Swot Analysis Of Corporate Audit

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Group Project - Corporate Audit Ryanair Group members: Paul Carty Brian McCabe James McGinley Anthony Monahan Micheal Power History and major events (1985-present) Ryanair Ltd. is a low cost airline founded by the Tony Ryan, Liam Lonergan and Christopher Ryan in 1985, growing from a single aircraft family run operation employing only 25 staff. To now being Europe’s largest airliner (by scheduled passengers carried) carrying approximately 81.7 million passengers in 2013, employing over 9,500 people and operating 1,600 flights from 71 bases across Europe with Headquarters in Co. Dublin, Ireland (Ryanair, 2014). 1986: Ryanair adds a second route (Dublin to Luton), carrying 82,000 passengers in its first full year. 1990: Ryanair incurs…show more content…
This ensures flights are on time and that they spend most of their time in the air and not on the tarmac. According to (Sally 2011) passengers appreciate this as they don’t have to spend a lot of time in departure halls waiting on flights. Ryanair subcontract support services such as baggage and aircraft handling to third parties. These third parties have the experience and resources required to ensure a smooth and efficient turnaround. Ryanair ensures that all the staff is well trained and experienced. This enables Ryanair to offer high quality services to the passengers (Grob and Schroeder, 2007) To sum up it is evident from this analysis that Ryanair have developed an effective value chain. This ensures that the company can charge less and still make a profit. This low cost approach has appealed to many customers and has allowed Ryanair to grow to become one of the biggest airlines in the world. 4. SWOT Analysis Strengths: Low Costs Ryanair's cost per unit is the lowest of any other airline in Europe and the lowest of any airline worldwide. Taking into account both cost per seat or cost per passenger. Ryanair's capacity and traffic turnaround means that their costs are considerably less than any of its main…show more content…
The strategic decision in 1990 to restructure their company and adopt a low cost low fare business model similar to that of South west airlines in Texas has proven to be profitable one both for Ryanair and its passengers. By constantly changing their model, Ryanair has been able to stay ahead of their competitors. Their switch to online booking only, quick turnaround times and expensive access luggage policy helped to revolutionise European air travel. A key strategic decision not to recognise trade unions spared Ryanair the upheaval of industrial unrest experienced by their competitors, E.g Aer Lingus and Air France, increase in productivity and profits. In recent times, Ryanair have introduced a new business strategy to target the business class traveller. As we’ve seen strategy isn’t fixed, it is constantly changing to suit market conditions. For example, Ryanair now have relaxed their luggage policy, a corner stone of their ability to keep fares low, to fend off competitors. Due to the low cost model and cost been cut to the bone, a strategic decision was to place less importance to some areas of the business, such as, customer service, poor website interaction and bad publicity through customer complaints. The latest strategy is to address these issues and to put a higher importance on them to improve the
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