Tuesday, March 12, 2019
Ryanair’s Management and Creativity
1. In the declare Management and Creativity (Bilton, 2007), Wilson and Cummings define strategy as ii distinctive begines strategy as position and strategy as process. The former, too referred to as strategy as orientation, takes a more top-down approach and is concentrated around a single draw. It attempts to establish a strategicalalal position that will serve as a basis for differentiation, which is commonly seen as original and innovative. However, a successful implementation of the strategy a lot requires high monitoring and a hierarchal structure.Thus, the process itself is quite unoriginal and there is little room for changes and introduction after the strategy has been established. The leader plays an important portion in this strategic approach by position vision and directing employees, and he or she is often strongly associated with the organization. Ryanairs CEO Michael OLeary is a great example of a leader within an orientation strategy organization. The other approach outlined by Wilson and Cummings is strategy as animation.This adhocracy style is commonly fit by inventive organizations and the strategy is more of an evolving process than a fixed strategic position. It is built upon sm any, continuous changes that emerge incrementally within the organization. In difference from orientation, adhocracy takes a bottom-up approach and the strategy is developed through a corporate activity. The leaders role is not to govern and direct, but to set frames, and sleep with and build upon meaningful patterns. Shared goals and honors hold the company unneurotic and serve as the glue in the organization.The animation film studio Pixar serves as a great example of the adhocracy approach. Their process-oriented strategy and bottom-up approach has helped to nurture creativity and build a culture where either peerlesss roots matters and all employees are urged to speak their minds. Thus, creativity is seen as something that evolves throug h systems and networks, and not something that is disjunct to a single leader. Posthocracy is a type of non-strategy. The style is often adapted by organizations that are subject to a lot of uncertainty and changes in their environment.The unpredictability of the future makes it difficult for the organizations to establish a strategy early and decisions are often rationalized after they spend a penny been made. This approach is based on ego, emotions and personality. 1. 1 It can be argued that Michael OLeary follows a strategy as orientation approach. The low-cost strategy has come to define Ryanair and is deeply enrooted in the company. The attempt to reduce prices at all costs set the strategic direction. As in most orientation strategies, the company takes a top-down approach and the creativity is concentrated to the leader the CEO Michael OLeary.His disputed caprices are often seen as both new and revolutionary and he continuously finds the most radical ways to reduce price s. Still, the organization itself is extremely monitored and controlled as to successfully keep costs down in every part of the value chain. Furthermore, as commonly seen in these types of strategy tendencies, Michael OLeary is strongly associated with the company. As described in the article, OLeary chose to embody the role of a cheap, no-nonsense, slightly unpleasant Everyman, which he would exploit to sell a cheap, slightly unpleasant flying experience to the Everyman. Arguably, M. OLeary is Ryanair. 2. According to reliable popular theories creativity is concerned with novelty and individualism. For an judgement to be considered novel, it should go forth something new or a new combination of elements. The individualism concerns the mastermind of the idea who is seen as a brain who needs space and absolve control to be able to flourish. The psychological theory modifies this idea by taking away the component of individualism and adding the idea of value and meaning. For an idea to be creative, the innovation excessively needs to be worthful and urinate meaning. Merely innovation is not enough.Both the concept of innovation and the one of value is context dependent to whom is the idea novel and to whom will it crumple meaning and value? According to Margaret Boden, novelty can be specify as new to the individual, H-creativity, or new to the world, P-creativity. A novel idea should be able to fit into one of these two. For an idea to give value and meaning it has to be fit for purpose and there will be different criterions for different situations. In a business context, a creative idea could be valuable if it improves the return on investment or if it fits with the cartridge holders.In another context, a panel of experts talent decide if the innovation is valuable or not. An idea powerfulness also be outlined as valuable if it has a specific intention. 2. 1 Ryanair has a low-cost strategy with the vision to be quick, efficient, affordable and sa fe. Michael OLeary is a prophet leader with nutty ideas that are considered radical by the rest of the respiratory tract industry. OLeary says that in the airline business, organizations need to have a radical closure of view otherwise everything will stay the same.However, new ideas should be in line with the low cost strategy of the company. Could the Ryanair idea of removing the pockets on the hindquarters of the seats be considered creative? It decreased Ryanairs cleaning time and thereby also the turn-around time at the airport and increased the punctuality. The idea was a new combination of elements and was new to the airline industry. It could therefore be argued to be novel. The idea was valuable for customers as it fulfilled the criterion of fitness to times customers are more time-sensitive today and therefore values on-time flights.OLeary argued that it is also valuable for the customers as they are price-sensitive, they do not want to have a pleasant experience they just want to be transported from A to B. For Ryanair, the idea is valuable as it decreases costs and improves the companys return on investment. At Ryanair, the organizational style of change is incremental the company is continuously amend and developing itself. One distinguishing feature of this style is that change is happening charge though the company is not in a maturity accede or crisis of their life cycle. This is apparent as the company has presented net mesh in 9 out of 10 recent years.The changes at Ryanair might look as radical to the rest of the airline industry, but it is in line with todays price-sensitive society. OLeary is boundary tweaking he is not thinking entirely outside the box but merely modifying the edges of the core business. It can be questioned if Ryanair sometimes make change just for changes sake. There is an impression that OLeary might implement changes (or propose them) just to provoke the industry. And is cheaper always more valuable? Do custo mers still value cheap tickets if they have to stand up or pay for the toilet?
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