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British Airways - Leadership
- Autocratic style
- Staff at BA are known to be treated as ‘equipment rather than people’
- Significant levels of industrial action, mainly
- strikes, from workers which has damaged short-term profits for BA and their reputation.
- As a result, their demand has fallen as they can be perceived as unreliable.
The Body Shop
- A paternalistic leader,
- Makes decisions in the best interest of staff. More motivated workforce which leads to better productivity and customer service.
- Better brand image leading to higher success.
Steve Jobs, Apple’s Manager
- Delegates lots of responsibilities
- Needs staff to develop new ideas to remain at the top of the rapidly changing technology market.
- This leads to long-term success from new, innovative designs and processes increasing efficiency and decreasing costs.
- Went into administration.
- This was because new technology was coming out which was cheaper than buying CDs and DVD’s which meant that as a company they couldn’t compete with their competition.
- This lead to a decline in sales and making it go into administration
- Brought by the government when it went into administration.
- This was to save jobs and to try save the economy going into recession.
- However the negative of the company being nationalised is that only 2500 people were still employed compared it being 5,500 when it was privately owned.
- Paid the price of £1.4 billion buy only managing to sell it for £747 million. This is a huge loss of tax payers money
- Could lead to the recession actually lasting longer which would have ruined the aim of what the government set out to do.
HP and Compaq
- Merge as critics pointed out how the HP engineering-driven culture was based on consensus and the sales-driven Compaq culture on rapid decision making.
- This poor cultural fit resulted in years of bitter infighting in the new company, and resulted in a loss of an estimated 13 billion dollars in market capitalisation.
Time Warner consolidated with American Online (AOL)
- The Internet and email provider of the people, for $111 billion.
- But the synergy of these two dynamically different companies never occurred.
- The dot-com bust, and the decline of dial-up Internet access (which AOL refused to give up) spelled disaster for the new company.
- Since the merger, Time Warner’s stock has dropped 80%.
Quaker Oats Company and Snapple Beverage Company 1994
- Wall Street warned that the company was paying $1 billion too much, the company acquired Snapple for a purchase price of $1.7 billion.
- In just 27 months, Quaker Oats sold Snapple to a holding company for a mere $300 million or a loss of $1.6 million for each day that the company owned Snapple.
- By the time the divestiture took place, Snapple had revenues of approximately $500 million, down from $700 million at the time that the acquisition took place.
- This leads to the acquiring company’s share subsequently underperform in their sector.
TAKEOVER: Morrisons and safeways
- A medium size but much fast-growing supermarket chain, took over safeways
- Became a much more significant competitor for Asda, Sainsbury’s and Tesco.
- By doing this they gained most of the customer loyalty of the safeways customers.
- Culture enables them to be a highly profitable business because it promotes innovation and creative thinking within the company.
- This can make the job more interesting so results in an increase of productivity and efficiency.
- It also offers its employees a large number of perks from free health care to car subsides. The relaxed environment which they have at
- Google enables employees to concentrate more on the job in hand and if needing creative idea they can use the facilities available such as Ping-Pong or video games to them to create the idea.
- Environment is extremely controlled and disciplined.
- This enable there culture to remain a mystery however it is known for its ruthless organisation structure of being such an autocratic business.
- All the decision are made at the top of the business and there is very little delegation seen in Apple.
- It’s a brutal and unforgiving business which takes time to trust its employees with information about the company, even so when it does they are not allowed to speak about the information outside Apple
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