RYAN AIR Case Revision Notes

Reading’s (bold font) from Core Text Johnson, Scholes and Whittington. (2008 or 2011) Exploring (Corporate) Strategy unless stated otherwise.

You should engage further related literature – consider e-journals such as Emerald (see module handbook for list of classic papers on strategy), E- Books (Ebrary)

The following are some suggested areas of readings/approaches to developing your answers and are not meant to be prescriptive.

Read fully the given case, support information

Develop your own approach, but do engage in the related literature in a properly referenced way or you will loose marks. Likewise were possible and appropriate in defending analysis/argument do draw on supporting areas of case evidence by referencing, making small quotes from the case and/or available hard data sources.

Part A: Compulsory Question

1. Using tool(s) of your choice identify the key issues in the strategic environment for the European airline industry, illustrating; i. Implications for the industry as a whole, ii. Implications for the budget airline sector, iii. Implications for Ryanair. Evaluate the basis of competitive positioning being pursued by Ryan Air. Based on the information from the case, judge if Ryanair’s current strategy is sustainable and recommend any changes to that strategy if you perceive that they are needed.

(40

marks)

Some Suggested Models/Theory – Johnson et al. Chapter’s 1 & 2. Blackboard Website, Strategist Downloads. E-journals, eBooks and other readings listed in your handbook

1. External Perspectives: Chapter 2 PESTEL. FIVE FORCES, Critical Success Factors?

2. Critically assess Ryanair’s competences, capabilities and weaknesses, and characterise the leadership style of Michael O’Leary. Undertake a cultural web analysis on Ryan Air stating Ryanair’s overall cultural paradigm. Giving reasons, state which elements of the cultural web would you recommend changing? Critically discuss why it is important to have a strong organisational culture.

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(25 Marks)

Internal Perspectives: Financial and other resources/core & threshold competences, An outline Value Chain can be considered. Strategic Leadership (see index in core text – and research other readings) re dynamic capabilities and sustaining in the longer term their strategies, relate to perceived value/cost/price positions (generic strategies or the strategy clock?)

Cultural Web. Refer to Johnson, Scholes and Whittington 2008 (pages 197 to 202 in and see exhibit 5.8) plus alternative text(s)/academic papers Apply the framework in an evidenced way where appropriate. From the analysis of the determinants of culture what is the paradigm (taken for granted assumptions, values and beliefs) and specify which elements would you recommend be changed?

Part B: Answer only one question from the following:

Note for either option below relate to your answers to questions 1 and 2 above

1. By relating to appropriate theory on corporate level strategy and assuming that Ryanair were successful in acquiring Aer Lingus, what style of corporate parenting would you advocate Ryan Air adopt? Explain your analysis

(35marks)

Chapter 7 of Johnson. Scholes and Whitington (2008) edition, Types of corporate rationale; (portfolio manager, synergy manager, parental developer – relate to value adding potential and risk of value loosing by the corporate parent if not managed properly – also possible to consider the Ashridge portfolio display here.

Or

2. If the bid to acquire Aer Lingus fails, systematically develop three new strategic options for Ryan Air. WHICH one of these three strategic options you would recommend that the Executive Board at Ryan Air implement. You are required to apply strategic models and theories in your analysis including those used in for strategy evaluation.

1. From a summative SWOT (relate to your answer to question one and two here what will be the basis for competition. Chapter 6 of Johnson et al 2008, Generic Strategies after Porter 1980 or the Strategy Clock?,

2. What directions for development after Ansoff and

3. “How to get There” (organic growth, alliances, mergers, acquisitions).

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Do not be too general in these options, but be specific in generating strategic options – consider for example using a TWOS matrix developed from your SWOT (See lecture slides week 10 for an example)

From your evaluation justify which one of these options would you recommend the executive board implement?

For the evaluation, apply evaluation criteria to justify your choice (aspects of the SAFe in Johnson et al 2008.p366, or the model after J. L Thompson (feasibility, suitability, desirability) (lecture week 10).

From the evaluation do not forget to make the final recommendation.

Important Points

1. Make good use of supporting allowance for up to 4 pages of appendices or the equivalent of in the body of your answers.

2. Do not simply paste in diagrams/models this will not get you any marks. If using such then put into the context of the case.

3. Tables are effective in supporting analysis, for example for summative PESTEL/5 - Forces and can be used as part of your analysis/allowances for supporting appendices.

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Again make good use of the appendices allowance to further support your analysis and reference/cite sources using the Harvard system!

PROOF READ YOUR ANSWERS – CHECK FOR TYPING ERRORS/GRAMMER AND MAKE SURE SOURCES ARE PROPERLY REFERENCED

Important – Read the assignment instructions. Remember the Learning outcomes which are used as the basis for assessment on this module and see the marking criteria in the assignment.

Good Luck in your final assignment!

Pete and the teaching team

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