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British Airways 1

British Airways 4

British Airways

Chloe Powers

Dr. Tosha Perkins

April 18, 2021

Background

British Airways can spot its roots back to the civil aviation birth, the pioneering days following World War I. In the past hundred years since the first world arranged air service in 1919. Air travel has modified afar all recognition. The company was formed in 1974 in the fusion of British European, British Overseas Airways Corporation, and their related organizations. The organization, state-owned from its establishment, was then privatized in 1987. In the company, every decade saw new developments and difficulties, which shaped the future path. British Airways remains one of the largest airlines globally and fifth in terms passengers clients. The British Airways has airlines that cover than 130 countries and has 370 airplanes. The BA Company workforce is 50,086 workers and remains one of the largest employers in the United Kingdom.

Business Strategy-The current business strategy for BA is upgrading its customer experience by introduction of several ideal services for business class customer. It remains committed to its goals of being the airline of choice by the premium customers and improved margins due to new other revenue streams (Tom, 2019).

Business Environment 

Micro Environment: if there should be an occurrence of the British Airways, the macro environment of the organization incorporates the different components that are essential for the internal structure of the organization. As the cultural part of the organization is similarly reflected among the employees, this additionally impacts the work attitudes of the British airways and effect the decisions steps as such there is contribution from individuals of different cultures.

Macro Environment: Macro environment describes the eternal elements that impact on the operations of British Airways. Such factors are the business environment and the government policies towards the industry. Much of the time, BA lacks control on such factors; notwithstanding, it needs to reconsider its systems and make decisions as per the changes in the micro-environment. Employees- BA employees’ statistics present a figure of 45,000 employees, with 16,500 being cabin crew and while 3,900 are pilots.

Products & Services- British Airways offers different services and products such as families pre-boarding, free allowance for a pushchair and car seat, and special children's in-flight entertainment.

Clients- People who chooses to use BA is due to their good customer service. Mostly the people who fly BA for business or tour purposes are considered affluent and influential.

Competitors- Most of the markets where BA operates are highly competitive with competition levels varying depending on routes.

Causes of the ODC 

There was a sharp decline in the numbers of those flying the business class travelers. To reduce down expenses in an economy disabled by downturn, businessmen chopped down their insignificant travels. Likewise, there has been a sharp rise in fuel cost. This has consequently prompted higher ticket costs. This has caused BA's traveler numbers to fall incredibly.

There has been degradation in the quality of service by British Airways. The organization's standing has been as of late deformed because of its absence of punctuality.

Frequent conflicts between the carriers' authority and the staff members. This is on the grounds that BA has endured such immense income falls that it can't pay even pay rates to its staff. The factors above affected even other organization not just British Airways alone.

Impacts on other organizations

Many of the airline firms were declared bankrupt while others entered into mergers with others to survive such as Northwest and Delta in the US.Some airlines such as SkyEurope collapsed in 2009. Also, JAL applied for bankruptcy.  

The chairperson of the company forced changes resulting in a number of routes to bring axed and also selling off the cargo planes and Service. The Company as well cut twenty thousand employees as part of the process of change. The company produced its first additional profit, which was the result of the action of cost-cutting.

The chairman also hired Colin Marshall as the company’s CEO removing the older aircraft from the fleet, buying more efficient and modern airliners, and axing routes that are unprofitable. As the company was headed to privatization, the chairman was credited with modifying the loss-making organization to one of the most profitable air carriers in the globe, boldly claiming to be the favorite airline in the world, whine many other significant airlines struggled. The company also used some of its prosperity to replace and upgrade much of its fleet. I choose this company because of its immense change from a loss-making company to the most profitable organization in the world.

Outcomes from the ODC events

Positive outcomes

The positive outcomes for the ODC that lasted like two years makes people learn a lot from British Airways on how they can change their company from a struggling one to a company that makes enormous profits. Most of the customers love this company because it cares for them and goes the extra mile, and provides a level of customer service that other airlines do not offer. The company also provides comfort services, has good customer service, and its loyalty programs have also played a part in its success.

Negative outcomes

Culture clash-This is especially due to lack of employee buy-in. Employees can learn from the way other firms did their ODCs and consider the best practices.

· It needs huge amount of time investment and thus the need for proper communication plans and employees kept I the loop for all the phases of an organizational development change initiative,

· It is a very expensive undertaking-It therefore requires serious consultations before decision making. To the employees they should instead consider organizational development just to be a way of uplifting.

Forecasting: 

Considering the current climate in terms of political, economic, social and business environment, if the ODC event happened today the outcomes especially terminating of jobs would probably be faced with legal dilemmas and shift in competition with employees being poached by other airlines and therefore imbalances in fair trade.

List of references

Tom Boon. (2019, April 7). The story of British airways – How has the airline got so big? – Simple flying. Simple Flying. https://simpleflying.com/british-airways-history/

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