Ryanairs Corporate Culture

Ryanairs collective Culture1. SummaryThis report attempts to analyse the collective conversation strategies authenticly employed by Irish budget air passage Ryanair with respect to the various confabulation frameworks in place, whilst focusing on both immaterial and national stakeholders. Finally an analysis of Ryanairs incorporate polish and HRM scheme with respect to their fascinate upon employees within the arranging.2. IntroductionCorporate communication distinguishes itself from other forms of communication such(prenominal) as focus by the means in which it bases itself upon the organisations corporate perspective, the stakeholders it addresses and the management activities within its scope (Cornelissen, 2005) According to Argenti Foreman (2002) corporate communication slew take the fictional character of two forms as a function which may be dispersed across an organisation, or as a process to reach all of its constituencies. An inhibit definition from Argenti (2002) avers Corporate conference as the corporations voice and the regards it projects of itself on a world stage populated by its various audiences corporate reputation, corporate advertising and advocacy, employee communications, investor relations, government relations, media management and crisis communications. A consequence of these characteristics is that they are complex in nature especially when referring to multi-national organisations (Cornelissen, 2005) such as Ryanair therefore effective communication strategies demand an integrate approach to communications management.Successful communication strategies firely identify the organisations differentiating factor, or the profile which it wants to portray to its stakeholder groups. In the case of Ryanair its differentiating factor is its expertness to consistently offer lowest cost scheduled airline tickets (Hagele, 2006). Micheal OLeary (CEO) says of his corporate strategy Its the oldest, simplest formula Pile em high and sellem cheapWe want to be the Wal-Mart of the airline business. Nobody will beat us on price. EVER. A powerful but contraversial message aird by OLeary, which as the paper will treat later synonmous with Ryanairs communications strategies.The objective of this paper is to identify what global communication framework/ s Ryanair are currently using analysis of both indwelling and external corporate communication strategies and their subsequent impact with reference to engaging both internal and external stakeholders. Finally identification of Ryanairs corporate culture and its influence upon battalion within Ryanair.The aim of this paper therefore after discussing the objectives is to decide whether the frameworks and communication strategies Ryanair use are effective in maintaining their position as the European low-cost budget airline for both internal and external stakeholders.3. Communication strategyIntegrated Corporate Communication framework within Ryanair Corporat e Communication as an integrated framework for managing communication (Cornelissen, 2005)Ryanair holistically combines both marketing, advertising, technology and public relations practitioners together in an integrated communications framework model (Cornelissen, 2005) drawing upon management strategy, consumer behaviour and cheekal theory (see appendix) to manage the companys reputation and maintain steel equity. Integrated communication is created at the corporate betray level for Ryanair with the close of enhancing its positioning within the market as Europes lowest price airfares whilst maintaining its competitive strategy. Un identical other organisations that have placed corporate communications managers into executive teams (Cornelissen, 2005) OLeary does non surveil this example, preferring instead to council its head of corporate communications Stephen MacNamara and head of marketing Dara Brady, and rather instead maintaining control over Ryanairs communication stra tegy in its entirety. OLeary orchestrates Ryanairs communication strategy from the management team down with a hierarchical approach, enabling communication from a corporate strategic level which is reflected within its corporate culture.What makes Ryanair such a success is its inherent force to consistently communicate the same offering and its core strategy to stakeholders of low price regardless of the landscape it finds itself within. O Leary is able to leverage negative publicity associated with an event or incident at Ryanair and exploit this free opportunity to promote greater exposure of the brand and re-iterate how successful they really are. For example by utilising existing media channels such as an internet bloggers page who has posted a negative blog regards Ryanair, the companys integrated communication framework enables a quick response from MacNamara who instead re-enforces how successful their business model is in providing the cheapest fares around. What makes Rya nair unique within the airline industry is their ability not to waiver from their strategy of low cost, even if this means the customer is not always right (O, Leary, 2007). This approach to communication strategy is strengthened by the Input-Output model of stakeholder management discussed later in the paper and shown in the appendix.3.1. Internal CommunicationsThe organisation defines itself as a low-cost airline the consequence of this is that contrary other airlines that can pass on additional cost increases to the customer such as increasing fuel prices Ryanair are unable to do so. because their communication frameworks revolve around low-cost channels such as face-to-face, conventional print media and a heavy emphasis on technology and web-based communications system such as the Ryanair intranet, enabling employees such as flight crew, maintenance and ground staff, amongst others to access critical information and maintain quality management. Ryanair attempts to communicate with its employees (Annual Report, 2009) through a variety of communication channels an internal staff newsletter called The Limited Release provides employees with up-to-date plans, issues and gainsays within the aviation industry, where further workaday news bulletins are broadcast on Ryanairs internal TV network.Additionally the organisations Employee Representative Committee (ERC) (one per department) liaises with Ryanairs European Works Council to provide guidance on current aviation issues pertinent to employees. Therefore using an integrated framework encompassing word-of- mouth, electronic channels, and periodical print media has enabled the organisation to minimise tangible costs. Only deep OLeary was quoted in the media for criticising employees for stealing Ryanairs electricity by charging their mobile phones (ref).3.2. External communicationsAs an entrepreneurial organisation Ryanair believes it possesses the right to play outside the box and follow its own path, cha llenging the status quo of corporate communication and pushing the aviation industry boundaries. As a result OLeary, MacNamara and Grady follow an external communications strategy which more(prenominal) often or not is designed to provoke the audience rather than to attract (see appendix). What is consistent is Ryanairs approach which is synonymous with old school everyday Relation strategy in that it focuses on communicating the same message repeatedly low fares through online, print and . channels in an attempt to honour the notion of good value with consumers. However, whilst it can be argued that this strategy may seem archaic it actually proffers the advantage that Ryanairs positioning strategy is absolutely clear to its stakeholders in that its offering is low priced airfares and absolutely nothing else.OLeary has a reputation as a hard-nosed businessman choosing his words care amply but with the excogitation to cause as much controversy as possible which ultimately create s a paradox of both artistic creativity and destruction. Screw the share price, this is a fare war We bow down to nobody. Well stuff every one of them in Europe, we wont be second or third and byword didnt we do well? In business, honesty is a dirty word. People say the customer is always right, but you know what theyre not, sometimes they are unconventional and they need to be told so (Michael O Leary, 2007) Using a provocative vocabulary ensures that during crisis management strategies in the event of negative publicity OLeary is able to leverage as much exposure as possible for Ryanair which ultimately leaves the company at the forefront of consumers minds. The most recent examples of these have been the (perhaps?) faux-pas of Ryanair employee responses back to online bloggers regards disagreements in online glut complaints about customer service (see appendix)3.2.1 ValuesTo complete3.2.2. Key stakeholdersAccording to (Johnson Scholes, 2008), organisational stakeholders are those individuals or groups who depend on the organisation to fulfil their own goals and on whom, in turn , the organisation depends. Furthermore (Wall Rees, 2004) and (Johnson Scholes, 2008) suggested that stakeholders are other social groups who are affected by the activities of the firm and whom in turn, the organisation depends. This section identifies the major(ip) stakeholders of Ryan Air and how they are important to the firm however Ryanairs stakeholders encompass a wide range of groups which can be classified as both 1) societal 2) economic (organisational) with each group unique in their expectation as stakeholders of Ryanair. The former range from pressure groups, competitors, suppliers and customers, where for example customers are legally entitled to clear trading practices differs from the latter (organizational) comprising of shareholders and employees, who are entitled to extra rights under the rule of corporate governance. The model which aligns most closely wi thin Ryanair for both internal and external stakeholders, if OLearys approach to corporate communications is followed is the Input-Output model of strategic management (Cornelissen, 2005) (see appendix). This emphasises that power lies within the organisation, upon which other stakeholder groups are dependent in respect to their relationship with Ryanair this is illustrated by OLearys clear disregard for stakeholder perception across all groups.Internal StakeholdersEmployees within Ryanair are according to OLeary a cost (2006) until they are able to contribute amply to the business, demonstrated by the corporate culture of reducing overheads by externally sourcing cabin crew and making new employees pay for their training with the organisation until fully qualified and an asset to the company. Further to this a compensations structure following the premise of pay on the basis of transactions undertaken meaning sectors flown (Mayer, 2008) ensures that cabin crew have a lot of the c ost impact to delayed flights creating an incentive through commission to market other Ryanair products. Further to this the absence of any trade wedding or regulatory body at the request of O Leary ensures that whilst these stakeholders are ruled under fair corporate governance they are seen to be liquid commodities.External Stakeholders -to completeUnlike more conventional stakeholder models OLeary does not apportion importance to external governmental or regulatory influences rather choosing instead to challenge them .i.e. the European Union over competition policy in 2006 (ref) and British airport accusations over unfair charging practices over recent years. This strengthens the notion that the Input-Output model of stakeholder management is correct in reference to the power lying within Ryanair rather than with its stakeholders. However effective communication is a key success factor of this organisation is respect to its approach of its relationship with new airports. MacNam ara uses a tactic which involves generating awareness of potential new routes by announcing instead the new jobs it will create and the evaluate increase in volume of passengersSuppliers bargaining power for fuel is high, medium for aircraft and medium low for airports sourcing, purchasing and procurement is done face-to-face negotiation like most b2b business.3.2.3 Corporate Culture, brand, image and individuationCorporate CultureMelewar (2006), corporate culture is impacted by history of the company, the founder of the organization and country of get-go of the organization. There is link between corporate culture and corporate history because the interaction among the group can develop culture. Melewar (2006) stated that the founder of the company can affect the corporate cultureThe corporate culture of Ryanair is very much influenced by OLeary, strengthening the notion that the CEO can dictate the corporate culture of the airline. Schein (1992) posits culture to be accumulated shared learning of a given group, covering behavioural, emotional and cognitive elements of a group members total psychological surgical procedure addressing a shared understanding of culture contrasting with Johnson and Scholes (2002) who aver that the basic assumption and beliefs that are shared by members of an organisation, that operate unconsciously and define in a basic taken for-granted fashion an organisations view of itself and its environment addressing instead repeated behavioural patterns. When attempting to analyse Ryanairs corporate culture the former analogy becomes more prominent. Ryanair corporate culture is more focus as an airline company based in Ireland, representing the Irish culture Organise, reliable, and kindly (Ryanair.com, 2009).Corporate brandBalmer (1995), corporate brand refer to corporate reputation, corporate image and concern on perception. It focus on all internal and external stakeholders, and boarder merge than traditional marketing mix, and it require commitment from all staff, senior management as well as financial support. From Balmer (2001), the favorable corporate brand came from organizational identicalness. Ryanair brand core is the low cost flights for all. This brand core is applied to focus on the cost of Ryanair brand which is available at different levels for differents types of customers (Ryanair.com, 2009). It also emphasizes on the promise that the brand communicate to the stakeholders. Furthermore, the effectiveness of the communication depends on the gab between the performance and promise although in Ryanair we see more students, leisure people than business people. Nevertheless people from any background can afford to use the service.Corporate imageAbratt (1989), Grunig (1993), and Van Riel (1995), there are three approached of corporate image which include psychology, graphic design and public relation. From Balmer (2001), the corporate image came from managing business identity. Moreover, corporate i mage related to immediate mental perception to the organization held by individual group.Corporate identityAbratt (1989), Balmer (1998) Olin (1990) and Van Riel (1997), corporate identity focus on culture, strategy, structure, history, business activity and business scope. Corporate identity is the mix of elements which give the organization their distinctiveness. And the key questions are who are we, what are structure, strategy, business, reputation, performance, business and history. Ryanair corporate identity is based on bleueness (The corporate colour) meaning they are up for it, passionate, sharp mad about safety and mad about cost. Bleue is what make Ryanair different.3.2.4 HRM Strategy -to complete4. ConclusionsTo complete5. BibliographyAbratt, R. (1989), A new approach to the corporate image management process, Journal of Marketing Management, 5(1), 63-76.Annual Report, Ryanair.com. (2009), Annual report 2009, Online at URL http//www. Ryanair.com/ Last accessed 22nd March 2 010Argenti, P. (2003) Corporate Communication, 3rd edition Mcgraw cumulationArgenti,P. (2009) Corporate Communication, 5th edition, McGraw- Hill Education.Balmer, J.M.T. (1995), Corporate branding and connoisseurship, Journal of General Management, 21(1), 24-46.Balmer, J.M.T. (1997), Corporate identity past, present and future, works paper, University of Strathclyde International Centre for Corporate Identity Studies, Glasgow.Balmer, J.M.T. (2001), Corporate identity, corporate branding and corporate marketing seeing through the frog, European Journal of Marketing, 35(3-4), 248-291.Cornelissen, J. (2005) Corporate Communication, Theory practice Sage usualationsDavies, A. (2002) Public relations Democracy Part 2Guirham, M. (1999) Communicating Across Cultures McMillanHarris et al, (2003) International HRM CIPDJohnson, G Scholes, K. (2002) Exploring Corporate Strategy, assimilator Hall Mitchell, Aigle Wood.Johnson, G Scholes, K Whtittington, R. (2008) Exploring Corporate Strategy , Prentice Hall Mitchell, Aigle Wood.Oliver S. (2001) Corporate Communication Kogan, PageMayer, S. (2008) RyanAir and its Low Cost Flights in Europe Marketing Plan Akamdemische Schriftenriehe GRIN VerlagMelewar, T.C. (2006) Seven dimension of corporate identity a categorization from practitioners perspective, European Journal of Marketing, 40(7/8), 846-69.Tourish D Hargie O. (2004) Key issues in organisational Communication RoutledgeVan Reil Cees.B.M. (1992) Principles of corporate Communication FT Prentice.Van Riel, C.B.M. and Balmer, J.M.T. (1997). Corporate identity the concept, its measurement and management, European Journal of Marketing, 31(5-6), 340-350.Wall, S and Rees, B (2004) International Business, 2nd Edition , Pearson Education Limited.6. AppendixProposed Stakeholder model with RyanairInput Output sit down of Strategic Management (Cornelissen, 2005)Ryanairs response to an Irish blogger Jason Roe who highlighted flaws over the website layout rather than thanking Mr .Roe instead staff commented(source Ryanair calls blogger lunatic The Telegraph, 25th February 2009)