Ryanair Case Study: Ryanir
Enhancing profit also can be achieved.
Question 4 | External Environmental Factor | Legal Factor
Based on Ryanair case study, Ryanair which headquartered at the Dublin Airport in Ireland have to commit to the laws and legislation set by the European Union (EU), the Ireland laws and regulations as they were based in Ireland, the United Kingdom’s Advertising Standard Authority (ASA) as Ireland are a part of United Kingdom and also NASDAQ rules as Ryanair are listed in the NASDAQ. Legal factor is the most crucial as it includes the issues with the governing bodies of EU governments as well as airlines and aviation governing bodies. Their rules and regulations may affect the organization’s strategies and operations and may also impact the cost and profits. Ryanair is facing legal issues with Stansted and Dublin airport that affect their departure activities. Aside from that, Ryanair has another issue relating to media and civil law which arise from the airline’s misleading and provoking advertisement. There is also potential issue regarding to labor law as Ryanair currently provide poor working conditions and insufficient training towards the staffs. …show more content…
If there are any changes being made in the rules, Ryanair also need to change the business policies in accordance to the new rules that have been set by the parties involved. These may challenge Ryanair competitive advantage in the industry. Ryanair has an opinion of the European Union (EU) legislation that discuss on the compensation and assistance to the passengers in the event of denied boarding, flight cancellation and long delays are “unfair and discriminatory”. The reason why they said that because the regulations force the airlines companies to pay compensation to passenger as well as to cover other cost which consider as beyond the control of the airlines companies. The air traffic control strikes or failure by airports to clear snow from runways are one of the examples of which event that beyond the control but need to bear by the airlines companies. These can be considered as challenges to Ryanair however, Ryanair have taken some precautionary act by added £2 fee in order to cover the cost associated with the EU261. They able to make £150 million for that current year. Ryanair concern about the ethical conduct as they are aware of the competitive advantage in the legal segment. All staff of Ryanair should