Organisational Strategic analysis on British airways

September 7, 2017 Management

The issue of organizational alterations is a corner rock of organizational operation, development, fight and, yet, effectivity. Over the past decennaries, the manner in which people are managed, promoted and stimulated at workplaces has become a primary key to measure and better organizational efficiency and marketability and became a portion of a general organizational scheme.

The intent of this study is to carry on a Organisational Strategic analysis one of the largest air hose company British Airways. The aim of the study is to measure the competitory and altering market status of the air hoses companies how these companies specially BA ‘s organizational alterations occurred in last five old ages

In footings of globalization and quickly altering concern environment, every bit good as turning fight on the market, modern companies progressively need to trust instead more on their skilled and motivated forces than on pure engineerings and merchandises

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the study will demo us how BA addressed following issues:

Main aims in doing the alteration in last five old ages.

Cardinal factors Influence of BA ‘s organizational alterations

How managed alteration toward opposition of alterations

In the Chapter D, the purpose of the Chief Executive Willie Walsh for BA to be simpler and bettering employee ‘s behavior and public presentation has discussed the 7S model are besides used. The purpose of the study is to sketch the countries in which the current scheme could be improved and further related alterations.

Decision and recommendations are besides drawn.

Table of Contentss

Page No

1.0 Overview of the Company

1.1 British Airways Organisational Changes in last Five old ages

1.2 Objective in doing alteration

Part 2

2.0Factors act uponing British Air passages change strategy__

2.1 Internal influences

Part 3

3.0 Organizational Change

3.1 Organizational Resistance & A ; how it ‘s managed

3.2 Types of Organizational alteration & A ; procedure

5.0 Recommendations and Decisions

Part 4

4.1 Timetable for executions

Table of Figures Page No

Figure 1: Model of Change- Sequence of Events

Figure 2: Forces Causing and Resisting Change within an Organization

Figure 3: Statisticss of Favourite air hose

Figure 4: Europe Share Market Movement

Figure 5: Timetable for full execution

Figure 6: 7S model

Figure 7: Herzberg ‘s Two Factor Theory

Figure 8: Factor impacting employees ‘ attitude

5.1 Recommendations for accomplishing Mr Willie Walsh ‘s end for BA,

Part 1

1.0 Overview of the Company

British Airways happens to be one of the biggest air hose operators that is U.K. based and among the different operators of Europe it is keeping the place of the 3rd place after the Air France, Lufthansa and KLM. The major lopes of the air hose are at London Gatwick, and London Heathrow in which their scope of the services being provided by them from the long paths to the short paths of the domestic European flights. Manchester happens to be one of the Britain Airports from where it is runing for the long distance flights. There are about Five 100s and 50 finishs to which the air passages is supplying flights at convenient timings.

Therefore the British Airways is a group which comprises of the other subordinate houses like the British Airways Plc and others like the BA Connect Ltd. and British Airways holidays Limited.

As British Airways is considered to be a leader in the industry chiefly because of the sort of the engineering that is being utilized by the company in supplying assorted services like the online engagement system and the fining method of ego services ( )

1.1 British Airways Organisational Changes in last Five old ages

British Airways Plc: the sky ‘s the bound. British Airways Plc, BA, is the taking air hose in the United Kingdom, and of course one of the biggest in the universe. In May 2005, Willie Walsh, freshly taken over from Rod Eddington as main executive, continued this active direction of company civilization and said of his staff:

“ I want them to experience divine, I want them to experience optimistic, I want them to experience that this is a good topographic point to be ” ( Dangerous Company, BBC2 April 2006 ) .

Willie Walsh ‘s vision of alteration was so ambitious ( making better and better, ne’er plenty for him ) , Walsh justified himself in stating that he had a long-run vision and staff a daily 1. Although before Walsh ‘s term of office as main executive, BA was a really well-run and profitable company and it was considered as “ the universe ‘s favorite air hose ” . But as airy leader he was made figure of alterations, such as he reduces top heavy executive squad from 25 to 14. Therefore, he presented five aims to accomplish:

To prolong BA as the universe ‘s favorite air hose.

Improve client service

Diversify through amalgamation and acquisitions

Improve direction and to be best managed company in the UK

Cost film editing

1.2 Objective in doing alteration

The overall aim of Walsh ‘s approached to cut down the outgos with in the organisation every bit good as outside. Walsh ‘s claimed BA needed a 2nd revolution. At the get downing Willie Walsh ‘s vision of alteration and schemes were right but its execution to accomplish his aims were non well-liked by employees or people around him this resulted in employees ‘ de-motivation and de-moralization. As a consequence there was a planning to strike by the employees which was temporarily held by the tribunal determination but there are be aftering to hold a work stoppage.

This paper discovers the phenomena of extremist organisational alteration in last five old ages, its deductions and effects over the company ‘s on the whole public presentation and the contention of leading and its issues? In this paper writer discourse how leading consequence on organisation ‘s public presentation in the context of organisational alteration? And how good Willie Walsh did his alteration direction schemes. Was he successful or failure. This paper reviews these inquiries by analyzing the instance survey of British Airways, and besides discusses the function of effectual communicating and the motive of staff in BA and how these facets are interrelated with each other.

Part 2

2.0Factors act uponing British Air passages change strategy__

Monitor planetary competition, clients, rivals and other factors

Need for alteration

Initiate Change

Implement Change

Evaluate jobs & A ; chances, define needed alterations in engineering, merchandises, construction & A ; civilization

Facilitate hunt, creativeness, thought title-holders, venture squads, skunkworks & A ; thought brooders

Use force-field analysis, tactics for get the better ofing opposition

Environmental Forces

Internal Forces

See programs, ends, company jobs & A ; demands

Figure 1: Model of Change- Sequence of Events

( Beginning: Richard, 2001 )

Corporate Invention is something that is really difficult to alter and employees need clip to acquire used to the new manner of forming. Many people are non willing to alter unless they perceive a job or a crisis. For companies with a really strong and specific civilization it will be even harder to alter.

Mr. W. Walsh, Chief Executive of British Airway ‘s determination to implement alteration at BA was influenced by a figure of assorted factors. These were chiefly based on the effects of the external environment on British Airways. BA ‘s engineering was non in maintaining with the engineering of their rivals and so this was reflected in its merchandises. To battle this menace, W.Walsh. , ( 2009 ) tried implementing new processs and altering the civilization of the organisation. He decided to alter the organisation from a engineering driven company to a more service oriented one, missing the technological strength of its rivals, BA proposed to offer a superior degree of service alternatively. The external environment menace of engineering was the chief ground behind BA ‘s alteration.

Change within the Administration

Forces Defying Change

Forces for Change

Global Pressures


The Market

External Environment

Aspirations of the Workforce




Lack of Trust



Fear of Failure

Fear of the Unknown

Power Blocks

Figure 2: Forces Causing and Resisting Change within an Organization

( Beginning: Jewell, 1990 )

In order to last and thrive in a competitory and quickly altering environment, organisations besides need to alter. This may be brought about by many act uponing factors which may be internally within the organisation or in external environment of the organisation.

External forces originate in all environmental sectors, including clients, rivals, engineering, economic forces and the international sphere.

External influences:

Political factors including statute law or other authorities steps. Organizations are forced to alter in order to run into, for illustration, wellness and safety, environmental or consumer protection demands.

The EU ‘s Torahs could forestall to diversify into the no-frills market.This will do less competitions for BA from no-frills air hoses.

Noise pollution ‘s stricter Torahs from EU could impact all the air hoses.

United Kingdom have decided non to present the Euro would cut down figure of tourers to come into the land.

Slots decreases at the airdrome could enable BA to take over other paths which are served by the other air hoses.

Decrease in the protection of slots, peculiarly those at the primary airdromes could enable British Air passages to take paths served by other air hoses.

Government is ever tried to protect BA as a national flag bearers.

Costss have been increased due to increase fuel monetary value.

Economic factors such as alterations in degrees of unemployment and involvement rates which can hold a major impact on demand.

Increase the airdrome revenue enhancements could increase costs of the BA.

New members of EU could increase or present new flights to the UK which could forestall to keep up the net incomes.

Current economic downswing and swine grippe could forestall people to wing.

BA and Spain ‘s Liberia air hoses merged determination to increase ?400 1000000s of synergism ( http: // )

Social factors including alterations in life manners and environmental issues which organisations must react to if they are non to lose out to rivals.

Menaces from terrorists onslaughts could cut down people to wing such as September 2001 and most late failed suicide bomb onslaught at American Airlines.

Technological advancement such as word processing in the office or automatons in the mill can alter working stuffs, methods and patterns and make the demand for new accomplishments.

Trade brotherhoods can act upon pay rates, working conditions and other facets of industrial dealingss.

Competition and alterations in consumer gustatory sensations and demand all impact on concern organisations, doing alteration necessary in order to react.

Media studies which can act upon consumers ‘ and employees ‘ perceptual experiences of an organisation and its goods and services.

Internal forces for alteration arise from internal activities and determinations. If top directors select a end of rapid company growing, internal actions will hold to be made to run into that growing ( Smillie & A ; Hailey. , 2001 ) . New sections or engineerings will be created. Demands by employees, labour brotherhoods and production inefficiencies all can bring forth a force to which direction must react with alteration.

2.1 Internal influences:

New merchandises or services which require alteration in order to present them.

Management alterations, due possibly to a amalgamation, take over or the assignment of new staff. This may impact the direction manner and civilization of the organisation.

Quality confidence systems which are going progressively of import in organisations in order to run into altering client outlooks.

Productivity and profitableness betterments which frequently require alteration in systems or processs in order to command or cut down costs and/or addition end product.

Customer service is now more important than of all time for organisations in competitory markets because they can merely last and thrive if they satisfy clients.

After analysing the external environment, it can be summarized that no-frills zone may present a large menaces in the hereafter. Another Problem that most recent painful terrorists onslaught had cancelled figure of flights of BA.

After the demand for alteration has been perceived and communicated, alter must be initiated. This is a important phase of alteration management- the phase where thoughts that solve perceived demands are developed. Responses that an organisation can do are to seek for or make a alteration to follow.

The modern composite concern universe is being rapid alterations. There are figure of factors such as globalisation amongst companies, alterations in market tendencies every bit good as companies who are more globally demanding and mature, necessary to cut down costs and the debut of new engineering has lead to companies to confront big sum of competition than they had in the yesteryear.

It is hence of import for organisations to remain in front of their rivals and recent research has indicted that the creativeness and invention of an organisation can give them that competitory border they require. By being originative and offering consumers a more advanced service or merchandise, the company or organisation will be able to distinguish themselves from others who offer similar services. Cook ( 1998 ) found that originative organisations “ harness the ability to believe and move in different ways that make sense to their current and future clients ” .

BA ‘s CEO presented his positions and identified on the cardinal drivers and waies for the air hose ‘s industry and the schemes BA will follow in the passage into the following millenary. He besides reiterated BA ‘s committedness to accomplish long term growing in net incomes and stockholder value in the top quartile of the major air hose by concentrating on people, public presentation and growing.

Part 3

3.0 Organizational Change

Organization changes its overall scheme for success, adds or removes a major subdivision or pattern, and/or wants to alter the really nature by which it operates. Willie Walsh ‘s vision was the same. When together all employees or the group of people work to accomplish the organisational end, the organisations are become operational and successful. Therefore, organisational alteration is possible merely when employees of the organisation understand the demand for alteration, buy-in the thought of alteration, are motivated towards the alteration, and show their involvement ( McGuire D. & A ; Hutchings K. , 2006 ; Beer M. et Al, 1990 ) .

Keeping in position the importance of employees, direction thought for alteration should see the consequence of the alteration on employees every bit good as their opposition and reaction on it. They should be taken into history and should be motivated and explained grounds of alteration by the direction while taking any determination. Other research workers ( e.g. Tichy, 1983 ) acknowledge the defeat that director ‘s feel when their organisations do non react to intricately analyzed programs, where there is a deficiency of interaction between determination and action. In the instance of BA, Willie Walsh did non be after to follow up alteration because he did non believe cardinal alterations as procedure but wanted to alter full organisational civilization instantly. As Whittington and Mayer ( 2002 ) besides vindicate this demand, “ ‘adaptive reorganisation ‘ , the ability to redesign constructions often, is now critical to organisational public presentation ” .

However, an effectual alteration can merely be achieved if alteration directors encourage employees ‘ engagement every bit much as possible, turn to their concerns and reverberations and guarantee them that leader ‘s engagement would be function theoretical accounts for a alteration ( Heracleous, 2002 ) . Enthusiastic Willie Walsh tidal bore for conveying alterations in BA forgot to acquire his employees involved in the alteration direction procedure.

However, employees or group of people working together for organisational end made the organisations as successful.

3.1 Organizational Resistance & A ; how it ‘s managed

There are figure of factors are playing for opposition to alterations such as fright of the unknown, the possibility of economic insecurity, wont, menaces to societal relationships and failure to recognize the demand for alteration ( Nadler, 1988 ) . Another issue of importance in alteration which is difference between how organisation looks at present and expression after the alteration. Harmonizing to Cameron et Al ( 1993 ) , preparedness for organizational alteration depend on how the grade to which a alteration ( TQM ) and bing civilization differs from that civilization, an administration may be more or less ready for such a alteration.

Tichy and Devanna ( 1986 ) discourse “ making a demand for alteration ” ; in consequence, opening up the organisational civilization to be receptive to the alteration. They note that this is particularly hard when there is no evident crisis, but instead the long-range vision of a leader who anticipates the clip it takes to implement organisational alteration. Resistance to alter is particularly relevant if the vision of a leader differs from the values and beliefs of the bing organisational civilization. If that is the instance, so cultural issues must be addressed ( Schein, 1991 ; Trice and Beyer, 1991 ) . In the instance of BA, Walsh ‘s vision was really good because organisations continuously need betterments and alterations to keep its competitory advantages. Willie Walsh started the alteration procedure and neither involved direction nor his staff and stressed excessively much on cost film editing activities so these extremist alterations turned employees ‘ reverberation and opposition to alter into aggression and they went on work stoppage. Because employees thought that these alterations were non needed and they were non convinced, besides, they were worried about their hereafter.

In this portion of the paper writer will now discourse the contention of leading and its consequence on organisation ‘s public presentation in the context of organisational alteration.

3.2 Types of Organizational alteration & A ; procedure

Change direction is a procedure to convey alteration and transmutation into an organisation to prolong and better its efficiency ( John Hayes, 2002 ) .There are different overall types of organisational alteration procedure, including planned versus unplanned, organization-wide versus alteration chiefly to one portion of the organisation, incremental ( slow, gradual alteration ) versus transformational ( extremist, cardinal ) , etc.

Organizational alteration is a measure by measure and a acquisition procedure which involve everyone in the organisation. There are figure of researches has conducted and researcher stated that the alteration in the administration should hold organizational civilization capacity ( Garratt, 1987, 1990 ; Bahlmann, 1990 ; Senge, 1990 ; Senge et Al. 1994, 1999 ; Pedler et al. , 1991 ; Burgoyne et al. , 1994 ; Swieringa and Wiersma, 1992 ; Watkins and Marsick, 1993 ; Redding and Catalanello, 1994 ) . This attack differs clearly from the literature tendency which puts an accent on cognition direction and which associates organisational larning capacity with the ability to make, get, transmit, retain, or use organisational cognition. This tendency is led by writers such as Amponsem ( 1991 ) ; Nonaka and Takeuchi ( 1995 ) ; Nonaka and Nishiguchi ( 2000 ) ; Nonaka and Teece ( 2001 ) ; Nonaka et Al. ( 2003 ) ; Baets ( 1998 ) ; Von Krogh and Roos ( 1996 ) ; Von Krogh et Al. ( 1998 ) ; Despres and Chauvel ( 2000 ) ; Chauvel et Al. ( 2003 ) .

It is clear from the above literature that Willie Walsh should hold involved all the members of direction and staff while doing alteration in British Air passages. They should hold been convinced about the demand of alteration for the betterments and encouraged to back up this procedure. Despite of sing all that, he brought extremist alterations in organisation without doing his direction and employees involved, like cost film editing activities, outsourcing of different sections and sale of operations etc.

Buono and Bowditch ( 1993 ) notified that uncertainness during alteration procedures is typically about the purpose, procedure and expected results of the alteration and deductions for the single employees ( Buono and Bowditch, 1993 ) .

Part 4

The alteration in the BA has partially successful, as Walsh five aims are partially achieved. Below has explained which alterations are successfully run intoing its aims or non:

1 ) Sustain BA as the universe ‘s favorite air hose:

Harmonizing to Consumer Travel Alliance study shows that Southwest Airlines was no 1 favourite in the universe because of monetary value and client service. Below graph shows its consequence:

Figure 3: Statisticss of Favourite air hose

( Beginning: hypertext transfer protocol: // )

2 ) Improve client service

A study conducted by the BA shows that satisfaction evaluation across the web rose by 72 per centum. The study conducted among 21millions clients ( .http: // )

3 ) Diversify through amalgamation and acquisitions

Most recent M & A ; A with Iberia understanding of ?3.9bn brought portion monetary value up and harmonizing to Willie Walsh both trade name would be retained ( hypertext transfer protocol: // imgurl=http: // ) . Below graph shows of portion market motions, it has shows that BA has deriving Europe portion market in important Washington,

Figure 4: Europe Share Market Movement

( Beginning: hypertext transfer protocol: // )

Improve direction and to be best managed company in the UK

British Airways has failed to make an understanding with brotherhood for halt work stoppage but at the terminal work stoppage called off because of tribunal order. He have non succeeded with his instant reform but he is able to get the better of competition from low costs budget air hoses ( hypertext transfer protocol: // p=222 & A ; n=22 )

Cost film editing

British Air passages have fighting to be cut because of opposition of employees, as they have made contention by inquiring staff to take unpaid leave, cut down hours or work for nil ( hypertext transfer protocol: // ) . Therefore they have confronting strong opposition from the Union which discussed earlier in the portion of this survey.

4.1 Timetable for executions

Furthermore, the parallel running and large knock schemes and pilot surveies would be the best attack for the BA ‘s alterations for schemes. Such as However, it is really of import to combination new engineering and old engineering until new systems is working decently in effectual and dependable manner, i.e. parallel running.

The ‘big knock ‘ scheme can be approached with the motivational classs and direction preparation. The absenteeism could help to fring money by the company, as a consequence the alteration is apparent in speed manner. Large set theory could bring forth opposition to alter, every bit good as a hazard of failure, but in order to implement alterations can be better employees ‘ work environment, i.e. carefully be aftering will guarantee successes and great opposition can be avoided. Below graph shows the timetable for full execution,

Figure 5: Timetable for full execution

4.0 Recommendations and Decisions

A 7S model theoretical account was developed as a theoretical account of non merely construction, but theoretical account of organizational alteration by Tom Peters and Robert Waterman ( 1980 ) . This frame work can besides be used as an organizational analysis tool and it besides depicts that organizational effectivity from interaction of assorted factors. The 7S model show below,

Figure 6: 7S frmaework









( Beginning: hypertext transfer protocol: // % 20Model.htm ) the BP Group. Post acquisition, 240 BP employees will go on working for and in support of the land fuels concern to be transferred to Hellenic Petroleum. The staying forces will go on to back up BP ‘s other activities in Greece. The understanding besides provides for a transitional period sing the direction of the web and stigmatization. The trade is capable to regulative blessings, Grecian competition governments and other relevant blessings. The trade is expected to finish towards the terminal of 2009. N M Rothschild & A ; Sons Limited acted as fiscal adviser to Hellenic Petroleum SA. Pratap Amin, Sebastian Lawson, Jocelyn Mitchell, Avril Martindale, John Fordham, David Taylor, Daniel Lawrence, Eli Hilllman, Vanessa Jakovich, Ned Staple, Van der Staal, Olivia Wyld, Patrick Taylor, Susan Doris, Michael Muntefering, Chun Wing Yeung, Dylan Cunard, Todd Kramers of Freshfields Bruckhaus Deringer LLP acted as legal advisers for BP plc.

The above diagram has no get downing point or hierarchy and it shows that by seven elements which are sing organisation signifier these 7 point of views it would be possible to set up major strength and failing. 7S model shows the 7most of import things that should be kept in head by the direction for accomplishing organizational ends. The BA ‘s direction model clearly sets out rule on how to depute authorization and duty. As the duty of running the company is expeditiously is given to CEO, hence CEO should take of all & A ; 7S mentioned in the model.

BA ‘s group Chief Executive Willie Walsh is taking to do BA a simpler and more efficient by enhance of employees behaviour with implanting a high public presentation civilization by 2012. He had suggested that simplification is the key to success. Harmonizing to Walsh ( 2008 ) , BA had unbelievable assets and a great work force. The lone demand was to convey these assets and people together to organize a more productive, efficient and powerful administration. The nucleus job that was cited was the Bureaucratic direction construction which was formed because of the figure of amalgamations and acquisitions in the organisation. Harmonizing to Walsh ( 2008 ) , the people who knew most about the company were the people who were running operations at the bottom degree. He besides noticed that the direction had become excessively introverted at the degree and was non listening to the employees about safety and dependability.

Furthemore, Harmonizing to De-Witt & A ; Meyer ( 2004 ) , concern scheme is concerned with “ how houses should travel about making a sustainable competitory advantage in each concern they operate. Therefore, In order to accomplish sustainable competitory advantage, ends and do company the best in the industry, the proprietors ( CEO, Top degree direction ) of the company should take attention of the people working in the company, as their efficiency in public presentation would assist company to accomplish its ends. So, therefore a good integrated communicating and co-ordination web would be required to prolong its image in the industry.

Figure 7: Herzberg ‘s Two Factor Theory

( Beginning: hypertext transfer protocol: // )

Herzberg ‘s Two Factor Theory was developed as a theoretical account of understand of employees motive and attitudes. This theory was developed by Fredrick Herzberg in 1959. Herzberg suggested both the factors are really of import to understanding employee motive and satisfaction.

Following some of the factors which are doing satisfaction and dissatisfactions of the employees:

Factor impacting employees ‘ attitude

Figure 8

Hygiene Factor


Motivator Factor


Company policy and Administrations




Working status


Salary and other fiscal factors

Opportunity for promotion

Job Security

Personal Growth



The above list of factors shows that direction of BP non merely avoid Hygiene factor besides provides Motivator factor to the employees in order to Tony ‘s purposes to do a simpler and more efficient by enhance employees public presentation and behavior.

5.1 Recommendations for accomplishing Mr Willie Walsh ‘s end for BA,

Considerable stairss should be taken up so as to do employees sure that they are working in a safe and healthy environment. This would assist Walsh to retain the employees and besides to bring forth a sense of belongingness among them.

Another major factor is that there should be a new operating direction system which should be designed so that it would assist to convey more consistence in the operations of the company. This can be done by implementing cross group programmes. It can be done minimal one time a twelvemonth to name all the employees at one topographic point ( metropolis by metropolis ) Peoples are one of the chief assets of a company to execute expeditiously and efficaciously.

Walsh would necessitate concentrating on bettering behavior of employees by actuating them to work in a more efficient and co-ordinated manner. This can be done by honoring them, giving them more fringe benefits and supplying them safety and security at the workplace. There is besides need to construct a high public presentation civilization in organisation. With organizing among different operations and sections, a high public presentation civilization and extremely motivated employees, Tony can accomplish him aim.

For effectual alteration direction procedure, good communicating between direction and staff is imperative. In order to maintain competitory advantages and to minimise cardinal effects of political and economical perturbation, the uninterrupted alteration is required but this should be taken topographic point with the engagement of each and every member of staff. In the procedure of determination devising, if employees are taken into assurance and are convinced about the needed alteration while taking them on board in determination devising procedure, they would as a portion of alteration direction procedure adhere and look up to the alteration. On the other manus, if they are left staccato and are n’t motivated about this alteration procedure, later their spirit and enthusiasm will travel down. Surely they will hold apprehensivenesss and impact about this alteration procedure. Senses of insecurity and uncertainness of occupation within the organisation created due to miss of communicating which spread out rumors. Therefore little-convinced employee will give low end product and will non stay loyal to the company. Having gone through the instance survey and analyzing it with different supportive theories, it is evident that even though the British Airways was a well-run company, Walsh decided to convey alterations to vie in competent industry but he did non utilize properly communicating techniques and therefore his employees were non communicated his thoughts to the full.


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