Ryanair

Páginas: 2 (362 palabras) Publicado: 9 de abril de 2011
Executive Summary
1. Purpose and scope of the Report
This Business Plan develops Ryanair’s long term vision by verifying the Business Model and
analysing future possibilities and threats. Itdemonstrates how the airline will have to perform and
on which factors management has to focus in order to stay in a strong position in the low cost
market. The Plan proposes options the company shouldpursue in the form of an action plan
which outlines future strategies and how they will be carried out.
The Business Plan ranges from an industry analysis to an internal financial analysis. Itintegrates
the impact of competition in the market of low fare airlines with our own financial viability.
2. Methods
The strategies put forward in the Plan have been developed through a range offinancial analysis,
scenario cases, research processes, forward thinking.
Interviews and analyst reports were also used to develop a set of Objectives. The following
spreadsheets are used and are alsointerlinked so as to follow any change caused by a variation of
any key variable in the Business Model.
 Income statement
 Balance Sheet
 Cash Flow Statement
 Depreciation calculations
 DCF
DDM
 Sensitivity analysis
3. Results
As a result of the Free Cash Flow Model, the base case we propose would indicate a share price
of €7.14. In our worst case scenario the share price is €2.30and finally in the best case scenario it
is €14.36. The sensitivity analysis works as a management tool in order to quickly react to any
sudden changes of certain variables such as fuel costs, loadfactors and airport charges.
4. Conclusion
Based on results from the Scenario cases, which show vast differences between the best and
worst cases, we can conclude that the industry is volatile andrisky. The Sensitivity analysis shows
us that the industry is very complex and thus management must take extreme care when making
any decision. Rising airport and handling charges will not have a...
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