...establishments (Stair & Reynolds 2011). It is especially true for airline companies such British Airways (BA) and EasyJet. The nature and size of the two carriers operations ensure that they face particular challenges in communicating with all their stakeholders that include the shareholders, personnel, customers and suppliers. In fact, the need for the right information is made acute when it becomes apparent that the information is necessary to ensure control, coordination and decision-making support for the airline company. In response to that challenge, both BA and EasyJet have applied an extensive information management system that employs the most efficient and effective communication tools and strategies to transmit pertinent information (Google, 2013). For this reason, both BA and EasyJet have implemented an information system that uses the most efficient and effective communication tool – the Internet – to enable them transmit the right information to all their stakeholders. An information system refers to the data management approaches that a business entity applies. In the present time when there are advanced communication tools, enterprise data – that includes all vital records – are stored in electronic form. Using information systems, the company gets to unify the components that collect, process, store and distribute the data to ensure that they are available when needed. These aspects allow the company policy makers and managers to control how information flows, how...
Words: 3279 - Pages: 14
...BRITISH AIRWAYS CASE STUDY BACKGROUND British Airways was formed in the 1970s as the result of a merger between BOAC (British Overseas Airways Corporation) and BEA (British European Airways). Although the company’s strengths appeared to complement one another the merger was hardly an unqualified success as two companies with very different traditions and cultures were never fully integrated into a coherent whole. The end result was a company with a ‘bureaucratic and militaristic’ culture, in public ownership, and which by the late 1970s was experiencing some severe problems. Customer perception of BA was generally poor, and the epithet ‘Bloody Awful’ often used as a description of what the initials stood for. Furthermore, it faced pressure from low-cost operators on its prized transatlantic routes from Laker Airways and People Express (both of which have long since collapsed), and from a combination of recession and rising fuel prices. The combination of these factors led to mounting financial losses by the early 1980s, recording a single year loss in 1981 of 140 millions pounds. Predictably, the company responded by cutting costs, with staff cutbacks of 22,000 in the early 1980s, and with 14,000 in 1981 alone. These cutbacks were achieved with the help of generous redundancy packages but they did little to alleviate the deeper malaise afflicting the workforce. The cost-cutting exercise, though probably necessary, achieved little, with limited resulting improvements...
Words: 5091 - Pages: 21
...British Airways Case Leading Organizational Change British Airways Case Introduction British Airways (BA) was created in 1979 by public law allowing the “British Airways Board to assume control of two state-run airlines, British European Airways (BEA), and British Overseas Airways Corporation (BOAC) under the name British Airways” (Jick & Peiperl, 2006, p 26). Many problems arose from the combination of the two companies. Structures, culture, and systems had to be combined and improved to help BA become a viable company and prepare itself for the move from a government owned entity to a privatized corporation. Problems Macro The two airlines served different markets and were run as services rather than as businesses. Efficiency and customer service were not part of the organizational structures or design. Each had its own hierarchy of personnel who functioned independently of the other group. Leadership style was heavily task centered rather than service centered. Much of this can be attributed to the history of the companies and their creation following World War 2. At the time of inception, each company was tasked with making commercial airline travel possible by creating the airline infrastructure, designing routes, and proving commercial travel a viable means of transportation for the public. As a government run institution, layers of bureaucracy separated most employees from the idea that they were serving the public interest and should keep quality...
Words: 1726 - Pages: 7
...Running head: CASE STUDY: The british airways swipe card debacle Case Study: The British Airways Swipe Card Debacle MAN4741 – Change and Innovation Management Fall 2013 November 24, 2013 Overview The case scenario details about a strike unleashed by British Airways (BA) staff because of a swipe card debacle. It started on Friday, July 18, 2003 when the staff of terminals 1 and 4 held a 24-hour wildcat strike at London’s busy Heathrow Airport. These staff of over 250 walked out at 4 p.m. The strike occurred during the holiday season which caused chaos. This strike also caused 60 departure flights to ground and over 10,000 passengers left stranded. This was the worst strike that they had ever faced since 1997 when a strike was called by the cabin crew. Everything was chaotic – they canceled services for terminals 1 and 2, apologized and had to tell those who were flying not to go to the airport. BA set up a tent for refreshments and police were called to control the crowd. BA was criticized by many Americans that they did not notify them of what was going on. The staff returned to work but the effects of the strike flowed throughout the weekend. Three days after the strike – the airline was still extremely busy and there were still at least 1,000 passengers to reschedule. BA lost 40 million pounds (British currency) and their reputation is severely dented. In connection to the change issue of the swipe cards, the staffs were protesting the introduction of a system...
Words: 847 - Pages: 4
...Marketing Management and Planning Module 7 HENDERSON BAS Prepared by: Group D Robert Walker Ladan Jalali Liang Chen Harinder Kaur Balaji July 23, 2010 TABLE OF CONTENTS Table of Contents 2 Problem Statement 3 Situation Analysis 3 Background 3 Objectives and Goals 3 Current Situation 3 Henerson Bas Process 3 SWOT Analysis 4 Market Analysis 5 Segment Analysis 5 Competition Analysis 6 Financial Analysis 6 Case Keys 7 Key success factors 7 Key uncertainties 7 Alternative 7 Alternative Analysis 9 Recommendations 9 Action Plan 10 Contigency Plan 10 Problem Statement: Louisa Morgan needs to Set a price and service level for advertising campaign for Halpernia Industry regard to maintain client relationship and satisfaction. The management at Henderson Bas needs to set up a pricing model to effectively balance company's profitability against customer satisfaction Situation Analysis Background Henderson Bas was founded by Dawna Henderson in 1996 and started as an interactive agency in downtown Toronto. The company developed from a one person operation to a midsized 65 person corporation. The company provided wide range of online services like web design, online advertising, e-mail marketing, database marketing and Technology services. They worked with many large companies including Coca-Cola, eBay, Molson and Nike. Henderson Bas was recognized as a leader in the interactive advertising industry. Objectives...
Words: 2378 - Pages: 10
...Online Brand Communities Used As Part of Relationship Marketing: A Case Study of Blizzard BA-Thesis - Morten Hedegaard Nielsen 2010 Abstract Purpose During the last few decades competition in consumer markets has increase dramatically and fragmented the markets. Consequently, the discipline of marketing has changed radically from transactional marketing into relational marketing. Today, the entertainment industry is one of the most rapidly growing industries, where competition intensifies year by year and hence the focus on building relationships with customers has become a central element for survival. The thesis has its focus on one of the most successful companies in this industry, Blizzard Entertainment®. More specifically it will explore how they utilise their online brand community „Battle.net®‟ in order to build relationships with its customers. Based on a theoretical discussion of relationship marketing and online brand communities, together with an investigation of Blizzard Entertainment‟s online brand community „Battle.net‟, this thesis will explore: How and to what degree does Blizzard Entertainment’s online brand community ‘Battle.net’ contribute to build successful relationships with its customers in a fragmented market? In order to answer the problem statement the thesis is divided into three parts; a contextual description, a theoretical discussion, and a case study of Blizzard‟s online brand community Battle.net. The contextual description...
Words: 12517 - Pages: 51
...Case Study: Marriott Corporation The Cost of Capital Teresa Cortez Keith Gemmell Brandon Papsidero Robin Reschke October 28, 2013 Table of Contents 1. Are the four components of Marriott’s financial strategy consistent with its growth objective? ...................................................................................................................... 1 2. How does Marriott use its estimate of its cost of capital? Does this make sense? ...... 3 3. What is the weighted average cost of capital for Marriott Corporation? ..................... 4 4. What type of investments would you value using Marriott’s WACC? ........................ 6 5. If Marriott used a single corporate hurdle rate for evaluating investment opportunities in each of its lines of business, what would happen to the company over time? ......... 7 6. What is the cost of capital for the lodging and restaurant divisions of Marriott? ........ 8 7. What is the cost of capital for Marriott’s contract services division? How can you estimate its equity costs without publicly traded comparable companies? ................ 11 APPENDIX I – Math Utilized to Derive WACC for Marriott .......................................... 13...
Words: 4681 - Pages: 19
...Old British Airways British Airways (BA) faced diverse problems in 1980. Following World War II BA numerous war veterans who brought their military mentality with them. BA initially formed through the merger of two government agencies. These two factors created an organization that provided the cut and dry service of taking off and landing on time. Nothing else mattered. Customer service was not of much importance. BA treated customer as though the customer did not have a choice in service and as though the customer had received a benefit getting to ride the airplane. Numerous bad experiences tarnished BA’s public image. The problem became dangerous when Britain’s worst recession in 50 years reduced passenger number and raised fuel cost substantially (Jick & Peiperl, (2011). British Airways needed immediate radical change in order to survive. Managing Change Managing change is one of the most important and challenging tasks that any leader ever undertakes. Research has shown that public service motivation (PSM) is connected with commitment to change, especially when changes are positive and consistent with one’s value system (Lee, (2013). When change could conceivably improve public services or better serve the greater good, many employees might be more supportive. Transformation Key Steps British Airways (BA) established a since of urgency, to bring about transformation. Management realized that it needed a drastic...
Words: 469 - Pages: 2
...In this assignment I will do two reports that are mainly related to British Airway and I will discuss about its mission and vision and features strategies that they will implement. Also, I will talk about stakeholders and economic system, monetary policies and fiscal environment. Additionally the report will contain British airway PESTLE and SWOT analysis. Note: This assignment is a resubmission for the following LO’s: LO1.3,LO2.3, LO3.1, LO3.3 and LO4.2. LO1.1 Purpose of different type of organisation Private sector businesses are owned and run by private individuals. Examples of private business sectors: 1. Sole traders 2. Partnerships 3. Companies (private and public) 4. Franchisees Aims 1. To make...
Words: 4870 - Pages: 20
...Managerial Leadership Case Analysis: British Airways (“BA”) Task 1 – BA SWOT analysis for the past (2003) Strengths | Weaknesses | CEO leadership | Low staff morale | Business class | Company image | Frequent flyer program | High debt | Cash liquidity | Lack of staff training programs | Innovation | Hierarchical management | Opportunities | Threats | Expansion into Middle East | Increase of aviation fuel prices | Alliance with other airlines | War in Iraq | Develop the workforce | Increase of debt interest rates | Improve customer satisfaction | Union strikes | Task 2- BA SWOT analysis for the present (2011) Strengths | Weaknesses | CEO leadership | Company image | First and business class | Hierarchical management | Frequent flyer program | Use of liquidity for new fleet | Innovation | | Grouped resources (IAG) | | Opportunities | Threats | Alliance with other airlines | Increase of aviation fuel prices | Expansion into growth markets | War in Iraq | Develop the work force | North Africa & Middle East uprising | Improve customer satisfaction | Union strikes | | Weather conditions (ash cloud & snow) | Task 3 – Comparison of past and present situation of British Airways Strengths The ex-CEO, Eddington and present CEO Willie Walsh, are both highly experienced in the aviation industry but quite different in their leadership style. For example Eddington is seen as a theory Y leader, fostering potential...
Words: 855 - Pages: 4
...organizations. If the strategy has changed, it will cause many problems. In the process of implementing these changes, there is support or resistance from shareholders. This report focuses on analyzing BA’s strategic changes and dealing with managing these changes. In tradition, HRM is the organizational function that deals with requirement, training, assessment and rewarding of employees, while also managing people and the workplace culture and environment. Now the new role of HRM refers to overcome the challenge form implementing changes of organizational strategies. The case also indicates that the flexible HRM plays a significant role of dealing with the disputes between employees and management. Key words: strategy management, British Airways, change management, labor dispute Implication of strategic change in British Airways 1. Introduction Generally, a company makes strategies based on the changing environment. But if the strategies changes, there are many barriers to conduct. Human resource is performed as the most valuable asset of organizations. How to manage and more efficiently utilize the asset is so significant for organization to operate and develop. Obviously, there are resistance form employees. Therefore, human resource department is responsible for coordination in the organization. Human resource management (HRM) is always known as the governance of employees in organizations. It is responsible for creating, implementing...
Words: 3419 - Pages: 14
...assessing credit risk for companies in the pharmaceutical industry globally. This document is intended to provide general guidance that helps companies, investors, and other interested market participants understand how key qualitative and quantitative risk characteristics are likely to affect rating outcomes for companies in the pharmaceutical industry. This document does not include an exhaustive treatment of all factors that are reflected in Moody’s ratings but should enable the reader to understand the qualitative considerations and financial information and ratios that are usually most important for ratings in this sector. This rating methodology replaces 1 the Global Pharmaceutical Industry Methodology published in October 2009. While reflecting many of the same core principles as the 2009 document, this update provides a more transparent presentation of the rating considerations that are usually most important for companies in this sector and incorporates refinements in our analysis that better reflect key credit fundamentals of the industry. No rating changes will result from publication of this rating methodology. This report includes a detailed rating grid and illustrative mapping examples that compare historical performance on factors in the grid to ratings of companies covered by this methodology. The purpose of the rating grid is to provide a reference tool that can be used to approximate credit profiles within the pharmaceutical sector in most cases. The grid provides summarized...
Words: 13613 - Pages: 55
...must cover: • A definition of strategic human resource management and a comparison of at least two models of strategic HRM • Reasons for the importance of HRM in organisations • Explanation and analysis of an HRM framework • Explanation of the HRM process and how strategies are developed • An assessment of the roles in strategic HRM This assignment covers assessment criteria 1.1, 1.2, 1.3, 2.1, 2.2, and 2.3. A bibliography must be attached. Assignment Two Case Study Read the information about British Airways. Carry out further research by reading the latest BA annual report and articles related to employee relations at BA. The suggested titles are not exhaustive and you should find further sources. British Airways British Airways was formed in 1974 from its predecessors merging. Theses airlines were the former BOAC and BEA. British Airways was known as the ‘flag carrier’ airline for the UK, meaning it was the national airline and owned by the state. This was the case until 1987...
Words: 752 - Pages: 4
...MGT 521 WEEK 2 To purchase this visit here: http://www.activitymode.com/product/mgt-521-week-2/ Contact us at: SUPPORT@ACTIVITYMODE.COM MGT 521 WEEK 2 week 2 complete 1- Complete the Effective Research and Writing at University of Phoenix Module. Save a screen shot of the completion screen as a Microsoft Word document on your computer once you finish the module. Click the Assignment Files tab to submit your assignment 2- Navigate to the My Career Plan in Phoenix Career Services. Complete the Career Plan Building Activity: Work Culture Preferences. Note. Access to Career Plan Building Activity: Work Culture Preferences is only available after you complete the Career Plan Building Activity: Competencies. Write a paper of no more than 350 words discussing the results of your Career Plan Building Activity: Work Culture Preferences and Competencies. Reflect on your results. How can knowing your ideal work culture help you in developing strategic and operational plans to achieve organizational goals? Which competencies are essential to conducting a strengths, weaknesses, opportunities, and threats (SWOT) analysis? How do your competencies relate to the essential competencies for conducting a SWOT analysis? Click the Assignment Files tab to submit your assignment. 3- You have decided to pursue an MBA degree either to further your career, start a new career, or achieve a personal goal. In this program, you will study the functional areas of business. ...
Words: 2623 - Pages: 11
...British market was only just a beginning of its story of success and its path to an incredible leadership. This, however, was not that clear if we consider the company’s situation in the very moment when it all started. In this brief work we will try to analyze Ryanair’s strategy, disposing only of the data that was available to the company back then and we will try to estimate if this strategy is going to be successful. In order to do that we will describe the industry using Porter’s five forces and generic strategies framework. Industry examination: Suppliers: The importance of suppliers in this industry is huge due to a limited number of possible solutions that in some cases is close to a monopoly. Main suppliers are fuel and oil providers, unions of staff and pilots, airports, companies that lease aircrafts and specialized personnel like technicians or engineers. Most of them are unique and work with major airlines and a small airline, operating in one connection has no power to negotiate any conditions. The only way for an airline to dispose its self of their influence is backwards integration. New entrants: Airline industry is a particular case in which we can observe some really strong barriers of entry. On one hand, the cost of an air fleet, though planes can be leased, and salaries of the crew are very high. On the other, the cost of change, from the psychological perspective, was relevant back then, when this industry had just been deregulated. Also strict legal regulations...
Words: 1166 - Pages: 5
