Airfrance-Klm Merger with Jal

Topics: Management, Airline, Strategic management Pages: 40 (11954 words) Published: November 22, 2010
Implementation Plan
Merge AirFrance-KLM & JAL

Table of Content

Part 1 - Introduction3
2.The situation4
2.1 Reason for the merger4
Part 2 – Implementing Change5
4.The 7S Model6
5.1 Four competitive Strategies7
5.2 Management strategy to implement change9
6.Change on structure10
6.1 Strategic perspective10
Current situation10
How the new group will look like10
What needs to happen in order to come to the desired situation?11 6.2 Managerial perspective12
The new board of directors12
6.3 Operational perspective on structure13
Current situation13
How the new situation will look like13
6.4 Techno structural interventions14
6.5 Systems............................................................................................................15 7. Change on culture16
7.2 Managerial change on culture17
7.3 Operational change on culture20
Part 3 – Performance Management22
8. Research & Human Resource Management Interventions .22
9. Argumentation pro or con the merger from all stakeholders26 10. Time line interventions29

Part 1 - Introduction


Air-France will merge with JAL and both companies will need to change their organizational and strategic focus. The coming ten weeks, we will write an implementation plan concerning the changing aspects within both companies.

The main objective is the adaptation of JAL to Air France-KLM, and vice versa, at strategic, managerial and operational levels, taking the mission, vision and strategy of Air France-KLM into account.

We will be looking several perspectives on optimizing organizational processes, marketing tools and the flexibility of the workforce in relation to the ever-present changes in the environment. We will design both companies organization by relating such components as strategy, structure, culture, assessment tools and human resources.

Important within this implementation plan is that the reader become convinced of the success of this merger. We will elaborate on what, when and how this needs to be done in order to make this merger a success.

The situation

AirFrance-KLM is taking over Japan Airlines (JAL), which is in great financial trouble since the beginning of 2010.[1] With this merger many aspects will come into play and it is important to have things planned and thought out as much as possible. This will help the merger to evolve smoothly.

The merger will obviously influence both companies in many ways, in the long run both companies should benefit from their alliance in a world where competition is stronger and more challenging than ever before.

We expect that the AirFrance-KLM staff will have more resistance to change than the JAL staff. This is based on the following assumption: AirFrance-KLM will need to change in order to maintain and strengthen their current strong global position in the airline industry. This strategic necessity is caused by the current competition in where a few airlines become bigger and of greater influence. Underneath the top management of AirFrance-KLM group this will be recognized and understood, where we think that staff under this layer of management won’t feel great need for change. Therefore they can show a great resistance of change. For the staff of JAL resistance of change will be less expected as they now they have to merger in order to survive right now in the industry. As the company is financially performing really poor, they need the support from another airline.

2.1 Reason for the merger
A merger between AirFrance-KLM and JAL would greatly benefit AirFrance-KLM in a few ways. First of all, as JAL is the biggest player in Asia, AirFrance-KLM will have the possibility to create a stronger position on many destinations and routes in Asia than they have now.[2] Besides it would mean that JAL have to join the alliance of SkyTeam[3] and not...
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