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By: Thomas Elias, Alison Tardie, Loren Plourde, and Brandon Plourde 1 April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK.

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Presentation on theme: "By: Thomas Elias, Alison Tardie, Loren Plourde, and Brandon Plourde 1 April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK."— Presentation transcript:

1 By: Thomas Elias, Alison Tardie, Loren Plourde, and Brandon Plourde 1 April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK

2 Overview Company Overview A Brief history of Ryanair Existing Strategy, Mission, and Vision Existing Objectives and Strategies New Mission and Vision External Assessment Industry analysis Opportunities and Threats EFE Matrix CPM Matrix Internal Assessment Organizational Structure Financial Condition Strengths and Weaknesses IFE Matrix Strategy Formulation SWOT Matrix Space Matrix Grand Strategy Matrix Matrix Analysis QSPM Matrix Strategic Plan for the Future Objectives Strategies Strategic Implementation Management Issues EPS/EBIT Projected Financials Strategic Evaluation Balanced Score Card Ryanair Update 2April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK

3 Ryanair History 3April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK 1985: The Beginning First “Fare War” 1986: First Fiscal Year 1987: First Jet 1990: Rapid Growth And The Upset 1995: Low Fares Win! 1997: We go Public 2004: Most Popular Online Booking 25 Employees 15 Seat Aircraft 5’2” Standard 3 BAC 1-11 Aircrafts Opened New Destinations Accumulates £20M Losses 20m invested Copying the Southwest Model Michael O’ Leary, Restructured Overtakes Aer Lingus, British Airways Largest Irish airline, Dublin 10 th Birthday Most Popular online, % online booking

4 Ryanair History Cont’d… April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK 4

5 Existing Strategy, Vision, and Mission Vision Firmly Establish itself as Europe’s leading scheduled passenger airline through continued improvements and expanded offerings of its low-fares service. Vision Firmly Establish itself as Europe’s leading scheduled passenger airline through continued improvements and expanded offerings of its low-fares service. Mission Ryanair seeks to offer low fares that generate increased passenger traffic while maintaining a continues focus on cost- containment and operating efficiencies. Mission Ryanair seeks to offer low fares that generate increased passenger traffic while maintaining a continues focus on cost- containment and operating efficiencies. 5April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK Strategy: Cost Leadership; Low Cost

6 New Vision To be the most efficient low-cost carrier in Europe. 6April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK

7 New Mission New Mission: Ryanair’s mission is to become the (2) largest scheduled passenger airline in (3) Europe for (1) international and domestic travelers. (6)We believe by offering the cheapest fares and utilizing (4) modern technological services, (7)Ryanair will provide the best no frills airline service. Ryanair meets shareholders’ and employees’ needs through (5) sustainable profits while also providing a (9) safe and productive working environment. Furthermore, Ryanair protects the (8) community with our efficient, environmentally friendly fleet. 1.Customers 2.Products or services 3. Markets 4. Technology 5. Concerns for survival, growth, and profitability 6. Philosophy 7. Self-concept 8.Concern for public image 9. Concern for employees 7April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK

8 External Audit 8April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK

9 Industry Analysis 2009Thousands2010Thousands 1. Ryanair65,282Ryanair71, Lufthansa41,515Lufthansa44, easyJet34,593easyJet37, Air France31,256Air France30, British Airways27,844Emirates30, Emirates25,921British Airways26, KLM22,333KLM22, American Airlines19,514Delta Air Lines21, Cathay Pacific Airways18,102American Airlines20, Singapore Airlines16,322Cathay Pacific Airways19,723 Source: Centre for Asia Pacific Aviation and IATA 9April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK

10 Cost Comparison April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK 10

11 Opportunities 1.Success in Ancillary services ( leads to new open markets for joint ventures). 2.Open up their aviation repair service and flight training programs to operations outside the company. 3.Customer base is expected to grow up to 85 million passengers. 4.Pursue web-based advertising and new Reservation system. 5. Start flying into 10 to 12 primary airports (European airports have shown interest). 6.Popularity increasing in Eastern Europe and Asia for tourism and business gatherings. 7.Corporations pursuing appearance and expansion into African Operations. 8.Expand clientele during hard financial times by gaining customers who do not desire premium flights. 9.More political and governmental influence/charges in primary airports increases attractiveness in secondary airports (11 tax on European departures). 11April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK

12 Threats 1.New IAA Rules on flying hours and aircraft regulations could increase future expenses. 2.Unpredictable and uncontrollability of rising fuel costs; €350 million in 2012 regardless of hedging. 3.Greek debt crisis and unstable European economy negatively affecting future operations. 4.Last year 14,000 Ryanair flights were cancelled due to volcanic ash disruptions, airport snow closures and repeated ATC strikes. 5.The majority of Ryanair’s profits are subject to Irish Corporation Tax at a rate of 12.5% and a raise may adversely impact Ryanairs' cash flows, finances, and operations. 6.Already paid 88 million in claims last year due to the EU 261 regulations where the airline has to cover accommodations and compensation. 12April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK

13 Threats Cont’d… 7.In the future legislation will require airlines to pay about €1.4 billion for emissions of carbon dioxide which will rise to €7 billion by Too much growth too fast; Expansion into Eastern Europe means competing with already existing players in the market and operating on even tighter margins. 9.Increased competition from alternative forms of travel. 13April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK

14 Opportunities:WeightsRatingWeighted 1. Success in Ancillary services ( leads to new open markets for joint ventures) Open up their aviation repair service and flight training programs to operations outside the company Customer base is expected to grow up to 85 million passengers Pursue web-based advertising and further expansion in web services Start flying into 10 to 12 primary airports (European airports have shown interest) Popularity increasing in Eastern Europe and Asia for tourism and business gatherings Corporations pursuing appearance and expansion into African Operations Expand clientele during hard financial times by gaining customers who do not desire premium flights More political and governmental influence/charges in primary airports increases attractiveness in secondary airports ($11 tax on European departures) Threats: 1. New IAA Rules on flying hours and aircraft regulations could increase future expenses Unpredictable and uncontrollability of rising fuel costs; €350 million in 2012 regardless of hedging Ryanair plans to ground 80 aircraft in the winter months of 2012 as opposed to 40 last year because overall traffic is expected to be lower Last year 14,000 Ryanair flights were cancelled due to volcanic ash disruptions, airport snow closures and repeated ATC strikes The majority of Ryanair’s profits are subject to Irish Corporation Tax at a rate of 12.5% and a raise may adversely impact Ryanair’s cash flows, finances and operations Already paid 88 million in claims last year due to the EU 261 regulations where the airline has to cover accommodations and compensation In the future legislation will require airlines to pay about €1.4 billion for emissions of carbon dioxide which will rise to €7 billion by Too much growth too fast; Expansion into Eastern Europe means competing with already existing players in the market and operating on even tighter margins Increased competition from alternative forms of travel Totals: External Factor Evaluation (EFE) 14April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK

15 Competitive Profile Matrix RyanairBritish AirwaysEasyJet Critical Success factorsWeightsRatingScoreRatingScoreRatingScore Advertising Financial position Customer loyalty E-commerce Management Ticket Fare competitiveness Fleet Customer service Market share Organization structure Employee morale Totals: April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK

16 Internal Audit 16April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK

17 Organizational Structure 17April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK

18 Income Statement 18April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK

19 Balance Sheet 19April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK

20 Ratio Analysis Liquidity Ratios:Ryanair (2011)EasyJetBritish AirwaysIndustryAnalysis Current Ratio Good Quick Ratio Good Leverage Ratios: Debt to Total Assets Average Debt to Equity Average Long-term Debt to Equity Average Times Interest Average Efficiency Ratios: Fixed Assets Turn Bad Total Assets Turn Bad Profitability Ratios: Gross Profit25.70%16.50%16.40%23.72%Good Operating Profit14.20%7.70%8.40%7.37%Good Net Profit10.30%6.50%6.70%5.40%Good ROA4.40%5%5.90%4.60%Average ROE12.70%13.20%24%14.80%Bad EPS Bad PE Ratio Good Growth Rates: Sales( 3 Year Average)11.20%15.40%4.70% Average Net Income ( 3 Year Average)-1.40%57%-1.10% Bad EPS ( 3 Year Average)-1%57.10%N/A Bad Dividend per Share ( 3 Year Average)N/A 20April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK

21 Net Worth Analysis Company Worth Analysis 1.) SE-Goodwill-Intangibles$2, ) Net Income*5$1,873 3.) (SP/EPS)* NI$41, ) #Shares * Stock Price41, ) Four Method Average$21, April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK

22 Strengths 1.Modern/Low Cost Fleet single aircraft type; average plane age 2.94 and no plane older than 8 years on fleet. 2.Profits increased by 25.6% from Traffic grew 8% to 72 million in Ancillary revenues grew by 21% to €802 million for fiscal year Dividend of €500 million paid to shareholders in 2011 equaling €846 million returned in the past 3 years. 6.At March 31, 2010, the company had hedged approximately 90% of its estimated fuel exposure for the year ending March 31, Number one on-time airline in Europe. 8.Added 328 new routes to their already existing routes which gives them a total of more than 1300 routes. 9.Revenue passenger miles (rpm) grew 14.4% between 2009 and April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK

23 Weaknesses 1.Bad Public Image; Has had several complaints filed against them by Advertising Standards Board (ASA) 2.Complex Fee System leading to customer dissatisfaction; charges fees where others do not 52% of average final cost is in extras and fees. 3.Only arrive at secondary airports; no option for arrival at Primary Airports. 4.Ryanair incurred a €2.2 million loss on its Aer Lingus shareholdings due to a decline in the Aer Lingus share price from €0.73 to € They do not offer round trips. 6.Fuel costs rose 37% from ‘10-’11. 7.Employee moral is poor with cabin crew. 8.Debt to equity ratio is 1.91 compared to.79 of the industry average. 9.Earnings per share is only 25 euro cents compared to main competitor Easy Jet at 52 Euro cents. 23April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK

24 Strengths: WeightsRatingWeighted Score 1. Modern/Low Cost Fleet single aircraft type; average plane age 2.94 and no plane older than 8 years on fleet Profits increased by 25.6% from Traffic grew 8% to 72 million in Ancillary revenues grew by 21% to €802 million for fiscal year Dividend of €500 million paid to shareholders in 2011 equaling €846 million returned in the past 3 years At March 31, 2010, the Company had hedged approximately 90% of its estimated fuel exposure for the year ending March 31, Number one on-time airline in Europe Added 328 new routes to their already existing routes which gives them a total of more than 1300 routes Revenue passenger miles (rpm) grew 14.4% between 2009 and Weaknesses: 1. Bad Public Image; Has had several complaints filed against them by Advertising Standards Board (ASA) Complex Fee System leading to customer dissatisfaction; charge fees where others do not 52% of average final cost is in extras and fees Only arrive at secondary airports; no option for arrival at Primary Airports Ryanair resulted in a €2.2 million loss on its Aer Lingus shareholdings due to a decline in the Aer Lingus share price from €0.73 to € They do not offer round trips Fuel Costs rose 37% from ’10-’ Employee morale is poor with cabin crew Debt to equity ratio is 1.91 compared to.79 of the industry average Earnings per share is only 25 euro cents compare to main competitor Easy Jet at 52 euro cents Totals: Internal Factor Evaluation (IFE) 24April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK

25 Strategy Formulation April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK25

26 SWOT Matrix W-O Strategies: 1.Start flying into primary European airports. (W3, O8, O5) 2.Upgrade web advertising and services that are not as publicly controversial. (W1,O4) 3.Begin offering round trips at competitive prices. (W7, O8) 4.Offer package deals on ancillary fees to increase attractiveness. (O1, O8, O3, W2) 5.Hire corporate travel agents to syndicate traveling process for consumers in need.(W2, W3, W5, W7, O1, O3, O8) 6.Incorporate marketing and HR executives to better promote company. (W1, W2, W5, O3, O4) S-O Strategies: 1.Additional routes to further increase number of passengers and total overall traffic. (O3, O6, S3, S8, S9, S7) 2.Expand and diversify Ancillary Services both offline and online. (O1, S4, O4) 3.Teach aviation/engineering courses through a university that utilizes their assets to start new business ventures. (S2, S1, O2) 4.Start business in primary airports. (O1, O3, O5, S3, S7, S8) 26April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK

27 SWOT Matrix Cont’d… T-W Strategies: 1.Start new ethical, socially responsible, and positive attitude advertising campaigns. (T4, T8, W1, W2) 2.Diversify current asset investments. (T3, W4) 3.Ad marketing and HR Officers/ Segments to ensure all business aspects are more accurately analyzed and coordinated. (W5, W1, W2, T1, T8) 4.Raise prices. (W6, W9, T2, T4, T6, T7) 5.Incorporate incentive programs to consumers that fly using Ryanair both ways. (W7, W3, T3, T8, T9) S-T Strategies: 1.Have a set percentage of fuel costs hedged per year in continuing to hedge fuel costs.(S6, T2) 2.Discover new cabin layouts to seat more customers per flight. (T1, T2, T8, S2, S3, S9) 3.Start offering flights outside of Europe. (T3, T4, T6, S3, S8, S9) 4.Convert older planes and start new business in delivering freight & cargo. (T4, T6, T8, T9, S1, S7) 5.Offer incentive programs (frequent flyer miles etc.) (S3, S4, S8, T3, T9) 27April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK

28 Space Matrix Financial Position rating is 1 (worst) to 7 (best) Ratings 1Sales growth 21% Past Year Quick ratio at Highest Profitability Ratios amongst competitors6.0 4Debt to equity at Financial Position Total15.0 Industry Position rating is 1 (worst) to 7 (best) 1 Moderately High Government Regulation5.0 2 Barriers of Entry are High6.0 3Growth Potential4.0 4 Reliance on flight turnarounds and plane productivity5.0 Industry Position Total20.0 Stability Position rating is -1 (best) to -7 (worst) 1 Rising and Unstable oil prices-7.0 2Cooperation with weather and natural disasters-6.0 3ATC Strikes and employee walkouts Price competiveness amongst other airlines-4.0 Stability Position Total-22.0 Competitive Advantagerating is -1 (best) to -7 (worst) 1 Market Share 2 Modern, Economically friendly fleet Use of Modern Technology compared to rivals #1 on time major airline-2.0 Competitive Advantage Total-9.0 X Coordinate2.75 Y Coordinate April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK

29 Space Matrix Cont’d… Possible Strategies: 1.Backwards, Forward, or Horizontal Integration 2.Market Penetration 3.Market Development 4.Product Development X Coordinate2.75 Y Coordinate April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK

30 Grand Strategy Matrix Possible Strategies: 1.Backwards, Forwards, or Horizontal Integration 2.Market Penetration 3.Market Development 4.Product Development 5.Diversification (Related) 30April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK

31 Matrix Analysis Alternative StrategiesIESPACEGRANDBCGCOUNT Forward Integration XX 2 Backward Integration XX 2 Horizontal Integration XX 2 Market Penetration XX 2 Market Development XX 2 Product Development XX 2 Related Diversification X 1 Unrelated Diversification Retrenchment Divestiture Liquidation 31April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK

32 Possible Strategies 32April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK Market Penetration 1.Additional routes to further increase number of passengers and total overall traffic. (O3, O6, S3, S8, S9, S7) 2.Expand and diversify Ancillary Services both offline and online. (O1, S4, O4) 3.Start business in primary airports. (O1, O3, O5, S3, S7, S8) 4.Upgrade web advertising and services that are not as publicly controversial. (W1,O4) 5.Begin offering round trips at competitive prices. (W7, O8) 6.Offer package deals on ancillary fees to increase attractiveness. (O1, O8, O3, W2 7.Incorporate marketing and HR executives to better promote company. (W1, W2, W5, O3, O4) 8.Discover new cabin layouts to seat more customers per flight. (T1, T2, T8, S2, S3, S9) 9.Offer incentive programs (frequent flyer miles etc.) (S3, S4, S8, T3, T9) 10.Start new ethical, socially responsible, and positive attitude advertising campaigns. (T4, T8, W1, W2) Market Development 1.Teach aviation/engineering courses through a university that utilizes their assets to start new business ventures. (S2, S1, O2) 2.Start offering flights outside of Europe. (T3, T4, T6, S3, S8, S9) Product Development 1.Convert older planes and start new business in delivering freight & cargo. (T4, T6, T8, T9, S1, S7) 2.Hire corporate travel agents to syndicate traveling process for consumers in need.(W2, W3, W5, W7, O1, O3, O8)

33 Increase Online/Offline Advertising Start Flying into Primary Airports Increase and Diversify Ancillary Services WeightASTASASTASASTAS External Key Factors 1 to 4 Opportunities: 1. Success in Ancillary services ( leads to new open markets for joint ventures) Open up their aviation repair service and flight training programs to operations outside the company Customer base is expected to grow up to 85 million passengers Pursue web-based advertising and new Reservation system Start flying into 10 to 12 primary airports (European airports have shown interest) Popularity increasing in Eastern Europe and Asia for tourism and business gatherings Corporations pursuing appearance and expansion into African Operations Expand clientele during hard financial times by gaining customers who do not desire premium flights More political and governmental influence/charges in primary airports increases attractiveness in secondary airports (€ 11 tax on European departures) Threats: 1. New IAA Rules on flying hours and aircraft regulations could increase future expenses Unpredictable and uncontrollability of rising fuel costs; €350 million in 2012 regardless of hedging Greek debt crisis and unstable European economy negatively affecting future operations Last year 14,000 Ryanair flights were cancelled due to volcanic ash disruptions, airport snow closures and repeated ATC strikes The majority of Ryanair’s profits are subject to Irish Corporation Tax at a rate of 12.5% and a raise may adversely impact Ryanair's cash flows, finances, and operations Already paid 88 million in claims last year due to the EU 261 regulations where the airline has to cover accommodations and compensation In the future legislation will require airlines to pay about €1.4 billion for emissions of carbon dioxide which will rise to €7 billion by Too much growth too fast; Expansion into Eastern Europe means competing with already existing players in the market and operating on even tighter margins Increased competition from alternative forms of Quantitative Strategic Planning Matrix (QSPM) 33April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK

34 Internal Key Factors 1 to 4 Strengths: 1. Modern/Low Cost Fleet single aircraft type; average plane age 2.94 and no plane older than 8 years on fleet Profits increased by 25.6% from Traffic grew 8% to 72 million in Ancillary revenues grew by 21% to €802 million for fiscal year Dividend of €500 million paid to shareholders in 2011 equaling €846 million returned in the past 3 years At March 31, 2010, the Company had hedged approximately 90% of its estimated fuel exposure for the year ending March 31, Number one on-time airline in Europe Added 328 new routes to their already existing routes which gives them a total of more than 1300 routes Revenue passenger miles (rpm) grew 14.4% between 2009 and Weaknesses: 1. Bad Public Image; Has had several complaints filed against them by Advertising Standards Board (ASA) Complex Fee System leading to customer dissatisfaction; charge fees where others do not 52% of average final cost is in extras and fees Only arrive at secondary airports, no option for arrival at primary airports Ryanair resulted in a €2.2 million loss on its Aer Lingus shareholdings due to a decline in the Aer Lingus share price from €0.73 to € Organizational structure lacks key executive positions High operating costs: fuel Costs itself rose 37% from ’10-’ Do not offer roundtrips Debt to equity ratio is 1.91 compared to.79 of the industry average Earnings per share is only 25 Euro cents compare to main competitor Easy Jet at 52 Euro cents WeightASTASASTASASTAS Increase Online/Offline Advertising Start Flying into Primary Airports Increase and Diversify Ancillary Services Quantitative Strategic Planning Matrix Cont’d… 34 April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK

35 Strategic Objective Market Penetration: – Addition of Human Resources & Marketing Divisions – Increase Funds for Marketing/Advertising April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK35

36 New Organizational Structure 36April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK

37 Investment Figures 2 New Sectors Increasing from 8 to 10 Each sector costs €47M in Staff Costs (376.1/8) €94M rough costs Estimated €110 for Projections Increased Marketing 60% increase in Marketing Expense from last year(2011)  €100M increase April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK37 Total Investment Costs: €210M *All Investment Costs will be funded from Cash Account

38 3 Year Goals 2012 – Organize and Implement new Organization Structure – Increase revenues from 2011 by 20%  €4, – Increase revenues from 2012 by 25%  €5, – Increased revenues from 2013 by 25%  €6,805 88% increase in revenues from 2011 April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK38

39 Strategic Implementation April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK39

40 Management Issues April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK40

41 Projected Income Statement April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK 41

42 Projected Balance Sheet 42April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK

43 Projected Ratios 43April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK Liquidity RatiosRyanair (2011)Projected Current Ratio Leverage Ratios Debt to Total Assets Debt to Equity Long-term Debt to Equity Effeciency Ratios Total Assets Turn Profitability Ratios Operating Profit14.20%11.50% Net Profit10.30%8.40% ROA4.40%4.10% ROE12.70%11%

44 Strategic Evaluation Areas of ObjectivesMeasure of TargetTime ExpectationPrimary Responsibility Customers 1.Satisfaction 2.Brand Identity 1.) Random Customer Survey with at Least 85% Satisfaction Rate 2.) Industry Reports Yearly EvaluationCaroline Green (Director of Customer Service) Employees 1.Quality and Service Training 2.Employee Satisfaction 1.) Online & In Class Training 2.) Employee Surveys (85%) through focus groups Yearly EvaluationMichael Cawley (Chief Operating Officer) Marketing 1.Number of Passengers 1.) 2% Increase per yearYearly EvaluationMichael O’Leary (Chief Executive Officer) Business Ethics/Natural Environment 1.Waste Reduction 2.Ethics Training 1.) Upkeep on fleet maintenance 2.) Employee Workshops Quarterly Evaluation Michael Hickey (Director of Engineering) Financial 1.Revenues 2.Ratio Analysis 1.) Year 1 20%, Year 2&3 25% per year 2.) Better than Main Competitors Yearly EvaluationHoward Miller (Chief Financial Officer) 44April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK

45 Ryanair Update 45April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK

46 Stock Performance April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK 46 49% Increase in Stock Price

47 Ryanair Update April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK 47 Ryanair named Europe's Greenest and Most Efficient Airline #1 In European Airline Traffic 79M 93% on time Arrival Rates; Closest competitor Lufthansa at 85% Expanded from 44 bases to 57 bases; 1,500+ routes from 1,200

48 Questions 48 April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK

49 References Ryanair. Securities Exchange Commision, (2011). Form 20f ( ). Retrieved from Ryanair website: Ryanair. (2011). Annual report. Retrieved from Ryanair website: CAPA. (June, ). Ryanair swot analysis: Addicted to growth, a great model for bad times. Retrieved from to-growth-a-great-model-for-bad-times-7633http://centreforaviation.com/analysis/ryanair-swot-analysis-addicted- to-growth-a-great-model-for-bad-times-7633 Major opportunities remain in europe-ryanair route director. (November, ). Retrieved from remain-in-europea-a-ryanair-route-director/ CAPA (June, ). Delta now world’s largest carrier; ryanair stays top international airline. Retrieved from carrier-ryanair-stays-top-international-airline David, F. (2013). Strategic management: Ryanair holdings case. (14th ed., pp ). Upper Saddle River, New Jersey: Prentice Hall. April 2013, Thomas Elias, Alison Tardie, Brandon Plourde, Loren Plourde, UMFK49


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