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ACCT5220 Advanced Financial Accounting

Question:

Ryanair Plc. is a highly successful ‘no-frills’ airline. Can you suggest some factors that could be Strengths, Weaknesses, Opportunities and Threats for this business? Try to think of two for each of these factors:

Strengths

  • Strong, well recognised brand name
  • Modern fleet of aircraft requiring less maintenance
  • Reliable Customer Service concerning punctuality and baggage loss
  • Internet booking facility used by virtually all passengers, reducing administration costs

Weaknesses

  • Limited range of destinations
  • Use of secondary airports situated some distance from city centres
  • Poor facilities at secondary airports

Opportunities

  • New destinations becoming available
  • Increasing acceptance of ‘no-frills’ air travel – particularly with business travellers
  • Development of more fuel-efficient aircraft

Threats

  • Increased competition
  • Fuel price rises
  • Increasing congestion at airports
  • Lack of airspace
  • Changes in regulatory environment
  • Vulnerable to a downturn in economic conditions
  • Vulnerable to physical environment

Accounts ‘R’ Us has recently created a new programme designed to help small business owners control and monitor their finances. However not many businesses have expressed interest due to them not knowing anything about it and also a general lack of awareness of how to use the system.

What could Accounts ‘R’ Us do to generate more interest in their new product?

What kind of costs would they have to consider for these plans?

Accounts ‘R’ Us has decided to run a training programme on the software to generate interest locally. You and your team have been asked to prepare a budget for a workshop that will be undertaken in three months’ time. The programme is made to introduce local businesses to your business and hopefully generate some trade.

Due to you being asked to create a profit from the event, what would you have to charge each participant?

ACCT5220 Advanced Financial Accounting

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