British Airways successfully handled a crisis in the 1970s through organizational changes like reducing its workforce from 59,000 to 39,000 employees, eliminating unprofitable routes, and modernizing its fleet. These changes resulted in British Airways becoming the most profitable airline in its industry within 10 years.
Uber faced a crisis from December 2016 to June 2017 due to reports of sexism, executives resigning amid sexual assault allegations, and legal issues. Travis Kalanick resigned as CEO in June 2017 after accumulating millions in fines. Uber's new CEO is working to improve its culture, relationships with drivers and regulators, and get its license renewed in London as it works to advance in a legal, regulated manner. The full results
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Organisational change
1. Organisational Change
A look into how two renowned companies handled crisis through Organisational Change
- Jerrin Tom Mathews
3. A glimpse into how British Airways successfully handled crisis and what organisational changes
took place.
4. Created in 1974
BOAC, Northeast
Airlines, and Cambrian
Airlines
215 aircraft supported
by 50,000 employees
The oil crises of the
1970
Customer base
declined
Huge staff resulted in
massive financial
losses
Developed a reputation
for terrible service
New chairperson, Lord
King
Reducing its workforce
from 59,000 to 39,000
Eliminating
unprofitable routes
Modernizing the fleet
Within 10 years, highest
profits in its industry:
$284 million.
Prelude
Changes
Crisis
Result
5. A deep dive into the ongoing UBER crisis and what organisational changes took place.
6. December 14: Reports reveal Kalanick
is joining Trump's business advisory
board.
January 19: FTC charges Uber with a
$20 million fine for recruiting drivers
while exaggerating earnings potential.
February 19: Former Uber engineer
Susan Fowler posts her now-famous
blog post detailing sexism within the
company.
February 28: Travis Kalanick
apologizes after he's caught on film
arguing with an Uber driver.
6 Sexism
allegations
10+ other
allegations
5 Executives
quits UBER
Spanof12months
February 27: Uber SVP of
engineering Amit Singhal leaves the
company Google sexual assault.
March 3: The New York Times reveals
- "Greyball"
June 8: Kalanick discusses a company
trip to Miami and lays out ground
rules for consensual employee sex
practices. "Have a great f--king time,"
he says.
June 15: A rape victim filed a lawsuit
against Uber after she found out that
executives had taken her medical
records.
Prelude
A news article eye view into a 7 month period of
Uber Technologies Inc. (Dec 16 June 17)
7. June 21: Founder and former CEO Travis Kalanick
resigns
Uber says more than 20 staff members have been
fired as part of the internal investigation.
Appoints Dara Khosrowshahi a the new
CEO
Accumulated millions of US$ in fines
Manifestations Changes
Lost $708 million in the first 3 months of 2017
Working to get license renewed in London
New CEO Apologised publically
Working with driver unions
Working with London Transport
Authority
Working its way to tap into regulated
markets such as France, Belgium and Spain.
Advancement in the name of technology is
now scrutinized in the light of legality.
Result Yet to be Known!