Status Report of Cost Drivers at Khan Fashion

Organizational structure: Appex CorporationPrepared By:Tushita GoelDivya JhambAmarendra AmarAmritanshu ShekharPawan Sah

Company BackgroundFormed in 1971 by bringing together BOAC & BEALess focus on changing environmentEffective but not efficient between 1970-1980Job-Get aircraft into air on time and get it down on timeIn 1981, Sir John King, chairman To handle issues by networking and political contactIn 1983, Colin Marhsal, CEO- Customer focused apporach

Contextual FactorsUnexpected recessionMergersCivil Aviation Act passed in August 1971Economic crisis of 1997Rising fuel costsSevere competition

Changes in the CultureBureaucratic SocialisticRespect, appreciation and friendlinessFeedback, trust and leadershipEmpowermentFocus on customer servicesPeople do their own job I dont call someone else to do the job, Now you just get on with it- More SocialCommon goal- We can change things, we are better than our competitors More solidarity- Communal OrganizationFragmentedNetworked

The main reasons for BAs failureLack of proper integrationImproper belief of employeeProfitability result in overlookingFocus on resolving industrial relation issues

disallowed BA to achieve the desired benefits of consolidation, preventing it from attaining a common focus, creating management demarcation ultimately resulting in a lack of a unifying corporate culture.

The employees believed that their job was simply to get aircraft into the air and get them down on time. Productivity, profit margins and people issues were not considered to be top priorities.

profitability made it even easier for BA to neglect its increasing inefficiencies and even more difficult to persuade the workforce and management that fundamental changes were critical.

Government financial support and a string of years in the 1970s of The companys purely inward focus on resolving industrial relation issues and organizational conflicts did not allow it to respond in a quick and effective manner to its rapidly changing environment.

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How have I accomplished this cultural change?Survival Plan of 1981Strategic downsizing which reduced staff numbers by 40 from 52,000-43,000 and later on to 35,000 (1982)Closing 16 routes, 8 online stations, and 2 engineering bases.Role modellingStaff CommunicatingReinforcing desired culture Education and TrainingPutting People First (PPF)Managing People First (MPF)

How have I accomplished this cultural change?Building Turnaround team In 1983, Colin Marshall, BAs CEO, made customer service a personal crusade. Culture that emphasize on productivity and profits while increasing the customer valueChanging the airlines image BA launched its Manhattan Landing &The worlds favorite Airline campaignsRaised advertising budget for 1983-1984 from 19 to 31 million to signal change in corporate image.

Changes at different levelsLevelFuture impactArtifactsDress Code, Profitability, Increased Marketing budgetNorms and ValuesEmployees are more valued, Customers are valued more,Brand Image focused strategyBasic AssumptionsBelief that My work is valuableGo that extra mileBrand rejuvenation

Transport to service industry

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