Internal Audit of Ryanair
This paper is to examine the key potential drivers within the present internal environment. Several models would be applied to support the answer and they are Stakeholder Power/Interest Matrix, Cultural Web, Resource audit, Value Chain, and threshold and core competences. With using Ryanair as an industrial example, this essay would talk about how important strengths and weaknesses are to be used in designing strategy.
Ryanair was founded in 1985 by Tony Ryan who already died in 2007. It was originally a full service airline and turned into a low-cost carrier in 1990s. Ryanair used a series of cost-cutting policies to attain to the target as its mission statement (Ryanair Annual Report, 1999):
“Ryanair will become Europe’s most profitable, lowest cost scheduled airline by providing its low fares/no frills service in all markets in which it operates to the benefits of our passengers, people and shareholders”
Ryanair is now the largest low-cost carrier in Europe and is controlled mainly by the chief executive officer, Michael O’Leary. The following would be the further explanation of the key potential drivers within its current internal environment.
Figure [ 1 ] Stakeholder power/interest matrix adapted from Mendelow (1986)
Stakeholder mapping help identify stakeholder expectations and power and help in understanding political priorities. (Mendelow, 1986 cited in Johnson et al, 2011)
The mapping shows Michael O’Leary and David Bonderman are the main facilitators of the strategies. Their power and interest in Ryanair is so large to be the key player to influence the strategies. EU and BAA this kind of official authority could possibly be the blocker of the strategies as they are the rule setter. Ryanair’s strategies should follow their regulations. In addition, customers’ expectation should be most considered since they have highest expectation on Ryanair’s performance. Manager could thus realize which internal or external stakeholders are needed to
Ryanair was founded in 1985 by Tony Ryan who already died in 2007. It was originally a full service airline and turned into a low-cost carrier in 1990s. Ryanair used a series of cost-cutting policies to attain to the target as its mission statement (Ryanair Annual Report, 1999):
“Ryanair will become Europe’s most profitable, lowest cost scheduled airline by providing its low fares/no frills service in all markets in which it operates to the benefits of our passengers, people and shareholders”
Ryanair is now the largest low-cost carrier in Europe and is controlled mainly by the chief executive officer, Michael O’Leary. The following would be the further explanation of the key potential drivers within its current internal environment.
Figure [ 1 ] Stakeholder power/interest matrix adapted from Mendelow (1986)
Stakeholder mapping help identify stakeholder expectations and power and help in understanding political priorities. (Mendelow, 1986 cited in Johnson et al, 2011)
The mapping shows Michael O’Leary and David Bonderman are the main facilitators of the strategies. Their power and interest in Ryanair is so large to be the key player to influence the strategies. EU and BAA this kind of official authority could possibly be the blocker of the strategies as they are the rule setter. Ryanair’s strategies should follow their regulations. In addition, customers’ expectation should be most considered since they have highest expectation on Ryanair’s performance. Manager could thus realize which internal or external stakeholders are needed to