Cardiff School of Management (CSM) Module Number: (MBA 7002) Strategic Management Assignment (50%) ‘RYANAIR’ Case Study Based ‘3000 Words’ Assignment June / July 2018 Session Gulf College OMAN Student Guidance, Instructions and Marking Scheme Important Dates: To be submitted by 30 July 2018 Module Tutor Asif Zaman azaman@cardiffmet.ac.uk Case Study Base Assignment- 3000 Words – Strategic Management (MBA 7002) - Gulf College OMAN Page 1 of 20 Case Study Assignment (50%) Learning Outcome Matrix (MBA 7002) Module Descriptors Learning Outcomes: NO At the end of this module students should be able to: 1 • Evaluate and reflect on the influences driving demand within the business to consumer and business to business markets and the factors influencing the strength of their influence 2 • Critically assess the debate that surrounds corporate values and social responsibilities. 3 • To analyse competition and customer requirements in order to identify opportunities for competitive advantage within an industry. 4 • Identify different types of strategic change programmes and assess the value of different leadership styles in managing strategic change. Assign ment 3000 words (50%) Case Study Base Assignment- 3000 Words – Strategic Management (MBA 7002) - Gulf College OMAN Exam (50%) Page 2 of 20 Assessment Tasks Percentages Portfolio (WRIT1) 50% 3000 words Written case study based Assignment Final Written Examination (EXAM 1) 50% Total 100% Course Assessment MBA7002 (Jun /July 2018) Case Study Base Assignment- 3000 Words – Strategic Management (MBA 7002) - Gulf College OMAN Page 3 of 20 Due date: The 3000 words case study based (50%) is to be submitted no later than 30 July 2018 Late submission penalty: One day late - 10% of the maximum possible mark will be deducted. Two days late - 20% of the maximum possible mark will be deducted. Three days late - 40% of the maximum possible mark will be deducted. Four days late - 60% of the maximum possible mark will be deducted. Five or more days late - 100% of the total mark will be deducted. IMPORTANT - ACADEMIC MISCONDUCT Students are reminded that the University regards academic misconduct as a very serious matter. Students found guilty of academic misconduct are subjected to various penalties see guide on ‘GUIDELINES ON PENALTIES FOR UNFAIR PRACTICES’ Following are some of the actions, which are considered as academic misconduct with regards to examinations and coursework. ▪ Taking unauthorised materials into an examination (See Exam Conduct) ▪ PLAGIARISM - (submitting work for assessment knowing it to be the work of another person) / (failing to acknowledge the source of material in an assignment). Case Study Base Assignment- 3000 Words – Strategic Management (MBA 7002) - Gulf College OMAN Page 4 of 20 Word Limit: 3000 words (Plus or minus 10%) Case Study based Assignment Questions Assignment Questions based on the airline company ‘RYANAIR’. Internal Environmental Analysis & Evaluation of Strategic Options This individual 3000‐word assignment (10% margin) builds on the theoretical knowledge gained in the Strategic management module. Referring to the case study of Ryanair, the purpose of this assessment is to assess the strategic capabilities of the company by addressing the following: 1. A ‘VRIO’ or analysis of the company [max 25 marks] 2. A ‘SWOT’ and ‘TOWS’ analysis of the company [max 25 marks] 3. Propose effective change management methods and theories that Ryanair could have used to ensure transformational change and how barriers can be overcome to achieve success [max 20 marks] 4a) Your strategic recommendation developed from your VRIO and TOWS analyses [max 10 marks] 4b) An overall evaluation of your recommendations in terms of ‘suitability’, ‘feasibility’ and ‘acceptability’ [max 20 marks] Case Study Base Assignment- 3000 Words – Strategic Management (MBA 7002) - Gulf College OMAN Page 5 of 20 Assignment Structure Title page: Title of Assignment, Full name, Student Number, Submission Deadline Contents page: A list of key headings and associated page numbers Executive summary: summarising the key issues facing Ryanair and briefly identifying the findings and recommendations of your internal analysis of the company. Introduction: Which very briefly introduces Ryanair and European Budget airline industry; followed by a brief overview of the main areas to be addressed in the main body of your report. Main body: Section 1: VRIO analysis in which the key internal strategic capabilities of the company are addressed, as well as possible limitations in terms of Ryanair’s strategic capabilities Section 2: SWOT in which internal and external factors are identified and TOWS analysis, in which SO, ST, WO and WT options for the company are identified. Section 3: Models of Change Management. You need to include a diagram of the change model that you have decided to use in your analysis. You may want to consider any of the following Models: John P Kotter's eight steps to successful change; Kübler-Ross five stages transition (grief) cycle; Prosci’s five building blocks ADKAR (awareness, desire, knowledge, ability, reinforcement) model; McKinsey’s 7S (strategy, structure, systems, shared values, skills, style, staff) framework; Kurt Lewin’s change management model - unfreeze, transition and refreeze; Burke-Litwin’s causal change model; Action research; Gap analysis Section 4: Which needs to include two activities: 4a) Strategic recommendations developed in light of the analysis presented sections 1 and 2. 4b) An overall SFA (suitability, feasibility, acceptability) evaluation of the forwarded recommendations presented in 3a. Summary and conclusion: reiterating the main findings and concluding with your strategic recommendations Appendices (if any) Case Study Base Assignment- 3000 Words – Strategic Management (MBA 7002) - Gulf College OMAN Page 6 of 20 Question Mark 1. VRIO analysis Maximum 25 marks 2. SWOT and TOWS analysis Maximum 25 marks 3. Change Models Maximum 20 marks 4a) Strategic Recommendations Maximum 10 marks 4b) Suitability, Feasibility, Acceptability TOTAL Maximum 20 marks Maximum 100 marks See below the broad marking criteria rubrics, in terms of synthesis referencing and structure. Marking Criteria Synthesis Referencing Structure Max – Marks 50% 40% 10% Case Study Base Assignment- 3000 Words – Strategic Management (MBA 7002) - Gulf College OMAN Page 7 of 20 General Marking Criteria Excellent Work Synthesis (50%) Ability to construct a balanced discussion effectively synthesising and integrating the four literature sources provided Referencing (40%) Correctly formatted in-text citations and reference list using Harvard Referencing Structure (10%) Academic writing, structure & coherence. Proofing and typographic errors Excellent work, which successfully and comprehensively integrates the case study and wider literature sources to produce an effective synthesis and balanced discussion. Excellent formatting of intext citations and reference list. An excellent, well written and structured assignment throughout, which is coherent and free from typographic errors Very Good Work Very good work, which makes use of the the case study and to produce a balanced discussion and synthesis in places. There may be a small number of areas where improvements can be made. Very good formatting of in-text citations and reference list with a small number of areas for improvements The writing is generally well structured and coherent. There may be a small number of typographic errors and/or areas where improvements can be made. Good Work Satisfactory Work Unsatisfactory Work Good work, which makes use of the case study provided to produce a reasonable attempt at a balanced discussion in places. However, there are a number of areas where improvements can be made. Satisfactory work, which attempts to use the case study provided to produce a written discussion. However, there are many areas where improvements can be made to enhance the quality of the discussion and synthesis. The work requires significant improvements to produce an effective synthesis. Please contact your tutor for further guidance on academic writing skills. Generally good formatting of intext citations and reference list. However, there are a number of areas where improvements can be made The writing is structured and coherent in places. However, there are a number of typographic errors and/or areas where improvements can be made. Satisfactory formatting of in-text citations and reference list. However, there are many areas where improvements can be made. Please study www.citethemrightonline .com for guidance Referencing requires considerable improvements. Please study www.citethemright online.com for guidance. The writing lacks structure and coherence in many places. There are a significant number of typographic errors and/or areas where improvements can be made. Please proof read your work. The work requires considerable improvements as it is largely unstructured and incoherent, which renders it difficult to read and understand. Please refer to the university’s academic skills webpage for guidance on academic writing. Case Study Base Assignment- 3000 Words – Strategic Management (MBA 7002) - Gulf College OMAN Page 8 of 20 Key Assessment ‘Expectations’ (Do’s and Don’t) • The problems, scope, and seriousness was clearly identified in the discussions. Clear explanation of key strategic issues Valid arguments; analysis of financial performance with relevant supportive detail • There was a well-focused analysis of strategic issues and key problems that demonstrated a good grasp of the company’s present situation and strategic issues. • Did not waste space summarizing information already found in the Case study. • Logically organized, key points, key arguments, and important criteria for evaluating business strategies were easily identified • Critical issues and key problems that supported the Case Analysis were identified and clearly analysed and supported. • There was complete data on which to base a thorough analysis Appropriate analysis, evaluation, synthesis for the specific industry identified • Key change drivers underlying the issues were identified. • Synthesis, analysis, and evaluations were clearly presented and supported in a literate and effective manner. • Specific recommendations and/or plans of action provided. Conclusions and recommendations are congruent with strategic analysis • Specific data or facts were referred to when necessary to support the analysis and conclusions. • Recommendations and conclusions were presented and supported in a literate and effective manner. • Logically organized, key points, key arguments, and important criteria for evaluating the business logic easily identified. Proper organization, professional writing, and logical flow of analysis. Harvard formatting • Key points were supported with a well thought out rationale based on applying specific concepts or analytical frameworks to the data provided in the case. • Proper grammar, spelling, punctuation, 3rd person objective view, professional writing, and grammar. Case Study Base Assignment- 3000 Words – Strategic Management (MBA 7002) - Gulf College OMAN Page 9 of 20 Referencing guide: The University regulations on plagiarism and unfair practice must be observed. Your attention is drawn in particular to the need to acknowledge all sources of information by clearly referencing all material using the Harvard Convention. The Cardiff School of Management reserves the right to ask for further proof of the nature and source of material used and you are advised to keep complete records of such sources. Throughout your assignment you should been referring to the work of other people. This must be properly referenced as a reader may wish to consult the original text. It is essential to cite ALL sources of references and to acknowledge works consulted. There are many referencing styles, like Harvard, APA, MLA, MHRA, OSCOLA, Vancouver and Chicago. For this assignment, use ‘HARVARD’ referencing format. Please explore the following comprehensive link to referencing. ‘Cite Them Right Online’ Link to www.citethemrightonline.com refining guide. End of Assignment Brief Case Study Base Assignment- 3000 Words – Strategic Management (MBA 7002) - Gulf College OMAN Page 10 of 20 Case Study Base Assignment- 3000 Words – Strategic Management (MBA 7002) - Gulf College OMAN Page 11 of 20 Guidance Notes Section 1. What is a VRIO analysis and what is the purpose of conducting this form of analysis? ‘VRIO’ is an acronym standing for ‘value’, ‘rarity’, ‘inimitability’ and ‘organisational support’. VRIO is a framework used to carry out an internal analysis of a company’s strategic capability. Strategic capability refers to a company’s internal resources Things a company owns) and competences (things a company knows how to do, and is good at doing). Therefore, strategic capability = resources + know‐how. As part of your VRIO analysis, I recommend you use the following table as a template to evaluate and analyse Ryanair’s strategic capabilities: Strategic Capability 1. 2. 3. 4. Resource or Value? Rarity? Inimitability? Organisational Support? ‘Yes ’ or ‘Yes ’ or ‘Yes ’ or ‘Yes ’ or ‘no ‘no x’ ‘no x’ ‘no x’ x’ ‘Yes ’ or ‘no ‘Yes ’ or x’ ‘no x’ ‘Yes ’ or ‘Yes ’ or ‘no ‘no x’ x’ ‘Yes ’ or ‘no ‘Yes ’ or x’ ‘no x’ ‘Yes ’ or ‘Yes ’ or ‘no ‘no x’ x’ ‘Yes ’ or ‘no ‘Yes ’ or x’ ‘no x’ ‘Yes ’ or ‘Yes ’ or ‘no ‘no x’ x’ Competency? Resource Resource Competence Competence Please note: the above is a suggestion helping you to: Distinguish between resources and competences To summarise Ryanair’s strategic capability There may be more or less than 4 strategic capabilities but you will need to identify what these are from your analysis of the case and/or additional sources The table should offer an overall summary but will need to be backed up by a fuller commentary and evaluation where you discuss the most important capabilities listed in the table Case Study Base Assignment- 3000 Words – Strategic Management (MBA 7002) - Gulf College OMAN Page 12 of 20 Guidance Notes……… Section 2: What is a SWOT and TOWS matrix and what is the purpose of this required activity in assignment 2? A SWOT matrix is a summary of a company’s internal strengths and weaknesses, and a summary of external threats and opportunities. You will need to provide the following summary table: • • • • Strengths (INTERNAL) ☺ Bullet point 1 Bullet point 2 Bullet point 3 Bullet point 4 • • • • Opportunities (EXTERNAL) ☺ Bullet point 1 Bullet point 2 Bullet point 3 Bullet point 4 • • • • Weaknesses (INTERNAL)  Bullet point 1 Bullet point 2 Bullet point 3 Bullet point 4 • • • • Threats (EXTERNAL)  Bullet point 1 Bullet point 2 Bullet point 3 Bullet point 4 The findings of your VRIO analysis in section 1 can be used to identify potential internal strengths and weaknesses present within Ryanair. The findings from your PESTEL (Macro environment) and Five Forces Framework (Microenvironment) can be summarized as external features relating to Ryanair’s external environment and placed inside the opportunities and threats boxes. Please note: the above SWOT matrix is a suggestion helping you to: a. b. c. d. distinguish between internal strengths and weaknesses (inside Ryanair) distinguish between external opportunities and threats (outside Ryanair) there may be more or less than 4 points for each box, but it will be up to you to identify the actual number of points in each of these four boxes (matrices) The SWOT matrix is just the start of identifying potential strategic options (i.e., directions and methods) that Ryanair may choose to follow Having summarized the list of internal strengths and weaknesses, as well as opportunities and threats, A TOWS matrix is the next step to inform your analysis. In other words: a TOWS matrix considers how internal features (strengths and weaknesses) can be linked to respond to external opportunities and threats. The purpose of the TOWS matrix is to generate strategic options (methods and directions) for Ryanair. Case Study Base Assignment- 3000 Words – Strategic Management (MBA 7002) - Gulf College OMAN Page 13 of 20 Guidance Notes……… The following cross‐referenced options (if evident in the case study) need to be identified: 1. ‘SO STRATEGIES’: using internal strengths to take advantage of external opportunities (Options which ADVANCE Ryanair) 2. ‘WO STRATEGIES’: identifying external opportunities to overcome internal weaknesses (Options which help Ryanair OVERCOME WEAKNESS) 3. ‘ST STRATEGIES’: leveraging internal strengths to respond to external threats (Options which help Ryanair AVOID THREATS) 4. ‘WT STRATEGIES’: strategies and tactics that minimize internal weaknesses and avoid external threats (Options which help Ryanair AVOID threats and OVERCOME Weakness) You will need to provide the following summary table with your identified ‘SO’, ‘WO’, ‘ST’ and ‘WT’ strategies. Source: Johnson et al., (2014) Exploring Corporate Strategies Please note: the above TOWS matrix diagram will help you to: a. identify strategic options for Ryanair b. the full list identified in your SWOT table may or may not be possible to convert to the SO, ST, WO, WT options in your TOWS analysis c. the SO, ST, WO, WT options need to be discussed in your assignment (in addition to being identified and summarized in your TOWS table) Case Study Base Assignment- 3000 Words – Strategic Management (MBA 7002) - Gulf College OMAN Page 14 of 20 Guidance Notes……… Section 3: What are ‘strategic options’ and what is ‘SAF’ analysis? Strategic options refer to the strategic directions and methods that a company may choose to follow. Strategic directions refer to the types of products and services the company may choose to develop, as well as which markets to enter. Strategic methods involve considerations about how to grow. Strategic options include the following: Generic strategic of competition: a. competing in terms of cost or differentiation at broad or narrow target market focus (Porter) b. competing in terms of cost and quality to generate different strategic positions (Bowman’s Strategy Clock) Strategic directions: a. b. c. d. e. retrenchment (leaving an existing market) market penetration (increasing market share in an existing market of activity) product &/or service development (new products &/or services) market development (entering new markets or territories) diversification (new products &/or services and new markets) Strategic methods of: a. internationalisation (direct export, license & franchise agreements; joint ventures; wholly owned subsidiaries) b. growth (organic, joint‐venture, merger or acquisition) Please note: a. that not all of the above listed options will apply to Ryanair b. that you might identify other options in your analysis c. that you will need to identify your strategic options for Ryanair through your VRIO analysis (section 1) and SWOT and TOWS analysis (section 2) d. that your strategic options will then need to be analysed through applying the SAF framework ‘SAF’ is an acronym for ‘suitability’, ‘acceptability’ and ‘feasibility’. You will need to evaluate your identified strategic options through applying the SAF framework. Suitability= does the strategy address key opportunities and constraints facing the company? Does it capitalize on the company’s strengths and avoid its weaknesses? Acceptability = how likely are the possible options to be accepted or blocked by key stakeholders? Feasibility = how possible is it to implement the strategy in terms of financial and human resources available to the organization? Case Study Base Assignment- 3000 Words – Strategic Management (MBA 7002) - Gulf College OMAN Page 15 of 20 As part of your SUITABILITY evaluation, you will need to carry out: a. RANKING exercise outlining the most to the least suitable strategic option b. LIFECYCLE Matrix identifying the relative strength of the company, the stage of maturity in the industry and the most suitable options given Ryanair’s positioning Table 2: Simplified Ranking Table Please note: a. The above table includes different strategic options just for the purposes of illustration. You might therefore identify more or less options on the basis of your VRIO, SWOT & TOWS analysis b. Ranking may be Ascending (1 = most suitable and lowest number less suitable) c. That the rationale (justification) for your ranking needs to be offered d. That you base the ranking on how closely each option responds to key opportunities or avoids weaknesses Table 3: The industry life‐cycle/portfolio matrix (source: Johnson et al., 2014) In referring to the above table as part of your suitability analysis, you will need to identify Ryanair’s relative competitive position to other airlines, and the stage of maturity of their industry. Inclusion of the above matrix in your assignment will not be necessary, but you must make sure to cross‐reference the suggestions in the associated position (i.e. the box that results through the intersection between competitive level of the company and level of maturity in its industry) with the suitability of your identified options. As part of your ACCEPTIBILITY evaluation you will need to conduct: a) STAKEHOLDER MAPPING EXERCISE which involves identifying the stakeholders, their level of interest in Ryanair’s activity and their level of power to support or block strategic options. Stakeholder mapping will involve these activities through use of the ‘power/interest’ matrix (see next page): Table 4: The power/interest matrix (Johnson et al., 2015) To consider: 1. The above matric is suggested to map different stakeholders according to their level of interest in the company and their level of power to support or oppose the strategic options in question 2. That you identify the level of acceptability of each option in terms of the likelihood of these stakeholders to accept the various strategic options in question Case Study Base Assignment- 3000 Words – Strategic Management (MBA 7002) - Gulf College OMAN Page 16 of 20 As part of your FEASIBILITY evaluation, you will need to address the following questions: ▪ ▪ ▪ Would a proposed strategy work in practice? Can the strategy be financed? Do people and skills exist or can they be obtained? In terms of finance, various accounting ratios may be used to assess Ryanair’s ability to finance a proposed strategy. As a minimum, you will need to identify the company’s cost of operations and profit margins from 2010‐2016 to get a sense of the company’s financial standing. In terms of human resources and competences, the key feature here will be to identify if Ryanair can implement the options in question based on the presence of these capabilities, or if not…what it could do to gain these resources and know‐how? In summary Section 1 asks to conduct a VRIO analysis of Ryanair’s strategic capabilities. Section 2 asks you to identify the internal strengths and weaknesses of Ryanair (developed from your VRIO analysis) and external opportunities and threats (developed from your PESTEL and 5 Forces analysis), while your TOWS analysis will help you to generate strategic options for the company. SECTION 3a then asks for the generation of strategic options for Ryanair and 3b asks you to evaluate these options in light of the SAF framework. Case Study Base Assignment- 3000 Words – Strategic Management (MBA 7002) - Gulf College OMAN Page 17 of 20 Further Guidance Notes on referencing. As stated above do not forget to explore the ‘Cite Them Right Online’ web link: For this assignment, use ‘HARVARD’ referencing format. Please explore the following comprehensive link to referencing. ‘Cite Them Right Online’ Link to www.citethemrightonline.com refining guide. In the text you should refer to pieces of work in a consistent manner. The required method for doing so is the Harvard system, as noted below: Harvard System References are indicated in the text as follows: (Name, Date) e.g. - (Jones, 1999) Where there are two authors: (Name and Name, Date) e.g. - (Jones and Kemp, 1998) Where there are more than two authors, all authors should be listed on first use, thereafter ‘et al’ is acceptable: (Name et al, Date) e.g. - (Jones et al, 1991) Use a,b,c etc. to indicate different publications by the same author(s) in the same year. e.g. ...In contrast to others (Jones, 1996a; Jones, 1996b Norman, 1988;), Mathews (1999) suggested that... Case Study Base Assignment- 3000 Words – Strategic Management (MBA 7002) - Gulf College OMAN Page 18 of 20 When listing authors in this way you must use either alphabetical (names as listed above) or chronological order (date of publication as listed below), so it is also feasible to write: e.g. …In contrast to others (Norman 1988, Jones 1996a, Jones 1996b), Mathews (1999) suggested that… Short quotes, less than three lines of typescript should be run into the text like this: "Most writers, even professionals, have trouble getting started" (Becker, 1986:45). Where you have a longer quote, indent it, single-spaced with no quote marks: They start over and over again, destroying reams of paper, working over the first sentence or paragraph again and again as they find each successive try unsatisfactory in some new way (Becker, 198:45). Please note where the full stop occurs in these quotes. The source must be part of the sentence. Please also note that page numbers are given for quotes. One point: try not to use too many quotes, make sure the ones you use are pertinent, otherwise it ends up messy and disjointed - they will seldom all be relevant. Quotes should rarely exceed 8 lines. At the end of the dissertation you will include a list of references in alphabetical order - books, journals, conference papers etc. all together. The name of the book, journal, conference paper should be underlined and the date of publication, place of publication and publisher given e.g. Balchin, P. and Bull, G. (1987) Regional and Urban Economics London: Harper Inverted commas should be used with chapters from edited collections, and article titles e.g. Bateley, R. (1989) ‘London Docklands: An Analysis of Power Relations Between UDCs and Local Government’ Public Administration Vol. 67 pp167-187 Case Study Base Assignment- 3000 Words – Strategic Management (MBA 7002) - Gulf College OMAN Page 19 of 20 Cardiff City Council (1971) South Butetown: Proposals for the Seventies Cardiff: Planning Department Cawson, A. (1985) ‘Corporatism and Local Politics’ in Grant, W. (Ed.) The Political Economy of Corporatism London: Macmillan Duffy, H. (1989) ‘ Title of Article’ London: Financial Times 28 th February Saunders, P. (1981a) Social Theory and the Urban Question London: Hutchinson Saunders, P. (1981b) ‘Notes on the specificity of the Local State’ in Boddy, M. and Fudge, C. (Eds) The Local State: Theory and Practice Working Paper 20 University of Bristol - SAUS Case Study Base Assignment- 3000 Words – Strategic Management (MBA 7002) - Gulf College OMAN Page 20 of 20 2017­6­26 Print: Exploring Strategy Text & Cases https://www.dawsonera.com/reader/sessionid_1498474511240/print/view/false?printOption=range&start=612&end=623 1/12 2017­6­26 Print: Exploring Strategy Text & Cases https://www.dawsonera.com/reader/sessionid_1498474511240/print/view/false?printOption=range&start=612&end=623 2/12 2017­6­26 Print: Exploring Strategy Text & Cases https://www.dawsonera.com/reader/sessionid_1498474511240/print/view/false?printOption=range&start=612&end=623 3/12 2017­6­26 Print: Exploring Strategy Text & Cases https://www.dawsonera.com/reader/sessionid_1498474511240/print/view/false?printOption=range&start=612&end=623 4/12 2017­6­26 Print: Exploring Strategy Text & Cases https://www.dawsonera.com/reader/sessionid_1498474511240/print/view/false?printOption=range&start=612&end=623 5/12 2017­6­26 Print: Exploring Strategy Text & Cases https://www.dawsonera.com/reader/sessionid_1498474511240/print/view/false?printOption=range&start=612&end=623 6/12 2017­6­26 Print: Exploring Strategy Text & Cases https://www.dawsonera.com/reader/sessionid_1498474511240/print/view/false?printOption=range&start=612&end=623 7/12 2017­6­26 Print: Exploring Strategy Text & Cases https://www.dawsonera.com/reader/sessionid_1498474511240/print/view/false?printOption=range&start=612&end=623 8/12 2017­6­26 Print: Exploring Strategy Text & Cases https://www.dawsonera.com/reader/sessionid_1498474511240/print/view/false?printOption=range&start=612&end=623 9/12 2017­6­26 Print: Exploring Strategy Text & Cases https://www.dawsonera.com/reader/sessionid_1498474511240/print/view/false?printOption=range&start=612&end=623 10/12 2017­6­26 Print: Exploring Strategy Text & Cases https://www.dawsonera.com/reader/sessionid_1498474511240/print/view/false?printOption=range&start=612&end=623 11/12 2017­6­26 Print: Exploring Strategy Text & Cases https://www.dawsonera.com/reader/sessionid_1498474511240/print/view/false?printOption=range&start=612&end=623 12/12 1 Strategic Management Raynnair Case Study Gulf College Muscat Name of Student: Samahar Module Tutor: Asif Zaman TABLE OF CONTENT EXECUTIVE SUMMARY .......................................................................................................... 3 INTRODUCTION......................................................................................................................... 4 A VRIO .........................................................................................Error! 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SWOT ANALYSIS ....................................................................................................................... 6 STRENGTHS ............................................................................................................................ 6 WEAKNESSES ......................................................................................................................... 7 OPPORTUNITIES ................................................................................................................... 7 THREATS ................................................................................................................................. 8 TOWS ANALYSIS OF THE COMPANY ................................................................................. 8 CHANGE MANAGEMENT METHODS AND THEORIES ............................................... 101 STRATEGIC RECOMMENDATION BASED ON VRIO AND TOWS ............................ 122 OVERALL EVALUATION OF THE RECOMMENDATIONS IN TERMS OF SUITABILITY, FEASIBILITY AND ACCEPTABILITY................................................... 135 CONCLUSION ......................................................................................................................... 146 REFERENCES ...........................................................................Error! Bookmark not defined.7 EXECUTIVE SUMMARY This assignment is about Ryanair airline industry. I will evaluate and reflect on the influences driving demand within the business to consumer and business to business markets and the factors influencing the strength of their influence with the Ryannair Airline Industry. The company has been able to maintain a strong competitive advantage in the airline industry based on its low cost pricing model. The organization has managed to focus short routes throughout Europe. I will also discuss it corporate value as well and social responsibility as well. In such case the company's ability to provide low ticket prices is necessary to maintain a strong commitment in the industry. I will also analyze competition and customer requirements in order to identify opportunities for competitive advantage within an industry. However, the company strives to develop a strong customer engagement strategy that has maintained a diversified focus on the key elements that define greater customer engagement. I will also Identify different types of strategic change programmes and assess the value of different leadership styles in managing strategic change. As a result, the Department is seeking to integrate strategic measures that focus on developing strategies that focus on improving the quality of services provided by the company. Developing an integrated organizational culture will be an integral part of creating wellness for employees, and employees will focus on meeting the company's needs for a unique customer experience. INTRODUCTION Ryann air is an Irish airline founded in 1984 by Christopherian of the Republic of Ireland and based in Dublin. It is the largest and first budget airline in Europe, which has enjoyed a remarkable growth & success. The company started working in 1985 after obtaining a certificate from the operators of goods and passengers. The company began operating a 15-seat turboprop aircraft operating between Waterford Airport and London Gatwick Airport. The company's general transactions are shares traded in London, Dublin and NASDAQ. Ryanair is the largest low-cost airline in Europe (Barrett, 2004). Raynnair ran 1500 flights from 51 bases in a year in 2012 which is a record. I would like to start by saying that the strategic management involves integration of significant operational strategies, which are main in improving organizational performance regardless of the prevailing challenges inside the organization. Business organizations focus on strategic management development to ensure they have a competitive advantage, (Taylor and Smith, 2015). The level of organization and planning are basic concepts that are critical to strategic management. The needs within a particular organization are necessary to develop a unique strategy that can attract the market by increasing customer satisfaction. A firm's commitment level is critical when determining performance levels based on key evaluation concepts. This assignment is based on the analysis of the Ryannair, I will discuss about its SWOT strategic tools a TOWS tools related to its strategies and also I will discuss about change management strategies and VIRO strategic tool, just to conduct a comprehensive analysis of Ryanair's strategic capabilities (King and Hough, 2011). VRIO FRAMEWORK The VRIO framework is a tool for analyzing internal resources and the company's capabilities to determine whether they can be a source of continuous competitive advantage, (Martin and David, 2017). Thus based on the case study here I am going to talk about its VRIO framework. Through which it can develop its core competence so that its competitive advantage can be possible. V: Value: in this case the organizations emphases whether the resources are being too able to deploy to meet the needs &expectations of its customers. By reading the case study I can say that the Raynnair has establish a successful strategy towards the customers by providing them low cost prices, reduction in the airport charges. Which has really attracts more and more customers toward them. Low cost airline tickets have always been Ryann air’s best strategy, making it unique in the highly competitive aviation industry. The ability to maintain low rates while increasing exhibition costs and maintenance costs has been a major factor, making the company competitive in the industry (Noonan, 2009) R: Rareness: from the case study I learned that it is only Ryan Air which has government subsidies &airport charge reductions. Rest other competitors don’t have such rareness. Ryanair has been able to develop strategies throughout Europe, which is essential for the development of strong training and risk management in the aviation industry. Ryan Air has improved its operations by expanding its routes to other destinations in Europe, & despites its low prices, it continues to rely on quality of service. The company operates in London, Milaan, Stockholm, Rome, Glasgow, Brussels, Frankfurt and other European destinations. The company is very specific when it comes to new ways when it targets airlines with many passengers (Carolan and Gillette, 2010). I: Imitability: I think that its huge cost advantage which is hardly transferred or imitated. The company has been able to meet its challenges through effective management practices and ensure that companies implement risk management procedures in different aspects of their operations to ensure a better focus on performances (McManus, 2003). O: Organization: Despite Ryan air’s limited business in Europe, Ryan air has achieved strong financial success with a liquidity of more than € 2,500 million. The definition of a better organization concept is based on key evaluations of key processes that determine the company's positive success. The company's long-term sustainability program for the industry is still largely unpredictable as a key secret to the company, which seems to make employees very happy and committed to business courses. The close relationship between airline management and employees remains the centerpiece of the corporate world and deserves to be admired. The company has a unique operational strategy to pass various tests in the aviation industry. One of the company's key strategies is to maintain a strong commitment in the industry to its important participation in the European marketplace, (Clark and Lyall, 2010 ) SWOT ANALYSIS SWOT analysis plays a key role in developing the business. Through it the organizations can easily check its Strengths, Weakness, Opportunities and Threats. SWOT is the best tool for strategies. The organizations always achieve goals and objectives. Here I am drawing the SWOT analysis of the Ryann air organization. STRENGTHS  Low Costs: after reading the case study I think the very first strength of Ryann Air is the lowest price per unit in Europe, and has become one of the largest airlines in the Europe. The cost in this case includes the cost of each seat, the cost of each seat available per kilometer or the cost of each passenger. They do have low production capacity and transportation and costs are very low, which makes their customers very attractive (King and Hough, 2011).  Innovations: The second important strength I think is its innovations. The company has invested heavily in its operations and has developed an important understanding of key changes in the company's operations. Ryann Air is the only company with low cost prices in Europe and has a very strong influence in the European aviation industry. The company is also unveiling “try somewhere new scheme for their customers. It is a unique travel hub connected with the website of the company. It is an exclusive travel guide and will help the customers to real their destination. The company's short distance investment in Europe is more than any other company in the industry, providing a solid basis for better organizational performance. Focus on important ideas that may be more successful in the industry, (King and Hough, 2011)  Management: I think that Raynnair management is really it strong strength as well. They do have a strong team which provides a strategic understanding of key concepts to gain a deeper understanding of key concepts and to regulate the growth of the company by integrating key processes that are actively changing in the industry. They do have a strong marketing team, who always use internet for their bookings in a smart way of publishing advertisements. Strong focus on maintaining strong marketing strategies and customer engagement provides a very successful strategy to provide the best management strategy. In the aviation industry based on sustainability and the company's commitment to current customer needs, (Carolan and Gillette, 2010) WEAKNESSES  Brand Perception: Although the company offers low-cost prices in the industry, many travelers are linking low-cost and low-quality services based on an assessment of changes in the aviation industry. Many customers believe that it is impossible to provide high quality services while offering cheap prices for passengers, making it very difficult to understand the evolution of high-efficiency enterprises, especially with regard to fluctuations in fuel industry prices, (Clark and Lyall, 2010 )  Seasonal Fluctuation: The Company’s performance depends on the main impacts of the season, and many people can better focus on the potential needs of the industry. The company's summer income in the northern hemisphere is much higher. Seasonal income resulted in heavy losses in the 2008and2009 fiscal years, (Pope and Lyall, 2009) OPPORTUNITIES  Improving Customer Service: A constantly changing and highly competitive aviation industry provides companies with a key opportunity to increase customer service & to maintain a strong commitment towards customers. The company was considering improving service delivery through a strategic understanding of passenger interaction, a key strategy to improve the company's performance.  Diversity in the Aviation Industry: The diversity of the aviation industry gives companies the opportunity to benefit from robust innovation strategies to better understand market engagement. Diversity means that there are unlimited changes that provide an understanding of the needs of key companies in the industry. Strengthening its position in Europe will ensure strong growth for the company (King and Hough, 2011). THREATS  The Competition: I think that the competition is main threat as the aviation industry comprises many companies offering long and short haul routes. In this case, the level of participation provides a very difficult approach because the company cannot incorporate the basic measures that affect the high levels of commitments within the industry.  Rising Oil Prices: as rightly said by the CEO of the Raynair that increasing oil prices is the main threat for them I do agree that the rising oil prices can lead them collapse. I can say that rise in oil prices in the biggest threat because when oil costs rises it tends to face the various difficulties, ( Michael O' Learry , 2011) TOWS ANALYSIS OF THE COMPANY TOWS is a tool used to generate or compare or select the strategies. It is a bit different than the SWOT. We are using SWOT’s aim is to focus on the Strengths, Weakness, Opportunities and Threats. In the words of the (Kalvin, and Taylor, 2016) it is a tool for generation &selection strategies. We use TOWS later to decide whether to go forward or not. Thus it provides the understanding about the strategies. Here I am drawing the TWOS of Raynnair. INTERNAAL FACTORS STRENGTHS (S) WEAKNESS (W) EXTERNAL FACTORS ST STRATEGIES WO STRATEGIES I think that the Raynnair can After reading the case I think integrate its strong focus on improving customer satisfaction innovation to develop strategic is necessary to modify brand THREATS (T) concepts that increase the level awareness to safeguard a higher of understanding of the current level of organizational competition within the industry. performance, (King and Hough, Innovation ensures that 2011) companies can take key steps to The diversity of the airline ensure that the company delivers industry unique & efficient services with important (Clark and Lyall, 2010 ). The provides company's companies measures to ensure the company's effective strong development, including other management team provides a key concepts critical understanding of hard improvement, of service implementation work & a positive focus on and sustainability within the strategic management, allowing industry. low cost rates & improved Changing customer’s preference business Therefore, performances. is essential to focus on the core the management elements that preserve a strong approach will provide a strong commitments inside the industry counter-attack in strengthening (Kotter , 2011). corporate capabilities, (Kotter , 2011) SO STRATEGIES WT STRATEGIES I would like to say that the solid management which has been provide Raynnair a good Current competition inside the industry provides a tough understanding of important factors can improve that OPPORTUNITIES (O) platform and prerequisite will for be a a concerns about increased strong company involvement in the customer engagement strategy, industry. Healthier organization which is key to improving the regulation is company's performance. crucial to an overview of the critical factors A strong focus on innovations that are most important to better always will provide a critical focus on the needs of existing environment where strategies institutions. can be used to attract . opportunities in the aviation industry (Carolan and Gillette, 2010). RyannAir has a good position to share important financial strengths, and the company is in a better position to consider opportunities immediately. Raynnair can leverage its strong financial strength to improve service delivery, especially given its ability to recruit high quality customer service professionals to help improve service quality. CHANGE MANAGEMENT METHODS AND THEORIES Transformational change focuses on critical understanding of key elements that define a positive level of organizational performances. The ability to understand the current vision describes important strategies that contribute to greater success (Carolan and Gillette, 2010). Sustainable change depends on the mechanism of change that is being considered in the regulatory context. An approach to implementing positive changes in an organizational environment is a fundamental concept that identifies possible organizational relationships. Effective identification of change needs and key change management strategies ensures that the changes implemented are sustainable. Employee opinions are important when considering changes within an organization because they are mainly involved in the positive implementation of change, (Creaton , 2004) The basis for implementing changes is the ability to integrate a successful change management model that ensures better organization &planning to achieve the required level of success. Therefore, I think in this case an effective exchange model would be the Kotter change model. The Kotter change model is based on a critical assessment of important elements that define a generic profile that makes it easier to achieve greater organizational success. Change management is based on vital decisions that describe important strategies that place greater commitments to a fruitful change procedure, (Kotter , 2011). There are eight steps of change model provided by Kotter. These steps should be seen as the objective of the change necessary to achieve them effectively.  Increase urgency is the first step of Kotter model. This step has been considered in this situation is to create a sense of urgency. In this case, urgency is based on the need to improve the company's performance, so it is necessary to implement the change strategy to achieve the desired results. The need for change must be clearly defined so that all parties concerned can understand the purpose of the change.  The second important is to build a powerful team. The establishment of a steering alliance is an important step that focuses on the core processes that define a better understanding of the key concepts that define positive changes, (Kotter , 2011)  The third step is to get the right vision. The change execution or implement team must be well prearranged & understand the important factors that contribute to achieving the desired goals.  Communicate the vision is the fourth important step of Kotter’s change Model. Forming a strategic vision & initiatives. These are the guiding elements that describe the goals of change. Recruitment of volunteers requires support to help increase participation within the organizations (King and Hough, 2011).  Removing the Obstacles is the fifth step. Removing barriers is an important part of implementing change. In this case, the obstacles include resistance and low performance.  Creating short term Wins is the sixth step. In this step I can say that to achieve short-term wins the organization must, maintain acceleration and change institutions.  Build on Change. In this step the Kotter urges that there are various change projects which fails because win is declare early. He further said that the real change run deeply. Quick changes are done in the beginning of what to be done to attain the long term changes.  Anchoring the change in the corporate culture. Thus implanting and change is really significant for the organizations. According this step the (Kotter , 2011) said that the end goal of any change is must be a part of the core of the culture of the organization. The problem of resistance will have a negative impact on the effective implementation of change. There is resistance to those who have a negative attitude toward change, leading to negative attitudes and affecting their results. Dealing with employee’s confrontation is a complex process usually based on false information that affects the perceptions of others that the process of change is detrimental to personal development. It is important that the best organization and development of strings communication plans is to focus on changes within the organization (McManus, 2003). STRATEGIC RECOMMENDATION BASED ON VRIO AND TOWS In this section I would like to recommend some recommendations based on the VRIO and TOWS. Raynnair must focus on developing an effective customer focused service delivery system. From the case study I came to now that Raynnair has failed to incorporate strategic measures that would focus on improving the quality of services provided by the company while maintaining a low cost pricing strategy. The flight industry is based on the provision of services and has a significant impact on clients demand within the organization. Raynnair must focus on develop an interactive organizational culture that is important to understand the interactions between employees, management & customers, for strong commitment to potential employees and customer needs, thereby diversifying the company's performances in the industry, (Pope and Lyall, 2009) In case of Raynnair management, the industry should focus on core hotel business in its operational strategy (Clark and Lyall, 2010 ). The main objective of the operating environment is to find a better approach and a clear environment that allows customers to interact directly with management and ensure that their problems are addressed in a timely manner. Customer service is one of the key factors that many of the RyanAir races cannot consider successfully. The special focus on the European aerospace industry has created a very important area and special participation, which means that the company can deal with any problem that may arise, (Kotter , 2011) OVERALL EVALUATION OF THE RECOMMENDATIONS IN TERMS OF SUITABILITY, FEASIBILITY AND ACCEPTABILITY A fruitful implementation of these thoughts can provide a major focus for important procedures described by management. It is significant to safeguard that decisions taken on the implementation strategy provide critical assessments of important factors and, therefore, greater success. So, to enforce these recommendations, a plan with clear goals and communication plans can be developed that can be combined to attain a advanced level of success.  Suitability: The above recommendations are based on the current strategy of the Raynnair being implemented, although they focus on minor changes & focus on strengthening existing elements that are already integrated into the company's management system. A higher level of organization provides a deep understanding of important processes that provide a strong commitment in the industry.  Feasibility&Acceptability: the industry has the resources it needs to implement these recommendations easily, as long as the implementation plan identifies effective processes to ensure that the organization is better. The Raynnair has developed a strong brand that needs improvement. Acceptance depends on the ability to include important processes that identify positive changes that are believed to help improve the company's performances, (Kotter , 2011) SUMMARY AND CONCLUSION In the end I can say that the Ryannair’s involvement in this industry is high, especially on the basis of low-cost driving model, making it more attractive. The main focus of innovation is fundamental to the development of core strategies that create a better understanding of key concepts that determine optimistic changes. The customer services has always been a main problem within the company, so it is significant to safeguard that the strategy is implemented on the basis of a series of basic key concept concepts related to positive changes in the industry. REFERENCES BOOKS  Armstrong, P and Sing, D (2013) Strategic Management: Why do we use strategies: Oxford University, Vol. 4th Ed.8th McGrew Pp. 56(78)  Brown, G and Gifford, H (2011) Corporate Social Responsibility of Business and Strategies: Vol. 3rd Ed. 4th McGrew USA Pp. 2 (12) - 45 (66)  Clark, G and Smith, P (2011) Strategic Marketing Management: A Relationship Approach’, Strategic Marketing Management and Its Advantages, Vol. 2nd E. 8th Oxford Press, UK Pp. 165-78.  Kotter, John, K. and Kalvin, P (2013) Change Leadership: Leadership Excellence and Results. Vol. 6th Ed. 5th McGrew USA Pp. 30(1), pp. 16-45 Articles and Journals  Andrei, D and Martin (2006) Ryanair adopts revenue management system from RMS’, Airline Industry Information’s.  Barrett, S. D. (2004) ‘The sustainability of the Ryanair model’, International Journal of Transport Management, 2(12), Pp. 189–98.  Gillen, D. and Lall, A. (2004) ‘Competitive advantage of low-cost carrier: Some implication for airports’, Journal of Air Transport Management, 10(1), pp. 41–50.  Nortilliv, A. (2013) ‘A Case Analysis of the Organizational Behavior of Ryanair and Its Impact’, Journal of Contemporary Management, (6), pp. 173–83.  Peals, E. and Rietvelld, P. (2004) ‘Airline pricing behavior in the London-Paris market’, Journal of Air Transport Management, 10(4), pp. 179–83  Smith D. L. and Rules A. (2010) ‘Strategy - seizing the day’, Business Strategy Review, 21(4), pp. 58–63. Websites  Webster, M. (2013) ‘Successful Change Management-Kotter’s 8-Step Change Model’, http://www.Leadershipthoughts.Com/Kotters-8-Step-Change-Model.html (Accessed as on 12th June 2018)
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