2. Ryan Air
Management Questions. 1.Leadership a.Michael O'Leary is credited with the fabulous expansion of ryanair. Compare his managerial style with Richard
Brandson of Virgin and Stelios Haj–Ioannou of Easy Jet. Do you see similarities, differences? O'Leary is said to have a pugnacious and aggressive
management style, using a flat management hierarchy whose ethos is to provide a low cost, reliable and competitive service. Ryanair decided to hire
O'Leary and sent him to the States for studying the Southwest low cost model. He learnt that model and implemented it even in a more drastic way in
Ryanair, he is completely focused on cutting cost and becoming more and more efficient and he is always looking for new ways to achieve it. On...
Show more content on Helpwriting.net ...
O'Leary nonetheless has been narrowed on the transportation industry O'Leary is an entrepreneur, leader and manager. Nevertheless to answer
deeply to this question it's better to start looking his personal career achievements and future goals then comparing it with the others form Branson
and Stelios. He was born in a country side family, he funded his studies working as a barman. He started working as an accountant for KPMG, He
worked towards qualifications as a tax consultant. He left after two years in 1985 to set up a newsagent 's business and another one, he was
working on it during two years. One of his clients at KPMG was Tony Ryan head of the company GPA a leasing company. Tony Ryan decided to
hire O'Leary at 1987 (when he was 26) as financial and tax advisor. Tony Ryan started Ryanair about that time as regular carrier, and the company
started losing money. Then O'Leary came into play. He studied Southwest case and implemented the same model within Ryanair, in a more drastic way.
He was incredibly successful on managing this 360Вє change, to accomplish this, one have to mention that O'Leary has to have impressive leadership
skills, first of all to convince Tony Ryan and a whole company to follow him it that amazing crusade, and secondly in reaching and exceeding the
objectives. Therefore Ryanair suddenly started being quite
... Get more on HelpWriting.net ...
3. Easyjet Market Analysis
Executive Summary:
This report illustrates an in–depth look of easyJet and will also discuss an analytic research that was made to demonstrate aspects of the history of the
airline, along with the marketing strategy and brand strategy used and implemented by the low–budget airline. The strengths, weaknesses, opportunities
and threats, known as SWOT analysis, will also be illustrated along with the external environment better known as PEST analysis which consists of the
political, environmental, social/cultural and technology factors of easyJet. In addition an analysis of the competitive market environment of easyJet
will be shown, which includes an overview of easyJet's main competitors and the nature of business in which they operate ... Show more content on
Helpwriting.net ...
The prices of these seats however tend to change in accordance with the days that the bookings of these flights are made available till the date of
departure (Koenigsberg, Muller and Vicassim, 2008). All bookings for easyJet are made straight from either telephones or the internet; this made it
very easy to incorporate the web into its central booking system. By achieving this, there were no possible channel conflicts with other
intermediaries, for example with travel agents Easyjet's website illustrates their pricing policy as being "based on supply and demand, and prices
usually increase as seats are sold on every flight. Basically the sooner a person books, the cheaper the flight ticket would be". The web also states that
the low cost scheme of easyJet is not tickets, no ties to other networks, no travel agents and no on–flight meals. (easyJet plc., 2010). A pin code is also
given for each customer's booking that is done on the website which is given to travellers upon arrival at the airport.
Brand Strategy:
To gain a competitive advantage, most companies tend to implement a brand strategy. What makes easyJet stand out amongst its competitors is their
image of a low–budget airline and no–frills services; this brand strategy is simple but strong. EasyJets' whole company is recognised by their unique
orange logo, this color also forms part of the uniform worn by their staff, which in turn is a strong recognised tool by the consumers.
... Get more on HelpWriting.net ...
4. Ryanair Analyses
Master's thesis M.Sc. in EU Business & Law An analysis of the European low fare airline industry – with focus on Ryanair Student: Thomas C.
Sørensen Student number: 256487 Academic advisor: Philipp Schröder Aarhus School of Business September 13, 2005 1 Table of contents 1.
Introduction 1.1. Preface 1.2. Research problem 1.3. Problem formulation 1.4. Delimitation 6 6 7 7 2. Science and methodology approach 2.1.
Approaches to science 2.1.1. Ontology 2.1.1.1. Objectivism 2.1.1.2. Constructivism 2.1.2. Epismotology 2.1.2.1. Positivism 2.1.2.2. Hermeneutics 2.2.
Methodology 2.2.1. Types of research 2.2.2. Types of data 2.2.2.1. Quantitative data 2.2.2.2. Qualitative data 2.2.2.3. Primary and secondary data 2.5
Reliability and... Show more content on Helpwriting.net ...
SWOT analysis 9.1. Strengths 9.1.1. Resources 9.1.1.1. Large route network 9.1.1.2. Network of business partners 9.1.1.3. Financial resources 9.1.1.4.
Human resources 9.1.2 Competences 9.1.1.1. Non–scheduled revenues 9.1.1.2. Cost leadership 9.1.3. Core competence 9.2. Weaknesses 9.2.1. The
service factor 9.2.2. Secondary and provincial airports 9.3. Opportunities 9.3.1. Industry consolidation 9.3.2. Introducing the "Eighth freedom of
the air" 9.3.3. Expansion 9.4. Threats 9.4.1. Oil prices 9.4.2. EU legislation 9.4.2.1. Airport fees 9.4.2.2. Passenger rights 9.4.3. Air disaster 93 93
93 93 93 94 94 94 94 95 96 96 97 97 98 99 99 100 100 101 101 101 102 10. Conclusion 11. Epilogue 12. Summary 13. References 14. Appendix 103
108 109 111 120 5 1. Introduction 1.2. Preface As I have studied a M.Sc. in EU Business & Law, I found it ideal to find a topic that would encompass
both European business matters as well as aspects of EU law. The European airline industry suits this choice of topic very well as it is a business
operating largely across European borders, but it has also been the center of a substantial amount of EU legislation through the deregulation of the
industry and the abandonment of state aid for national carriers. This has contributed to great changes in the dynamics and structure of the European
airline industry, which I find fascinating and have therefore chosen to analyse this development in more detail through
... Get more on HelpWriting.net ...
5. Easyjet Market Analysis
Executive Summary: This report illustrates an in–depth look of easyJet and will also discuss an analytic research that was made to demonstrate aspects
of the history of the airline, along with the marketing strategy and brand strategy used and implemented by the low–budget airline. The strengths,
weaknesses, opportunities and threats, known as SWOT analysis, will also be illustrated along with the external environment better known as PEST
analysis which consists of the political, environmental, social/cultural and technology factors of easyJet. In addition an analysis of the competitive
market environment of easyJet will be shown, which includes an overview of easyJet's main competitors and the nature of business in which they
operate... Show more content on Helpwriting.net ...
Economical Factors: Some of the economical factors that may affect easyJet consist of an increase in fuel costs, other environmental factors that
contribute to the economy such as natural disasters would result in easyJet not being able to operate for a certain period of time. Another factor that
can have an effect on easyJet is the recession, research has indicated that this recession is likely to last longer than expected, which results in less
business travellers travelling due to an attempt to decrease the amount of spending. Globalisation may be seen as another factor, as it continues to
enhance air traffic in the long–term. (Geiger et al., n.d.). Social/Cultural Factors: The social and cultural factors that might affect the operation of
easyJet are that French and German customers are unwilling to use their credit cards over the internet or phones or via the internet, this caused a
problem for easyJet since they only sell tickets via the internet and phones. Another simple but affective factor that contributes to their operation is that
the people are generally willing and not hesitant to pay for cheaper flights. (Geirger et al., n.d.). Technological Factors: The key technological factors
that contribute to easyJets' operations is the technological advancements which they try to integrate into their own systems such an example would be
Galileo and Amadeus, which in turn makes online bookings more efficient and effective. (Bing, 2007).
... Get more on HelpWriting.net ...
6. Easyjet Analysis
Impacts of Tourism and Travel, Transport and Logistics
EasyJet
TABLE OF CONTENTS
Introduction3
Background3
External Impacts5 Political and Legal impacts5 Economical impacts6 Sociocultural impacts7 Technological impacts8 Environmental impacts9
Other impacts10 Staffing and recruiting10 Branding11 Competitors and competitive advantage11 Future expansion12
Conclusion13
Recommendations:15
References16
Introduction
Nowadays aviation is a big industry. According to Hanlon (2004) it origins from 1919 just after the Second World War and half a century on it carries
about 1.5 billion passengers a year, generating about $300 billion in revenue and employing about 1.7 million people. ... Show more content on
Helpwriting.net ...
The main concept of cost leadership is achieved through the following actions: – reducing the distribution cots using Internet and Phone reservations; –
maximizing the utilization of each aircraft ; – ticketless travel; – no free meal; – efficient use of airports; – paperless operations;
These are some of the strategies that "traditional" airlines use to eliminate the unnecessary costs and "frills".
External Impacts
Political and Legal impacts
The author believes that the government and European taxes are the main political factors that can affect the future of the company. Airport taxes are
7. levied as a fixed tax on the sale of airline seats in most of the countries where easyJet operates. The UK government had established one of the highest
taxes in Europe– Air Passenger Duty (APD). In 2008, the APD tax is charged at ВЈ10–ВЈ20 for flights within Europe and at ВЈ40–ВЈ80 for long–haul
flights. (Osborne, 2008). At that time the company takes out an advertisement in the UK national newspaper for making the APD tax greener and free
of subsidies to airlines with transfer passengers. EasyJet takes action to replace the APD tax with a flight base tax. This means that the passengers that
fly in the newest aircraft cause less pollution and they should not pay the same money as somebody using an old aircraft.
Recently, the additional taxes concerning
... Get more on HelpWriting.net ...
9. 28 Days
Install desks
1 Day
Deliver and install server
2 days
Deliver and install PCs
2 days
Deliver and install CVM
1 day
Deliver and install chairs
1 day
Complete system testing
2 days
Open for business
1 day
As some of the activities overlap, the average time it should take to open a new location is approximate 70 days. However, depending on the franchise
location, the outbound transportation costs will change. They are classified into 3 zones based on their distance from the UK:
Zone 1 – closest to UK (France, Spain, Netherlands) @ ВЈ300 per store
Zone 2 – mid–range from UK (Poland, Czech, Finland) @ ВЈ450 per store
Zone 3 – farthest from UK (Greece, Turkey, Bulgaria) @ ВЈ750 per store
The majority of the stores (23 locations) are located in Zone 1, which is ВЈ6900 in outbound transport costs. Zone 2 has 13 stores, which is ВЈ5850,
and Zone 3 has the remaining 11 which is ВЈ8250. That results in a total ВЈ21,000 in outbound transportation costs for the stores in all three zones.
Management needs to
... Get more on HelpWriting.net ...
10. Easycar.com : Strategic Service System Design
Abstract
This case "Easycar.com: Strategic service system design" describes a situation experienced in 2003 by EasyCar, which is a European company rental
car, founded in 2000 by entrepreneur Stelios Haji–Ioannou. According to the Problem–based decision method, after the main character identified, when
and where it occurred the case, the problems will be identified and analyzed. Furthermore, it is essential find the main causes of the problem, write the
hypothesis and elaborate the solutions. For this, it is necessary to create the plan–action, with short–term and long–term recommendations, describing
each plan detail. Finally, it is important to think about the risks, and the possible solutions, to write an alternative plan, a contingency ... Show more
content on Helpwriting.net ...
In addition to improving the quality of services provided, many measures had to be deployed to the ambitious objectives proposed for 2004 for the
Easycar, could be achieved.
Introduction
EasyCar, the UK–based car rental company, was founded with the mission to provide customers with reliable service at the lowest possible price.
EasyCar is an EasyGroup member, whose founder, the Greek entrepreneur Stelios Haji–Iannou, firstly, founded low–cost air carrier EasyJet.com in
1995. EasyJet was one of the early low cost, no frills air carriers in the European market. As all companies of the group, has as a principle offer the
most cost–effective, in other words, provide services and products at affordable prices for offer them without facilities considered unnecessary. To
accomplish this mission EasyCar took a very different approach than the traditional car rental companies in Europe. The main competitors of EasyCar
were Avis Europe, Europcar, Hertz, and Sixt.
According to the author (Lawrence and Solis, 2005), EasyCar had just reached breakeven in 2002 on sales of 27 million pounds sterling, and had as its
goals to reach sales of 100 million pounds sterling and profits of 10 million pounds sterling by the end of fiscal year 2004 in order to position itself for
an initial public offering. To do this would require opening new locations at a rate of two per week and expanding its fleet of rental car from 7,000 to
24,000.
To achieve these goals, the company had made
... Get more on HelpWriting.net ...
11. Easy Car
Easycar.com: Strategic service system design.
|Author: |Lawrence, John J.; Solis, Luis |
|Article Type: |Case study |
|Geographic Code: |4EUUK |
|Date: |May 1, 2005 |
|Words: |5794 |
|Publication: |Journal of the International Academy for Case Studies |
|ISSN: |1078–4950 | ... Show more content on Helpwriting.net ...
EasyCar's approach, built on the easyJet model, was quite different than the approaches used by the traditional rental car companies. EasyCar rented
only a single vehicle type at each location it operated, while most of its competitors rented a wide variety of vehicle types. EasyCar did not work with
agents––over 95% of its bookings were made through the company's website, with the remainder of bookings being made directly through the
company's phone reservation system (at a cost to the customer of 0.95 [euro]/minute for the call). Most rental car companies worked with a variety
of intermediaries, with their own websites accounting for less than 10% of their total booking (Click to fly, 2004). And like easyJet, easyCar
managed prices in an attempt to have its fleet rented out 100% of the time and to generate the maximum revenue from its rentals. EasyCar's
information system constantly evaluated projected demand and expected utilization at each site, and adjusted price accordingly. Because of its
aggressive pricing, easyCar was able to achieve a fleet utilization rate in excess of 90% (Simpkins, 2002)––much higher than other major rental car
companies. Industry leader Avis Europe, for example, had a fleet utilization rate of 68% (Avis Europe plc, 2002).
It was January, 2003. EasyCar had broken even in the fiscal year ending September 2002 (Simpkins, 2002) on revenues of 27 million [pounds sterling]
(Marketing, 2003). This represented a significant improvement
... Get more on HelpWriting.net ...
12. Fdvdf
Case study
Easyjet
1–In the 1990, easyjet says that the internet is not important for her business, and they denounced that the internet as something "for nerds", and swore
that it wouldn't do anything for his business
In the 1998 the easyjet company as a low cost airline company were looking to undercut traditional carriers such as british airways, it need to create
a lean operation to achieve this , the company decided to use a single sales channel that it was the phone but after the unexpected growth in sales they
was obliged to start using the internet to serve his customer well , that it was a more efficient idea than building a new call center, that was in 1999
when easy jet start using internet for sales. The low cost ... Show more content on Helpwriting.net ...
4–Easyjet said the approach from NAS to use the EasyJet brand in the Gulf region had been made jointly with Dubai–based Abraaj Capital, a leading
Middle East asset management and private equity group.
NAS is the largest operator of corporate jets in the Middle East and has already placed significant orders for Airbus executive jets to support private jet
customers throughout the region and also on routes to Europe.
EasyJet said that NAS had applied for a licence to operate domestic scheduled flights initially in Saudi Arabia and later in the Gulf region, where to
date low cost carriers had only had a minimal presence. The domestic market remains highly regulated and is dominated by the state–owned Saudi
Arabian Airlines.
The small number of low cost airline start–ups in the Middle East include Air Arabia, based in Sharjah in theUnited Arab Emirates, and Kuwait's
Jazeera Airways.
EasyJet said that it was not planning to invest any equity or cash in the Saudi venture. It would only go ahead with such a move, if it delivered
"significant shareholder value. A deal also depended on the progress made by NAS in its application for an operating licence.
A decision on the deal was unlikely to be made before early 2007.
"We would provide our brand and a little assistance in getting their airline set up," said an EasyJet spokesman. The group would need to assess the
potential risk to its brandname including safety and security risks.
EasyJet, which was started in 1995
14. Easy Car
Easycar.com: Strategic service system design. |Author: |Lawrence, John J.; Solis, Luis | |Article Type: |Case study | |Geographic Code: |4EUUK |
|Date: |May 1, 2005 | |Words: |5794 | |Publication: |Journal of the International Academy for Case Studies | |ISSN: |1078–4950 | CASE... Show more
content on Helpwriting.net ...
Sixt was the market leader in Germany, for example, while Atesa (in partnership with National) was the market leader in Spain. Generally these
major players accounted for more than half of the market. In Germany, for example, Sixt, Europcar, Avis and Hertz had a combined 60% of the 2.5
billion [euro] German rental car market (easyCar set to shake up German market, 2002). In Spain, the top five firms accounted for 60% of the 920
million [euro] Spanish rental car market. Generally, these top firms targeted both business and vacation travelers and offered a wide range of vehicles
for rent. Table 1 provides basic information on these market–leading companies. In addition to these major companies in each market, there were many
smaller rental companies operating in each market. In Germany, for example, there were over 700 smaller companies (easyCar set to shake up
German Market, 2002), while in Spain there were more than 1600 smaller companies. Many of these smaller companies operated at only one or a
few locations, and were particularly prevalent in tourist locations. There were also a number of brokers operating in the sector, like Holiday Autos.
Brokerage companies did not own their own fleet of cars, but basically managed the excess inventory of other companies and matching customers with
rental companies with excess fleet capacity. Overall, the rental car market could be thought of as
... Get more on HelpWriting.net ...
15. Internet Cafe
Executive summary
Stelios Haji–Ioannou opened the first easyinternetcafe on June 21st, 1999. During the internet boom between 199 and 2002, internet cafes were
booming. Following the yield management model1 to this business brought in great profits. After the dotcom/internet bubble deflated, losses were
continuing to mount. A change had to occur. The company's CEO gave the managing director 9 months to start showing improvement. The only way to
do this is by changing the operational structure of the company. A complete redirection in the operations philosophy was to franchise the operations. In
order to help with this, it is recommended to use the company Ingram Micro to assist with this task. Ingram is the world's largest B2B ... Show more
content on Helpwriting.net ...
* Sold products through a network – additional charges 4) Ingram Micro total cost per store 976
Pros:
* Largest B2B trade–only warehouse provider of technology products and services * Provide complete integrated solutions * Billing franchisees
directly * Lease arrangements available * If selling their own products, save on warehousing * Possible elimination of most of logistic costs
Cons:
* Limited to 5 countries
Recommendation and implementation
As per the alternatives mentioned previously, it is recommended to choose Ingram Micro as the company of choice to
... Get more on HelpWriting.net ...
16. The strategic analysis of EasyJet and Easy Group --the...
Introduction
The assignment was based on a strategic marketing analysis of Easy Jet and Easy Group. It will be carried out through two exclusive parts.
In the first part, firstly, we are going to give a general overview on easyJet's assets, then mainly concentrate on its critical capability which formed its
core competence. Essentially, historical comparison approach was adopted to evaluate the organization's relative strengths and weakness.
The second one is by constructing a Growth–share Matrix for the Easy Group to better understand the balance portfolios of its different Easy
companies in it and then the core competence of Easy group will be discussed in detailed.
Part One
1. The overview of easyJet's assets:
1.1 Physical assets ... Show more content on Helpwriting.net ...
Now approximately 90% of all seats are sold over the Internet, making EasyJet one of Europe's biggest Internet retailers. This approach eliminates the
distribution costs charged by the middlemen. (Cranfield School of Management, 2001)
Ticketless travel
easyJet confirm the booking of seats by e–mailing passengers, which cuts the cost of issuing, distributing and processing tickets.. This is going to be a
sustainable basis for easyJet to continue to be as successful as it has been in the year ahead. (biz/ed, 2004)
High utilization of aircraft
easyJet has always bought brand new aircrafts which are believed more reliable and need much less maintenance. Consequently, it allows high
utilization, minimising the cost .per hour flown cheaper than using older ones. (Stellios Harji Ioannou, 2002)
17. Simple service model
Ending of free on–board catering reduces costs and unnecessary management. It is also a key differentiator, a potent reflection of their low–cost
approach, between easyJet and other airlines. Passengers have choice to purchase food if desired and pay less for the flight. The concept also reflects a
more general point of eliminating other unnecessary, complex–to–manage and costly services, such as pre–assigned seats; interline connections with
other airlines and cargo/freight carriage. ( go–fly.com. 2004f.)
Efficient use of airports
EasyJet flies to main destination airports throughout Europe and uses less congested and less expensive
... Get more on HelpWriting.net ...
18. The Organizational Lifecycle of Easyjet
The Organizational Lifecycle of easyJet Few appreciated just how far we could and would go, back in 1995, when Stelios first had the idea to create a
customer focused brand that would revolutionise the concept of stepping on an aircraft. –– easyJet History, 2012 Introduction Many larger
organizations have already achieved a mature stage in their organizational lifecycles and some are even in decline as their business models fail to keep
pace with changes in an increasingly globalized marketplace. One larger organization that continues to grow using its original business model, though,
is easyJet, which is already one of the largest low–fare air carriers in Europe and current signs indicate that the company will continue to grow its
market in the future. To determine how easyJet has succeeded where others have failed, this paper examines the company's efforts in meeting the
challenges with its initial launch, the company's early growth and the lessons learned from these experiences, as well as the acquisitions and mergers
that have helped the company achieve its organizational goals. An examination of easyJet's organizational maturation status and how the company has
differentiated its services is followed by a summary of the research and important findings in the conclusion. Review and Analysis History of EasyJet
Currently one of Europe's largest low–fare airlines, easyJet (hereinafter alternatively "the company") operates daily scheduled services for both leisure
... Get more on HelpWriting.net ...
19. Customer Service and Cabin Crew
1.Introduction The aim of this report is to analyse Ryanair's current service culture and provide a new strategy to refocus the Ryanair brand to make it
more customer–focused and family friendly. In 1971, Southwest Airlines revolutionised air travel with its low fares and strong focus on customer
service. Ryanair used Southwest's innovative business model and have become very successful. Today it operates across 26 countries and carries more
international passengers than any other airline in the world (73 million passengers in 2010/11) On the other hand, unlike Southwest Airlines, Ryanair
did not consider focusing on customer service. They have a very poor reputation in this area (Euromonitor International, March 2009). Even though...
Show more content on Helpwriting.net ...
Although pilots and the cabin crew work very hard, they are still underpaid. According to ITF's survey, EasyJet staff earn better than Ryanair's. In
addition to that, the cabin crew are expected to pay for their own uniforms, airport ID and meals (see appendix 4) as well as training expenses. For
example, it has been reported by ITF that trainee pilots have to pay ВЈ60,000 for their own training and they are not paid salary during this period.
They pay this money as they hope it will result in them earning a high salary after they qualify, but this is not guaranteed. 2.3 Recruitment methods and
Training It seems like Ryanair follows the normal procedure for recruitment (advertising, interviewing and training the successful candidates) but the
documentary which is called "Ryanair caught napping" (Channel 4, 2006) shows that their training programme is very poor. Additionally, the
documentary also shows how safety and security checks are inadequate, how dirty the planes are, as well as exhausted employees who complain about
the long working hours. All these resulted in poor performance and work results. The highlighted service culture problems urgently need to be fixed.
Otherwise it would affect Ryanair's success and effectiveness in the long term. Ryanair needs to understand that having a strong service culture is very
important for an organisation because; * There is a high degree of competition: For a company
... Get more on HelpWriting.net ...