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Michael O’Leary
Michael O’Leary

Michael O’Leary

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  • Pages: 5 (2537 words)
  • Published: October 8, 2018
  • Type: Autobiography
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Michael O'Leary is an employee of Ryainar, an Irish airline that is among the top in worldwide in terms of performance, and profit making. He holds a high rank in the company, and that is the Chief Executive Office. Michael O'Leary is on of the richest businesspersons in Ireland.He was born in 1961 near Kanturk in Ireland. He is a second born in family of six.

He did his studies in Clongowes Wood College, and later went through a course in Business in Trinity College until 1983. After graduating from Trinity College, he worked as a trainee in the Stokes Kennedy Crowley. It is now KPMG. It is in this company that he met Tony Ryan the head of Guinness Peat Aviation, who was a client to Stokes Kennedy Crowley. At this time, O'Leary started Advising Tony on his personal income tax. Basing on that, Tony employed him to his personal advisor on tax and finances. This is as Calder says, "By this stage, Michael O'Leary had attended Trinity College in Dublin, worked as an accountant and been recruited as Mr Ryan's right hand man" (Calder, par. 13, 2006).

At this time, Ryanair was established and they later on employed O'Leary to serve in the airline. It is at this point that we see a leader in O'Leary. The characteristics of good leaders may be summarized in three statements. The leaders should have very clear vision, which should steer them to successes. They should have the ability to communicate this vision for their followers to comprehend it very well. Finally,

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they must bring the vision to reality. This will pin point specific things that O'Leary has been doing in Ryanair to bring it to the top. This will exemplify his leadership in business and will put forward lessons that one can learn from them.

The main things are, how O'Leary has managed strategic change, how O'Leary has developed a strategic report to managing human recourse, his strategy concerning cost.After his promotion to be the chief executive of Ryanair, he had a very clear vision, to model the Ireland's Ryanair after the novel Southwest Airline Business Model. He had the objective of making to come to the top rank among all Europeans Airlines. O'Leary did not take a very long time before he steered the short haul airline to the top. From the early 2000, the airline has topped not only in Europe but also in globally. "Ryanair took delivery of the largest number of new aircraft in 2009, with 54 B737-800 deliveries - or an average of 4.5 per month" ("Ryanair tops 2009 aircraft deliveries" par 1, 2009). This report shows exactly how O'Leary's is effective and how the company is doing.

Mr. O'Leary style of leadership does not match any specific style that we have amongst the known style. An analysis will show that he uses a combination of styles. Finlay (2000) has made an analysis of such leaders and resented them in a table adapted from Cook et al (1977). The table is as shown bellow.This are the two types of style are most dominant (Finlay, 2000). Michae

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style is that of Enrolling leaders. The recap of how he revived a collapsing Ryanair will show that his leadership style was enrolling.

In the same recap, we see that he has been very effective. Ryanair tops the other airlines today in terms of profitability.Through that same assay, we are able to his character. He is a person who is outspoken and involves himself with all the affairs of the company. We can see him very clearly in sharp defense of anything that involves the company. From the press we can see that he has had a standoff between him and Irish leaders and politicians (O'Higgins, 2004). From his profile, he has earned himself names raging from high praises to those that demean him complete. O'Higgins, (2004) says, 'he is called everything from arrogant pig to messiah' (O'Higgins, pp.

706, 2004). This is from how he has dealt with his workers, customers and competitors. To analyze his leadership well, we will approach it by discussing his strategic approach in managing Change, Human Resource and Cost. Managing Strategic ChangeChange is usually an inevitable challenge. It is caused by many factors. It can be a positive or a negative change. Managers should always be on the lookout because the change may bring about a negative growth to the company if not well managed. Michael O'Leary monitored this change effectively to prevent negative effects.

As other companies surcharge their customers because of the rising prices of fuel, O'Leary maintained their prices low. As an allusion to many companies that had increased their prices because of the rising fuel cost in the year 2005, and even higher in the year 2006, Michael O'Leary declared that they would not levy their customers more at any time, not even in the far future. Customers welcomed this assurance. This is because the statistics show that the company further increased its revenue during this period. Many of the companies of the long - haul routes surcharged their customers. Worse of, these levies were not proportional to the overall fare. O'Leary in this case, handled this change with care making sure that he would not lose their customers.Due to its law travel cost, Ryanair had an increase of its customers.

To cope with this growth change, the company bought new aircrafts. This was between September 2006 and April 20007 when they acquired 30 aircrafts. This was to ensure that the increasing customer would not come, miss the service, and later tarnish the reputation of the company. However, the company needed to compensate on the rising fuel in order to increase its profit margin. O'leary therefore focused on ancillary revenue. This revenue rose by 36% in 2006, far much more than the passenger revenue. The company calculated it to be at ?7.70 per person.

The ancillary revenue is that which comes from the schedules that do not involve flight. These are rail and bus ground services, hotels, charges on excess baggage, car rental services, and flight charge fees, in flight sales, personal loans and commission from Ryanair credit card. This initiative also started the in-flight mobile phone service and online gambling.

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