Driving organizational change in a company revolve around six themes. In this document we will take into account the external and internal sources of change, the steps through which it passes, the context, and the forces involved, to finally determine the type of change and explain the phases of Mintzberg.
The strategic changes taking place in the logical development of a company or sector: For this study, we chose merger of Air France-KLM, which took place in 2003, in light of the developments in the aviation sector.
This merger took place the same year that the two French companies, AOM and Air Lib filed for bankruptcy. This unfavorable context pushed the French company and the Dutch company to merge and become a leader in the European market, and promote the transport of passengers by increasing the number of possible trade routes to cover.
Change management is the process that involves the perception of an organizational problem, to defining a framework of actions that enables the development, selection and implementation of a solution that is most likely to succeed. Change management can solve the problems of organization or reorganization, accompany the proposed organization or reorganization, and take into account the human dimension. (Source: Socio-Dynamic change.
At the outset we will analyze the history of Air France-KLM w and present a diagnosis of its internal and external business. Then we will develop the external and internal sources of change, the stages of change and the forces present on the one hand, and the type of change and the Mintsberg phases on the other. We will conclude our study with recommendations to help bring the company in the process of change management.
Mission: The Air France-KLM is composed of two airlines: Air France, and KLM, the first being a French company and the second a Dutch one. The main activities of this group are: Transportation of passengers and cargo, maintenance services and aircraft maintenance. These three activities represent the mission of the Air France-KLM, which is defined as "transportation of passengers and goods."
The strategic vision of the group is to be a leader in all areas of the aviation market, and to remain so. In fact, " Air France-KLM is the largest company worldwide in terms of international passenger traffic, the second largest in the global cargo business (excluding integrators), and a leading global provider of maintenance services."(Source: Air France)
The primary business of the group is the transport of passengers, representing an 80% share of sales, 73.5 million passengers, and a fleet of 569 aircrafts serving 240 destinations worldwide (as at March 31, 2007).
The objective of this internal analysis is to highlight the strengths and weaknesses of the company that will help identify the strategies best suited to its resources and potential. Value chain: The Air France-KLM focused its core business on three strategic segments. These are: air transport of passengers, air cargo and aircraft maintenance. These 3 activities alone represented almost 97% of the group's turnover in 2006.
Other activities or specificities of the group the support these core activities, can be distinguished as follows:
- Infrastructure Group: There is a strategic committee (a holding company) which has a position of command over the two organizations Air France and KLM, which have retained their original integrity while maintaining strong relations between them.
- The Commercial Service: The commercial services of both companies have been highly coordinated. The product manager we met formerly occupied a place in this service. We contacted the new organization of the group after the merger, and studied it as an example of reorganization of services in the wake of the merger.
Tags: Air France-KLM, air cargo and aircraft maintenance, strategic committee, maintenance services, Socio-Dynamic change, Mintzberg, AOM and Air Lib, excluding integrators
[...] We may conclude that Air France-KLM has conducted a strategic revolution, that is to say, a radical change and a change of business strategy has been put in place without delay. Mintzberg Phases Henry Mintzberg is the representative of the current social structure of organizations, and he created a typology of organizations in order to understand the phenomena of power and change management. His model is part of the life cycle of organizations. We will develop the first three steps of the six phases of the Mintzberg theory, as Air France-KLM is poised between the second and third steps. [...]
[...] The management of Air France therefore has a major role in the development of new approaches within the company. They are complementary to external influences but depend on the overall strategy of the group. - Intrapreneurs, according to Burgelman and Sayles, are defined as "members of the company who become champions of an innovation or a new project. They are also drivers of strategic change." Air France's new projects are driven by the management but they also fall under the R & D Section for technological innovation, which, in the aviation sector, represents a strategic bias, influencing the company as a whole. [...]
[...] The Freight business is sometimes in trouble Complex management Strengths: Leading global airline Member of the SkyTeam Alliance Complementarities of Air France and KLM Is expected to grow with the industry changes 4).Opportunities and Threats: The synthesis of the SWOT matrix with Threats: Competition posed by low cost airlines and the TGV Rising oil prices Vulnerability to economic upheavals Opportunities: Open skies between Europe and the U.S.: Open Sky Liberalization of rail transport in France in 2010 Presence in the low cost segment Edge technology with the Airbus A 380 Development of international transport and tenders with the Schiphol hub in Roissy II. [...]
[...] The actors of strategic change within Air France-KLM Strong power of influence Low power of influence The typology of change We decided to take particular interest in the proposed merger between Air France and the Schiphol Airport in Amsterdam. Aeroport de Paris and Schiphol Group, the Dutch group wanted to develop a framework agreement on the long term, in order to create a "leading alliance in the airport industry" (source: Cnn). Under this project, the state sold of its shares. [...]
[...] At the same level as the ACC Commercial Business Committees (BCC) coordinate policies about major accounts, and the distribution policies of Air France and KLM. Finally, the Regional Management Committees (RMC) develop joint action plans for each region covered by Air France-KLM. They are composed of regional representatives of both companies." Source: Report on the marketing strategy of Air France KLM, January 2005 - The airline network: With the HUB created by Charles de Gaulle and Amsterdam Schiphol, the group offers a large route network with over 8000 connections. [...]
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