Business and the Business Environment of Ryanair and National health Service

PART – 1 (LO1 & LO2)

Purpose of different types of organizations

Talking in relation with organization, it is defined as an entity that significantly encompasses different people with a common goals and connection with the external business environment. There are different types of organizations such as private, public and voluntary and each have their own purposes and structures. In this current tasks Cancer Research, Ryanair and National Health Service organization of UK is being taken into consideration and their respective purposes are being defined below:

• Cancer Research – It is a cancer research and awareness charity in UK with a main vision to beat the cancer together (Cancer Research UK Centre, 2018). It is a charitable organization with the main purpose to help people in understanding cancer and working in partnerships so as to fight against the cancer. Further, they want to improve the lives of all people and thereby helps the society considerably.
• Ryanair – It is an Irish low cost airline being founded in the year 1984 in Ireland. The main purpose of the company is to become low cost leader in the European airline industry. Further, there main focus is on earning higher amount of profits without placing too much emphasis towards society (Ryanair returns to profit, 2010).
• National Health Service – It is a public health organization of UK, engaged in offering range of health services for people of the country. It provides service at nominal prices to resident of UK and even some of the services are exempted from the charges as well. Thus, there concern is to earn profit but supporting and helping the community is also their priority (NHS, 2018).

Background informations about the three organizations

Inter-relationship of functions of Cancer Research and how they related with the structure

Each and every firm has their own way of carrying out activities, possesses different functions, size, scope and structure. Even organization belonging to the same industry have some or the other differences. These variations are mainly caused from their organizational structure and functions. Then current business environment is very complex and competitive; however there functions such as marketing, finance, human resource and research and development are generally similar (Burke, 2002). Companies get their foundation from its structure. A proper structure being adopted by the company will help in reaping out better level of performance. There are mainly three kind of organizational structures i.e. functional, divisional and matrix. Focusing towards the functional structure it supports the organization by categorizing it as per functions being carried out by them such as sales, operations, marketing etc. On contrary, the divisional structure divides the responsibilities of the workers as per the projects and plans. Finally, in matrix structure, the accountabilities are categorized according to both functions as well as products. It is being referred as one of the most complex structure wherein the authorities which controls the activity are different. Thus, it can be attributed that it is vital for the organizations to choose appropriate structure according to the type of industry they fall into (Craig and Campbell, 2012).

Cancer research is a research and awareness charity in UK with a main vision to beat the cancer together. It is a charitable organization with the main purpose to help people in understanding cancer and working in partnerships so as to fight against the cancer. Cancer research, UK also carries out functions being described above such as marketing, research and development, finance and human resource and all of them shares relationship with each other. Delinquency in one department will influence the other one (Robert, 2006). Though the function being performed by them have a common pre-determined objectives i.e. satisfaction of the patients, maximum awareness and achieving growth and success. 

Cancer research organization is quite known in United Kingdom. They have also carried out numerous world class research activities in various universities, hospitals and institutes all around the UK through their own workers and by grant funded researchers. Other than this, awareness in regards with the disease is also raised by making use of effective advertisement as well as campaigns. They have achieved recognition on a global level majorly with the support of the marketing and research and development function. Seeking help from these functions, the firm was able to research different aspects of cancer and death causing bacteria by employing more than 4000 researchers in almost 42 UK universities (Worthington and Britton, 2014). With these elaborative researches, the operations department of the cancer research was able to diagnose the best suited treatment, symptoms and other major aspects of curing the patients suffering from cancer. Even the marketing department was also involved significantly, as the firm has initiated numerous campaigns to aware people about the deadly disease. This has certainly helped the organisation to raise donation and money which was further utilized in research purposes and treatment of the people. Consequently, it can be attributed that functions of cancer research are inter-related with each other. Further, with the proper structure, coordination in the activities of functions was also made possible within the firm (Smith, 2007).

PART– 2 (LO3 & LO4)

Positive and negative impact of macro-environmental factors using PESTEL model

• Political – The political system of the nation and their inter-relationship influence the airline industry in a greater sense. The uncertainty over Brexit was considered as a challenge for the business environment. Further, terrorist’s attacks in Europe will impact the demand of air travel. Increase in the rate of tax by the government will influence the demand pattern of the business of Ryanair.
• Economical – Oil prices are expected to remain around $40 a barrel which will help the firm to have more operational margins. Because of the weaker GBP post Brexit, it will put pressure on fare prices. An increase in the inflation rate will increase the expense of the business and ultimately the products and services will be priced higher. This again decrease the purchasing power of the people (Baron, 2012).
• Social – In this current era, consumers are now preferring high speed rail over airlines on short haul routes. In addition to this, they are also willing to pay more on ancillaries if ticket cost is less. This can be an opportunity for Ryanair as they are low cost airlines.
• Technological – Because of the enhancement in the digital platforms such as mobile, smart phones, websites etc. the experience of the customers have improved a lot. Pertaining to this, people are more willing to travel on a regular basis.
• Environmental – The regulation of European Union in regards with the emission for airlines might increase the costs for the Ryanair. This will again distress the customers due to availability of products and services at augmented prices. Furthermore, there is strong focus being made by the government of UK for environmental initiatives. Ryanair is also focusing towards environment and which is in turn helping them to stand out as a socially responsible brand (Weatherley and otter, 2014).
• Legal – Because of Brexit, the firm is required to comply with dual regulations i.e. of UK and EU. Other than this, Ryanair is also subject to lawsuit European commission for getting help from the state at certain airports in Europe. This will help in increasing the revenue of the firm. 

SWOT analysis of Ryanair

Interrelationship of strengths and weaknesses with macro-environmental factors in the context of Ryanair

The strength and weakness of Ryanair being identified above has inter-relationship with the external macro-environmental factors. Taking support from the strength and opportunities, the company can determine the level of risk revolving around in the market and thus, they can create efficient strategies and plan considerably. With the help of PESTEL analysis, the company was in a position to determine that they will face numerous challenges or threats such as rising level of competition, increasing tax rates and fuel prices etc. All this can be mitigated by focusing towards the major strengths of Ryanair and development of structured plans on the basis of that. Furthermore, the management of the firm performs comparison of their strength with macro-environmental factors such as social, political, environmental etc. and accordingly the plans, policies and strategies are being formulated. For instance, if there is alteration in the environmental factors than business decision will be affected (Pandey, 2013). Further, the effects of change in the interest rates, tax rates and exchange rate can be minimized if the firm has strong financial conditions and sound assets. Additionally, Ryanair is a low cost airline and have larger market share, this strength can be used as a proactive tool for all these economic aspects. Moreover, the strength of Ryanair is generally based on social as well as economic factors and thus, the main opportunities for the firm might be to grow in the short haul routes which are not yet captured by any airline.

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