British Airways Case Study

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Organizational Behavior Final Case Analysis:

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Table of Contents:
1.Introduction……………………………………………………………………………………….…………………3 What the company does?.....................................................................................................3 How it was developed historically?......................................................................................3 SWOT analysis…………………………..…………………………………………………………………………4 Strengths…………………………………….………………………………………………………………………..4 Weakness…………………………………………………….……………………………………………………….5 Opportunities……………………………………………………………………………………………………….6 Threats…………………………………………………………………………………………………………………6 The Problem…………………………………………..…………………………………………………………....6 Why is change needed?.......................................................................................................7 Fear of turnover and instability…………….………………………………………………………………..7 =Mistrust………………………………………..……………………………………………………………………7 Overuse of motivational approaches……………………………………………………………………….7 Unclear goals……………………………………………………………………...………………………………..7 Compromises………………………………………..……………………………………………………………..7 British Airways culture………………………………..………………………………………………………..8 Suggested solutions………………..…………………………………………………………………………….8 Recommendations……………….………………………………………………………………………………9 References..……………………………………………………………………………………………………….10

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Introduction:
What the company does?
The British Airways (BA) is the flag carrier airline of the UK. Its headquarters is at the waterside near the main hub in London, Heathrow Airport. Its second hub is at London Gatwick Airport. BA is the largest airline in the UK which currently serves 150 destinations, including domestic flights and international flights to the Middle East, Africa, USA, Australia, Europe and Asia {1}.

How it developed historically?
The British Airways group was formed on September 1, 1974 through nationalization by the Labor government. It was formed from two large London-based airlines; British Oversee Airways Corporation (BOAC) and British European Airways (BEA) to form the British Airways Board {1}. They remained autonomous until 1976 when the group division was replaced with a structure based on functional divisions. Still, a distinct split within BA persisted until the mid 1980s. After 13 years, the conservative government sought to privatize the airline and thus started the era of Lord King, the newly appointed Chairman {2}. During that time, a dramatic change was initiated. It was recognized by drastic reduction of staff numbers and high uncontrollable costs. Not only that, but customer service management wasn’t doing any better. BA’s culture was characterized by a military mentality with a purely operational focus. People believed that their job was simply to get aircraft into the air and get them down on time. It was seen as a ‘critical factor that could give a competitive edge’. This stage was known as the “bureaucratic era” {2}. Changes to the better began to be visible when Colin Marshall was assigned to be Chief Executive of BA. He acknowledged the problems and sought to raise the morale of the employees and in turn customer service. He decided that the best way was to put employees through “refresher” training courses to concentrate on teaching staff how to sell the airline and its services hence, improving customer service. Motivation schemes were implemented and several training courses were later offered, each with a different theme. Nevertheless today’s success is definitely a result of all the previous experiences acquired and mistakes made {3}.

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Throughout this case analysis several aspects are to be discussed; including a SWOT analysis for the BA during the 90s, the problems faced then and what are the proposed solutions for these problems:

SWOT ANALYSIS:
Strengths
• • • • • • Brand name Strong management style. Motivational training programs. Employee loyalty. Profit-sharing and...
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