Financial analysis and management Assignment Example | Topics and Well Written Essays - 4000 words - 1

Financial analysis and management - Assignment Example ion was to become a pioneer in global airways, and to achieve this target British Airlines has focused on making alliances with carefully selected companies (Rao & Krishna, 2004, p.75). During the 1990s, the airlines company emphasized on enhancing its corporate appeal, creativity, business efficiency, competitive position, and training facilities for employees. In the year 2004, the British Airways initiated â€Å"a new set of vision, values and goals†. The business strategy of this airlines company along with its values and goals were represented by a new mission which was entitled â€Å"The BA Way†, and it was made known to every individual associated with the company. The purpose of this mission was to fulfill non-financial objectives like focusing on safety and satisfaction of customers as well as motivation of employees. This mission was mainly dependent on complete cooperation and support from all the company’s stakeholders (McDonald et al., 2011, pp.91-92 ). British Airways which has always been a financially successfully company however experiences a severe decline under an inefficient and insensitive leadership. The period between 1996 and 2000 in which Robert Ayling was the Chief Executive of British Airways, the company’s financial performance went through a extremely. Ayling’s policy of undermining customer service and quality was the major reason behind the underperformance of the company’s shares by 40 percent. During his first year, Ayling was almost faced with a pilot’s strike which was narrowly avoided. In his second year, there was strike called by the cabin crew which lasted for three days which resulted in a loss of  £ 125 million. During this time, motivation level of the employees of British Airways dropped and a negative environment prevailed among the staff due to Ayling’s tactless approach. It was argued that Ayling’s leadership to a large extent destroyed the brand image and service quality of the British Airways which was