분야
doc2.0 Body – Q & A
Chapter 1
1.2. Identify the mission and major goals of the company.
1.4. Who is the CEO of the company? Evaluate the CEO’s leadership capabilities.
Chapter 2
2.1. Apply for five forces model to the industry in which your company is based. What does this model tell you about the nature of competition in the industry?
Bargaining power of buyers: LOW
Threat of Substitutes: MEDIUM
Bargaining of Suppliers: relatively HIGH because of oil.
Intensity of rivalry among established firms: HIGH
2.6. How dynamic is the industry in which your company is based? Is there any evidence that innovation is reshaping competition or has done so in the recent past?
Chapter 3
3.1. Identify whether your company has a competitive advantage or disadvantage in tis primary industry. Yes.
3.3. What are the distinctive competencies of your company?
3.4-5. What role have prior strategies played in shaping the distinctive competencies of your company? / Do the strategies your company is pursuing now build on its distinctive competencies? Are they an attempt to build new competencies?
Chapter 4
4.1. Is your company pursuing any of the efficiency-enhancing practices discussed in this chapter?
4.5. Evaluate the competitive position of your company in the light of your answers to questions 1-4. Explain what, if anything, the company needs to do to improve its competitive position.
* SWOT Analysis
Chapter 5
5.5. What generic business model is your company pursuing? How has it formulated and implemented a set of business-level strategies to pursue this business model?
Chapter 6
6.2. Discuss how your company has attempted to develop strategies to protect and strengthen its business model. If it operates in a mature industry, discuss how it has tried to manage industry competition.
6.3. What new strategies would you advise your company to pursue to increase its competitive advantage?
Chapter 8
8.1. Is your company creating value or lowering the cost of value creation by realizing location economies, transferring distinctive competencies abroad, or realizing cost economics from the economies of scale? If not, does it have the potential to?
8.4. What strategy is your company pursuing to compete globally? In your opinion, is this the correct strategy, given cost pressures and pressures for local responsiveness?
Chapter 9'
9.1. Has your company ever pursued a horizontal integration strategy? What was the strategic reason for pursuing this strategy?
Chapter 11
11.2. Evaluate the performance of the CEO of your company from the perspective of a) stock-holders, b) employees, c) customers, and d) suppliers. What does this evaluation tell you about the ability of the CEO and the priorities that he or she is committed to?
11.4. Pick a major strategic decision made by your company in recent years and try to think through the ethical implications of that decision. In the light of your review, do you think that the company acted correctly?
Chapter 12
12.3. Draw an organizational chart showing the main way in which your company groups its activities. Based on this chart, decide what kind of structure (functional, product, or divisional) your company is using.
12.10. How does your company’s culture support its business model? Can you determine any ways in which its top management team influences its culture?
3.0 Conclusion
5.5. What generic business model is your company pursuing? How has it formulated and implemented a set of business-level strategies to pursue this business model?
Aside from it cost-reduction strategy, Ryanair has also been able to use Porter’s generic strategies to position itself in the marketplace. Accordingly, a company positions itself by leveraging its strengths. Today, more and more people and organization are striving to be recognized in the business arena. With this objective, these organizations had been able to competently and effectively adapt to the situation in the market place by using generic strategies that enhanced their competitiveness. There are five different generic strategies that a business can choose.
These include cost leadership, differentiation, focused cost leadership and integrated cost leadership/differentiation. Each generic strategy helps the company to establish and exploit a competitive advantage within a particular competitive scope. By applying these strengths, three generic strategies are resulted: cost leadership, differentiation and focus. The strategies used by the company include cost leadership, differentiation strategy and focused differentiation.
In the case of Ryanair, cost leadership, differentiation strategy, and focus-differentiation strategy has been utilized. First, the company offers the lowest cost of fare than its competitors in the airline. On the other hand, Ryanair has also become a focuser because it concentrated on a narrow customer segment which include Irish and UK business people or travelers who could not afro to fly major airlines.
The main goal of the company is to provide a no-frills service with low fares designed to stimulate demand. At the time, it did not aim to offer the lowest fare on the market. However, the company expanded to continental Europe and had to focus on critical success factors to survive. Nowadays, it can be said that Ryanair has shifted generic strategies to become more of a cost-leader not only in terms of passenger volumes but being the lowest cost operator in the airline industry.
Chapter 6
6.2. Discuss how your company has attempted to develop strategies to protect and strengthen its business model. If it operates in a mature industry, discuss how it has tried to manage industry competition.
When Ryanair entered the air-travel industry, there were many obstacles including the EU regulations related to air-space allowance form one country to another. In other words, an airline form one member nation could not fly passengers within another nation’s domestic market. In addition, major companies such as British Airways dominated the European airline before the advent of low cost-low frill airlines. In this sense, Ryanair entered an industry with large obstacles to overcome. Nonetheless, it was able to bust the market by operating with low-costs while maintaining profits, differentiating itself with minimizing the cost structure thus being able to offer the lowest price.
6.3. What new strategies would you advise your company to pursue to increase its competitive advantage?
Mergers and Acquisitions Mergers and acquisitions have become one of the most important corporate-level strategies in the new millennium. Merger and acquisition strategies are important to firm’s growth and success in the 21st century. As Ryanair continues to grow it is expected that the company will acquire other companies (just like Buzz) to expand their market share thus improving its capabilities and competitive advantage.
Strategic Human Resource Management Ryanair, in its commitment to low-cost airfare has sacrificed its processes and services. The human resources of the company are not seen as a potential source of competitive advantage. The company does not seem to value its people. There is a growing belief that a company’s human resources is the most important source of competitive advantage. Human resources or the company’s people are one source of sustainable competitive advantage. In a fast-changing environment where technological innovations and other strategies can be copied, it is human resources that can make a significant change.
Marketing Plan Strategies Ryanair should have a detailed plan for its strategic moves in the market and be able to provide good customer services to the customers possibly through discounted flights and value promotions to keep the competitive advantage at a stable mode within the competition and it will need to focus more on the core competencies that allow Ryanair to practically and wisely designs suitable airline operations within the bracket of their marketing network services in a market standard-based perspective. Ryanair needs to be goal-oriented and must not stop to rejuvenate and change their marketing plan strategies from time to time in order to re-invent the performance process upon the upgrading of rules
