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Management of change - Organisational Environment
Pages 3 (753 words)
Most passengers do not expect the earth from Ryanair as they pay less. This does not mean that there are no complaints from passengers. The proverb is 'you either hate Ryanair or love it wholeheartedly.' Flourishing on low fare, flying to nearly 103 destinations, 203 routes, across 17 European countries, Europe's largest low cost carrier, Ryanair had created a management coup and business revolution…
From that humble, but enterprising start ("With two routs and two planes, they carried 82 passengers in one year"), Michael O'Leary, its CEO, under whom it underwent an organisational change that took it to unbelievably dizzy heights with the following fantastic growth rate:
"Not only are there different types of change, which manifest themselves in different organisations, change also appears differently at different levels of an organisation and in its various functions," Senior (2002, p. 57).
Michael O'Leary adopted 'low fares, no frills' policy and in 10 years, Ryanair had carried 2.25 million passengers and was voted Best Managed National Airline by International Aviation Week Magazine. It launched its own website and sold tickets directly to passengers monopolising 95% of the total bookings. It can be conceptualised as Mintzberg's Entrepreneurial Organisational form. "..tends to be low in formalisation and standardisation, but high in centralisation with authority localised in a single person," Senior (p. 103).
In 2004, it recorded its first loss of 3.3 million and O'Leary warned of a 'bloodbath' out of which only 2 or 3 airlines would emerge winners, assuming Ryanair would be the first one. ...
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