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British Airways Study Case

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British Airways (A)

Becoming the “World Favorite Airlines” British Airways: 1980-1993 Product of the merge in 1972 between two states run airline: British Overseas Airways Corporation (BOAC) and British European Airways (BEA). In the 1980’s the airline company was known as the “Bloody awful”, due to his lack of a good customer service and his unpunctuality. To end with the situation Margaret Thatcher hired Lord King who made drastic changes in the national company.
In 1979, the State took the decision to sell BA into a private ownership, intend to avoid the £1 billion bill. The company was doing any benefice and was losing money, so intent to attract private shareholders, drastic decision need to be made.
As action of Lord King, hired to put the company in shape for the privatization, he decided to break the contrasting cultures existing in the company due to the merge.
A report commissioned by Lord King was made to determine what needed to be done to make the privatization possible. That’s how was created the Survival Plan: Cut the workforce; selling assets; the pruning back of the route network.
Then due to the recession approaching in 1982, Lord King proposed the Recovery Plan: rescheduling of orders, reduce staff member, restructuration into 3 divisions.
In 1983, the British agency Saatchi & Saatchi, was handling the advertising and in charge of the new image of BA with a budget of £17.5m. The commercial was a new kind in the airline advertising and ran over 33 countries
In the mean time, BA’s customer service was improving as well as the punctuality.
Lord King recruits another chief executive, Marshall. He quickly set up a core marketing team manned by 4 internally promoted manager in their thirties. He also created a Marketplace performance unit.
He also reorganized the operation into 11 profits centers, 8 geographic “market centers” to reduce

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