Business Applications in Engineering
CASE STUDY
Business Applications in Engineering
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The first section of this report deals with the “Macro Environment”. This consists of broad environmental factors that impact almost all organizations. Here the PESTEL framework can be used to identify how future trends in the political, economic, social, technological, environmental and legal environments might effect on organizations. The following PESTEL analysis provides broad data from which to identify key drivers of change. Many of these factors are linked together for example restrictions regarding mergers are political decisions written into law therefore covers both political and legal aspects. The four I have chosen are also in some way linked together and are as follows. Macro
TECHNOLOGICAL/ECONOMIC
The increase in the use of technology should stay up to date on cost saving measures regarding the increasing use of online check-in. As Ryanair expands to the Balkan states and turkey the flights get longer therefore entertainment technology may be “taken on board” (Ancillary revenue). The video entertainment industry is heavily endorsed socially. Technological advances in the research and development of engines and airframe play an important role with respect to lowering an airlines’ major expense, fuel costs. Ryanairs’ decision to upgrade its fleet to an average age of 2.9 years tackles this very problem as newer aircraft have much more efficient engines (fuel burn) and with lighter airframe materials and various modifications such as the winglet modification program which reduced fuel burn by 2%. Also carbon emissions as much as 50% were reduced with these newer aircraft and therefore will save on the ETS imposed by the EU that coincidently are under fierce scrutiny from US and Chinese airlines. Staying up to date on Economic issues enables the price of oil to be forecasted and manipulated to give you stable costs using Hedging. Hedging will be discussed later with suggestions as how to move
Business Applications in Engineering
.
The first section of this report deals with the “Macro Environment”. This consists of broad environmental factors that impact almost all organizations. Here the PESTEL framework can be used to identify how future trends in the political, economic, social, technological, environmental and legal environments might effect on organizations. The following PESTEL analysis provides broad data from which to identify key drivers of change. Many of these factors are linked together for example restrictions regarding mergers are political decisions written into law therefore covers both political and legal aspects. The four I have chosen are also in some way linked together and are as follows. Macro
TECHNOLOGICAL/ECONOMIC
The increase in the use of technology should stay up to date on cost saving measures regarding the increasing use of online check-in. As Ryanair expands to the Balkan states and turkey the flights get longer therefore entertainment technology may be “taken on board” (Ancillary revenue). The video entertainment industry is heavily endorsed socially. Technological advances in the research and development of engines and airframe play an important role with respect to lowering an airlines’ major expense, fuel costs. Ryanairs’ decision to upgrade its fleet to an average age of 2.9 years tackles this very problem as newer aircraft have much more efficient engines (fuel burn) and with lighter airframe materials and various modifications such as the winglet modification program which reduced fuel burn by 2%. Also carbon emissions as much as 50% were reduced with these newer aircraft and therefore will save on the ETS imposed by the EU that coincidently are under fierce scrutiny from US and Chinese airlines. Staying up to date on Economic issues enables the price of oil to be forecasted and manipulated to give you stable costs using Hedging. Hedging will be discussed later with suggestions as how to move