Ryanair and the External Environment
Ryanair and the External Environment
Executive summary
This report explores Ryanair’s domain in relation to the external environment and outlines the concerns for the company within these sectors. The environmental uncertainty of Ryanair is dealt with and ways in which it can adapt to this uncertainty are outlined. This report also explores possible strategies for minimizing environmental uncertainty for the organisation.
1. Ryanair’s domain in relation to the external environment and sectors of concern for the company
An organisation like Ryanair’s domain is the chosen environmental field of action. “It is the territory the organisation stakes out for itself with respect to products, services, and markets served” (Daft, 2007 p50). Ryanair’s goal is to provide a no frills service with low fares designed to stimulate demand. Ryanair’s domain defines the external sectors with which the organisation will interact to accomplish its goals. These external sectors are elements that exist outside the boundary of the organisation and have the potential to affect all or part of the organisation. They can be divided into the task environment and the general environment. Ryanair’s task environment “includes sectors with which it interacts directly and that have a direct impact on its ability to achieve its goals” (Daft, 2007 p50). These include the airline industry itself, the raw materials Ryanair needs in order to offer its service, the market sector and the human resources sector. Ryanair has a strong industry position as Europe’s largest low-fares airline. This year it can expect to carry close to 67 million passengers on over 830 low fare routes across 26 European countries (www.ryanair.com). However, the airline industry itself is set to face its worst revenue environment in 50 years. The IATA (International Air Transport Association) predicted in March that there will be losses of US$4.7 billion in 2009. Giovanni Bisignani, IATA’s Director General and CEO,
Executive summary
This report explores Ryanair’s domain in relation to the external environment and outlines the concerns for the company within these sectors. The environmental uncertainty of Ryanair is dealt with and ways in which it can adapt to this uncertainty are outlined. This report also explores possible strategies for minimizing environmental uncertainty for the organisation.
1. Ryanair’s domain in relation to the external environment and sectors of concern for the company
An organisation like Ryanair’s domain is the chosen environmental field of action. “It is the territory the organisation stakes out for itself with respect to products, services, and markets served” (Daft, 2007 p50). Ryanair’s goal is to provide a no frills service with low fares designed to stimulate demand. Ryanair’s domain defines the external sectors with which the organisation will interact to accomplish its goals. These external sectors are elements that exist outside the boundary of the organisation and have the potential to affect all or part of the organisation. They can be divided into the task environment and the general environment. Ryanair’s task environment “includes sectors with which it interacts directly and that have a direct impact on its ability to achieve its goals” (Daft, 2007 p50). These include the airline industry itself, the raw materials Ryanair needs in order to offer its service, the market sector and the human resources sector. Ryanair has a strong industry position as Europe’s largest low-fares airline. This year it can expect to carry close to 67 million passengers on over 830 low fare routes across 26 European countries (www.ryanair.com). However, the airline industry itself is set to face its worst revenue environment in 50 years. The IATA (International Air Transport Association) predicted in March that there will be losses of US$4.7 billion in 2009. Giovanni Bisignani, IATA’s Director General and CEO,
Bibliography: • Airline News Resource. (Airline Industry News). [Online]. Available from: [Accessed 7 April 2009]. • Creaton, Siobhán. 2004. Ryanair: how a small Irish airline conquered Europe. London: Aurum. • Daft, Richard L. 2007. Understanding the theory and design of organizations. Mason, OH: Thomson South-Western. • Ryanair – About Us. [Online]. Available from: [Accessed 6 April 2009]. • The Airline Industry. [Online]. Available from: [Accessed 7 April 2009]. • The International Air Transport Association (IATA). (Press Releases). [Online]. Available from: < http://www.iata.org/pressroom/pr/2009-03-24-01.htm> [Accessed 6 April 2009]. • The post.ie. (The Sunday Business Post Online). Available from: [Accessed 7 April 2009]. • Thinking Made Easy. (Ryanair Case Study Analysis). [Online]. Available from: [Accessed 8 April 2009].