Ryanair Pestel Essay

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1. Undertake a PESTEL analysis for the UK airliner industry. Explain which of the environment influence you have identified are likely to be the key drivers of change in future years. Ans: Macro-environmental analysis describes all factors which influence the company as a whole and they are political, economic, social, technological, environmental and legal factors. The analysis of those factors is therefore often known as Pestel analysis. As the airline industry is very much influenced by changes taking place in the environment and has undergone rapid dramatic changes during the last decades and still keep going one which has huge impact on the airliner company. Likewise other airline company Ryanair’s business policies also get influenced by theses factors. The pestel factors that influence the Ryanair most are given below. Political factors: There are different types of political factors which have huge impact on the business. Being an born internally operating company Ryanair faces different factors that might have huge impact on their business. For example the 9/11 attack on twin tower changed the whole airline industry operation policy or the political turbulence hike the oil price which also have huge economic adverse impact. But on a positive note, EU political integration helped increase operation in the EU countries. The political factors that Ryanair needs to consider to carry on operation smoothly are as follows: • Monopolies legislation • Environmental protection laws • Taxation policy • Foreign trade regulations • Employment law • Government stability • Social welfare policies Economical factors: Likewise other factors, economic factors also have huge impact on business operation. Due to the on going situation like the recession resulted with huge unemployment which directly reduced the
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