North South University

Dept of Management
Case Study # 1
Spring 2021 Semester
Course: MGT 212 Organizational Management
Section: 4
Name: Md Shahnewaz Ahmed Shemul ID: 1410612630
Name: Sadia Afroz Mim ID: 1821875630
Name: Jahidul Islam Shawon ID: 2022506630
Instructions: You must use this word document to complete this case study. Do not
change the format of this document. Only one student from the group should upload
it once done. You are to form a group of three students and discuss the video case
with your peers following the link below. Once ready then answer the questions
within the word limits (300 words) using this document and turn it in Google class
work within the deadline. You can also search the case in YouTube as “How Japan
Airlines nearly collapsed| Inside the storm| Full episode”

Video case link:

https://www.youtube.com/watch?v=zpmX3BrLn-E

Question: Explain how a high performing company like Japan Airlines fell into
serious financial trouble due to wrong strategic movement and also explain how a
monk turned into CEO saved this company from near collapse and revive it again
with unique leadership and management style. Also tell me in one sentence what
lesson we can learn from this case as students of Management? (300 words)

(WORDS 340)

Answer: When on 19 January, 2010 Japan Airlines filed for bankruptcy protection
along with its subsidiaries, everyone was speculating what really happened behind
doors when this disaster was unfolding.
After Kazuo Inamori was appointed JAL new CEO, a lot of strategic problems came
to light as to why a business giant like JAL was almost perished. Mr. Inamori
discovered that there is a major flaw in the business principles and philosophies.
First of all the former executives were so busy diversifying the company that they
lost control of their core industry. Afterwards the airline started to hit some bumps
on the way which they could not control in situation like that. For instance, after
the privatization of JAL they had to face the global competition. Moreover during
the SARS outbreak airlines had to run on a tight budget and also after the 9/11
attack there was a period of global uncertainty. So in order to compete they had to
decide strategically, instead they started borrowing huge loans which worsen the
situation.

However, after Mr. Inamori was appointed as the CEO the very first thing he did
was the restructure of the whole Corporation by establishing the core business
performance, setting business principles and introducing people oriented
philosophies. Such as, employee welfare was established and the day to day
operation was performed by creating small groups, focusing on customer service
and safety. Furthermore, these divisions of labor allowed employees to focus in
their specialized tasks which allowed them to provide superior customer service.
Afterwards the airlines opted towards the smaller and more fuel effect aircrafts
which would benefit the profit margin and after all this JAL never had to look back.
Within a span of three years the company which was about to go bankrupt made
three times more profit than it expected.

The lesson of this journey is to compete in the global market, a company must
have their set of principles and philosophies and they also need to be observant of
every single responsibility, and the internal and external factors.