British Airways - Leadership and Change
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Case Details:
Case Code : HROA003
Case Length : 15 pages
Period : 1980 - 2003
Pub Date : 2003
Teaching Note :Not Available
Organization : British Airways
Industry : Aviation
Countries : UK, Europe
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts
Background Note
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BA was one of the leading airways in the world. In 2002, BA
recorded revenues of £8,340 million and a loss of £110 million and carried 40
million passengers...
Change Management at BA
King and Marshall
Before the arrival of Colin Marshall, BA had been inward focused, operations oriented, with little emphasis laid on customer service. This attitude had obviously led to several customer related problems. There was a total absence of a market orientation and little focus on profitability...
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Bob Ayling
While taking over as CEO in 1996, Ayling felt that the airline's main problem was complacency. Ayling told the board,
"People have got to be open with each other, they've got to be challenging and professional, they've got to do what they say."...
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Future Outlook
In early 2003, BA realized that its future depended on the ability to perform better than other players in an increasingly competitive market. The management believed that BA would be one of the most threatened airlines in the event of an Iraq war for two reasons. One, London continued to be a terrorist target...
Exhibits
Exhibit: I
Exhibit: II
Obstacles to Change as Perceived by BA Managers
Exhibit: III
BA: Responses to the Culture Change |
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