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Identify and analyse current difficulties faced by British Airways

Extracts from this essay...

Introduction

Contents 1 INTRODUCTION 3 2 PROBLEMS AND OPPORTUNITIES FACING BRITISH AIRWAYS 3 2.1 Absenteeism and Lewin's force field analysis 3 2.2 Union battle and McCalman & Paton's Tropics Factors 4 2.3 PEST analysis 5 2.3.1 Political factors 5 2.3.2 Economic factors 6 2.3.3 Socio-cultural factors 6 2.3.4 Technological factors 7 3 IMPLEMENTATION OF CHANGES 7 4 BARRIERS TO CHANGE 8 5 CHANGE AGENT 9 6 RESISTANCE TO CHANGE 9 7 FURTHER REQUIREMENTS FOR ASSESSMENT OF SITUATION 10 8 BIBLIOGRAPHY 10 8.1 Books 10 8.2 Journals 10 8.3 Websites 10 1 Introduction The last few years have seen a lot of difficulties for everybody in the airline business. This report aims to identify and analyse current difficulties faced by British Airways, as well as suggest steps to implement change and outline any barriers and resistance to change. 2 Problems and opportunities facing British Airways 2.1 Absenteeism and Lewin's force field analysis British Airways are currently struggling with staff shortages as the level of absenteeism for the company's employees are high above the average and acceptable figures for the industry. Employees are said to be unmotivated and morale is low as increase in pay is low and the restructuring of the company have led to 13000 job losses.

Middle

* Mergers and acquisitions by national carriers and low cost carriers could have dramatic implications on British Airways' market share and customer numbers. 2.3.3 Socio-cultural factors * Threats of more terrorist attacks using planes, similar to the events experienced in September 2001, reduce peoples desire to fly. * Increases in airline crashes could result in people being unwilling to casually travel by plane and may increase substitution rates. * At the moment it is very popular to travel abroad, however social tastes and attitudes can quickly change. * At the moment there is the concern of deep vein thrombosis (DVT) when flying which have been associated with British Airways in the media. This has obvious social implications on choosing whether to fly with company. * As more flights are now leaving from the secondary airports used by no-frill airlines, more revenue will be available to improve the facilities offered in these airports. These improved facilities could decrease customers' negative perceptions of flying from these sites, and impose a threat to British Airways. * A lot of British Airways' flights are no smoking. 2.3.4 Technological factors * British Airways' customers are slowly being weaned off using the telephone to book their tickets.

Conclusion

There are a variety of different approaches to deal with resistance to change as outlined by Kotter and Schlesinger (p. 222, Organisational change), and the most appropriate method to use in context would be the education and communication. As most of the changes recommended will benefit the employees, they will be more acceptable to the change if kept informed and being insured that their jobs are not at risk like with previous changes. 7 Further requirements for assessment of situation In order to be confident in this assessment of the situation and solutions that has been suggested, more in-depth information would be needed describing in more detail what the sources of the problems are. Thorough information about British Airways is possible to obtain, but as most sources charge a high rate for the information, it is impractical for university study purposes. To construct a more concrete timetable for implementation of change, it would also have been useful to hold information about how the recommended changes have been acted out in real life by other organisations to use as a guideline to the time needed.

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