Project Management and Organization Management Change - British Airways

Question 1

What is British Airways? What was the impacts of the merger?

Answer 1

The largest airline in the UK that was the result of a merger between four different airlines. The company struggled to manage itself and bring good service. It was not until the privatization and the incorporation of Long King that the company started to see improvements in their business.

Question 2

What was the reason for the company’s financial struggle?

Answer 2

In was created in 1974 when BEA, BOAC, Northeast Airlines, and Cambrian airlines merged which had 215 aircraft and 50,000 employees. This was incredibly high and when the oil crisis struck in 1970 it shrunk the customer base resulting in no profits, high costs, and financial difficulty. It had a reputation for terrible service and when Lord King came into the top job he recognized the inefficiency of the airline.

Question 3

What are the actions Lord King took to improve the business with employees, routes, and there fleet? What did he replace within the span of two years? What did he get the profit levels of the company up too?

Answer 3

1. He cut the number of employees from 59,000 down to 39,000
2. He cut any unprofitable routes
3. He modernized the fleet.
4. Replaced half the board and brought in a new marketing expert to high profits of 284 million.

Question 4

What action did King take to calm the concerns that the employees that were going to age laid off had?

Answer 4

He explained the reason for the restructuring and told them to prepare for the upcoming change. This created urgency and prepared them to embrace the change.

Question 5

What would have happened if King did not have effective communication?

Answer 5

There would have been employee backlash and negative press around the layoffs but he always communicated honestly and fairly thus they were able to manage the change.