rynair

8/10/2019 rynair

1/46

8/10/2019 rynair

2/46

Research And Analysis Report: Ryanair Holdings PLC Page 2

List of contents Page

Introduction 3

Information Gathered 5

Use of Analysis techniques and Models 7

Ryanair: The Company Overview 9

Financial Analysis 10

Business Analysis 25

Conclusion 28

Appendix 1 30

Appendix 2 32

Appendix 3 35

Appendix 4 39

Skills and Learning Statement 42

8/10/2019 rynair

3/46


INTRODUCTION

This research report contributes towards the Research and Analysis Project for submissionto the Oxford Brookes University. This research report, in all respects, is prepared in

accordance with the codes and guidelines prescribed by the University and does not breach

confidentiality and anonymity of the organisation(s) involved and the industry being

analysed.

THE TOPIC

Having read all the research topics approved by the University, one of them sounded like a

familiar choice among all and seemed the most interesting. Therefore I chose to work on

The Business and Financial Performance of an Organisation over a three year

period.

The reason I chose this topic was that being an ACCA student I have always been interested

in analysing the published Annual Reports of companies and I took this research work as an

opportunity to exploit my technical and professional skills. The other reason for choosing this

topic was that there was a vast amount of financial and business-related information

available from many different sources.

THE ORGANISATION

For the purpose of this research work I have chosen RYANAIR HOLDINGS PLC. The

reason I chose this organisation was simply because of my familiarity with the airline

industry. Even in the European Airline Industry there was a vast choice of airlines which

could be strategically categorised as:

Scheduled Airlines (Flag carriers)

Charter Airlines

Low Cost Airlines (Budget airlines)

RYANAIR is strategically placed in the Low Cost Airlines industry. To me RYANAIR was the

best choice for this analysis because of its rapid expansion, profitability, the success of it low

cost business model and its capture of the market share Europe-wide. According to the

figures provided by International Air Transport Association (IATA) in 2009, RYANAIR is the

largest airline in terms of annual international passenger numbers. And secondly in terms of

information, taking the fact that RYANAIR is the market leader, I was able to find a vast

amount of published information on this particular airline.

8/10/2019 rynair

4/46


THE OBJECTIVES AND THE APPROACH

As the name suggests, this research project will be focused on the business and financial

analysis of RYANAIR extending over a period of three years. Through this analysis I will beable to conclude the financial position and performance of RYANAIR and analyse its

business strategy and the industry it operates in. For the purpose of this analysis this report

has been divided into two sections.

(A) FINANCIAL ANALYSIS

To serve this purpose the financial analysis of RYANAIR will be conducted on the

published audited financial statements for the years 2007, 2008 and 2009 under:

1) Trend Analysis

Comparison of present financial ratios with the historic or future ratios to evaluatewhether RYANAIR is financially improving or deteriorating under:

o Profitability

o Liquidity

o Gearing

o Investor

2) Industry Comparison

Comparison of the financial ratios and market-share of RYANAIR with that of a

competitor in the same industry, EASYJET Airline Company Ltd.

(B) BUSINESS ANALYSIS

And to serve this purpose the following business models and analysis techniques will

be brought into use:

1) Five Forces model

Porters 5-Forces Model will be used to analyse the European airline industry under:

o Threat of new Entrants

o Substitute Productso Power of Suppliers

o Power of Customers

o Industry Competitors

2) SWOT Analysis

Analysing and identifying:

o Strengths

o Weaknesses

o

Opportunitieso Threats

8/10/2019 rynair

5/46


INFORMATION GATHERED

For any research process the information is vital and it is quite a task to gather relevant

information for analysis and evaluation. The nature of the information gathered for an

analysis depends largely upon the purpose. The information sources can be categorised as:

Primary Sources

This is the data collected by the researcher by means of questionnaires, interviews, surveys

etc.

Secondary Sources

This is the data collected by other people but which can be used by the researcher for hisown purpose.

SOURCES USED AND DATA COLLECTION TECHNIQUES

To carry on with this project I decided to take into account only the secondary information

sources to obtain relevant organisation and industry data. The main secondary sources used

are listed below:

o Annual Reports & Published Accounts

As for the financial analysis I had to gather financial data of the two companies

(RYANAIR and EASYJET) for the years 2007, 2008 and 2009. This contained the

annual audited accounts, the financial and business overview of the companies and

the summary of the business activities. I obtained these reports from the investor

relations websites of the respective companies. This secondary data was easiest to

gather as it was publicly available and could be used for the purpose of this research.

o European Low Fares Airline Association (ELFAA)

This body represents the budget airlines operating in the Europe. Their websitecontained detailed statistics of the low-cost airline industry. Their published statistics

served as a means to reconcile the Annual Reports of the companies operating in the

industry. Their publications were accessed online.

o International Air Transport Association (IATA)

IATA is the global trade organisation of the air transport industry in the world. It is a

representative body of about 93% of the scheduled airlines operating in the world. It

served as a means of preliminary research into the airline industry via online access.

8/10/2019 rynair

6/46


o Civil Aviation Authority (British and Irish)

CAA is the regulatory authority of all the aspects of aviation. This was a good source

of overall regulatory framework observed by the airlines. This was again accessed

online and their publications which were free to be used and downloaded were

considered at different stages of this analysis.

o Articles and Online News Archives

The BBC, The Financial Times and The Economist are only a few to mention under

this category. Their articles and news archives were a great means of obtaining

financial and business news. These again were all online accesses and the data

collected was of vital use.

o Other Relevant Secondary Sources

This contained the online access to the websites which were used for the

understanding of the business models and books used to grasp better knowledge of

the financial indicators. Also included in this was the material accessed to get athorough understanding of the key purposes of this RAP and acquire technical

business report writing skills. The best sources were the Wikipedia, Google and other

search engines.

LIMITATIONS AND ETHICAL ISSUES

During the process of information gathering, I came across many sources that were subjectto copyright and that material could not be used or copied without the express consent of the

organisation involved. This proved to be a barrier to the analysis as I decided not to use any

of the copyrighted material. Therefore in this project, all of the data gathered is free to use

and is publicly available. All the data is from the secondary sources and no primary sources

were used and so no other ethical issues arose during the data collection process. During

the process there was no access to confidential information, data was free from financial

inducements and the research complied fully with the ethical standards published by the

University.

8/10/2019 rynair

7/46


USE OF ANALYSIS TECHNIQUES & MODELS

In this section the underlying principles of the financial techniques and business analysismodels have been elaborated. It is important to highlight the issues and the body of

knowledge that underpins each concept and the principles followed throughout this report.

These are dealt as under:

(A) FINANCIAL ANALYSIS

Method used by the stakeholders to evaluate past, current and projected condition

and performance of the firm and ratio analysis is the most common method.(Allbusiness.com Inc., 2010)

The two types of financial analysis techniques listed under the approach heading are

taken as standard and are self explanatory. They are used as indicators and can be

calculated from the information available from the financial statements. There are

many uses of the financial ratios but these uses come with certain limitations which

are as follows:

o There is no absolute definition of calculating a ratio

o Ratios can be subject to manipulation

o Ratios can vary according to the accounting policies adapted

o Only takes into account the financial numbers ignoring the more important

non-financial indicators that affect the companys performance

o Does not take into account the time value of money

(B) BUSINESS ANALYSIS

Investigation into the operation of the business to expose the causes behind the

results achieved, and the effects of those results on the business.(WebFinance inc., 2010)

To carry on a business analysis, I came across a number of techniques and models.

For this purpose I decided to use the two models mentioned earlier. Here I take the

opportunity to further elaborate each of the models used for this research.

8/10/2019 rynair

8/46

8/10/2019 rynair

9/46


RYANAIR: THE COMPANY OVERVIEW

THE FACTS

o RYANAIR is a low cost airline having its headquarter at the Dublin Airport, Ireland.

o RYANAIR is floated on the Dublin and the NASDAQ Stock Exchanges.

o It serves over 150 destinations in 26 countries and operates over 1000+ routes.

o RYANAIR has a fleet size of 210 aircrafts (233 as of March 2010).

o RYANAIR serves routes across Europe and has a well-established market share

particularly in the UK and in the EU.

o It continues to operate from over 40 bases Europe-wide and has a long history of

growth and rapid expansion after the deregulation of the European airspace in 1997.

o Until the end of December 2009, RYANAIR had captured 40.18% of the market

share of the total European passengers making it a market leader in its strategic

group (i.e. 65.3 million passengers travelled with RYANAIR out of the total 162.5

million European passengers that travelled on low cost airlines.)(ELFAA, 2009)

o In terms of international passengers carried per year, RYANAIR is the largest airline

of the world.

(IATA, 2009)

(Ryanair PLC, 2009)

THE BUSINESS STRATEGY

o In its early years, RYANAIR operated as a secondary carrier in Ireland but later as a

result of the deregulation of the European airspace in 1990s it diversified into the

Low-Cost Carriers Industry.

o RYANAIR has a cost-based competition business strategy. This low-cost airlinebusiness model has been explicitly adapted from the USAs Southwest Airline.

This business model has always kept RYANAIR in direct competition with other Low-

Cost Airlines and Flag-carriers such as EasyJet, AerLingus, and British Airways etc.

(Bamber et al, 2009)

o RYANAIR has a no-frills low-cost strategy and has a standard fleet, provides just

the very basic services and charges its customers for whatever it can, saving

company the costs and generating revenues.

(Osborne A., 2009)

8/10/2019 rynair

10/46


Part A: FINANCIAL ANALYSIS

(1) Trend AnalysisThis is the comparison of the Financial Ratios of RYANAIR for 2007, 2008 and 2009. Please

see Appendix 2 for calculations and Appendix 3 for the Financial Statements.

PROFITABILITY RATIOS

It measures a firms use of its assets and its cost control to generate an acceptable

return.

(Groppelli, A. et al.2000)

2009 2008 2007

Operating Margin 3.1 19.8 21.1

Net Profit Margin 3.6 17.7 17.9

Return on Capital

Employed1.8 11.3 10.3

0.0

5.0

10.0

15.0

20.0

25.0

Percent(%)

Profitability Ratios

8/10/2019 rynair

11/46


Operating Profit Margin

2007

o At 21.1%, the Operating margin was highest this year, 1% lower compared to 2006.

o There was an overall 32% increase in sales.

Scheduled passenger revenue was up by 31% to 1874.8m reflecting a 7%

increase in average fare to44.

Ancillary revenue increased by 44% due to growth in on-board sales and non-

flight scheduled revenues.

o There was an increase of 33% in total operating expenses partially due to:

The growth of the airline. Other contributing factors were higher fuel prices which rose by 50% due to

28% increase in cost per gallon

Rising route and airport charges at some sectors which increased by 21%

and 27% respectively.

o The total operating profits were up 26% to 471.7m.

2008

o Decreased by 1.3% to 19.8% inconsistent with the growth of the airline.

o Total revenues increased by 21% to 2713.8m.

Scheduled passenger revenue increased by 19% with 1% decrease in fares

and a 20% increase in passengers due to the launch of 201 new routes this

year.

Ancillary revenue increased by 35% to 488.1m as compared to 362.1m last

year.

o Total operating expenses increased by 23%, excluding the 10.6m Accelerated

depreciationto2166.1m. This was due to:

Higher staff costs, up by 26% to165.3m due to a 32% increase in

employees.

23% increase in fleet size resulting in higher depreciation charge.

Higher lease cost due to addition of 25 leased aircrafts.

Route and airport charges increase by 30% and 45% respectively due to

addition of new routes, rising passengers and doubling of the charge at a fewbases and airports.

8/10/2019 rynair

12/46


Fuel cost rose by 14% to793.1m. This was due to the increase in hours

flown. This was offset by fuel hedging and making aircrafts fuel efficient. Fuel

accounts for 37% of the total operating expenses.

o Total operating profits increased by 14% to 537.1m.

2009

o There was a steep decline of 16.7% compared to the previous year.

o Total revenues increased by 8% to2942m which was inconsistent with the 15%

actual increase in passengers.

Scheduled passenger revenues increased by 5.3%, lower than the 19%

growth the previous year. There was an 8% decrease in average fare (i.e.

40) Ancillary revenues increased by 22.5%, an increase of about110m.

o There was an overall increase of 30.9% in the total operating costs. This was due to

the following:

Increase in the number of passenger and sectors flown.

There was a 21% increase in the number of employees which was partially

offset by a decrease in the average rates of pay.

The cost of fuel increased by 59% from791m in 2008 compared to1257m

in 2009. An increase of 11% in the fleet size.

45.6% rise in depreciation and amortisation due to additional aircrafts.

A 10.5% increase in route charges and 11.9% increase in airport charges was

another cause.

o Total operating profit decreased 82.7% to92.6m.

Net Profit Margin

2007

o At 17.9%, it was again the highest this year.

o Net profit was 42% higher amounting to435.6m.

o Adjusted net profit increased by 33% to401.4m.

o Finance income was higher due to rise in cash balances and rising interest rates and

the Finance expense was up 12%, again due to rising payable interest rates.

8/10/2019 rynair

13/46

8/10/2019 rynair

14/46


390.7m transferred to retained earnings as profit for the year.

8.4m exercised as share options.

And a reduction of436.7m due to IFRS treatment of specific items.

o There was a net increase of404.4m in the long-term debt.

2009

o There was a decline of 9.5% in ROCE this year bringing the 11.3% return in 2008

to1.8% in 2009.

o This is mainly attributable to a lower operating profit this year due to rapid increase in

operating costs of the business.

o The operating profit was 16.7% lower than 2008.

o There was a 3% fall in the shareholders equity mainly because of the reported loss

for the year of169.2m transferred to retained earnings.

o Long-term debt increased by 14% mainly due to debts drawn to finance the purchase

the non-current assets.

LIQUIDITY RATIOS

These ratios measure the ability of a company to meet its short-term debt. These indicate

the short-term financial stability of the company.

2009 2008 2007

Current Ratio 1.8 1.5 2.1

Quick Ratio 1.8 1.5 2.1

0.0

0.5

1.0

1.5

2.0

2.5

Times

Liquidity Ratios

8/10/2019 rynair

15/46


Current Ratio

It is the rule of thumb that the current ratio be at least 2.0 times, meaning that a company

should have current assets that are twice the current liabilities.

2007

o A ratio of 2.1 times suggests that the current assets were twice the amount of current

liabilities. Although a drop of 12.5% as compared to 2006, yet it was stable.

o Total current assets increased by300.7m (14.6%) to2354.3m in 2007, this change

was mainly due to:

164% increase in Other Assets which includes prepayments, interest

receivable etc.

A 22% decrease in Trade Receivables was reported.

There was a 180% increase in Derivative Financial Instruments consisting of

cash deposits, fuel derivatives and interest rate swaps.

There was a 6.5 %(93m) decrease in cash.

o There was a 32% decrease in current liabilities. This was due to:

31% (i.e.24.5m) decrease in trade payables.

Accruals and other liabilities increased by237m (41.6).

There was a 100% increase in the Derivative financial instruments.

Current tax rose by about5m (33%) in 2007.

2008

o In 2008, the current ratio decreased by 28.5% to 1.5 times. This is a continued trend

from the year 2006/2007 when the ratio decreased 0.3 times. If such a trend

continues, then the company could be in severe liquidity problems.

o Total current assets decreased by32.8m to2387.1m, a change of 1.0% which

could be linked to:

Significant rise (118%) in Other Assets of 92m.

A decrease of about42m in derivative financial instruments and a33.6m

rise in other derivatives offsets each other.

There was an increase on124m in cash balances

o Current liabilities increased by439m, a rise of 39%. This was mainly due to the

following:

Trade payables increased by 136% to129.3m.

8/10/2019 rynair

16/46


A 105%, about188m, rise in current maturities. And 85.6% (85.6m) rise in

financial instruments. These were the borrowings falling within one year.

These were the main reasons for a falling current ratio.

o A drop in the ratio of current assets/current liabilities concludes that RYANAIR had to

borrow more and more to finance its sales growth of 21%.

2009

o Current ratio in 2009 increased by 20% to 1.8 times. Although the ratio was lower

than in 2007 (2.1 times), RYANAIR showed signs of financial stability.

o There was a 7% rise (156m) in the total current assets which is attributable to:

Increase in cash balances of112m (8% change). Derivative financial instruments increased by 119.7m. This increase was due

to the gains on cash-flow hedging instruments.

o The total current liabilities decreased by 11.4% to1379m i.e. a change of178m.

This change was mainly due to:

A 1% decline of13.6m in Accrued expenses and a 3% decrease in Trade

payables.

A decrease of164m in current maturities of debt.

o A rise in the current ratio this year shows a stable financial position of RYANAIR.

Quick Ratio

A quick ratio is similar to the current ratio but the current assets in the numerator do not

include inventories in the calculation. RYANAIR carried an average inventory of 2.2m in

each of the three years. This amount is relatively immaterial to the balance sheet and

therefore does not bring any change to the quick ratio.

Thus, an analysis of the quick ratio will be exactly same as of the current ratio.

8/10/2019 rynair

17/46


GEARING RATIOS

This is a measure of financial risk incorporated in a company.

Gearing is a measure of financial leverage, demonstrating the degree to which a firm's

activities are funded by owner's funds versus creditor's funds.

(Investopedia ULC, 2010)

Interest Cover

It is a measure to determine the ability of a company to meet its interest payments on its

debts.

2007

o There was a12% rise in the ratio in 2007 as compared to 2006 and the interest cover

ratio was 5.7 times.

o This was due to 26% rise in operating profits to471.7m.

o A 100% increase in lease financing to183.1m.

o To finance the aircrafts and simulators, the company drew185m (net of

repayments) in loans.o Bank loans increased by 12% to82.4m.

2009 2008 2007

Debt to Equity 106.5 90.6 80.1

0.0

50.0

100.0

150.0

Percent(

%)

Debt to Equity

2009 2008 2007

Interest Cover 0.7 5.5 5.7

0.0

1.0

2.0

3.04.0

5.0

6.0

Times

Interest Cover

8/10/2019 rynair

18/46


o Due to the above, the total interest charge increased by 12.2% to82.8m.

2008

o In 2008, the ratio decreased by 3.5% to 5.5 times.

o The total operating profits increased by 14% to537m.

o Loans raised to finance the assets increased by 22% (404m).

o There was a 72% increase in finance leases to316m.

o As a result the total annual interest charge to the income statement increased by

17%, more than the increase in operating profits, thus decreasing the cover ratio.

2009

o This year, interest cover ratio decreased drastically by 87% to 0.7 times.o The operating profit was in steep decline and reduced by 82.7% to92.6m. This was

mainly due to some exceptional items and rising fuel prices.

o Finance lease liabilities increased by 32% to435m.

o Loans raised to finance the assets increased 5.8%, a change of132m.

o Therefore the total interest charge increased 34% to130.5m.

Debt to Equity Ratio

The debt to equity ratio indicates the relative proportion of shareholders equity and debt

used to finance the companys assets.

(Peterson, 1999)

2007

o The debt to equity ratio was 80.1% in 2007, indicating that the debt was 80.1% of the

total shareholders equity. This is a decrease of 11.2% compared to the previousyear.

o The total non-current debt increased by 13% to2033.7m. (The reasons of its

increase have been outlined in the Interest Cover ratio of the same year).

o The total shareholders equity increased by 27.5% to 2539.7m due to:

The share capital and premium accounts increased by 1.8%. This was due to

the issue of new ordinary shares and the exercise of the share-options.

The change in Other Reserves was due to the changes in accounting

policies (adoption of IFRS in the prior year).

The remaining increase was in the retained earnings i.e. profits for the year.

8/10/2019 rynair

19/46


2008

o The D/E ratio increased by 13% to 90.6% this year, reflecting an increase in the

financial risk to the company.

o The total non-current debt increased by 12% to2268.2m.

o Shareholders equity decreased this year by 1.0% to 2502.2m. This decrease wasdue to the net effect of:

The issue of 3.2m new shares and the cancellation of 59.5m shares relating

to a share buyback.

The change in reserves was due to the net effect of the addition of the profit

for the year to retained earnings and a loss on the fair value of available for

sale financial assets.

2009

o This year the D/E ratio increased 17.5% to 106.5% as the total non-current debt of

RYANAIR was more than the shareholders equity. This year the company was very

highly geared representing a very high financial risk.

o The total non-current debt increased by 14% to2583.6m. (Reasons outlined in the

Interest Cover ratio).

o The shareholders equity decreased by 3% due to the effect of the following:

The issue of 0.7m new shares and the cancellation of 18.1m shares throughbuyback.

Losses of169.2m suffered during the year, reducing the retained earnings.

Other Reserve changed due to the gains on the fair valuation of f inancial

assets, i.e. the impairment of investment in AerLingus.

8/10/2019 rynair

20/46


INVESTMENT RATIOS

Earnings per Share (Basic)

EPS is an indicator of a companys profitability. It is the portion of a firms profit allocated to

each outstanding ordinary share.


2007

o EPS increased by 41% to 28.2 Euro cents.o Net profits increased by 42% to435.6m.

o Ordinary shares increased by 0.7%

2008

o A decrease of 8.4% dropped the EPS to 25.84 Euro cents in 2008.

o This was due to a 10% fall in the profits for the year.

o And a decrease of 2.1% in the no. of ordinary shares.

2009

o EPS decreased by 144% to -11.44 Euro cents this year.

o A decrease of 143% in the net profits this year (a loss of169.2m) led to the

disastrous fall in the EPS.

o And a further 2.2% decrease in the ordinary shares.

2007 2008 2009

Basic Earnings per

Share28.2 25.84 -11.44

-20-10

010203040

EuroCents

Basic Earnings per Share

8/10/2019 rynair

21/46


Price-Earnings Ratio

It is the valuation of the companys share price compared to its per-share earnings.


2007

o P/E ratio increased by 5.6% to 20.7 times, this was due to:

A 48% (1.91) increase in the share price of RYANAIR in 2007.

Increased EPS by 41% to 28.2 Euro cents.

2008

o The P/E ratio decreased by 48% to 10.8 times, due to:

A fall of3.03 (52% change) in the share prices.

And a decrease of 8.4% in the EPS.

2009

o A fall of 334% was recorded in the P/E ratio this year, due to:

A 144% decrease in the EPS to -11.44 Euro cents this year.

Although the share-price went up by 9.0 Euro cents (a 3% rise), it could not

accommodate the heavy fall in the EPS and therefore a falling P/E ratio.

Dividend per Share

Since the incorporation, it is the policy of RYANAIR that it does not pay or intend to pay or

declare any dividends to the holders of its ordinary shares. Such a dividend policy is

formulated by the directors due to the capital intensive nature of the business and its growthprospects.

2007 2008 2009

P/E Ratio 20.7 10.8 -25.3

-40.0

-20.0

0.0

20.0

40.0

Times

P/E Ratio

8/10/2019 rynair

22/46


(2) Industry Comparison

This is the comparison of the financial ratios of RYANAIR with that of its biggest

competitor EASYJET, for the financial year 2009.

Comparison of Market-Share

In the year 2009, the European Low-Cost Airline Industry showed a modest growth of 8.7%

in passenger numbers. An analysis by passenger numbers and market share can be done

as under:

(ELFAA, 2009)

(ELFAA, 2008)

easyJetNorwegi

anRyanair vueling Wizz Air Others

PASSENGERS 46.1 10.8 65.3 8.2 7.8 24.3

0

10

20

30

40

50

60

70

Passengers(millions)

EU LCC Industry Passenger Numbers

(2009)

28%

7%

40%

5%

5%

15%

Market Share (2009)

easyJet

Norwegian

Ryanair

vueling

Wizz Air

Others

8/10/2019 rynair

23/46


As compared to 2008, RYANAIRs EU market-share has increased by 3.6% to 40% whereas

EasyJets share decreased by 6% to 28% in 2009. This is a clear indicator that RYANAIR

has outperformed EasyJet and will remain the dominant firm in the European air-space.

Comparison of Financial Ratios

The key financial ratios of the two companies are as under:

RATIO RYANAIR EASYJET

2009 2009

PROFITABILITY RATIOS

Operating Margin (%) 3.1 2.3

Net Profit Margin (%) 3.6 2.3Return on Capital Employed (%) 1.8 2.3

LIQUIDITY RATIOS

Current Ratio (Times) 1.8 1.4

Quick Ratio (Times) 1.8 1.4

GEARING RATIOS

Interest Cover (Times) 0.7 2.2

Debt to Equity (%) 106.5 99.7

INVESTOR RATIOS

Basic Earnings per Share ( Cents)-

11.4418.20

Basic Earnings per Share( Pence) - 16.62

P/E Ratio-

25.2624.98

SUPPLEMENTARY INFORMATION

no of shares 31st Mar (in '000)1,478,472

-

no of shares 30th Sep -428,300,000

price per share 31st Mar ( Cents) 289.00415.2

price per share 30th Sep ( Pence) -379.2

8/10/2019 rynair

24/46


In 2009, although there was severe loss of profitability for RYANAIR yet its profit margins

were higher than that of EasyJet. This indicates RYANAIRs better cost control techniques

such as fuel hedging, interest rate swaps and a 3% cut down on other related costs.

EasyJets revenue increased by 12.9% as compared to 8% of RYANAIRs which was due tolowering of average fares by 8%, but this was in-line with the industry growth of 8.7%.

RYANAIRs financial risk in 2009 was more than that of EasyJet as it was financed more by

the non-current debts than equity. This is a very high-risk capital structure adopted by

RYANAIR and is primarily due to the capital intensive nature of the industry. Investors may

perceive RYANAIR a high-risk investment as the Interest Cover is relatively low.

RYANAIRs EPS fell by 144% while EasyJet sustained the downturn with only a 14.6% drop

avoiding a loss this year. RYANAIRs loss was due to heavy losses on investments which

can be treated as exceptional and therefore the company has very bright future prospects for

investors taking in view its market dominance, profitability and growth potential. Through this

comparison we can conclude that RYANAIR is a relatively high-risk investment with lower

returns and its shareholders suffering capital losses.

0.0

1.0

2.0

3.0

4.0

Operating Margin

(%)

Net Profit Margin

(%)

Return on Capital

Employed (%)

Percent(%)

Comparison of Profitability Ratios

RYANAIR

EASYJET

96.0

98.0

100.0

102.0

104.0

106.0

108.0

Debt to Equity

(%)

Percent

(%)

Comparison of Financial Gearing

RYANAIR

EASYJET

-15.00

-10.00

-5.00

-

5.00

10.00

15.00

20.00

Basic Earnings

per Share (

Cents)

C

ents

Comparison of Basic EPS

RYANAIR

EASYJET

8/10/2019 rynair

25/46


Part B: BUSINESS ANALYSIS

Porters Five Forces model

The nature and degree of competition in an industry hinge on five forces: the threat of

new entrants, the bargaining power of customers, the bargaining power of suppliers, the

threat of substitute products or services [where applicable), and the jockeying among

current contestants.

(Porter, 1979, p.137)

The analysis of the EU Airline industry is as follows:

1) Threat of new entrants

This makes the industry less attractive for existing firms. For RYANAIR, this threat is

moderate.

o European airspace is de-regulated and air lines can fly freely among the EU

countries, eliminating any political constraints.o The industry requires very high capital-injection which acts as a high barrier.

o Airlines already operating and the new-comers have to seek authorisations from the

Civil Aviation Authorities.

o Availability of landing rights and slots at airports also acts as a barrier to entry.

o New entrants have to cope with immediate price-wars with existing firms who have

already experienced the Experience Curve.

2) Power of Customers

The customers of RYANAIR are powerful because:

o They are price-sensitive to the fares.

o There are no associated switching costs.

o Power of travel agents has been eliminated.

o The customers lack loyalty in no-frills airlines and are attracted only to low prices.

3) Power of Suppliers

The suppliers bargaining powers were moderate because:

8/10/2019 rynair

26/46

8/10/2019 rynair

27/46


o A uniform Boeing 737 fleet with high seat-density, high load factor, lower turn-around

times and lower training and maintenance costs.

o A non-unionised labour force with lowest rates of pay in the industry.

WEAKNESSES

o Aggressive implementation of low-cost business model has led to unhappy

customers with no loyalty to the airline.

o Issues of staff morale and loyalty as RYANAIR have the lowest pay rates and the

employment contract includes the non-unionisation clause.

o Negative publicity through press which leads to a longer-term disadvantage.

o Allegations of controversial and misleading advertisements by the regulators.

o The low-cost business model has made RYANAIR to be very sensitive as all the

costs and savings are transferred directly to the customers.

o Use of secondary airports which are, in most cases, far from the cities they actually

serve.

o Very poor customer service, on the ground and even on-board the flight.

o Sensitivity to governments regulations over passenger air duty.

OPPORTUNITIES

o Orders of new aircrafts reflect tremendous growth potential of the airline and can be

seen as an opportunity.

o Being a dominant firm, RYANAIR still has potential to capture more of the European

market-share.o Launch of long-haul routes in 2014 with a complete diversification towards

Differentiation rather than Cost-based can prove to be very fruitful for RYANAIR.

o The current and continuing economic downturn has been good for the low-cost

carriers profitability.

THREATS

o Rising fuel prices will adversely affect the companys profits.

o Customers are becoming more price-sensitive.o There has been an increased competition with airlines directly targeting each other.

o Airport handling and other charges are rising significantly.

o Any adverse changes in the government regulations over passenger duty, tax and

other matters may have severe consequences for the airline.

o Price wars with immediate competitors continue and the intensity of the competition

keeps on rising.

o A ruling against RYANAIR by the Competition Regulators over the AerLingus take-

over has limited the growth of airline through acquisition.

(Ryanair PLC, 2008)

(Ryanair PLC, 2009)

8/10/2019 rynair

28/46


CONCLUSION

The European airline industry is very dynamic and is growing at a moderate pace.

RYANAIRs current business strategy based on the low-cost operating model has been

adapted from the Southwest Airline Company (USA) and since the early 1990s, it has been

aggressively implemented. And as a result of this successful implementation of the low-cost

business model, RYANAIR has emerged to be the largest airline in Europe with

achievements such as the best in punctuality, Europe coverage, traffic growth, highest

market capitalisation (5.3bn until May 2009), lowest average fares and highest number of

international passengers carried are just to name a few. RYANAIR is currently the dominant

firm in the European industry and If the current growth rate in the number of passengers

continue, then in a few years time RYANAIR will probably face a monopoly situation.

FINANCIALS

RYANAIR has a history of growth in profitability and records an annual increase in the

amount of assets held, thus a strong balance sheet. But at this point it should be noted that

the future operating results of the company are dependent on the following factors:

Passenger volume

Fuel prices Competitive pricing

Seasonal fluctuations

Availability of finance

Relations with suppliers

Availability of airports (for growth)

Economic and political conditions

Terrorist threats

(Ryanair PLC, 2009)

As far as the financial position and past performance of the company is concerned, from

2007 through to 2009, RYANAIRs total operating revenues (scheduled and ancillary) has

been increasing (2007: +32%, 2008: +21%, and 2009: +8%). This increase is not in line with

the rising number of annual passengers or even the rate of decrease in the average fares.

Implementing the low-cost business model, RYANAIR tends to lower its fares to make itself

attractive to the price sensitive customer which explains the falling scheduled revenues. But

a significant proportion of the revenues are attributable to Ancillary Revenues generated

from non-scheduled services, in-flight sales of beverages, foods and merchandise etc.

RYANAIRs reliance on such revenues is vital and its slowing growth rate (2007: + 40%,

2008: +35% and 2009: +22%) could be a factor for the airline to place its focus on.

8/10/2019 rynair

29/46

8/10/2019 rynair

30/46


APPENDIX 1: List of References

Allbusiness.com Inc. (2010) www.allbusiness.com [Online]. Allbusinedd.com Inc.

Retrieved from:http://www.allbusiness.com/glossaries/financial-statement-

analysis/4950854-1.html[Accessed 8 May 2010]

Bamber, G.J., Gittell, J.H., Kochan, T.A. & von Nordenflytch, A. (2009) Up In the Air: How

Airlines Can Improve Performance by Engaging their Employees. Ithaca: Cornell University

Press.

EasyJet Airline Company Ltd. (2009)Annual report and Accounts 2009 [Online]. EasyJet

Ltd. Retrieved from:http://corporate.easyjet.com/investors/reports-and-accounts.aspx

[Accessed 1 May 2010]







European Low Fares Airline Association (2009) Members Statistics December 2009

[Online]. European Low Fares Airline Association. Retrieved from:

http://www.elfaa.com/statistics.htm[Accessed 30 Apr 2010]







Groppelli, Angelico A.; Ehsan Nikbakht (2000). Finance, 4th ed. Canada: Barron's

Educational Series, Inc. [Online] Barron's Educational Series. Retrieved from:

http://books.google.co.uk/books?id=Fjue-1y4X-

gC&printsec=frontcover&dq=ISBN+0764112759.&source=bl&ots=npbuzbEJkO&sig=rvTUsji

6fCw1NkpuWcvpkSqRNNo&hl=en&ei=MjvxS6V7g_n5Bte8hc0J&sa=X&oi=book_result&ct=r

esult&resnum=1&ved=0CB0Q6AEwAA#v=onepage&q&f=false[Accessed 12 May 2010]

International Air Transport Association, IATA (2009) World Air Transport Statistic.53rd

Edition. Montreal: IATA.

Investopedia ULC (2010)www.investopedia.com[Online] Investopedia ULC. Retrieved from:

http://www.investopedia.com/terms/g/gearingratio.asp[Accessed 18 May 2010]
http://www.allbusiness.com/glossaries/financial-statement-analysis/4950854-1.htmlhttp://www.allbusiness.com/glossaries/financial-statement-analysis/4950854-1.htmlhttp://www.allbusiness.com/glossaries/financial-statement-analysis/4950854-1.htmlhttp://www.allbusiness.com/glossaries/financial-statement-analysis/4950854-1.htmlhttp://corporate.easyjet.com/investors/reports-and-accounts.aspxhttp://corporate.easyjet.com/investors/reports-and-accounts.aspxhttp://corporate.easyjet.com/investors/reports-and-accounts.aspxhttp://corporate.easyjet.com/investors/reports-and-accounts.aspxhttp://corporate.easyjet.com/investors/reports-and-accounts.aspxhttp://corporate.easyjet.com/investors/reports-and-accounts.aspxhttp://corporate.easyjet.com/investors/reports-and-accounts.aspxhttp://corporate.easyjet.com/investors/reports-and-accounts.aspxhttp://corporate.easyjet.com/investors/reports-and-accounts.aspxhttp://www.elfaa.com/statistics.htmhttp://www.elfaa.com/statistics.htmhttp://www.elfaa.com/statistics.htmhttp://www.elfaa.com/statistics.htmhttp://www.elfaa.com/statistics.htmhttp://www.elfaa.com/statistics.htmhttp://books.google.co.uk/books?id=Fjue-1y4X-gC&printsec=frontcover&dq=ISBN+0764112759.&source=bl&ots=npbuzbEJkO&sig=rvTUsji6fCw1NkpuWcvpkSqRNNo&hl=en&ei=MjvxS6V7g_n5Bte8hc0J&sa=X&oi=book_result&ct=result&resnum=1&ved=0CB0Q6AEwAA#v=onepage&q&f=falsehttp://books.google.co.uk/books?id=Fjue-1y4X-gC&printsec=frontcover&dq=ISBN+0764112759.&source=bl&ots=npbuzbEJkO&sig=rvTUsji6fCw1NkpuWcvpkSqRNNo&hl=en&ei=MjvxS6V7g_n5Bte8hc0J&sa=X&oi=book_result&ct=result&resnum=1&ved=0CB0Q6AEwAA#v=onepage&q&f=falsehttp://books.google.co.uk/books?id=Fjue-1y4X-gC&printsec=frontcover&dq=ISBN+0764112759.&source=bl&ots=npbuzbEJkO&sig=rvTUsji6fCw1NkpuWcvpkSqRNNo&hl=en&ei=MjvxS6V7g_n5Bte8hc0J&sa=X&oi=book_result&ct=result&resnum=1&ved=0CB0Q6AEwAA#v=onepage&q&f=falsehttp://books.google.co.uk/books?id=Fjue-1y4X-gC&printsec=frontcover&dq=ISBN+0764112759.&source=bl&ots=npbuzbEJkO&sig=rvTUsji6fCw1NkpuWcvpkSqRNNo&hl=en&ei=MjvxS6V7g_n5Bte8hc0J&sa=X&oi=book_result&ct=result&resnum=1&ved=0CB0Q6AEwAA#v=onepage&q&f=falsehttp://books.google.co.uk/books?id=Fjue-1y4X-gC&printsec=frontcover&dq=ISBN+0764112759.&source=bl&ots=npbuzbEJkO&sig=rvTUsji6fCw1NkpuWcvpkSqRNNo&hl=en&ei=MjvxS6V7g_n5Bte8hc0J&sa=X&oi=book_result&ct=result&resnum=1&ved=0CB0Q6AEwAA#v=onepage&q&f=falsehttp://www.investopedia.com/http://www.investopedia.com/http://www.investopedia.com/http://www.investopedia.com/terms/g/gearingratio.asphttp://www.investopedia.com/terms/g/gearingratio.asphttp://www.investopedia.com/terms/g/gearingratio.asphttp://www.investopedia.com/http://books.google.co.uk/books?id=Fjue-1y4X-gC&printsec=frontcover&dq=ISBN+0764112759.&source=bl&ots=npbuzbEJkO&sig=rvTUsji6fCw1NkpuWcvpkSqRNNo&hl=en&ei=MjvxS6V7g_n5Bte8hc0J&sa=X&oi=book_result&ct=result&resnum=1&ved=0CB0Q6AEwAA#v=onepage&q&f=falsehttp://books.google.co.uk/books?id=Fjue-1y4X-gC&printsec=frontcover&dq=ISBN+0764112759.&source=bl&ots=npbuzbEJkO&sig=rvTUsji6fCw1NkpuWcvpkSqRNNo&hl=en&ei=MjvxS6V7g_n5Bte8hc0J&sa=X&oi=book_result&ct=result&resnum=1&ved=0CB0Q6AEwAA#v=onepage&q&f=falsehttp://books.google.co.uk/books?id=Fjue-1y4X-gC&printsec=frontcover&dq=ISBN+0764112759.&source=bl&ots=npbuzbEJkO&sig=rvTUsji6fCw1NkpuWcvpkSqRNNo&hl=en&ei=MjvxS6V7g_n5Bte8hc0J&sa=X&oi=book_result&ct=result&resnum=1&ved=0CB0Q6AEwAA#v=onepage&q&f=falsehttp://books.google.co.uk/books?id=Fjue-1y4X-gC&printsec=frontcover&dq=ISBN+0764112759.&source=bl&ots=npbuzbEJkO&sig=rvTUsji6fCw1NkpuWcvpkSqRNNo&hl=en&ei=MjvxS6V7g_n5Bte8hc0J&sa=X&oi=book_result&ct=result&resnum=1&ved=0CB0Q6AEwAA#v=onepage&q&f=falsehttp://www.elfaa.com/statistics.htmhttp://www.elfaa.com/statistics.htmhttp://www.elfaa.com/statistics.htmhttp://corporate.easyjet.com/investors/reports-and-accounts.aspxhttp://corporate.easyjet.com/investors/reports-and-accounts.aspxhttp://corporate.easyjet.com/investors/reports-and-accounts.aspxhttp://www.allbusiness.com/glossaries/financial-statement-analysis/4950854-1.htmlhttp://www.allbusiness.com/glossaries/financial-statement-analysis/4950854-1.html

8/10/2019 rynair

31/46



http://www.investopedia.com/terms/e/eps.asp[Accessed 19 May 2010]


http://www.investopedia.com/terms/p/price-earningsratio.asp[Accessed 19 May 2010]

Learned Edmund P., C. Roland Christiansen, Kenneth Andrews and William D. Guth (1969)

Business Policy, Text and Cases. Homewood, IL: Irwin

Osborne, A. (2009) Ryanairs lose loss strategy typifies itswin, win focus on low fares

Telegraph, 2 June 2009 [Online] Retrieved from:

http://www.telegraph.co.uk/finance/comment/5431689/Ryanairs-lose-loos-strategy-typifies-

its-win-win-focus-on-low-fares.html[Accessed 9 May 2010]

Peterson, P. (1999)Analysis of Financial Statements. New York: Wiley

Porter, Michael E. (1979) How Competitive Forces Shape Strategy. Cambridge,

Massachusetts: Harvard Business School Publishing.

Ryanair Holdings Plc. (2009)Annual Report 2009 [Online]. Ryanair Holdings Plc. Retrieved

from:http://www.ryanair.com/en/investor/download[Accessed 1 May 2010]





The Management Centre (2006) Porters Five Forces Model [Online] Retrieved from:http://www.resource-

alliance.org/documents/masterclass_bernard_ross__fiona_duncan_porter.pdf[Accessed 7

May 2010]

WebFinance Inc. (2010) www.businessdictionary.com[Online]. WebFinance Inc. Retrieved

from:http://www.businessdictionary.com/definition/business-analysis.html[Accessed 8 May

2010]
http://www.investopedia.com/http://www.investopedia.com/http://www.investopedia.com/http://www.investopedia.com/terms/e/eps.asphttp://www.investopedia.com/terms/e/eps.asphttp://www.investopedia.com/http://www.investopedia.com/http://www.investopedia.com/http://www.investopedia.com/terms/p/price-earningsratio.asphttp://www.investopedia.com/terms/p/price-earningsratio.asphttp://www.telegraph.co.uk/finance/comment/5431689/Ryanairs-lose-loos-strategy-typifies-its-win-win-focus-on-low-fares.htmlhttp://www.telegraph.co.uk/finance/comment/5431689/Ryanairs-lose-loos-strategy-typifies-its-win-win-focus-on-low-fares.htmlhttp://www.telegraph.co.uk/finance/comment/5431689/Ryanairs-lose-loos-strategy-typifies-its-win-win-focus-on-low-fares.htmlhttp://www.ryanair.com/en/investor/downloadhttp://www.ryanair.com/en/investor/downloadhttp://www.ryanair.com/en/investor/downloadhttp://www.ryanair.com/en/investor/downloadhttp://www.ryanair.com/en/investor/downloadhttp://www.ryanair.com/en/investor/downloadhttp://www.ryanair.com/en/investor/downloadhttp://www.ryanair.com/en/investor/downloadhttp://www.ryanair.com/en/investor/downloadhttp://www.resource-alliance.org/documents/masterclass_bernard_ross__fiona_duncan_porter.pdfhttp://www.resource-alliance.org/documents/masterclass_bernard_ross__fiona_duncan_porter.pdfhttp://www.resource-alliance.org/documents/masterclass_bernard_ross__fiona_duncan_porter.pdfhttp://www.businessdictionary.com/definition/business-analysis.htmlhttp://www.businessdictionary.com/definition/business-analysis.htmlhttp://www.businessdictionary.com/definition/business-analysis.htmlhttp://www.businessdictionary.com/definition/business-analysis.htmlhttp://www.resource-alliance.org/documents/masterclass_bernard_ross__fiona_duncan_porter.pdfhttp://www.resource-alliance.org/documents/masterclass_bernard_ross__fiona_duncan_porter.pdfhttp://www.ryanair.com/en/investor/downloadhttp://www.ryanair.com/en/investor/downloadhttp://www.ryanair.com/en/investor/downloadhttp://www.telegraph.co.uk/finance/comment/5431689/Ryanairs-lose-loos-strategy-typifies-its-win-win-focus-on-low-fares.htmlhttp://www.telegraph.co.uk/finance/comment/5431689/Ryanairs-lose-loos-strategy-typifies-its-win-win-focus-on-low-fares.htmlhttp://www.investopedia.com/terms/p/price-earningsratio.asphttp://www.investopedia.com/http://www.investopedia.com/terms/e/eps.asphttp://www.investopedia.com/

8/10/2019 rynair

32/46


APPENDIX 2: Ratio Analysis Spreadsheet

Calculation of Financial Ratios using Microsof t Excel 2007

8/10/2019 rynair

33/46


Sample Formula Sheets

Calculation of Ratios: RYANAIR 2007 and 2008

8/10/2019 rynair

34/46


Calculation of Ratios: Ryanair and EasyJet (2009)

8/10/2019 rynair

35/46


APPENDIX 3: Financial Statements of Ryanair

Holdings PLC

(This page is intentionally left blank)

8/10/2019 rynair

36/46


8/10/2019 rynair

37/46


8/10/2019 rynair

38/46


8/10/2019 rynair

39/46

8/10/2019 rynair

40/46


8/10/2019 rynair

41/46


8/10/2019 rynair

42/46


Oxford Brookes University

BSc (Hons.) in Applied Accounting

SKILLS AND LEARNING STATEMENT

Word count: 1891

Presented by: Mohammad Saad Hassan Khan

ACCA Registration: 1624360

Submission period: 20

MAY 2010.

8/10/2019 rynair

43/46

8/10/2019 rynair

44/46


At the third meetingI had to deliver a presentation to my mentor about my project findings

which was a task more difficult than the actual analysis. By this time my project was on the

verge of completion and a draft was ready to be handed over to the mentor for further advice

and changes if needed. There were five people present at the presentation and I was of

course nervous but it went well and I was praised at the end. The 15-minute time limit was

very difficult to maintain and was easily breached. This made me learn a new skill ofpresenting your findings in a logical and effective way.

ANSWERS TO THE RESEARCH QUESTIONS

The research questions and the objectives of this research report were clear from the title

Business and Financial performance of an organisation and the main objectives were toevaluate and analyse the financial performance of the company internally and comparing it

to the industry averages (competitor comparison). This financial analysis would answer my

research question that whether Ryanair was performing well or its financial performance was

deteriorating over time. Another aspect to be covered was the business analysis which

would provide me with the answers about the strategic position of Ryanair, and its external

and internal analysis. This analysis would have provided me with the answers as to the

relative position of Ryanair in the market and its future prospects. And from the beginning of

information gathering process through to the analysis and evaluation stages, I was in pursuit

of answering the research questions up to the extent the available information allowed me

to. Answering these questions and meeting the project objectives was pretty clear in my

mind and I had devised a plan on how to achieve them through discussions with my mentor

which proved to be a lot of help in this case.

The major threat was that the information was available online in bulk quantities and the

selection of relevant points was crucial as I could have easily crossed the word limit

prescribed. I eliminated this threat by efficiently managing the information relevant to my

objectives.

Evaluating ones own performance isnt easy but in my opinion I think that I have been fully

able to answer my research questions and meet the project objectives. Being an

accountancy student it was easy for me to reach a conclusion to the financial analysis as it

was not a great deal for me to reach a conclusion related to historic and current financial

performance of Ryanair. Concerning this issue, I would rate my overall performance as

above-average and in my view I have had no difficulty answering my research questions.

But the business analysis part of this report was the one I was new to and lacked experience

of analysing the companys internal and external factors that affect it and due to my hard

work and focus I was finally able to reach a conclusion on the Business Analysis portion,

successfully answering all of my research questions. This project takes the knowledge of

Business Analysis Models and Techniques as pre-requisite but I had to really word hard

enough on these techniques, firstly grasping the breadth of knowledge underlying the issues

and secondly applying them in my project work was a great deal which I think I have beensuccessful in.

8/10/2019 rynair

45/46


INTERPERSONAL AND COMMUNICATION SKILLS

Before this project I had never undertaken any research report and it was challenging for me

to finalise it even with the advice of my mentor. But having done this report I have not onlymastered the skill of the business report writing but I have also learned a lot from my project

mentor who was absolutely potent to guide me all the way through and help me with his

valuable advice.

I took this research report as a learning tool and this RAP was an opportunity for me to

exploit my strengths and overcome my weaknesses. My information gathering was

particularly strong and part of which is attributable to my familiarity with the airline industry.

Being an ACCA student I have always been interested in the financial performances of the

organisation and with this project I have polished my analytical skills and techniques

providing me with a vast experience of analysing the business and financial performances.

During the three meetings, as prescribed by the University, the interaction with the mentor

played a vital part in the overall learning process and from meeting 1 I was keen to take

part in discussions. From the first meeting I critically observed my mentor and started

adapting things from him. It is quite obvious that when two people interact with each other,

its not only the verbal communication that is important but the body language is equally

important. And when the meetings are held in a formal setup, then behaving in an

appropriate manner is the key to a successful dialogue.

At the first meeting I was a bit hesitant and it was my mentor who emphasised on my taking

part in the discussion so that the outcomes are appropriate. Observing my mentor I realisedthat the skill of communicating my thoughts in an effective way was the one which I had to

work on. From my mentor I also learned the skill of time management which was for me the

core of this whole project as the deadline was approaching. I have had many experiences of

working under time pressure sitting exams and also in my previous employment, but this

project was an extraordinary task to me which had a time frame in weeks instead of hours or

days. Working under such conditions was a whole new experience and I was able to

accomplish the task at the end.

By the second meeting I was part-way through the project and was a lot more confident

regarding many of the issues explained in the prior paragraph. Therefore I was actively

taking part in the discussions with my mentor and benefiting from his advice and constructivecriticism. He is a qualified accountant and a member of the ACCA and those formal

interactions with him were one of its kind.

The requirement of the presentation at the third meeting plays a crucial part in the overall

learning process and I again took it as an opportunity to exploit my strengths. This

presentation made me learn new skills and during the preparation of the presentation I

polished my Microsoft Office skills.

The overall experience of undertaking this RAP has made me learn a lot of new transferable

skills and analyse my strengths and weaknesses which will one day be very useful for me in

my practical life. This made me realise my potential and I fell a lot more confident as far as

my communication and interpersonal skills are concerned.

8/10/2019 rynair

46/46

RAP AND THE ACCOUNTING STUDIES

As already mentioned that I took this RAP as a tool to learning and exploiting my knowledge,

I was able to practically apply the knowledge gained from the ACCA qualification to an

existing business which led to an in-depth understanding of the ideas and logics that

underpins them.

While doing this project I was also preparing for the ACCA papers Corporate Reporting (P2)

and Business Analysis (P3). This project work was reasonably the best method for the

application of the business models that I was learning from my lecturers which led to a better

understanding and provided me with a whole new horizon of knowledge.

Through this project I have pretty much improved my writing skills and now can easily

communicate my thoughts and plot my views according to the situations. The 6500 word

limit was a barrier and this project has taught me an additional skill of concise writing. This

will particularly be of help when I will be sitting my ACCA exams where time is a major factor

in passing and failing. During the writing of this project I learnt where to place emphasis and

where not to and now while sitting the theory papers, I will be much more confident than I

previously was and can communicate effectively while expressing my views particularly on

case studies.

This project has armed me with the practical know-how of the companies, how they operate

and strive for the customers in a market, the affect of the regulations from the governmentand other regulators and the internal and external risks involved. With this real-life

understanding of the firms, I would be better able to grasp other technical knowledge further

in my studies.

rynair

Documents

Transcript of rynair