Building the strategy of the newly formed company resulting from the merger of two European airlines
Following the merger, the next steps were to identify a new strategy, develop a business plan and implement this new strategy for the newly formed company.
In this context, the client asked Arthur D. Little to assist the chairman of the management board with the definition of a new strategy and the elaboration of his business plan, and to support the implementation of this new strategy in line with the business plan.
After approval of the strategy and business plan, Arthur D. Little developed a detailed implementation plan. In order to follow the implementation, Arthur D. Little set up three parallel workflows. An integration office was set up to coordinate the efforts.
The three workflows comprised:
The implementation of the new business model: different project teams were set up to work on the implementation of parts of the new business model (e.g., network, product, fleet)
The identification of the new organizational structure and integration/coordination opportunities of the main processes between both entities: Arthur D. Little developed and assessed optimal future business processes and the most suited organizations to support these processes, and also identified and modeled synergies, resource needs and transition costs
Following up with the change aspects, i.e., resistance to change, change management, team-building sessions, etc.
The business plan that Arthur D. Little worked through together with the client outlined the strategic options available to the new company, with clear recommendations as to which road the company should take. The strategy and business plan were later approved by the board of directors.