Corporate Strategy Assignment Example | Topics and Well Written Essays - 1250 words

Corporate Strategy - Assignment Example While Alitalia, a two-third state-owned enterprise was beset with labour union problems and was almost teetering near bankruptcy with net losses of 519 mn in the close of 2003 (its auditors refusing to certify its results!) (Source:ICFAI), BA was also consistently making loss in the 1980's until an ambitious privatisation programe slowly changed its fortunes by the onset of the Gulf War. BA also suffered extreme negative publicity due to some failed campaigns against competitor Richard Branson's Virgin Atlantic, facing lawsuits worth 3 million (Soure:Wikipedia), not to mention trade union problems, strikes etc. which continue until this day. The scenario is far more encouraging today. British Airways despite some steady hurdles like high oil prices, and a strong pound, have maintained profits since privatisation and quite consistently, since 2002. Its net profit for March 2006 stands at 529 mn (Source:Hemscott). With the relentless pursuit on upgrade of fleet and service management, the loss-making Giant has transformed into a lean, mean machine. As for Alitalia, losses are down at 200 mn in 2006 amid continued shutdown fears. (Airwise) Turnaround roadmap Organisationally, both airlines have changed for the better. While the British Airways is a newly-revived private major, Alitalia also has reduced government stake from two-thirds to about 49% (Airwise). Over 23,000 jobs were slashed in the 1980's during BA's get lean mission (Wikipedia). As for Alitalia, its decision in Sept 2004 to cut down over 5000 jobs brought it to a standstill due to a more hostile labour union, although the management announced March 2006 that its cost-cutting measures were 80% over. Alitalia, in 2001 became member of Europe's conglomerate Sky Team Alliance, as is eventually bracing for a merger with Air France and KLM (wikipedia). BA has reinvented itself around localising itself in the Asian market, by launching in 1995 a subsidiary called British Asia Airways in Taiwan replacing its traditional Union tailfin for a Chinese character emblem. BA also launched a low-cost airline called Go in 1998, and is thus better prepared, organisationally, to lead itself into the future (wikipedia). Most corporate strategies swiftly achieve results after what is known as situation and SWOT analysis, and brainstorming for a solution. BA started conducting "scenario workshops" in Feb 1994 (Moyer, K). The task at hand was to capture current scenario so that future strategy could be planned. Over 40 interviews were conducted with senior managers, and then with academics, engineers and aircraft manufacturers on a host of topics from IT and air transport regulations. All this culminated into developing teams writing the "official future" of the airline. Simultaneously, data on passenger traffic, economic growth and aircraft

Organizations are nothing but large-sized groups. Their fundamental Essay

Organizations are nothing but large-sized groups. Their fundamental dynamics are essentially the same. Discuss - Essay Example That is, when humans join together, there will be ‘accumulation’ of more minds, hands, output, etc, etc, leading to better completion of tasks. Large groups, irrespective of their domain, will have to work as a team with positive dynamics to achieve their targets. Even if there is dissension from few members or even from a single member of those groups, the activity of that large group may be impeded and will result in failure. Although, all the important processes of large groups or organizations starts and ends with the leader or the management team, the employees will be the crucial cog, who has to optimally work as part of â€Å"work teams†. In any organized human activity including that of large groups, the successful work teams with positive team dynamics can be successfully set or established, if the head successfully involves the humans as part of the decision making process. The large groups have to be guided and supervised by leader or leaders. The evolu tion of leaders could be visible in the childhood itself. In the childhood, he/she will have company of tiny tots of his/her age and all of them as part of large groups or small groups will involve themselves in the group activities, in their school or in their neighborhood. These activities could be in the form of physical as well as mental, and most of the activities will demand a team, which could be even a two-person team. While involving themselves in the team activities, some one from the group will try to guide and dominate the other ones. This is the natural process and everyone’s childhood will be replete with situations like this. Although, a child with a good physical stature and ability to communicate at any moment will try to become a leader, in course of time, any organized activity will need a leader who can productively involve the other members as well, thereby motivating them. To make them more integrated towards their targets, the leaders can productively i nvolve them. The same can be replicated in business organizations as well. That is, the leader or the management team of a business organization can put their thoughts, strategies and also the organizational goals for discussion among the other workers. This way the workers as a form of work teams can be involved productively, with dynamics aiding the process. The workers can input their gained knowledge and experience in the decision making process, and will come up with optimal and path breaking suggestions and ideas. So, involving and making co-workers to play a part as work teams will yield optimum results, as it will optimize the performance of the employees. That is, if the employees are given important responsibilities, they will optimize their mental and physical abilities to complete the given work successfully. As it is a matter of proving oneself among the group of fellow workers, the employees will come up with feasible and effective suggestions, ideas, etc in-group and thereby will incorporate team dynamics, to help the organizations function effectively. This was further supported by Fineman & Gabriel (1996), who state that sound delegation will ensure better productivity from the employees as they will work with clear goals. However, the aspect that should be taken care is, even though the workers can be optimally involved as work teams with dynamics,