Executives in Ireland operate differently in comparison to France.
Themanagerial structure and leadership style of Ireland is tall. Meaning thatmanagers are open to the opinion of employees and are willing to work in groups,shown in figure 3. The Irish are a lot less strict compared to the French andhave a much more of an egalitarian environment.
This means almost everyone isat the same level of power, also shown earlier with the power-distance index. Inthe Irish culture, it very important to have good human relationships.Therefore, the Irish invest a lot of their time into building strong relationshipsand a large network. The Irish are also very flexible compared to the French,this is seen the extensions of deadlines for example. When negotiating orconducting business in Ireland it is important for foreigners to understand theIrish culture because they have a specific humor, are very relaxed and haveunformal way of working. Porters 5 generic strategy matrix analyses the competitive position of acompany. Ryanair’s main generic strategy is cost leadership, which means thatRyanair has the lowest price compared to all other competitors in the market.
Asshown in Ryanair’s value proposition, “offer direct, on-time flights at thelowest fare in the market, with no frills.” (IN Slide share, Ryanair BusinessModel) The second strategy is differentiation. Differentiation is making sureyour company is different from other competitors, having a unique selling point(USP). Ryanair describes their target customer as “those who compromise oncomfort & all fare-conscious customers.” (IN Slide share, Ryanair BusinessModel) Finally, focus, which is when a company targets a market where there arefew competitors (also called blue-ocean marketing strategy. Ryanair does have atall managerial structure, the Chief Financial Officer (CFO), Chief OperationsOfficer (COO), HR manager, and legal secretary report directly to the CEO,Michael O’Leary. The effects of having this structure in Ryanair are theefficient use of resources, in depths skill specialization and development, topmanager direction and control, and high quality technical problem solving.
However,the disadvantages are, poor communication across functional departments, decisionsare concentrated at the top of the hierarchy therefore creating delay, responsibilityfor problems are difficult to pin point and there is limited general managementtraining for employees. 6. Jean-MarcJanaillac and Michael O’Leary Leadership Style Comparison Jean-MarcJanaillac and Michael O’Leary are able to manage and continue their companiesin a profitable and efficient way.
This is because although they operate theircompanies differently, they have many similar leadership characteristics. Forexample, both are committed, confident, and creative. When Jean-Marc Janaillacbecame CEO, he decided to align with KLM. This was a hugely successful decisionthat displayed his risk-taking and out-goingness as his first big decision.
Michael O’Leary also made a huge decision when he became CEO that shows that heis out-going and a risk-taker too. He focused on finding the lowest pricespossible which he achieved greatly. A quote that shows his out-goingpersonality is “MBA student comes out with “my staff is the most important asset.”Bull****, staff is usually your biggest cost.
” (IN Slide share, RyanairBusiness Model) Both CEOs are also creative. Jean-Marc Janaillac developed anew model of airlines, which is between a traditional and low-cost airline. MichaelO’Leary is creative and a risk-taker because he decided to really focus on costand not worry about the quality of the services. Communication Issues when CommunicatingAcross Cultures Communication protocols differbetween cultures in a business environment. Due to these particular protocols,friction can be cause when communicating across cultures. These communicationissues come from differences in basic values, for example the value inemotional expression or body language and tone of voice.
In some countries, itis very important to read the body language and facial expressions but inothers not so much. France is a high context culture; therefore, people do readthe tone of voice and body language of colleagues and bosses. Ireland is a low contextculture; therefore, they rely on direct verbal expression. Another example ofcommunication issues between cultures is the dress code, some cultures dresscasually such as Ireland but some cultures can find this disrespectful.
Languagedifferences cause a significant problem in business meets and negotiations. Ifone has to use a translator or even is bilingual, jokes, slang and figures ofspeech can be misinterpreted or misunderstood.