Key Critical Success Factors Of Ryanair Management Essay

Key Critical Success Factors Of Ryanair Management Essay RYANAIR- The Irish low cost airline was founded in 1985 by the Ryan family as a small competitor to Irish national airline Aer Lingus. As Ryanair walked on the same business model as that of its competitors. But this strategy adopted by Ryanair never turned out as a profitable one and took it nowhere. In 1990s, Ryanair transformed its strategy and under the leadership of Michael OLeary it decided to restructure and model itself after Southwest Airlines, the successful US Carrier and then enter into British Isles, and then in to whole of Europe. (Johnson, et al, 2008). The move of effective resource planning and redesigning Ryanair under the leadership of Michael OLeary was the turning point for the airlines. The Mantra of maintaining Low costs and No Frills worked wonders for Ryanair. Its effective resource planning and core competency helped Ryanair to develop and grow throughout years. Using regional and secondary airports, not to charge customers for fuel surcharge, reducing operational and handling charges were on the main agenda on Ryanair. Due to combination of all these activities Ryanair was able to maintain low costs and thus earn profits out of it. Ryanair faced many hurdles to reach where it is today .Sudden rise in fuel cost, compensations to passengers, aftermaths terrorist attacks, environmental taxation schemes, fraught relationship with pilots and staff, sundry legal action and many more acted as potholes to Ryanairs smooth ride. But Michael OLeary who was called everything from arrogant pig to messiah (Johnson, et al, 2008), balanced every sector of the organisation and scripted the success diary of Ryanairs. As per ELFAA (European Low Fares Airline Association)2010 statistics, in the year 2009, Ryanair topped the list with maximum number of passengers among its European low cost competitors. It covered 28.67% (i.e. 65.3m) passengers share among its ELFAA counterparts and travels over 150 destinations throughout Europe, and operates 1070 daily flights over 1000 routes(Anon, 2010) KEY CRITICAL SUCCESS FACTORS LOW PRICES As Ryanair operated in short-haul trips, it helped Ryanair to maintain low fares. Low fares helped to motivate demand, particularly from fare conscious travellers who would have rather opted for either means of transportation. The European Low Fares Airline Association (ELFAA) announced that last year its members carried 162.5 million passengers, representing an 8.7% increase on the previous year(Anon, 2010).This showed that, let it be for leisure or business, European consumers are chosing low fare airlines as it provides them Best Value for Money air services. POINT-TO-POINT MODEL Point to Point Model Figure 1: point to point model (Source: http://ostpxweb.dot.gov/aviation/airlinebusinessmodel.htm ) Ryanair operates in short-haul routes, which connects secondary and regional airports of the travelling destination. Ryanair carries out its point-to-point operations on a regular and frequent basis which has helped airlines to eliminate the necessity of frills services to its customers, which becomes quite necessary in long-haul routes. This point-to-point service helped Ryanair to serve non-stop and direct routes to its customers, and thus eliminate extra costs which are involved in long-haul routes. It also helped airlines to thus reduce its unit costs as aircrafts are utilised more. It helps in reducing operating costs, as flights are direct and does not involve any connecting flights and further expenses involved in it. NO FRILLS Ancillary revenues are regarded by analysts as a lucrative source of revenue growth for Ryanair at high margins(Milmo and Griffiths, 2006) Ryanair believed in No Frills policy .There is also no complimentary food and drink;instead this is sold on board(Anon, 2004).It earned revenue by imposing charges on hotels, travel, excess baggage,flight change fees, in flight retail and other such facilities. This helped Ryanair to maximise its Ancillary revenue. Keeping focus on this No Frills policy, Airline chief Michael OLeary suggested that installing pay toilets would lower ticket costs and make flying, somehow, easier for all (POGATCHNIK, 2009). He believed this will further help in generating ancillary revenue and thus will further support in reduction on fares. CHOICES OF ROUTES According to Pitt and Brown(2001) at present, there is a clear gain in terms of the time in which the air carriers can physically move customers from one point to the other, basically speaking there is very little disparity in terms of the total journey duration when we allow for airport processes and procedures and thus comparing it with the time taken to reach to the departure airport and to transfer from the arrival airport to the final destination. It was for the same motive that regional and secondary airports were majoritily connected by Ryanair as this helped in keeping the airport and handling cost low as compared to the main congested airports. Thus choices of routes was made by keeping Ryanairs Budget airline model in mind as it strengthens the competitiveness of the airline.It also enabled to make quicker departures, and quicker flight turnovers. LOW OPERATING COSTS Ryanair strategies and action plans had made it Europes biggest low fare carrier. As Ryanair operates in short-haul routes; it aims at reducing ; aircraft equipment costs by using single type of aircrafts which later on upgraded to new generation aircrafts due to stiff competiton and environmental needs and regulations; personnel expenses by improving productivity of its present staff by providing productivity- based incentives, on-board sales incentives for flight attendants, number of hours flown by pilot and the cabin crew within the set time limits, this motivated the staff to work for more hours. customer service costs by attaining competitive rates by signing multi-year contracts with third party contractors for aircraft and passenger handling, ticketing and other services:.As Ryanair was the largest travel website in Europe and fifth most recognised website in Europe,thus internet booking has immensely helped to reduce the customer service cost and also remove commission charges of the agents; and airport access and handling costs which is the also the key competency of Ryanair.Intorduction of web-based check-in and priority boarding helped Ryanair to enhance cost cutting in airport access charges. Also introduction of charges on check-in bags helped in reduction of baggages and saved costs and enhanced the performance and the speed of the aircraft. Ryanair kept its fleets cost under control by solely operating Boeings-737 jets and thus kept training, maintenance and operating costs under check(Anon, 2004). BRAND Ryanair is a very well-positioned brand, You know exactly what it stands for not something you can say too often in the travel business( McGuinness, 2010). Imposing toilet fee, excess baggage restriction, charges on credit cards, allegations of overstressing of staffs,environmental issues, sundry legal actions and many other such issues provided Brand Ryanair free of cost publicity and thus promoted itself as lowest fare airlines in Europe.Ryanair fifth most searched website worldwide, this show the potency of the its low cost carrier brand. (OConnell and Williams, 2005). TECHNOLOGY Web based check-in helped in reduction of airport costs for the Ryanair. Officials at the no-frills Irish airline said by lowering its airport costs they can pass th savings to passengers by lowering the fares further(Pugh, 2009). It saved check-in time and also reduce check-in staff costs and thus helps in maximising profits. Ryanair fleet of 130 Boeing 737-800s, is the youngest fleet and emits fewer gases than its older aircrafts( Chesshyre, 2007).This made Ryanair environment friendly and thus follow all environmental norms. STRATEGIC CAPABILITY RESOURCES Ryanair is a non-union operation having its headquarter in Dublin, Ireland(Box, 2007). Ryanair mainly carries out its operations from secondary and regional airports. In the year 2006 Ryanairs saw growth in its traffic by 26% to 34.8 million passengers and even ancillary revenues grew by 36%, which was higher than passengers revenues. Ryanair had a fleet of around 100 new Boeing 737-800 aircraft, which was the youngest fleet having an average age of 2.4 years. These new aircrafts were environmental friendly and also consumed lesser fuel. Ryanairs stock was up by 12% in a year to 9.28euros per share.Ryanair manpower grew to 3500 employees. Ryanair being a brand in airline sector, made profits due to its adequate fund and resources. CORE COMPETENCES A core competence is a set of skills and technologies, which enables a company to achieve a particular benefit to customers(Hamel and Prahalad,1994). It would not compulsorily be product-specific,but represent a very unique and difficult-to -imitate practices, which certainly stands as a pillar for the firms competitiveness. It would not be generally an asset or a value that can be seen in a firms balance sheet, it is a skill for doing things. Initially Ryanair focused on customer service and also wanted to provide lower fares than its fellow airlines-British Airways and Aer Lingus(Gillen and Lall, 2004). In the 1990s Ryanair copied Southwest Ailrlines,US business model and chose a new way to establish itself as Low Fare Carrier Airline in Europe. Ryanair took the Southwest operational efficiency to the next step by providing no service-no food; no jet ways; no frequent flyer programme; no refunds; no travel agents; no tickets; no connects (Gillen and Lall, 2004). Ryanair mainly focussed on providing low cost, competent, regular connections and subsequently offering no other frills or supporting services(Kangis and OReilly, 2003). This policy helped Ryanair to generate revenue. Numerous possibilities for non-price differentiation exist focusing on features such as punctuality, high frequencies and timing of flights (Klophaus, 2005). Ryanair adopted point-to-point routes as the it is not delayed by interlining passengers. Check-in is more faster because the point-to-point journey is simple than an interline one as choice is of regional and secondary airports. Boarding is rapid as seat choice is better for passengers who arrive early at the departure gate( Barrett, 2004). This also helped in maintaining high punctuality for Ryanair. Lower costs also stem from reduced complexity in activities (Gillen and Lall, 2004). Further Ryanair outsourced its activities as Outsourcing brings a flexibility to an airline in choosing between different suppliers of services such as aircraft maintenance, handling at airports, catering, and inflight magazines. Outsourcing brings flexibility to the company in choosing whether or not to renew contracts as they expire. In inflexible labour markets securing efficiency gains from an inhouse labour force is likely to be more difficult and involve compensation for change( Barrett, 2004). By adopting outsourcing Ryanair has made its development much easier and has expanded quite uncompromisingly which has given it a initial mover benefit in negotiating with airports and allowed it to sign long-term contracts( Gillen and Lall, 2004) PORTFOLIO ANALYSIS BCG MATRIX Boston Matrix diagram (Source:http://www.oup.com/elt/catalogue/teachersites/oald7/wotm/wotm_archive/boston_matrix?cc=global) The market share and the growth of market are the two contingent variables which determine the position of the firm. According to Seeger(1984) it is one of the simplest and most vivid concepts which consists of two impotant variables of the market i.e. market growth and market share. Ryanair falls under Cash Cows as it growing slowly even though its market share is high. It heavily targeted at maximising its market share and cash flow.As ryanair adopted no frills policy and outsourcing, the investments needed by it has to be low.Even though having high revenue Ryanair cannot expand its activities into other product lines, as its competitive advantage of low fare can be disturbed by certain small change in charges or taxes. VALUE CHAIN The purpose of the value-chain model is to assist companies to evaluate and select the optimum set of activities and methods of performing them to create the most value for the firm (McPhee, 2004). It incorporates both traditional business activities that provides continuous value to the organization and wide range of activities from modern strategic theory. Very Impotantly , expanded activites i.e Supply chain management, Product use,End of primary use,External networks, ensures that no potential strategic activity is elapsed and no opportunity for enhancing value is ignored. INFRASTRUCTURE Minimum Corporate HQ HRM Low Cost Training Limited staff Management control In-house Performance contracts TECHNOLGY DEVELOPMENT Internet Web information Integrated Internet sales PROCUREMENT Discount on aircrafts Alliances Outsourced Private Low cost Low cost suppliers Airport agreements Low cost No frills Fast turnaround Reliable service Low cost promotions Free publicity due to controversies Internet sales Limited resources High productivity Inbound logistics Operations Outbound logistics Marketing and sales High productivity RYANAIR VALU CHAIN Ryanair has least infrastructure required for corporate HQ. HRM involves Low cost training, limited crew, control of management, in-house and performance contracts that is done by developing technologically such as internet and low tech marketing on internet sales(McPhee, 2004). The procurement of low cost training is done with discount from Boeing, limited crew procurement involved alliances which result in No frills and low cost operations, management control is outsourced for quicker turnaround and reliable services. Marketing and sales incurs very less expenses as there is more internet sales involvement with little promotion costs, free publicity through controversies and yield management. Performance contracts are low cost productivity based which utilizes the less available productive resources STRENGTHS The Mantra Ever decreasing costs .Point to point flights, No frill policy ,and innovative ancillary schemes led to growth in revenues and thus made Ryanair financially strong and successful Ryanair has a very strong Brand and reputation in the European market, which enables them to adopt aggressive pricing stratergy. Ryanair can credit much of its success to its wily chief executive, Michael OLeary, who has used a combination of Irish blarney and sheer bloody-minded effrontery to achieve growth for his airline(Anon, 2010). He readily faced all the hurdles that came in Ryanairs way and thus with his innovative style converted these controversies it into publicity for Ryanair. Ryanair has the youngest single aircraft Boeing 737-800 fleet which has high seat density and also helped in reduction of maintanace and training costs Secondary and regional airport approach helped Ryanair in maintaining operations in busiest aviation traffic areas and thus reduce airport handling and flight turnover times. Web-based ticketing and check-in have been attracting people as it is time saving and also feasible for them. Ryanair has a huge future because of the untapped market. Lower fares help Ryanair to attract customers who use non-aircraft modes for travelling longer distances. WEAKNESS Customer relationship is very poor. Ryanairs operates from secondary and regional airports, which sometimes are very far away from the actual destination. Ryanair had weak employee relations. As Ryanair is a low cost fare carrier any new tax or charges effects its profits greatly. Ryanair is prone to bad controversial issue in the press, which gives a negative picture about the Brand Ryanair LEADERSHIP Developing Ryanair from the point of closure to the top profit making low fare airline, handling all controversial issues and media, motivating and energising people, facing legal actions and competitors. There is little doubt that OLearys confrontational personality has ruffled more than a few feathers amongst his rivals (Anon, 2004). But for Michael OLeary, any criticisms of him or his airline were looked up as giddy and completely pointless methods to divert Ryanair from its mission. All this is enough to prove that Michael was an efficient and innovative leader with every quality which a modern leader must pursue in order to achieve goals. Conclusion Ryanair by choosing a Low Cost Carrier Approach, have achieved it through simplicity of product design, simplicity of processes and simplicity of organization (Gillen And Lall, 2004). Thus we can see Ryanair have restructured the European markets competitive environment and made an impact on the worlds domestic airlines market, which was monoploised by huge airlines(OConnell and Williams, 2005).

Coulomb’s Law Essay

ABSTRACT Performing this experimentation will allow one to investigate the relationship quantitative relationship between the electrostatic force and the distance between charged objects. First a simply observation was made of the electrical forces on two pieces of tape taking note of their attraction and repulsion. This same phenomenon was observed in the experimentation of two charged spheres. Furthermore the we used this experimentation to determine the magnitude of the electrical force between charged objects through video analysis. Derived from our data we have resulted that the forced acting is dependent upon the distance for the forces to act at an exponential rate of .04microcoulombs. OBJECTIVE We will note coulombs law by observing examination of forces in static equilibrium to determine the magnitude of the electrical force between charged objects. PROCEDURE Using the Logger Pro we track the electrostatic force between two charged spheres and the magnitude generated by the repulsion. RESULTS Data was not signed but sent to Doctor Wijesinghe upon completion in lab with analysis of results found. Synopsis sent was agreed to by all lab members. DATA ANLYSIS From the data gather we seen that the force generated increases exponentially at rate of 0.04microcoulombs. The intial data was to dissect the distance the spheres moved due the forces acting upon them in by allowing X to be the hanging sphere and X2 to be the probing sphere in a distance field in of 1m. To calculate this value the following equations were used: Fe=Kq1xq2/r2 Abs(X)-Abs(X2)= CC Fe=mg sin∂ sin∂=x/l Fe=mgx/l DISCUSSION The force will be dependent upon the sizes of the charges, and their separation. In fact the force follows an inverse square law, and is very similar in form to Newton’s Law of Universal Gravitation. It is known as Coulomb’s law. The form is exactly the same as Newton’s law of universal gravitation; in particular, it is an inverse-square law. This force can be attractive or repulsive. The magnitude of the force can be calculated by this equation, and the direction should be obvious from the signs of the interacting charges. (Actually, if you include the signs of the charges in the equation, then whenever you get a negative answer for the force, there is an attraction, whereas a positive answer indicates repulsion).Although the law is formulated for point charges, it works equally well for spherically symmetric charge distributions. In the case of a sphere of charge, calculations are done assuming all the charge is at the centre of the sphere. In all realistic cases, the electric force between 2 charges objects absolutely dwarfs the gravitational force between them.

Museum Visit

The museum was a safe haven for housing art and historical facts of the many cultures all round the world. The Creation Stories at the Michael Carols Museum were fascinating and interesting. My favorite was the â€Å"God Spoke the Earth: Stories of Genesis in Prints and Drawings†. The exhibition was narratives from the book of Genesis. Marc Chloral born in 1889 was a F-ranch artist who traveled to Palestine after a 1930. His work was to illustrate stories from the Old Testament. His Jewish heritage lined up with his immediate connection to the Holy Land.There were many in the Holy Land that spoke his native Yiddish and Russian. His lithograph, The Bible II, found in his 2nd series was an expression to accentuate a narrative to the creation story. The painting was that of blues, grays and subtle yellows that evoked the sense of light, water, earth and life emerging but of the firmament. Chloral depicts Adam pulling the forbidden fruit rather than Eve. His painting put emphasis into the virtues of womanhood and female figures. The female images appear in almost every image of the painting.At this time was Chloral's first exploration into art in a Biblical expression, Hitler came to power over Germany. The Nazi party opposed the work of Chloral and deemed it as a threat to the Western violation. Chloral had a lot at stake being an artist from France exploring Jewish theories. Due to the disapproval, Chloral had to flee to the United States and by the help of an American journalist; he was able to obtain forged Visas to make the journey to the United States. John Waddled Barnes, American artist, born in 1921 and deceased in 2008.His illustrations were in pen and ink wash. His artwork was of the story of Joseph. The art on display was his pieces that reflected the different pieces of Josephs story such as; Jacob interprets the moon devoting son, Joseph, Jacob consoles Rachel, Joseph awake after wedding night, Joseph tries on the coat, Joseph tells dream, Jose ph sojourn in the well, Traveling merchants rescue Joseph, Joseph before the Sphinx, The ladies party, Joseph feels from Potash's wife, Joseph interprets the dream, Meeting of Jacob and Joseph in Egypt. The artwork is beautiful with dark and light colors.The paintings are like sketching that have expressions very felt by the viewer. â€Å"Birth of Cain† was an engraving piece of art by a Dutch artist, Adrian Collars (1560-?1618). This artwork was at a time were the Protestant Reform in North Europe was occurring. The Council of Trend convened between 1545-?1563 in discussing the reform of the Catholic Church. The key topic was on sacred images being permissible only if it didn't mislead or corrupt the viewer. In an order for an imagery to be accepted it should encourage the viewer devotion in connection to scripture.The scenes of Genesis depicted a hard life of God's creations Adam and Eve. The art was to allow the viewer to experience the agony and hardship that Adam and Eve endured outside of paradise. This reflected God's punishment which was painful birth, short life spent in a dangerous and inhospitable land. The ewer was also made aware of the first time an act of violence and malice in the story of Able being murdered by his own brother Cain. Collars wanted the viewer to mediate and have a sense of responsibility and loss that Adam and Eve felt as a result of sin.John Martin (1789-?1854) fourth series print, Adam and Eve hearing the Judgment of the Almighty, was a Mezzanine from 1831. Martin took a series of prints illustrated from the Bible in an effort to repeat the series from that of John Million's Paradise Lost. Adam and Eve were rebuked by God represented by rays of light shining from trees at the right: Have you eaten from the tree of which commanded you not to eat? † (Gene. 1) The Seated Buddha of India Peak period was in black stone. It represented touching the earth calling upon the earth goddess as witness to his ability to attai n enlightenment.The tree above his halo is a branch of the Booth tree under which he has reached the final stage of spiritual advancement. His throne is a typical lion's throne which reflects two lions and an elephant at the base. The Egyptian coffin lid was beautifully detailed. It was from the Egyptian dynasty of 1190- 1075 BC- The coffin was of wood, geese, pigment bronze, calcite (Egyptian alabaster). This was uniquely carved. The artist was very artistic in all aspects of the facial features and the perfect carved hands.Tablet with an account Of a Deluge was from the late Babylonian period of 1699-?1600 BC, Nipper Mesopotamia, of clay. The lower portion of the fragment of the clay tablet was written in Sumerian cruciform script and it relates to a tale of flood that destroyed mankind and it's parallel to the story of Noah in the Bible. I found it fascinating that it reads; â€Å"A flood will I send which will affect all mankind at once. But seek the deliverance before the floo d breaks forth for over all living beings. However, many there are will I bring annihilation, destruction and ruin.

Bullying The Causes And Effects Of Cyberbullying

Cyberbullying is usually between a few students that are in the same class or even in the same age group. A lot of people think they know what cyberbullying and bullying is but they are not the same. Cyberbullying can affect a kid as much as physical bullying. Cyberbullying has been proven to affect one out of every three children. There are seven or more different ways a person can be cyberbullied. It can lead to person a harming themselves or others being harmed. Cyberbullying has been proven to be a cause of suicide. It affects many people and it can be prevented. ( Breguet page #) Cyberbullying starts online but a lot of people think that it is just an online problem that is occurring. Cyberbullying can happen either at school or in†¦show more content†¦People should be able to post a picture without having to worry about what people are going to think or say. Social media should be a place for people to be real and authentic. With that being said social media can lead to users having low self esteem. ( Cyberbullying) The main cause of cyberbullying and bullying is because of the so called â€Å"popular† people. â€Å"Popular† teens are often some of the most hurtful people. They think that saying hurtful things helps them fit in. The less popular people feel that they need to bully to make themselves fit in. No matter if a person are popular or not so popular, it is not a good thing to cyberbully. The two main types of cyberbullying are cyber threats and cyberstalking. Cyber threats are threats of violence against a person online. Cyberthreats also break down into two other kinds of threats. Direct threats are having the idea to hurt someone or even themselves. An indirect threat is when a person is thinking about suicide. Cyber stalking is getting into someone’s privacy through electronics. Cyber stalking can also lead to someone watching the person online or even stalking them in person. (Breguet page # 8) There are two types of people who bully and cyberbully. There are the ones who are called socially inactive people and socially active people. The reason why socially inactive people allow being bullied or cyberbullied is because they want a chance to fit in. To showShow MoreRelatedBullying : The Causes And Effects Of Cyberbullying1106 Words   |  5 PagesCyberbullying is bullying that takes place over digital devices such as cell phones, computers, and tablets . It can include sharing personal or private information about someone else causing embarrassment or humiliation, sometimes crossing the line into unlawful or criminal behavior. 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