chronicalization of the facts associated with the historical growth of the business; (3) extrapolation of financial data into future time periods; and (4) calculation of various valuation ratios and statistical formulae (Boger & Link 1999). These are, without question, critical dimensions to a business valuation, but they are not the only dimensions of a business valuation that are important. All too often, for a variety of reasons, individuals may fall into the trap of believing that business valuation is little more than a formulistic exercise.             There are, in line with the above, non-financial factors affecting business valuation. It deals with, among other things, the following concepts: (1) understanding the economically efficient life of productive assets, compared to the general accounting practice defined depreciable life of productive assets; (2) understanding the economically relevant industry in which the business being valued operates; (3) understanding the appropriateness of one valuation method or one statistical method over another; (4) understanding the limitations of financial information from comparable businesses; and (5) understanding the economic environment into which financial data are being extrapolated, and the appropriateness of such an extrapolation. As such, there is the need for the detailed analysis of Ryanair Holdings PLC in terms of the financial and non-financial factors affecting the planned takeover of the North American Airline in order to arrive at a recommendation either a bid should be made for the takeover or not. FINANCIAL FACTORS AFFECTING THE TAKEOVER BID             In general, the data needed to provide a valuation of Ryanair are: projected and historical financial data, ownership records, information on products and services, sales and marketing data, and supplementary information on banking, legal and contractual relationships (Mastracchio Jr. & Zunitch 2002). Before work could be started, company data that is needed include financial statements and tax returns for three to five years; an accounting of all outstanding payables, and receivables, if there are any; the actual value of inventories; identification of key customers and the percentage of business tied to the relationship; equipment, including its age; industry, geographic and market comparisons; sales and other projections; resumes of key personnel; the most recent business plan; published corporate literature and press articles; and the percentage of revenues dependent on each product line or service. There is also the need to gather information from other sources, including industry and geographic comparisons, as well as a survey of sales of comparable businesses.             The preparation of financial statements should be foremost in mind in the preparation of a corporate valuation in order to come up with a recommendation if the takeover bid is going to push through or not. It is through peruse of these documents that the valuator will most accurately provide a recommendation for the North American airline client. Another issue relevant to any valuation is whether the valuation should be conducted on a pre-tax or an after-tax basis. The valuation profession differs with regard to this issue, and there is no definite right or wrong answer. What is important is for all parties to understand the underlying assumptions being brought to the valuation and for all parties to verify that the data used in the valuation process are consistent. Valuations are generally conducted on a pre-tax basis. Some who frequently argue that valuations should be done on a pre-tax basis often point to the fact that courts have argued that future tax liabilities are too uncertain to be included in a valuation. In other words, while all valuators rely on assumptions regarding the future and attempt to predict future financial situations (e.g., profitability), predicting the tax rates that might be applicable to those future financial situations adds another level of judgment and an entirely new set of assumptions. Although this is true, future tax liabilities are no more uncertain than other elements in a valuation, such as the economic conditions that will surround the business in the future. Some who frequently argue that future tax liabilities should be included do so by making the rather obvious observation that taxes are a reality of doing business. These points aside, the justification for conducting business valuations on a pre-tax basis comes from a more pragmatic perspective. It is generally the case that the valuation is done as if there were a reasonable and fully informed buyer, when in most cases there is no buyer at all. As such, there is no a priori way to know the tax liabilities that will pertain to such a hypothetical, and it would be speculative to assume that the potential buyer's tax structure will be the same as that of the seller. As a general rule, the smaller in size and the more limited the scope of activities of the business being valued, the less likely there will be a set of publicly traded companies that are comparable, or even a single comparable publicly traded company. Publicly traded companies are for the most part large, measured in terms of revenues or assets, and they are diversified across product lines. This diversification implies that reported revenues are from various lines of business, not all of which are relevant for comparison purposes. Also, diversification reduces the operating risk of the company, and to the extent that this reduced risk is reflected in the company's realized earnings and in the publicly reported price, the comparison may be less than accurate. Most small closely held companies are not diversified, and this characteristic alone makes financial comparisons difficult. There are many sources for information on publicly traded companies including information provided by Value Line and Standard and Poor. Internet access to traded securities research services is the more common means to acquire the needed information.             In particular to Ryanair Holdings PLC, their sales, operating profit, and net income have recorded an increase since the company went public prior to the financial setback in 2004. Regardless of the poor financial performance of the company during the said year, they still continued to acquire assets while managing to keep down their flight fares through internal efforts on the part of the Ryanair management and employees to lower costs of providing their commercial aviation services to the public. And although they posted a decrease in net profits in 2004, they still managed to have the highest return on equity percentage among fifteen flight passenger carriers that the company was compared with. To discuss further, published research on the application of marketability discounts when valuing a business on the basis of information from publicly traded companies follows two lines. One line of research is based on reviews of court cases and the marketability discount that the court has allowed. The conclusions from this line of research are interesting, but not generally applicable to a particular business valuation. First, there is selectivity bias in the sense that only those valuations that are litigated and appealed are available for such study. Second, the court's decision reflects the opinion of a judge or small group of judges, as swayed by the rhetoric of attorneys, many of whom may have less expertise in valuation than the valuator. The other line of research is based on comparisons in the price of initial public offerings of stocks to actual transaction sales, where the initial public offering is viewed as a reliable observation of fair market value in the absence of market demand. Again, there is no reason to assume that the companies involved in the initial public offerings are comparable to the particular businesses being valued. NON-FINANCIAL FACTORS AFFECTING THE TAKEOVER BID             Apart from the financial considerations, there are non-financial factors that would affect the decision to bid for the takeover of Ryanair Holdings PLC as well. For instance, the business model of the particular company that is under analysis would have to matter. The fundamental business structure of Ryanair is the proven Southwest model, where low fares are combined with high frequencies and excellent punctuality, while giving emphasis to on-time performance, baggage handling and customer satisfaction. Their smaller market share leaves ample room for growth, which is why room for expansion is likewise considered in takeover bids. Britain is saturated, but there is plenty of room in Spain, Low Countries, Germany, Italy, Scandinavia for Ryanair to explore and penetrate. For long-term markets, there is the need to look into regions yet untapped, in particular Eastern Europe. Also, keeping an eye on Singapore/Asia ventures, as it is still enormously untapped markets, will prove helpful in making the decision whether to bid for the takeover of Ryanair or not. As it appears that Ryanair is well-poised to take advantage of new opportunities in the emerging markets of the next decade, it is one point towards a positive reaction to taking the takeover bid. However, there are also certain considerations to look out for, for example, the Charleroi case, because if Ryanair loses, as they are appealing to EU Supreme Court in Luxembourg, the company will lose all revenue from that airport, numbering to an estimated 2 million passengers. This is a huge hit, if ever the case fails, though it may be made up in growth in other airports, so it is another dimension to look into. Long term, analysts say it may lead to more transparency, shorter leases with publicly-owned airports. This can elevate costs and hurt the bottom line, thus affect everyone in the company equally. It might be wise to wait for the Charleroi decision to settle before entering a position. If it decides against Ryanair, it is expected that headline influence will drag prices down further than fundamentals, which leads to a better entry. If it decides for Ryanair, then it is a very good decision to enter based on its long-term potential. There is the wide belief that EU will not side with Ryanair due to lobbying/protectionist pressure. After all, they saw what happened to UAL/AMR in the time span of a single year. Additionally, politics must also be considered. Ryanair claims that the EU decisions are heavily lobbied by its traditional competitors like the British Airways and Air France. A similar battle played out in U.S. courtrooms with Southwest and American Airlines over Dallas is observed. It could just be a matter of time in Europe, as well, because in the end, the customers – the public – are on Ryanair’s side due to the low flight fares that they are offering. On a deeper inspection, even British Airways and Air France could not be considered a competitor of Ryanair, as the said companies have a notably higher rate of air fare if compared with the commercial aviation firm under analysis. Thus it can be said that they operate with a different market profile than where Ryanair is currently operating. Deregulation and strong growth is also seen in Europe, as an accompanying depreciation in the dollar makes the European company more attractive. The consensus is that the dollar will depreciate further in 2004 as the deficit soars, so the company is a very lucrative venture to become involve with. VALUATION METHODS There are six general types of valuation: (1) earnings valuation; (2) revenues valuation; (3) cash flow valuation; (4) equity valuation; (5) yield valuations; and (6) member valuations. The type of valuation that the North American airline company should adopt would depend on what reliable information they have at hand in order to pose for easier company valuation and arrive at a decision to bid or not to bid at the earliest time possible. The choice of a valuation method requires thought and contemplation. The valuator should first learn about the business and then select the one valuation method that is the ‘most appropriate’ based on the relationship between the circumstances for understanding the valuation and the assumptions that underlie each of the valuation methods. The valuator should not, in Boger and Link’s (1999) opinion, define ‘most appropriate’ based on the results that follow from the application of several methods. There should be an a priori reason for selecting one valuation method over another. Income-based valuation methods use the businesses or a comparable business's income statement as the starting point for the analysis. Doing a corporate valuation is not a mysterious process that is open only to the few (Copeland, Koller & Murrin 2000). It does require, however, a different perspective from that taken by many managers. It requires focus on long-run cash flow returns, not quarter-to-quarter changes in earnings per share. It also requires a willingness to adopt a dispassionate, value-oriented view of corporate activities that recognises businesses for what they are – investments in new productive capacity that either earn a return above their opportunity cost of capital or do not. There are many areas in valuation where there is room for disagreement, according to Damodaran (2002). This includes how to estimate true value and how long it will take for prices to adjust to true value. But there is one point which there can be no disagreement: asset prices cannot be justified by merely using the argument that there will be other investors around willing to pay a higher price in the future. Similarly, asset-based methods use the business's balance sheet at the starting point. However, even when conducting an income-based analysis, the valuator should carefully study the balance sheet, and vice versa. Income statements and balance sheets describe aspects of the financial condition of the business, and hence, both should be examined. In fact, all financial information should be considered in detail. A fundamental and extremely important assumption that underlies all business valuations is that the financial health of the business is accurately characterized by its financial statements. If the financial statements are incorrectly prepared, or if they overstate or understate the true financial picture of the going concern for some accounting reason, then it follows logically that the valuation will be imprecise. Analysts use a wide range of models in practice, ranging from the simple to the sophisticated. The models enumerated previously belong to the general category. These models often make very different assumptions, but they do share some common characteristics and can be classified in broader terms, which makes it easier to understand where individual models fit into the big picture, why they provide different results, and when they have fundamental errors in logic. Following is the recommended valuation model that fits the need of the North American airline company to aid in its decision whether or not to take a bid for takeover. RECOMMENDATION             It is deemed that the earnings valuation method is the best model to use for valuing Ryanair. It is, first and foremost, the most common way to valuation. It is an approach to valuing a company by capitalising its earnings, which generally involves multiplying one or another income statement earnings figure by some multiple (Luecke 2002). The earnings-based valuations assume that the value of an entity is equal to the present value of future earnings that will be generated by the business. Further, this method is based on two elements, the price/earnings ratio and the post-tax earnings per share of a business, which, when combined, give the market price per share (Ogilvie 2006). There maybe a different (higher or lower) future earnings estimate based on efficiencies arising from new management (higher earnings) or restructuring costs (lower earnings) that will gave an impact on price negotiations.             Particularly, the Normalised or Average Earnings should be used. This approach, which is similar to that used for cyclical firms, uses an average average-based valuation upon a period when the earnings were healthier as the base-year earnings for analysis (Damodaran 2002). The assumption is that the firm will revert back to health in the near future. As the company’s financial documents offer the year when they have observed a decline in net profit, it will be most useful to use this type of approach to company valuation. When there are difficult choices to make between relevant treatment of accounting items on the balance sheet or income statement, the income statement tends to win out. The earnings-based formulation has intuitive appeal. It implies that if a firm can earn only a normal rate of return on its book value, then investors should be willing to pay no more than the book value for the stock. Investors should pay more or less than book value if earnings are above or below this normal level. Thus the deviation of a firm’s market value from book value depends on its ability to generate ‘abnormal earnings’ (Damodaran 2002). The formulation also implies that a firm’s stock value reflects the cost of its existing net assets (that is, its book equity) plus the net present value of future growth options (represented by cumulative abnormal earnings). To further strengthen the argument, the AICPA’s Management Advisors Services Practice Aid, Valuation of Closely Held Businesses indicates that the Internal Revenue Service strongly recommends the use of earnings-based valuation models for valuing businesses (as noted by Sipes 2005).             But, as with any other model, the output of an earnings-based valuation model will only be as good as its inputs. To help improve the quality of accounting inputs in the valuation process, earnings should be properly classified according to their components. To further assist in seeing through the potential biases inherent in financial data provided by Ryanair management, it is important to understand the discretion involved in making accounting classifications. As asserted by Hirst & Hopkins (2000), being armed with better knowledge about how accounting data are generated puts analysts in a better position to use the information effectively.

VALUATION METHODS

This paper analyses the feasibility of a takeover bid of the commercial aviation company Ryanair Holdings PLC by a North Amer...

Sustainable Corporate Strategy: Case study exam - Ryanair

Sustainable Corporate Strategy: The Case of Ryanair   Introduction In competition there is motivation in every company to improve and develop their objectives.  For an enterprise to succeed in global competition there is a continuous plan to develop new products with higher quality than its competitors.  (1993) analyzes that new product and new business development must be highly effective and efficient, however that alone won’t ensure its competitiveness.  It must be supported with a suitable culture throughout the enterprise.  It must have a group of body that supports, encourages, and promote innovation for the company to succeed in the end. Corporate World is very classy and every move they made seems to make an impact on the life of the people. Every aspects of our everyday world have been influenced by modernization, consequences of countless business decisions.  Business activity integrated into our way of life, and culture changes in accordance to the rapid growth of “business culture”.  In other words, people are one of the main reasons why corporations and different business establishments seek to develop different strategies that will make them stand out among their competitors so as to maintain and sustain their existence.  They want to create an impression so that people will patronize their products and eventually lead them to financial success.  This paper discusses and analyzes the sustainable corporate strategies that Ryanair adopted in order to remain competitive and the subsequent benefits it contributed to the growth of the business.    Q.1) Outline contemporary views of the terms "sustainable' as it apply to large companies. On the basis of what is presented in the case, give your views as to whether Ryanair was a 'sustainable' company in early 2004?   Prior to the common use of the term sustainable industries, the terms sustainable economy and sustainable development were common. They coined the most broadly used definition of sustainable development as, development that meets the needs of the present without compromising the ability of future generations to meet their own needs (1996; 1997). Sustainable development demands that the search for ways of living, working and being that allow all people to guide vigorous, satisfying, and economically safe lives without destroying the environment and without endangering the potential interests others (1997). Sustainable development is an economic state where the demands placed upon the environment by people and commerce can be met without reducing the capacity of the environment to provide for future generations; is economic development that has a positive long-term social and/or environmental benefit; and meets the needs of the present without compromising the ability of future generations to meet their own needs (1994). People anxious about sustainable development recommend that meeting the needs of the future depends on how well we balance social, economic, and environmental objectives--or needs--when making decisions today. It requires an understanding that operating has consequences and that we must find inventive ways to change institutional structures and influence individual behavior. Merely it is about taking action, changing policy and practice at all levels, from the individual to the international ( 1997). Ryanair continues to make risks because of increasing and overlapping cost pressures.  However, if it sticks close to its low-fare model as it has been intending to, it may continue its sustainability because true to the Walmart model, the cheapest product always wins.  Eventually being the lowest cost and lowest fair airline will attract several passengers that will compensate for rising fuel costs especially since Ryanair is good at increasing passenger seats and expanding routes.    Q.2) 2002/03 was a difficult year for the world's airlines, but Ryanair "...was seen to be unique among airlines worldwide..." (p836). Describe the main corporate strategies used by Ryanair to achieve this outcome and why they were so successful when compared with other airlines.               Ryanair is a No-Frills airline meaning to say, it gives customers what they want without the added costs.  By constantly saving money by making premium and attaching amounts on services that are commonly free in airlines, Ryanair is not only able to cut down a significant amount of costs, but it is also able to have increased space in its airline truly resembling a public transport such as a bus or a train on air.  In addition to increasing more seats are its regional destinations and cheaper routes and hubs.  Despite not being placed directly in the main hubs, Ryanair still accomplishes its mission of getting the customers to the intended location with no frills.  It defines Customer Service not through friendly and amiable treatment, but through the delivery of customers from one destination to another in a price that is skinned down to its essentials: punctuality, fewer cancellations, lost bags and complaints   They believe that each plane customer is not really so much concerned of the convenience as they prioritize the cheapest plane more than anything.  By only promising the basics, lessening accountabilities as well as responsibilities and by charging prices for anything beyond this (refreshments, meals, accommodations, wheelchairs etc), the airline is able to achieve this.  Somehow Ryanair is able to take advantage of the depressed airline industry by offering the best deals in a time of financial crises.  Ryanair keeps on finding ways to cut down costs in these crucial years.  For instance, it has introduced its website  in the year 2003 to cut down further on their "Staff costs, agents' commissions, and computer reservation charges" while increasing growth.   Q.3) The 'idea' between Ryanair and Charleroi Airport is set out on p.833 of the case. Discuss this idea from the viewpoint of the "Corporate Governance" of (i) Charleroi Airport and (ii) Ryanair.   Corporate governance can be defined as a system that is used in order to direct and control companies. As a matter of fact, this idea applies to all business sectors all throughout the world such as the banking institutions, financial corporations and other types of businesses such as the retailing industry.  As a term, it has come to imply good, in the non-moral as well as the moral sense. Its non-moral applications include efficient decision making, appropriate resource allocation, strategic planning, and so on. Nonetheless, in its moral sense good corporate governance has come to be seen as promoting an ethical climate that is both morally appropriate in itself, and consequentially appropriate in that ethical behavior in business is reflected in desirable commercial outcomes (2000). Thus, the links here are with due diligence, directors' duties, and the general tightening of corporate responsibility. In particular, corporate governance refers to the examination of the control of a company as utilized by its directors. In accordance to theory, the directors of public companies are held responsible for their action by their shareholders. On the other hand, the authority of the shareholders to influence the behavior of the company directors is limited in practice and is rarely exercised. This then provides directors of considerable power to take action as they see fit. However, this is not always the case as it appears to be relatively different form that of the government in which the action of the officials is slightly restrained by certain actions of the people it governs.               Ryanair has incidentally been receiving state-aid subsidy from Charleroi Airport.  The Charleroi route was one of the airline's methods in maintaining lowest fares while at the same time, Charleroi benefits on Ryanair's exposure to its route.  The EU Commission was appalled at the discounts Charleroi is giving Ryanair thus endangering the fair competition the Commission is upholding.  By removing the Charleroi route, will cancel a significant number of flights and reduce activity.  There are two sides of the argument: Fair Competition versus Charleroi airport's exposure.  Charleroi has thrived because of Ryanair and it will suffer if Ryanair should pull out. The Corporate Governance responsibility rests on the EU Commissions which must allocate resources and balance decisions that will  benefit both Ryanair and Charleroi.  It will be worse in the long run should Ryanair be given special preference and discount over other airlines despite the fact that it has been aiding Charleroi.  Eventually, Ryanair and Charleroi decided on new fees which will continue operations but not in a manner that will have state-aid subsidies which will go against the rules of Competition laid by the EU Commission.    Q.4) In 2003, Ryanair acquired "BUZZ", the loss-making budget subsidiary of KLM (p.840). It then reduced BUZZ's staff from 610 to 170. Discuss what you believe Ryanair's "Corporate Social Responsibilities" might have been in the circumstances of the case.                         What Ryanair has performed is a form of Mass Layoff as it shed off hundreds of staff.  It is a touchy subject that must be dealt with care.  Employers in their part must not only offer explanations, but they must also express their utmost regret and at the same time, gratitude to the unfortunate worker (2002).  Layoffs should be ended with a sense of respect and justice.  Most often than not, mass layoffs are performed with a lack of consideration in the employees’ part.  This is because a mass layoff may not sound as unfortunate as it seems and employers end up appearing as “executioners”.  In order to save the company, the employees must be sacrificed in its expense.  Employees will tend to feel undervalued and be generally resentful of such a decision (2002).   Employees who have to undergo immediate displacement are most often than not, shocked and greatly dismayed especially if they would have been serving the company for decades.  To cut their employment short is also an interruption to their way of lives and a waste of training and skills.  Most likely than not, the employees will need to be retrained to be adjusted in their next employments after having spent a great deal of time with the company.  They will have to compete along with the new entries in the workforce for jobs.  Some may be lucky, but some will certainly take a long time before they can truly get back on track and adjust to the layoff which is why the company needs total involvement in order to stimulate adjustments.    For hundreds of skilled workers to be unemployed for a long time will be a loss and a dent to the economy growth as a whole.    In mass layoffs the workers are in the losing end.  The company must take upon themselves to help these displaced workers in coping with the change of employment especially if the employees served for a long time.  This case only emphasizes how layoffs are tricky situations and would require the extra efforts of the employer to truly attempt to end the lay off in a manner that is with fairness and respect.  They and their families need their own special compensation.   The gradual layoff example presented how employers should ideally confront the situation which is through a comprehensive compensation package and not merely by severance packages and career counseling.  Continuous dialogue in the part of the management themselves is essential in order to appease and support the dismayed employees.          Q.5) In early 2004, Ryanair's profitability is under threat. If you were designing the first draft of a 'Balance Scorecard" management reporting system for Ryanair (to help it monitor the implementation of its strategies), what main "perspectives" and "metrics" would you suggest?   In order to maintain competitive edge in a manner that is low-cost, they should keep the following perspectives or metrics in mind:  The maintenance and operation in a manner that is low-cost, effective marketing schemes, development of their brand and the skillful management of their routes.  These metrics are reflective of the major operational decisions which determine how their daily management and performance should be properly decided.  Low cost operations are performed through decisions that have to do with balancing utilities which would be in favor of increasing passenger loads, flight time, and making premium the free services mentioned above.  This is basically where airlines cater to more passengers at a lower rate and is thus also known as Financial Perspective).  Marketing and Brand enhancement is responsible for providing the facelift and attractiveness and promotion of a product which it performs through its shockingly low prices and give Customers the value of their money and encouraging them to be loyal (which would be the Customer and Business Process Perspective).  Route management is the product catered to customers.  This is where the airline finds its audiences and consumers.  This is where they can choose to cater to tourists who travel for pleasure or business.  By managing their Route networks, they may determine which customer segment they should focus and have the most profits possible.  This route network may be enhanced through the increase of new hubs that will have the more customer preference and access.  Customers always look for the cheapest flight available and Ryanair providing this will certainly benefit.  By expanding Routes it is possible for Ryanair to open to new niche where there is no frontal competition.  This can also be the Innovative Perspective approach.           Q.6) What is your assessment of Ryanair's launch strategy? What is Ryanair's strategic intent? What factors may have played a part in determining this strategic intent?               Flight fares are always known to be overpriced.  This discourages traveling and usually leads to unnecessary expenses.  The added fees are supposed to make convenient the entire flight experience.  Ryanair intends to rebel against all of the said 'free' services.  It believes that every airline goal is to take customer from Point A to Point B with no questions asked.  Thus this is the No Frills Strategy where it cuts down on marketing costs, staff costs, airport charges, contracting out of services and fleet commonality    Ryanair itself is appalled of the high airline fares that has been dominating the Industry and boastfully asserts that traveling does not need to take so much money.  In fact the flight fares Ryanair offers cost as little as cents to none at all (excluding the taxes and other costs).  It truly serves traveling to the masses.  Coupled with its boisterous attitude led by its dynamic and arrogant CEO, , Ryanair does not only seek to reshape the airline industry but spark a campaign and revolution led by the low fare airlines as the best valued airlines while putting down the impractical overpriced airlines (by calling them as idiots among other derogatory callings).  People willingly subscribe to Ryanair's services which although inconvenient, have been proven irresistible because of the cheap airfare.   Ryanair does not focus quality but it promises to deliver which is the whole point of the transport business.  In this manner Ryanair becomes a frank, straight to the point, and a very practical alternative for airline solutions.  Customers are always looking forward to save money during flights and certainly they would not mind a business bare to its essentials especially if they will save as much as hundreds of Euros.  It is indeed a daring move which is made even more impressive because Ryanair is profitable, until the various external factors of 2004.  In a time of inflation, increasing interest rates among other costs, more and more customers would not mind risking convenience in plane travel at all.  Ryanair is made ideally for such a situation.         Q.7) What are the most significant issues revealed by an assessment of Ryanair's external environment?               The European Airline Industry is highly competitive and volatile thanks to the European Union Commission's desire to enhance competition between airlines.  Its ruling against State Aid would be highly disadvantageous to Ryanair and advantageous to more and more airline companies who are also joining the Budget airline trend such as easyJet, Virgin Express, bmlbaby, flybe, MyTravelLite and AerLingus.  These rival carriers will put more fuel to the fare wars.  Ryanair is one airline that makes more enemies than allies because of its aggressive nature, some of which are its own customers.  Ryanair is going to have to adjust to providing the services it has sworn not to provide without an added cost as it is pressured by issues such as the proper treatment of the disabled and the trade prospect of a trade union.     Q.8) How would you assess Ryanair's resources and capabilities against its competitors? What is Ryanair's core competence?               In almost anything a consumer does, whether she or he is an institutional buyer, industrial buyer or plain individuals, they will always tend to compare substitutes to find the best deals.  This is especially true in hard times where customers demand for premium service as more passengers seek less expensive travel alternatives. Ryanair has a superb cost management, free seats when the company is feeling generous, no frills in flight, and with its aggressive advertisement campaigns which take on its rivals: the overpriced airlines (when they attempt to impede Ryanair's route) and airport management or the EU Commission (when they would perform moves that would push Ryanair to charge more). Low-cost airlines rely on a simple business design: one kind of aircraft, one class of passenger, and more seats crammed into the airplane--as well as no airport lounges, no choice of seats, no newspapers, no food, no frequent-flyer programs, no connecting flights, no refunds, and no possibility of rebooking to other airlines. Also, there are no travel agents and expensive computer reservation systems; about 90 percent of Ryanair tickets are booked over the Internet. By keeping the logistics simple, no-frills airlines cut turnaround times on the ground and maximize revenue-generating air time by minimizing landing and ground-handling fees ( 2002). Lower costs and higher seat-load factors permit no-frills carriers to offer fares 50 to 70 percent lower than those of the incumbents. This approach attracts price-sensitive and flexible travelers, even those who don't find the lack of convenience and flexibility the slightest bit appealing.  Another strength is the CEO's brash, no compromise attitude that truly drives the company because a low-cost and low-fare airline would really need a leader who will be daring enough to pedal the company towards profitability despite the circumstances.  By his outrageous and oftentimes risky moves, he is able to attract attention and promotion to its favor.  Customers cannot resist Ryanair despite the lack of convenience because the seats are sometimes virtually free (or totally free) with the airline making money of the premium services such as food and drinks aboard.  It gives customers what they want in a fee that will only pay for the travel which is what airlines are supposed to do primarily.  The lowest cost airfare is always sure to win the competition even in the direst, most intense circumstances.    Q.9) What do you think of Ryanair's strategies? What suggestions would you make to Michael O'Leary to improve Ryanair's chances of future success?   To repeat: The lowest cost airfare is always sure to win the competition even in the direst, most intense circumstances.  This is a significant strength of Ryanair.  With its impressive cost management and outlook to increase more passenger seats and expand routes, Ryanair may come off just fine after the 2004 crises.  Ryanair knows how to anticipate difficult times due to increasing fuel prices and rivals and set their goal.  Bearing these segments and economics in mind, Ryanair must select routes carefully to generate enough traffic to fill the larger aircraft they use. Profitable markets must also have a large leisure-and private-travel component--the mainstay of the customer base of most low-cost carriers. A majority of these carriers follow the same basic rules, but with some differences in approach. Ryanair, which is as cheap as it gets, operates routes from London Stansted to many secondary airports--for example, to Carcassonne and Biarritz, in southern France, and to Pisa and Verona, in Italy. Low airport fees help keep the carrier's costs 65 percent below those of a typical scheduled airline. Ryanair can thus offer cheap fares and still make a profit if more than 55 percent of its seats are occupied.  Thus it must proceed its goal in expanding to more little known routes and increasing more passengers in their planes while offering more premium services that the customers will end up purchasing for a more convenient flight.

Sustainable Corporate Strategy: Case study exam - Ryanair

Sustainable Corporate Strategy: The Case of Ryanair Introduction In competition there is motivation in every company to improve a...

Ryanairs' financial objectives

RYANAIR CASE STUDY ANALYSIS   Introduction             Each organization has been affected by factors that affect the entire performance. In this regards, different companies are trying to establish organizational objectives that would cater to the growth and development of the company. Primarily, the goal of this paper is to analyze an industry in terms of its financial and non-financial objectives and analyze how these objectives conflict or compliment with each other.   Overview of the Company             One of the most recognized airline industry is Ryanair. Accordingly, the company started in year 1985 having only 57 staff members and with one 15 seater turboprop plane carrying passengers from the south of east of Ireland to London-Gatwick and carried 5000 travellers on a certain route (2002). The company continuously grows because of the determination of the management to gain competitive position in the marketplace. Accordingly, Ryanair has been able to have some financial and non-financial objectives. For instance the financial objectives of Ryanair is to achieve revenue growth annually, increase earnings by 15% per year, increase dividends per share by 5% annually, increase net profit margins, stronger bond and credit rating,  more diversified revenue based and to have stable earnings for the future. On the other hand, non-financial objectives include the aim of having bigger market share, better customer service than their rival companies, stronger business image, and reputation with clients than rivals, to be recognised as a leader among airline industries, to be able to compete in the global market and to have stable competitive advantage. In order to achieve, this Ryanair has been able to implement different marketing approach to make the airline industry survive in the stiff competition and to be able to gain competitive advantage in this sector.  It can be mentioned that the company was noted to be the most punctual airline to travel from Dublin to London.   And because of their approach the company has been able to be known as the second largest airline in UK and the largest low-fares airline in the entire Europe. The following table shows the comparison financial and non financial objectives of Ryanair. Table 1  Comparison of Financial and Non-Financial Objectives Financial Objectives Non-Financial Objectives Stakeholders Financial Objectives Stakeholders Non-Financial Objectives Achieve revenue growth annually stronger business image and reputation with clients than rivals Consumer, Management Shareholders Management, staff and employees Have stable earnings for the future. better customer service than their rival companies Consumer, Management   Management, staff and employees More diversified revenue To be recognised as a leader among airline industries Marketing management Consumer Management, staff and employees   The table above shows the comparison of the financial and non-financial objectives of Ryanair. Herein, it shows that the three financial objectives includes the achievement of revenue growth annually, having a stable earnings for the future and more diversified revenue and the non financial objectives includes the stronger business image and reputation with clients than rivals, better customer service than the rival companies and to become a leader among airline industries. Based on the comparison table it shows that the stakeholders of financial objectives include consumer, management, marketing management and other shareholders. In this regards, it can be said that in order for Ryanair to achieve their financial objectives, the management should be held responsible for any business operations and the consumer will be the one to help them achieve such objectives. On one hand, in terms of non-financial objectives, the stakeholders involved includes the management, staff and employees of the airline industries since they are the one which directly involved in providing quality services. Although, there is a difference in terms of stakeholders, these objectives can be achieved using specific and common management approach.   Recommended strategy             In order to achieve both financial and non-objectives the company should be able to consider specific marketing and management approach.  In this regard, Ryanair should implement marketing and management approach to achieve the objectives stated above. It is said that Ryanair should continuously concentrates on driving their own costs to offer the lowest fares possible and remain profitable and stable in the market. The objectives of Ryanair are to meet the demands of travelling which can sustain their financial needs. The core mission of the Ryanair is to provide safe, cost, competitive and efficient in providing services the aviation transportation., to retain their employees’ dedication and devotion to fulfill the objectives of the industry, to maintain a minimum standard of 98% on-time performance rate while complying will all application regulations and to sustain an environments where dignity and family values are being utilized. Being at the forefront of the company’s day-to-day challenges in operations, the goal of Ryanair is to be recognized as the most professionally run, family oriented and viable airline in the entire UK. Most people, especially those who are striving to be the best on their fields always seek ways to be developed.  Most of these individuals came from the business world, since the competition on this arena is very stiff. One wrong move, may lead to total failure that may even bring you back from the scratch. In line with this, marketing strategy has been developed to have a quality services. Quality is defined as meeting or exceeding the needs and expectations of the customer. Thus, the goal of any business or industry should be to find out what their target market wants and then fine tune the process to ensure that they get it.  The term 'customer' is used to include internal customers as well as external customers. In line with this every work group has a customer, the person who receives their output (1998). And because competition becomes tougher and tougher through the years, many industries have adopted different marketing strategy approaches to meet their missions, visions, and goals.  The marketing concept states that the nature of the marketing orientated organization, whether product or service based, profit or non profit based, is the identification and genuine satisfaction of customers needs and wants, more effectively and efficiently than the competition.             In general, the success of any industry attributes to how well the management carries all its responsibilities and how well the mission, vision, and goal are being set along with the corporate approach imposed within an industry may it be non-profit or profit organisation.   Conclusion             Based on the given analysis, it can be said that Ryanair must be able to consider strategic approach to ensure that they are able to meet their financial and non-financial objectives. These strategies should be able to also meet the needs of the clients and customers to sustain competitive position in the airline market.

Ryanairs' financial objectives

RYANAIR CASE STUDY ANALYSIS Introduction Each organization has been affected by factors that affect the entire perform...