Managerial Leadership

In: Business and Management

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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 in employees. The present CEO is a tough negotiator, authoritarian and perceived as a theory X type leader. Both leaders use expert power but also rely on their coercive power in times of emergencies.
Walsh has successfully negotiated an end to the industrial dispute with the “Unite” union which has been ongoing for a number of years.
BA is adapting to the advance in technology for…...

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