4. Discuss the impact of any two (2) external environmental factor that challenges Ryanair company to remain competitive in the airline industry? (20 marks) Political or legal processes and legislation is one of the external environment that influence decision making made a firm that must comply with regulation which is how organization try to influence government and how government affects businesses. Among the challenges that face by Ryanair is increasing legislation in Europe that give negative impact to their business model and also increasing the cost of operation of their business.
However, research has indicated that Virgin Atlantic has encountered stiff competition from other companies in the industry, for instance, they were once forced to lower the rate of their flight which follows a review of prices for air travels by their major competitors which include British Airways, Fly emirates, and Qatar Airways. "Economic indicators for example GDP, exchange rates and inflation are important to management of Virgin Atlantic. They can tell when it is a good time to
He recalls President Roosevelt’s seemingly impossible orders to produce 100,000 airplanes saying: “If they could gear up to fight a war, they could gear up to protect public health.” The airplane is one of the largest polluting transportation forms. The Wright brothers had no idea the drastic
PESTEL analysis is a tool that is used to analyse an organisation’s macro-environment. Political Environment The incident of 9/11 has affected the airline industry adversely. The number of tourists to different countries has immensely decreased due to the fear of safety and security issues. On the other hand countries have put measures in place such as strict visa policies and border controls in an effort to combat terrorism attacks.
Several experts believe that budget airline has reformed the entire airline industry and created a momentum for it to grow sustainably. Previously, the airline industry was experiencing a downturn in demand and surging production cost, which led to a profit recession. However, the price was regulated rigorously by the government, causing firms were not permitted to reduce price to stimulate customers demand. Such regulation has forced the fare gone high, and, thereby, customers could only select from similar high fees, discouraging them to fly. Thus, this situation prompted the implementation of relaxation in airline industry through granting more freedom to air-traffic businesses, such as freedom of entry and exit.
Force 5: Supplier Power One of the external powers that Emirates continually deals with is the supplier environment. Supplies are in the form of service expertise and most critically – Jet Fuel. With Saudi Arabia’s decision to regulate fuel costs by limiting the supply of oil, the supplier power in this case is prominent. Rising fuel costs have led to decrease in the revenue of the airline and it also reflects in the marginal increase in the price of their fares every few
What is the problem? What were the underlying causes of this problem? SFO airport needs to transition to a long-term airport-wide credentialing and physical identity and access management (PIAM) system that would meet the growing need of airport risks and comply with regulations from the Transportation Security Administration (TSA) and other transport security governing bodies.
Another socio-cultural factor is the fear of terrorist attacks. Example would be the recent ISIS attacks in France, Russia etc. With terrorist bombing, airline companies are affected by the number of passengers traveling overseas. This could cause a drastic change to Rolls Royce’s income. Urban countries that are affected by overcrowding of air-craft are asking for larger aircraft as larger aircrafts are more powerful.
Successful and goal oriented people tend to have the income to support such an expensive activity. Making a living from flying also requires the goal oriented and successful type of person. Getting through the rigors of acquiring a pilot license requires goal orientation and drive as well. The very characteristics that make it possible for a person to become a pilot, also contribute to making dangerous and sometimes fatal pilot errors.
It is essential to minimize these conceivable wellsprings of anxiety to expand pilots' intellectual burdens, which influences their observation, memory and consistent thinking. 3.0 THE EFFECTS OF STRESS IN AVIATION In flying, at all periods of flight, pilots are subjected to various measures of anxiety, how they respond when subjected to push will at last represent the deciding moment whether the result is a protected and fruitful flight. 3.1 Stress In Aviation Industry A carrier pilot can be an amazingly upsetting in employment because of the workload, obligations and security of the a huge number of travelers they transport the world over.
Cutting civilian employees which currently is higher than it was during World War II. Tricare costs are high and can be lowered if we do not offer free healthcare to retired military and their families. Use of more civilian schools nearby military bases instead of funding military schools. Raise the retirement from 20 years to 25 years, a more reasonable age since lifespans are longer than they were over a hundred years ago. My suggestion is to inventory all the cash, supplies, people and bases the military has.
In the United States, Infrastructure plays an important role throughout society. Infrastructure accounts for schools, energy, roads, bridges, etc. Currently America 's infrastructure is deteriorating, reaching an all time low. America will have an estimated calculation of 3.6 trillion dollars in debt by the year 2020 and these costs will only grow as the years go on. “Shortfalls in investment will lead to fewer jobs, gridlock, and inevitable catastrophe” (Dennison).
As an economic effect of 9/11, the stock markets closed for four trading days. The unemployment rate went up 5.5%. When the planes hit the twin towers, the interest rates were already low at 3.5%. A couple weeks later, the feds cut them to 2.5%. The biggest impact was the rebuilding of what was destroyed.