Ryan Air Pestel

Topics: Airline, Southwest Airlines, Airport Pages: 2 (563 words) Published: June 28, 2009
Macro-environmental analysis
the macro-environment describes all factors which influence the company as a whole but are out of their direct control including wider social, political and economic factors (Hooley, Saunders, Piercy, 2004). The analysis of those factors is therefore often known as Pest analysis (Johnson, Scholes, 1999). Since the airline industry is very much influenced by changes taking place in the environment and has undergone rapid and dramatic changes during the last decades (Kaynak, Erdener; Kucukemiroglu, Orsay, 1993), this analysis is especially important for Ryanair. For the political factors, RyanAir is facing the increasing trade-union pressure in Europe. Some of the countries in Europe have formed a trade-union among each others, thus it gives the pressure for RyanAir to do business in these countries. Also, the Europe Union (EU) has expanded in the past few years. the EU’s will be a big factor affect the direction and strategy planning for Ryanair. And after 911, the tighten security measure is also affecting the business. And for some countries like France which has the policy to support its own national carriers which also affect the expansion of RyanAir. For Economic factors, the unstable fuel price is affecting the business. As most of the airline company will do some hedge for the fuel in order to stable the cost as fuel is a major cost for every airline. However, the unstable fuel price will make airline provide red number in their report. Also, the depreciation of US dollars also affects RyanAir because the customer from US will cut their order as US dollars are depreciating. For the social factors, the increasing travelling lifestyles are factor that will affect the business of RyanAir. Nowadays people are more enjoy a travelling lifestyle. They love to travel all around the world. And more and more people will have graduation trips, backpack trips etc. These people become major customers for the company. Also, the merging of...
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