Environmental and strategic analysis Essay Example | Topics and Well Written Essays - 2500 words - 1

Environmental and strategic analysis - Essay Example This is due to its low cost strategy. Like any other company, when the management makes decisions it has to be guided by different factors that directly or indirectly affect the company. All organisations are affected by external and internal factors and like any other company, Ryanair is not left behind. It is advisable for the airline to use the PEST analysis to view its policy making strategies thus look at how the company is performing to ensure that it does not lose market. Such analyses will ensure that the management is able to keep, ignore and adapt strategies to make the company more competitive and unique (West, 2007). The paper will examine Ryanair airline by using Porter’s 5 forces and McKenzie 7s framework. To understand how Ryanair Airline has been able to survive to the resent times it is advisable to use Porter’s 5 forces analysis to critically examine its strategies. The strategy and its concepts came from Michael Porter. The 5 forces were derived from Industrial Organisation economics which generally helps a company to know its intensity in competition moreover show what attracted the company to join the market. It should be noted that the amount of profit is what attracts the company to the market whereas unattractiveness is simply the implementations of poor strategies that lead to a loss. According to the forces, when a company approaches pure competition it means that it is becoming unattractive. According to Porter such implementations are referred to as micro environment which are within the company and they do affect how a company is able to reach its customers. Customer service provision is what brings about profit in the company (McGahan, 2004, pp. 203-205). The st ages of the framework are discussed below step by step. According to the strategy, a company can decide to offer products or services that will act as substitutes to change the demand of its customers. The