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Case Study Ryanair and Virgin Atlantic Study

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Case Study Schoolwork LEADERSHIP and ORGANISATIONS BABA SDL 2012-13’B’ Virgin Ocean and Norwegian air This case looks at two organisations that have various similarities as well as a number of significant differences. The fundamental technology and systems in back of each business may be very identical, but the nature and style of management as well as consequent impact on the way persons working in these types of organisations think, feel and act have created different organisational nationalities.

So what will be the similarities and what are the differences? The most obvious likeness is that the two Virgin Ocean and Whizz air operate in britain passenger air flow transport sector.

Both are relatively recent creations and might be seen as new traders to the sector: Virgin’s atmosphere transport organization was founded by Richard Branson in 1984 and Michael jordan O’Leary had become the Chief Executive for Ryanair, a small Irish air travel which have been founded while Guinness Peat moss Aviation in 1985 (Creation, 2004).

Equally started your life in competition with major national banner carrier air carriers (British Airways and Aer Lingus respectively) and grew to be major challengers to these set up companies. Because they grew, their very own scale of operations brought them in competition using a much larger number and range of airlines operating from the UK: Branson’s Virgin Atlantic competes with some major US and also other intercontinental firms such as American Airlines and United Air carriers, O’Leary competes with the wants of Flybe and EasyJet in the short-haul market.

The two Branson, who was born in 1950, and O’Leary, who will be ten years young, are individuals with strong and distinctive people, who have a relentless urge for food for mass media presence and who make extensive make use of themselves inside their frequent marketing and sales communications. They take part in advertising stunts, readily show on the news media in relation to tales about the industry, and their faces and personalities are often associated with all their companies. Charting different courses There are, yet , some key differences. 1st, they change in their choice of markets.

Virgin’s air travel business originated in the long-haul, mainly across the atlantic market which were highly successful but is usually extremely competitive. As the business grew, offshoots were founded as 3rd party companies, for example, Virgin Green in Australia and Virgin Share which has their hub in Brussels and serves Euro destinations outside of the UK and compete immediately with Whizz air. Ryanair began as a short-haul carrier and has remained therefore , focusing on Western european destinations from being a mere number of air-ports in the UK and Eire. Both companies’ competitive positioning is likewise very different.

Norwegian air is well known since , The reduced Cost Airline’, the first thing that hits you in its advertising material is the price and this is very plainly the main of their business technique (Ryanair website). The , no frills’ approach means just that: your in-flight food is limited to sandwiches and costs extra. Virgin, by contrast, attracts passengers by offering an excellent experience and is also firmly situated at the top quality end of the market: Publicity material emphasises style and comfort, and a range of in 0.25 Case Study Schoolwork LEADERSHIP and ORGANISATIONS BABA SDL 2012-13’B’ light accessories which, also at the economic system end in the price range, involves in-flight meals and drinks and packs of , amenities’ including flight clothes, eye colours and lips balm. As was observed, both men love promotion stunts and frequently use humour in their open public communications. Branson is usually cheerful and in postures which indicate fun and a desire to present close links with his staff and popularity with employees, customers and the public in general. O’Leary is much more likely to be tartish, critical and uses what might euphemistically be known as , colourful’ language in the public claims.

He seems to care little about public opinion of him as an individual and has been in trouble with the marketing standards authorities in the UK and Eire upon more than one event for , offensive’ adverts that have raise red flags to people coming from British Breathing passages (who had been accused of being , Costly ba 2. * * * ds’ in an Nighttime Standard advertisement in 1999) and the Catholic Church (the ‘Fourth Key of Fatima’ advert of 2000 showcased the Pope) (Creation, 2004). The brand ideals are also completely different. Virgin being a collection of businesses does from running locomotives, manufacturing contraceptives and makeup o giving financial services. All of these enterprises happen to be linked by single highly effective central picture of the creator and the attribute red livery, Ryanair will one thing and one thing simply, but in doing this sets a buccaneering sculpt, readily dealing with authorities like the European Union more than competition insurance plan and the British Airports Government bodies over charging practices. Branson has absolutely had his conflicts with British Breathing passages, notably within the , grubby tricks’ affair of the early on 1990s, but is not likely to obstacle governments.

Virgin tries hard to build client loyalty and gain duplicate business through brandrelated support values, Ryanair’s repeat business (and for a few customers the Ryanair encounter is one which inspires the thought , never again’) is usually on value, not dedication to the brand. These dissimilarities have an important effect on the nature of employment relationships and the internal contract involving the two companies and their personnel. Working for Richard and Eileen Each company’s brand graphic and take care of customers possess a bearing on the nature of efficiency relationship with staff, and vice versa.

Areas of organisational behaviour therefore show through in a variety of interconnected ways to generate consistent and extremely different cultures. At Virgin Atlantic, vacation cabin crew exist to be beneficial and welcoming, they are crucial projectors of the trademark image and their job can be partly to encourage the allimportant consumer loyalty which generates continuous profit. The importance of personnel as companies of business values is clearly shown in the recruitment material and other statements about the nature of am employed at Virgin Atlantic.

Virgin Atlantic brings together many people in most manner of jobs, all playing a crucial part in the soft running of your very sophisticated operation. Nevertheless whoever you are and wherever you join us, you’ll never stop considering our buyers and what 2/4 Case Study Coursework COMMAND and ORGANISATIONS BABA SDL 2012-13’B’ we are able to do for these people. From frontline cabin staff to THIS analysts, everyone here results in delivering the Virgin company. That means using initiative, taking responsibility to your actions and being prepared to support all those around you always.

Similarly, you are going to play the part to maintain the friendly, unconventional professionalism and reliability that makes Virgin mobile Atlantic this kind of a unique work environment (Virgin Altantic website). The recruitment method is long and has a group interview which provides a filter for even more tests just before job presents are made. Teaching programmes for cabin staff and other personnel are work from a dedicated training middle, and there is an array of benefits pertaining to full-time personnel including eight free plane tickets a year, personal pensions and medical schemes and discounted goods and services across the Virgin group.

At Whizz air, the vacation cabin crew help a distributor organisation referred to as Crewlink. You can find whether you are qualified to apply for a career by addressing a series of eleven on line questions. Successful applicants for vacation cabin crew blogposts are trained at certainly one of Crewlink’s centres and are likely to pay a great up-front charge of ¬1, 200 for the fiveweek course (or with a ¬400 deposit it could be offset against initial year’s salary at a total cost of ¬1, 300). Students are generally not paid to attend the training course, successful graduates get a three-year contract with Crewlink to work on Whizz air flights over a shift-work basis.

Ryanair staff are not anticipated to make over night stops at its destinations. Post-tax starting salary is listed to be? 1, 75 per month (? 13, 200 pa), Crewlink suggests that following your initial 3 years, and susceptible to satisfactory efficiency, a permanent work with Norwegian air itself could be available at an income of up to? 25, 000 pa. Staff has to be flexible in terms of their work location across the 15 Western centres and Crewlink does not guarantee work if individuals specify a preferred operate location (Crewlink website).

In contrast with long bring, a short-haul operation involves very limited turnaround occasions and Ryanair aims intended for 20 a few minutes. This creates a very different pace and set of pressures within the workforce compared to those by Virgin, which can be likely to possess higher staffing needs levels and also to give crew longer others breaks inside the destination spots between flights. The nature of customer relations, by contrast, might be even more demanding for Virgin than at Ryanair , staff and buyers are collectively for longer and the brand picture must be taken care of.

Complaints and horror stories can be found about work at the two organisations, nevertheless , Ryanair is usually subject to an even more systematic and organised marketing campaign of criticism for its job practices by trade union organisations. In particular, the Foreign Transport Workers’ Federation has run a major campaign in its internet site since 2004 called , Ryan-be-fair’, the purpose of to pressurise the management in Ryanair in accepting the role of trade assemblage in which represents the staff.

It gathers comments by disgruntled team and former workers which usually give a taste of the detailed stresses and organisational tradition. Both organisations have been effective , Ryanair has turned in significant earnings for several years in a sector which is prone to disruption and financial loss and which has noticed a number of brands disappear (Buzz, Go and Debonair) (BBC, 2005). Virgin also continue to be go via strength to strength in a commercial sense. But the nationalities and beliefs which have them off the ground could hardly be more different (BBC, 2006). /4 Example Coursework COMMAND and ORGANISATIONS BABA SDL 2012-13’B’ Referrals Creation, S. (2004) Ryanair ” What sort of Small Irish Airline Conquered Europe. Arum Crewlink website www. crewlink. for instance International Transportation Workers’ Federation website www. iftglobal. org Ryanair internet site www. norwegian air. com Virgin Atlantic website, Working for All of us, http://www. virginatlantic. com/en/gb/careers/workingforus/index. jsp BBC Information articles: News website: www. news. bbc. co. e Profits Jump at Virgin Atlantic (27 May 2005) Ryanair Income Jump on Hot-spots (1 September 2006) Query: Using relevant leadership and organisational theory, explore the impact of efficiency features and external environment influences around the leadership and management styles and performance of Richard Branson and Eileen O’Leary. Critically evaluate the effectiveness of their command approaches inside their specific context with their certain set of ideal challenges. (1500 words) Concluding date: 1st April 2013, submit on StudyNet simply by 23. 30 UK period 4/4

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