Organizational development strategies of a company are carried around several axes. Indeed, it is needed to take into account the external and internal sources of change, the steps through which it passes, the context, the forces involved etc. to finally determine the kind of strategic evolution needed.
The context and environment of Air France KLM is unfavorable for the group's development due to the rise of the price of fuel, the slump that has severed during the last years and the emergence of powerful airlines like in the Middle East or in Asia. The group which is the second leader behind the German airline Lufthansa in the European aviation market has known during the last financial years losses in its income and is largely indebted.
Even though the group has distinctive competencies such has a large network or brand notoriety, the group has to evolve in order to cope with today's market. The group has already started to operate some changes in its strategy when for instance both Dutch and French companies merged in 2004 which created synergies but also cultural clashes, or the different programs of cost cutting.
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