UCLA Aviation Industry Mitigating Climate Change Impacts via TECH & Policy Analysis Part 2 Analyse how these political factors will impact on Ryanair in t | Course Hero
UCLA Aviation Industry Mitigating Climate Change Impacts via TECH & Policy Analysis Part 2
Analyse how these political factors will impact on Ryanair in the future
Analyse how these economic factors will impact on Ryanair in the future
Outline how social and technological factors could impact on their business.
(15 marks, approximately 600 words)
(A2, A3, A4)
Section 2
Analyse how these political factors will impact on Ryanair in the future if no action is taken (5 marks)
Analyse how these economic factors will impact on Ryanair in the future if no action is taken (5 marks)
Evaluate how these factors will influence what Ryanair should do to make sure it is still a product which consumers wish to use. (5 marks)
Cannot give specifics as dependent on what has been chosen
**must use APA format
cw2 also don’t quote too long sentences, use short words
After the quoted words, give more examples to assist in the interpretation of the sentence
Cannot cite and excerpt articles published by individuals and universities COMPETITIVE BUSINESS ENVIRONMENT – XPX0005-18/19
K1
K2
A1
A2
A3
A4
A5
Understand the impact of the economic environment on
business
Know how political factors affect business
Explain how changes in economic and political factors
may affect a specific organisation
Analyse how political factors impact on organisations
Analyse how economic factors impact on organisations
Evaluate how future changes in the economic and political
environment may impact on the strategy of organisations
Recommend strategies for organisations to undertake in
response to their external environment
This is a case
study analysis
which has a
50% weighting
of your total
marks for the
unit and should
have a
minimum of
2000 words in
total
1. Scenario
10 Jan 2020, BBC
Turbulence ahead for Ryanair?
Earlier this morning Ryanair raised its profit guidance after trading over Christmas turned
out to be better than expected.
However, Russ Mould, investment director at AJ Bell, warns the skies might not be entirely
clear for Ryanair in the year ahead.
He notes that there was “some mild turbulence to contend with in the [Christmas] period,
with Austrian subsidiary Laudamotion struggling thanks to an ongoing pricing war with its
rivals”.
And, he adds: “Despite the collapse of Thomas Cook last year, competition remains an issue
in other markets too, while rising staff costs and a volatile fuel bill are continuing pressures
on the companys low-cost model.
This is a critical point given how much of the businesses success has been built on keeping
a very tight hand on the purse strings.
The picture could look a bit less rosy in the summer due to further delays in the delivery of
grounded Boeing 737 Max planes, which will stunt passenger growth.
** **
Ryanair accused of greenwash over carbon emissions claim
UK watchdog bans advert claiming lowest CO2 pollution of any major airline
The Guardian 5 Feb 2020
Ryanair had claimed it was Europes lowest fares, lowest emissions airline. Photograph:
Danny Lawson/PA
Ryanair has been accused of greenwashing after the UK advertising watchdog banned an ad
campaign claiming that the airline has the lowest carbon emissions of any major airline in
Europe.
The budget airline, which was named last year as one of Europes top 10 carbon emitters in
an EU report, later ran a TV, press and radio campaign claiming it was Europes lowest
fares, lowest emissions airline.
The ads claim that Ryanair has the lowest carbon emissions of any major airline, based on
CO2 emissions per passenger per kilometre flown, because it has the youngest fleet, highest
proportion of seats filled on flights and newest, most fuel-efficient engines.
However, one of the charts Ryanair presented to the Advertising Standards Authority to
back up its claims was dated 2011, which the watchdog said was of little value as
substantiation for a comparison made in 2019. The ASA added: In addition, some wellknown airlines did not appear on the chart, so it was not clear whether they had been
measured.
The ASA also said that the ads failed to factor in seating density the number of seats per
plane which it considered significant information that consumers needed in order to
understand the basis of the claim. The ASA banned the ads ruling that they were
misleading because the airline had failed to substantiate its environmental claims.
The ads must not appear again in their current forms, the ASA said. We told Ryanair to
ensure that when making environmental claims they held adequate evidence to
substantiate them and to ensure that the basis of those claims were made clear.
The environmental group Transport & Environment accused Ryanair of greenwashing
instead of tackling its emissions. The airline ran the low-emissions ad campaign just over five
months after it became the first non-coal company to be named in the EU top 10 carbon
emitters list.
Ryanair should stop greenwashing and start doing something to tackle its sky-high
emissions, said Jo Dardenne, the aviation manager of T&E.
Ryanair remained defiant, claiming it had abided by the UK advertising code. Ryanair is
both disappointed and surprised that the ASA has issued this ruling given that Ryanair fully
complied with advertising regulations, engaging with regulators and providing
documentation that fulfilled all the substantiations needed, said a spokeswoman.
The Ryanair boss, Michael OLeary, has suggested shooting environmentalists and has
repeatedly denied that the climate crisis is driven by carbon emissions, which aviation
produces in abundance.
Last year, Ryanair claimed it was already the greenest airline in terms of carbon emissions
per passenger. The company has also pledged to be plastic free by 2023 and set up a
voluntary carbon offset payment scheme for customers when booking.
*
*
*
You work in the Strategy Department for Ryanair, and the Board are asking you to
write a report for them on what you think the future direction of the company will be,
i.e., what they should do in the future to make sure they keep being profitable.
You first need to research your company to make sure you have all the facts
necessary. For example:
http://www.ryanair.com
Search http://www.bbc.co.uk and http://www.theguardian.com/uk
Search under Summon which is part of the library resources try Mintel
Read newspapers and listen to/watch the news, especially the BBC or some
other reputable news channel.
Part 1
Outline what PEST and SWOT analyses are and how businesses use these
tools.
Explain in more detail how the political and economic factors can affect
businesses and give some examples.
Think of current factors which might affect businesses now and in the future
giving some examples.
(20 marks, approximately 800 words)
(K1, K2, A1)
Draft to be submitted tbc
Part 2
Analyse how these political factors will impact on Ryanair in the future
Analyse how these economic factors will impact on Ryanair in the future
Outline how social and technological factors could impact on their business.
(15 marks, approximately 600 words)
(A2, A3, A4)
Draft to be submitted by tbc
Part 3
Recommend what actions Ryanair should undertake to ensure it is still a
product/service used by consumers, and hopefully to gain more customers.
(15 marks, approximately 600 words)
(A5)
Draft to be submitted by tbc
Final case study (parts 1-3) to be submitted by tbc
2. How to present your work:
Use headers and footers to show student ID numbers, unit title and use page
numbering for your pages
Use an informal report style
Use Arial size 12 font for the body of your report
Include a title
Include a bibliography (references) at the end of your report
3. Mark Scheme
Section 1
Used to determine the viability of the economic environment against your
business.
Give definition and example of political and of economic.
Provide examples such as war, increased migration to Europe, the economic
situation in Europe, Brexit: preferably ones which are around at the moment
and how they could develop. Must be realistic
Provide examples such as exchange rate, rate of inflation, legislation covering
import/export, treaties with specific countries, etc. (20 marks)
Section 2
Analyse how these political factors will impact on Ryanair in the future if no
action is taken (5 marks)
Analyse how these economic factors will impact on Ryanair in the future if no
action is taken (5 marks)
Evaluate how these factors will influence what Ryanair should do to make
sure it is still a product which consumers wish to use. (5 marks)
Cannot give specifics as dependent on what has been chosen
Section 3
E.g. develop further focus on customer service, co-operation with Full Service
Carriers, Europe subsidiary? Rationale (15 marks)
Part 2
Analyse how these political factors will impact on
Ryanair in the future
Analyse how these economic factors will impact on
Ryanair in the future
Outline how social and technological factors could
impact on their business.
(15 marks, approximately 600 words)
(A2, A3, A4)
Draft to be submitted by tbc
Section 2
Analyse how these political factors will impact on
Ryanair in the future if no action is taken (5 marks)
Analyse how these economic factors will impact on
Ryanair in the future if no action is taken (5 marks)
Evaluate how these factors will influence what
Ryanair should do to make sure it is still a product
which consumers wish to use. (5 marks)
Cannot give specifics as dependent on what has been
chosen
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