Ryanair - leadership issue
Consultancy Report
Preventing a major future threat for Ryanair:
Strategic changes that are required when a leadership shift takes place in the company
Ryanair Ltd.
Airside Business Park
Dublin, Ireland
Delivery Date: September 26, 2014
Executive Summary
In order to understand what strategic organizational changes are required in the case of leadership shifts, the position and importance of Ryanair’s current leader was firstly determined.
Michael O’Leary is an outstanding transformational manager, who leads Ryanair with an assertive focus on reducing costs and providing the lowest airfares in the industry. Above that his strategic purpose is not only to be the company’s public representative, but primarily the one providing direction as being a transformational manager.
He established Ryanair’s mission as being an ultra-low cost carrier with scheduled short haul flights on point-to-point routes largely in Europe at the lowest fare to all destinations as a guarantee. In regard to this all the strategy statements, including as well the vision, values and objectives are built up on the current CEO. This is why a loss of direction needs to be prevented in case of a leadership change. Furthermore the organizational culture is analysed by the means of the cultural web, resulting in a strict hierarchical power culture, which means that there is low task division and the power is at the moment centralized on O’Leary. He has high control and stands himself as a symbol and charismatic leader, having a top down management leadership style. This symbolizes again that he is a strong leader and difficult to substitute, as your company’s strategy is aligned also with your company culture. Strategic capabilities of Ryanair’s leadership
Next the conducted PESTEL analysis forms a basis for the SWOT analysis of Ryanair’s leadership.
The internally identified factors of importance are the strengths of the high management focus, which result in
Preventing a major future threat for Ryanair:
Strategic changes that are required when a leadership shift takes place in the company
Ryanair Ltd.
Airside Business Park
Dublin, Ireland
Delivery Date: September 26, 2014
Executive Summary
In order to understand what strategic organizational changes are required in the case of leadership shifts, the position and importance of Ryanair’s current leader was firstly determined.
Michael O’Leary is an outstanding transformational manager, who leads Ryanair with an assertive focus on reducing costs and providing the lowest airfares in the industry. Above that his strategic purpose is not only to be the company’s public representative, but primarily the one providing direction as being a transformational manager.
He established Ryanair’s mission as being an ultra-low cost carrier with scheduled short haul flights on point-to-point routes largely in Europe at the lowest fare to all destinations as a guarantee. In regard to this all the strategy statements, including as well the vision, values and objectives are built up on the current CEO. This is why a loss of direction needs to be prevented in case of a leadership change. Furthermore the organizational culture is analysed by the means of the cultural web, resulting in a strict hierarchical power culture, which means that there is low task division and the power is at the moment centralized on O’Leary. He has high control and stands himself as a symbol and charismatic leader, having a top down management leadership style. This symbolizes again that he is a strong leader and difficult to substitute, as your company’s strategy is aligned also with your company culture. Strategic capabilities of Ryanair’s leadership
Next the conducted PESTEL analysis forms a basis for the SWOT analysis of Ryanair’s leadership.
The internally identified factors of importance are the strengths of the high management focus, which result in