The Strategies of Ryanair

The Strategies of Ryanair Ryanair Holdings is Europes leading low-fare scheduled passenger airline, carrying roughly 34 million passengers per year, across 19 countries (Ryanair, 2006). The company operates short-haul, point-to-point routes between Ireland, the UK and Continental Europe, and the companys leading market position provides the company with the ability to leverage its market position to further expand its operating network: a key part of its current operating strategy. However, the predicted decline in the domestic European air travel market (Global Market Information Database, 2005) is likely to decrease the demand for the companys services and thus harm its resultant revenues, and so the other key aspect of the organisations strategy is to reduce its exposure to these external threats. (Johnson et al, 2005). Hence this work aims to examine the interplay between these two strategies, critically analysing both their current, and potential future, success. Leveraging market position to drive revenue Ryanair has the leading market share on most of scheduled routes between Ireland and provincial cities in the UK, carrying approximately 43% of all scheduled passenger traffic between Dublin and London. Additionally, the company has more than 45% market share on scheduled routes from Dublin, which include London, Manchester, Glasgow and Edinburgh, and London, which include Venice, Rome, Milan, Hamburg, Valencia and Gothenburg, as of January 2005. (Datamonitor, 2005) Ryanair has also been voted as the airline with the best punctuality highest frequency which, combined with the companys leading market position, provides the company with the ability to leverage its market position to further expand its operating network. Ryanair has also been reporting strong revenue growth since fiscal 1999, and the company reported revenues of 1336.6 million Euros during the fiscal year ended March 2005, an increase of 24.4% over 2004. (Ryanair, 2006) The increase was primarily attributable to an increase in passenger volumes, which increased by 19% over 2004, and the companys revenues increased at a compound annual growth rate of approximately 28.6% from 1999 to 2005, despite the overall fall in air travel during that period (Global Market Information Database, 2005). Additionaly, Ryanairs net income increased at a compounded annual growth rate of 29.1% from 1999 to 2005. Thus, the companys strong consistent financial strength provides its operations with financial stability and the ability to fund its expansion strategies. Ryanair thus has an extremely strong and aggressive business strategy, which is focused on its objective to firmly establish itself as Europes leading low-fares scheduled passenger airline. The company offers low fares designed to stimulate demand, particularly from fare conscious leisure and business travellers. (Ryanair, 2006) The company favours secondary airports, as they are generally less congested than major airports and can be expected to provide higher rates of on-time departures: the company can thus achieve faster turnaround times and fewer terminal delays and gain competitive handling costs. (Datamonitor, 2005) The strategy has enabled the company to have a better on time performance record, than its bigger competitors. In addition, Ryanair enters into agreements with third party contractors to handle passenger and aircraft handling, ticketing and other services, and the company fixes its contracts on competitive terms by negotiating multi-year contracts, at prices that a re fixed or subject only to periodic increases linked to inflation. Ryanairs strong business strategy thus enables the company to synchronize its operational strategies in accordance with the market requirements, thereby enabling the company to maintain a cost effective business strategy. Hedging against external threats. Crude oil prices are at an all time high: in March 2005, light crude oil prices climbed to $55.40 per barrel after peaking at $56.1 per barrel. Additionally, jet kerosene prices have increased by over 80% from 2004. In order to protect their operations from significant volatility, airlines have fairly robust hedging positions, as the volatility in oil price and availability of jet fuel significantly affects operations. Although its European competitors have traditionally been sufficiently well hedged against volatile oil prices, Ryanair has always been unhedged. As of April 2005 the company was not covered by any hedging protection against oil prices however, as of November 2005, Ryanair hedged 90% of its estimated demand for the second half of its fiscal year, at prices corresponding with oil averaging $49 per barrel. Part of the carriers strategy is now to build hedges forward, and its financial prowess means it has the cash position to succeed. (Fiorino, 2005) The companys revenues are also highly dependent upon revenues from the UK and Irish market: historically the company has generated over 50% of total revenues from the UK. For fiscal 2003 and 2004, passengers on Ryanairs routes between Ireland and the UK accounted for 35.9% and 28.6% of total passenger revenues respectively, with Dublin and London accounting for approximately 13.4% and 10.7%, respectively. Additionally, total passenger revenues, and the Dublin-London route accounted for approximately 7.6% and 6.0%, respectively. (Datamonitor, 2005) The companys dependence on Ireland and the UK, could significantly impact the companys revenues due to regional factors, and thus although Ryanair is also attempting to increase its market share as a whole, it is specifically attempting to do this into more diverse areas, such as Eastern Europe, in an attempt to reduce its exposure to the demand changes in the UK and Irish market. Conclusion Ryanairs primary business strategy has always been to fly as many passengers at as low a cost as possible (Ryanair, 2006). Despite the fact that passenger numbers are generally not increasingly significantly (Global Market Information Database, 2005) and the fact that Ryanair has been forced to divert some of its resources to hedging, due to market conditions (Fiorino, 2005), this strategy still forms the core of the airlines business model, and is often viewed as the companys core competence (Johnson et al, 2005) Given that revenues, profits and passenger numbers have soared over the past few years, despite the uncertainty in the external environment (Datamonitor, 2005), this analysis concludes that, not only are Ryanairs current strategies hugely successful, but they will continue to be for the foreseeable future.

Imaginary Invalid :: essays research papers

Imaginary Invalid Moliere’s â€Å"The Imaginary Invalid† is a play about a hypochondriac who is so obsessed with his health and money that he ends up neglecting his family’s needs to better his own.   Ã‚  Ã‚  Ã‚  Ã‚  Moliere sets up the exposition of the play in Act I by the apothecary bills Argon is reading aloud. After Toinette, the maid, then enters the scene she sarcastically makes a comment about all of the bills lying on the table. Toinette lets the audience know that Argon is a hypochondriac by rebutting everything he says about his doctors and illnesses with sarcastic comments. For instance, when Argon says, â€Å"You leave my insides alone.† She comes back with, â€Å"I wish you would. You’d be a different man.† She also lets the audience know by saying, â€Å"Why, if it wasn’t for him you wouldn’t even know you were ill,† speaking of the apothecary. The main conflict of the play is Argon’s unwillingness to accept that he is not ill and he is, in fact, a very healthy man. This â€Å"illness† leads to the selfishness that he shows his family, especially his daughter Angelica. Later in Act I his â€Å"illnessesâ⠂¬  prove to have relevance to the conflict when she speaks of Cleante, the man she loves. Cleante is not a doctor; therefore, Argon will not give his blessings for Angelica to marry him.   Ã‚  Ã‚  Ã‚  Ã‚  The conflict of the play was that Argon would not give his blessings for the marriage of his daughter, Angelica, and the man she loves, Cleante. The main characters involved in the conflict besides Angelica and Cleante is Argon, the problem, Toinette and Argon’s brother, Beralde, which resolve the conflict in the end. Argon is involved, as stated earlier, because he will not give his blessings on the marriage. Toinette and Beralde were involved in the resolution to the conflict because they cared about Angelica and her happiness. I believe that Beralde was more involved in the resolution because he felt that his brother was going far with his hypochondria, but still cared for Angelica’s happiness. Argon seemed to over-step the line when he tried to ruin the lives of his daughter just for his mental well being. The steps taken to see that Angelica does not have to marry a man that she simply does not want to marry lead up to the climax of the play. Ar gon finally realizes who cares about him and who doesn’t when he overhears his wife, Beline, speaking of his death and then Angelica.

A New Miss America: Nina Davuluri

Born in Syracuse, New York, and raised in Oklahoma and Michigan, it is hard to pick a more American story than that of Davuluri. The daughter of Indian doctors who immigrated to the United States in the early 1980s, Miss America embodies all ideas of the great American Dream. But an uneducated public is trying to crush that dream with their negativity. Misidentifying Davuluri as Muslim, Arab, Egyptian, and Indonesian, among other ethnicities, Twitter users did not Just stop at proclaiming hat, essentially, non-white participants of the pageant should be disqualified.They also linked her to terrorist organizations, such as A1 Qaeda. Some took it even further, outraged that she should be crowned in the same week as September 1 1 . Those who correctly acknowledged her Indian heritage made racist Jokes, playing on the stereotype that Indian-Americans often work in the grocery and food industries. It is ironic that the 24-year-old New Yorker is bullied about her race after her answer in t he question round of this weekend's pageant. Asked by Miss America udge Carla Hall about TV host Julie Chen's plastic surgery to appear â€Å"less Asian,† Davuluri responded, â€Å"I've always viewed Miss America as the girl next door.And the girl next door is evolving as the diversity in America evolves†¦ Definitely be confident in who you are. † One has to question if Davuluri is staying confident after her crowning considering the negative feedback from the public, although she is putting on a brave face. â€Å"I'm so happy this organization has embraced diversity,† she told The Associated Press. â€Å"There are children watching at home who can finally relate to a new Miss America. Addressing her â€Å"non-American† haters, she said, â€Å"l always viewed myself as first and foremost American. † Davuluri was not the only contestant rebuffed for her race.Fellow Top 5 runners- up Miss California Crystal Lee and Miss Minnesota Rebecca Yeh go t backlash for their Asian roots. Exactly thirty years after Vanessa Williams was crowned as the first black Miss America, it was refreshing to see the racial diversity at this year's pageant, with 13 non-white contestants. It showed a forward-thinking Miss America, focused more on intelligence, drive, talent, and poise and an attempt to move the pageant into the 1st century. Yet the American people were not yet ready for the group of diverse, educated young women who are the face of the future America. According to Census Bureau reports, America will be much less white than it is today, with the percentage of blacks, Asians, and Hispanics increasing in our population. ) These women are independent and strong, they represent many ditterent backgrounds, they are accessible, they are role models, they are real. They do not fit the stereotypical 1950s pageant queen archetype. They are more than that. The Judges could see that, choosing to focus on inner beauty and accomplishments. Some of those who verbally fought Miss America's title were firmly set on who they believed should be queen bee: Miss Kansas Theresa Vail.The 22-year-old blonde beauty is only the second military woman to participate in the pageant. As a sergeant in the U. S. Army and the first Miss America contestant to bear tattoos, Vail was a fan favorite long before the cameras starting rolling at the Atlantic City show. A humorous and highly talented young woman, Vail made it to the Top 10 but was cut from the competition after the talent round. Online, she was well-like because she mbodied the â€Å"real† American woman: she can sing, she has tattoos, she likes to hunt, she is poised but goofy and self-deprecating.She represents middle America. But on closer inspection, she does not embody America as it is today. She embodies what an ideal America used to be: middle class, white, Christian, rural, the picture- perfect WASP woman. So for all the progress the pageant made to depict a well- ro unded, diverse America, the public still gravitated, predictably, to the â€Å"All American Beauty. † â€Å"l swear I'm not racist but this is America. † How has this come to define America, a ountry renown for its opportunities, for its freedoms, and for being the greatest melting pot in the world?How dare you deny Miss America, a talented and intelligent woman, her shot at the American dream? Why are we stuck in archaic mindsets of who deserves to be praised for their accomplishments and then rewarded with scholarship funds to pursue their passions? Who are we to Judge? To Twitter user @JAyres15 and to all of those ganging up on Nina Davuluri: you may swear you are not a racist, but I swear that you are. You hide behind prejudice and bigotry, you are close-minded, and you are the non-American.

Costs and Price - 4207 Words

Summer2011-Microeconomics-Exam Two Practice 1. To calculate the total utility of consuming N products: A. add the additional satisfaction of consuming each product up to N and multiply by its price. B. add the total satisfactions of consuming each product up to N. C. multiply the additional satisfaction from consuming the Nth product by its price. D. multiply total satisfaction from consuming N products by N. 2. Suppose that the following table lists the utility that Steve receives from consuming oranges at 50 cents apiece. What is the marginal utility of increasing consumption from 2 to 3 oranges? [pic] A. 3 B. 6 C. 5 D. 12 3. Suppose that if you buy one Big Mac that gives you marginal utility of 500 and a second†¦show more content†¦an increase in the demand for milk. B. a decrease in the demand for milk. C. an increase in the quantity demanded for milk but no change in demand. D. a decrease in the quantity demanded for milk but no change in demand. 16. Accounting profit is equal to: A. total revenue minus implicit costs. B. total revenue minus explicit measurable costs. C. total revenue minus implicit and explicit costs. D. implicit and explicit revenues minus implicit costs. 17. A business produces 8 items and sells them for $25 each. The total cost of producing the items is $190 for explicit costs and $200 for implicit costs. Accounting profit is: A. -$190. B. $10. C. $20. D. $200. 18. Rachel left her job as a graphic artist, where she earned $42,000 per year, to open her own graphic arts firm. Her implicit costs of the new business include: A. only the expenses incurred for office space, equipment, and supplies. B. only her foregone salary of $42,000 per year. C. both the expenses incurred for office space, equipment, and supplies and her foregone salary of $42,000 per year. D. neither the expenses incurred for office space, equipment, and supplies nor her foregone salary of $42,000 per year. 19. 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