IMD-3-2005 © 2008
Manzoni, Jean-François; Barsoux, Jean-Louis
In 1995-96, Bachelor's Degree ends up being the most rewarding airline company in the world and wins prominent market awards for the 7th year in a row. A clear tactical thinker, Ayling understands prior to anybody else that (a) market conditions are going to end up being significantly competitive and (b) that the airline company's expense base is too high for this most likely future. Seen as both extremely personalized and tactically astute, Bob Ayling ends up being significantly slammed, and his period progressively ruined by stress and disputes initially with workers, however quickly after with the press, political leaders and regulatory authorities, and eventually most constituencies interested in the airline company.
The turning point is the cabin team strike in mid-1997, after which Bachelor's Degree's stock cost initiates a slide that will see the business lose over half its market capitalisation in 2 years. The case scenario ends with Ayling’s termination and Marshall discussing that the brand-new CEO would keep pursuing the tactical instructions set by Ayling. Knowing goal: The case is suggested to be utilized to go over 3 essential management concerns: 1) The procedure of modification: The case is mostly about the trouble of attempting to lead modification in an extremely effective company.
Subjects: Leading change; Proactive change; Change process; Leadership competencies; Leadership style; Organizational culture; Customer service; Resistance; Communication; Airline; Fair process Settings: United Kingdom; Airline; 60,000 employees; 1996-2000
Related Case Solutions & Analyses:
GoodGuide
Hassina Sherjan
Arcapita – 2002
Jay Nielson & AKKInternational: Outsourcing in India
Bluewater Foods Corporation
Finding a CEO for the School District of Philadelphia: Searching for a Savior
Closing the Books: Tale of Friends Family and Finance
Coal, Nuclear, Natural Gas, Oil, or Plant Renewable
Note on the Statement of Cash Flows
Corporate Finance
