Introduction
In this individual assignment, reading material including the different ways companies innovate, re-energize a mature organization, and change corporate culture provide the basis for analyzing British Airways’ (BA) transformation and the difficulties encountered in making an organizational change. Identification of critical factors leading to British Airways successful transformation as well as steps, sequence, and risks taken to transform the organization and personal assessment is provided for this case study.
Connection of British Airways case to re-energizing the mature organization
How was the accompanying reading, “Re-Energizing the Mature Organization,” germane to the case on British Airways?
The re-energizing the
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Through bureaucracy bashing, the company focused on removing work that added little value to customer satisfaction. This was accomplished through establishment of the Putting People First (PPF) program that also resulted in employee empowerment as the program was aimed to benefit employees as individuals first leading to a feeling of respect and belief they were part of the change moving forward. The focus on continuous improvement included creative financing, marketing, and a movement towards privatization and globalization. Lastly, addressing organizational cultural was one of BA’s biggest challenges in re-energizing through change.
British Airways challenges to making change
What was life like at the “old” British airways? What was difficult about making change?
Prior to the marketing campaign touting BA as “The World’s Favorite Airline,” BA was often referred to as “bloody awful.” The company suffered from poor performance, inefficiencies, an older fleet, and substantial financial losses. Following passage of the Civil Aviation Act in 1971, BA assumed control of two state-run airlines, British European Airlines (BEA) and British Overseas Airways Corporation (BOAC), under the name British Airways. However, BEA and BOAC operated autonomously with separate boards, chairman, and chief executive officer that provided a challenge in making change. The level of
In this report based on our chosen company the British airways, we will cover the leisure provision related to the public, commercial and voluntary point aspects.
Macro: The first problem changing the culture at British Airways was the merger of the BOAC and BEA. In 1971, the Civil Aviation Act became law and the board was to control policy over British Airways but both BOAC and BEA remained autonomous, each with its own chairman, board, and chief executive. This caused a split within British Airways throughout the 1970s and in the mid-1980. The second problem BA faced was the threat of privatization. In 1984 the government passed legislation that made BA a public limited company. The third was productivity was bad compared to other leading foreign airlines. The fourth was poor service. Poor customer service
JetBlue Airways, the latest entrant in the airlines industry has gone through the initial stages (entrepreneurial and collectivity) of the organizational life cycle rapidly under the successful leadership of David Neelman. JetBlue Airways is currently in the formalization stage of the life cycle where in it needs to create procedures and control systems to effectively manage its growth. Also as it proceeds to grow further to reach the elaboration stage, JetBlue needs to continue to align itself with the environment in order to maintain its sustained growth.
1 This essay will assess how globalisation has impacted on the airline industry using British Airways as an example to illustrate this change had on the industry as a whole. This essay will attempt to show how the airline industry and British Airways in particular coped with thesee change and how neoliberalism thinking allowed and supported this fundamental change to happen.
The setting of this case study was the Texas Plant. The Texas Plant produced excellent quality goods, but it was not competitive because of its slower speed of product changeovers, higher costs, and environment of “bureaucratic status quo” (Pryor et al., 2011, p. 111). In addition, the plant’s union leaders, management, and employees lacked positive, working relationships. Corporate leaders hired a new, aggressive vice president, David, to transform the plant by empowering employees and establishing continuous improvement processes (Pryor et al., 2011). David, in turn, bypassed the plant’s Human Resources (HR) and hiring director, Harvey, and hired Paula
The airline business is an industry that is competitive and unique, focussing on consumer choice and the responsiveness of airlines to changes in the external business environment. For any airline, this environment can be very complex as it is ‘hard for them to fully understand and impossible for them to fully control’ (The Times, n.d. p1). Virgin Atlantic is an international airline that is based in the UK. It was started by the entrepreneur Richard Branson in 1982 and now flies to 30 destinations around the world (Virgin Atlantic Airways Ltd, 2011). By looking at
The intent of the proposal is to address the case brought forward to our organization concerning “The Young Change Agents,” at Price Waterhouse (PW) who later merged with Coopers & Lybrand. It is my understanding that the platform to address the need for change in the organization plummeted with three young pioneers (Shaw, Middleburg and Sgaralgli) recognized a need for change. Prior to Shaw and Middleburg arrival to PWC, they had an opportunity to work in a well-known student organization AIESEC. In their tenure at AIESEC life was different, as Shaw recalled while operating as the president of the national organization in New Zealand division; he recognized that AIESEC focused on developing his leadership skills by focusing on such programs as skills, attitudes, values and cultural understanding. Furthermore, he noted that his transition to PwC led to a lower echelon, and it was difficult to transition from the president to a staff member. PwC also had a high spending budget for stationery compared to New Zealand AIESEC. Moreover, the technology was not up to par for such a large cooperation. (Jick & Peiperl, p. 463) Shaw and Middleburg later partnered with Sgaralgi to fight the deficiencies that they saw in PwC. They created a force that focused on overhauling the existing values at PwC. They approached each situation, manager and employee one step at a time. Expecting nothing in return, but only to share their message on the new
British Airways faced the worst crisis in its history in the late 1970’s early 1980’s.
The dispute between BA management and Cabin Crew from 2009 to 2011 caused extensive impact throughout the global condition. BA totally lost £150 million and the brand reputation had been affected seriously. It meant that BA has some problems about its change management. This academic report contains
There definitely was a crisis happening in that airline. They didn’t seem to have a cohesive culture and it seemed as if they continued down this path they would no longer have a business either. British Airways had this divide between BEA and BOAC.
Life at “old” British Airways lacked a unifying corporate culture. The 1971 merger of British European Airways (BEA) and British Overseas Airways Corporation (BOAC), by the British Airways Board, only succeeded in putting an umbrella over two separate mature entities. The focus of the BEA had been to build a European airline infrastructure. BOAS was an innovator and pioneered the first jet passenger service. Neither company was concerned with cost or profit. British Airways was government run and according to Jick & Peiperl (2011) “success had less to do with net income and more to do with ‘flying the British flag” (p.26). This inefficient government structure was bogged down with
British Airways (BA) was formed in 1974 by the merger of the British Overseas Airways Corp (BOAC) and the British European Airways (BEA). BA’s integration did not come without problems. By the early 1980’s BA generated debs in excess of £500m, staff discontent and customer dissatisfaction were common denominators across the operational equation and in 1980 the airline topped a list of airlines to be avoided at all costs.
In the reading “Re-energizing the Mature Organization”, the authors provide several stages that organizations can approach in order to achieved success in organizational change. The case of British Airways, can be related to this article because the company went through the changing challenges that allowed the organization to overcome the idea of failure. BA understood that in order to increase sales and remain competitive, they had to develop new strategies and concepts that would re-energize the company. Mr. Colin Marshall, Chief Executive of British Airways, took the responsibility to grow and re-stablish the costumer services department. As a leader, he provided tools that allowed employees to connect with
British Airways is the one of the largest airline companies, and the passengers carry overall in the fifth largest in the world. Most of plans are stay in Heathrow Airport which is the highest of main international airport. The British Airways has a long history and airlines cover 133 countries; include 373 airplanes. The BA Company includes 50,086 workers to be in the service, which is one of the largest employers and employees in the United Kingdom.
British Airways came into existence in 1935, when smaller privately owned UK airlines merged. Another change occurred when the Government nationalised British Airways and Imperial Airways to form BOAC - The British Overseas Airways Corporation.