British Airways Managing Change Essay

3073 words - 12 pages

Executive Summary"The airline industry is characterised as a mature, highly seasonal, capital-intensive, and price-elastic industry" (Cephas, 2000). However, the nature of competition with regard to European airlines is in a state of dynamism, particularly as a consequence of European deregulation. The subsequent evolution of a 'low cost' no frills market segment which engenders significant improvements in operating costs, has disturbed the balance of 'traditional competitive advantage'. Consequently, a number of established airlines have found it necessary to rethink their market positions and manage change in order to survive.IntroductionThis report aims to establish the context of the European airline environment and assess the impact of managing change in a business organisation by analysing the following:· In order to analyse the impact of managing change, an initial analysis is undertaken to ascertain the state of the European airline environment.· Consequently, an assessment is then made of the current state of the organisation after change has taken place.The objective of this assignment is to analyse the practises and to outline British Airway's approach to managing change in its organisation. This issue assumes a particular relevance in an increasingly competitive environment in the service industry.The approach to this assignment is analytical and look for evidences to sustain the proposed arguments and ideas. Information comes from secondary sources such as newspapers articles, specialised magazines, books on airline management and marketing and management issues, reports and research from the major marketing research providers and professional bodies, companies' annual reports and information.The report is divided in two parts. The first part analyses the strategic approach to the market and the corporate culture of the airline. The second part focuses on how they manage change, with particular emphasis on factors for success or failure of the change.Industry BackgroundThe European airline industry is highly regulated, since individual countries and governments aim to protect their flag carrying airlines. With the expansion of the EU, and the breaking down of trade barriers, the airline industry was deregulated in 1992. This meant that any European airline could fly anywhere in Europe and land. This offered airlines the chance to expand routes across the continent and to apply market strategies with greater accuracy.Company Profile: British AirwaysBritish Airways plc (BA) is the world's biggest international airline, carrying more passengers from one country to another than any of its competitors. British Airways is a scheduled international passenger airline. The Company's main activity is the operation of international and domestic scheduled passenger airline services. The Company's principal place of business is London Heathrow, which handles more international passengers than any other airport in the world. Because...

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