Reasons for Poor Quality in British Airways

THE DIRECTOR OF TUI
GROUP HAS ASKED YOU
TO PRODUCE A
BRIEFING NOTE WHICH
ADDRESSES THE
FOLLOWING Q1
OUTLINE AT LEAST 1 OF
THE UNDERLYING
REASONS FOR P

Table of Contents
INTRODUCTION.................................................................................................................................3
Q1. Outline at least 1 of underlying reason for poor quality that may have impacted British Airways
...........................................................................................................................................................3
Q2. Examine to what extent BA has financial capabilities and competent staff to improve quality. .3
Q3. Make at least 1 recommendation to British Airways, so that they could improve quality of their
service by reference to a suitable total quality management concept.................................................6
CONCLUSION.....................................................................................................................................7
REFERENCES......................................................................................................................................8
Books & Journal:...............................................................................................................................8

INTRODUCTION
Service and tourism industry is changing drastically across the globe. In hospitality
industry, it is important to provide quality of service to customers because they are paying for
that service. Tourism and hospitality business improve statues of country economy and huge
contribution to the growth as well as development. British airways, a multinational airline
headquartered in England. This report includes reasons for poor quality, British Airways
financial capabilities and recommendation.
Q1. Outline at least 1 of underlying reason for poor quality that may have impacted British
Airways
Aviation industry is developing at rapid scale and serving customers worldwide.
British Airways is an international airline which flew worldwide. In aviation industry it is
crucial to maintain service as well quality so that customers are satisfied with hospitality. It
also results in increase of goodwill of firm. In relation with British Airways, they provide
ample number of services to their customers such as entertainment, food and drink, lounges,
fleet facts Airbus, travel classes etc. But with increase in competition, there has been
significantly decline in quality of services. (Ana Stranjancevic, & Iva Bulatovic. 2015).
Main reason for poor quality is that competition is increasing at rapid level and which
has affected BA infrastructure at depth. To provide and deliver they need skilled staff which
are capable of managing and maintain customers in proper way as well as look out where the
actual changes are needed. To provide good quality, it is also crucial to use efficient
resources with longer sustainable period. Market is changing at rapid level and it is becoming
essential to implement effective tactics for business so that more customers are acquired by
business (Dale, B. 2013).
After examining above matter, it is seen that they need to develop more strategies so
that they are able to take competitive advantage in market and provide quality of services to
customers.
Q2. Examine to what extent BA has financial capabilities and competent staff to improve
quality
British Airways, financial capabilities are fluctuation and which has deep impact on
quality of services as well as customers. BA has been able to deal with their financial
capabilities and they have chance to enhance as well as improve their quality which is
beneficial for firm.

Moreover, they have skilled workers as well as staff to which are capable enough to
deliver as well as work in efficient manner. Through this, they also implement new strategies
as well as tactics so that they are able to deal with their rivals in appropriate manner. Also,
they have competent staff which identify the changes and develop those changes consistently
so that goals as well as objectives are achieved in proper manner. In aviation industry, it is
essential to provide effective results so that problems do not arise in future (Fitzsimmons,
2014).
After examining the above matter, it is seen that it is important for organisation to
determine their financial capabilities so that decisions making is done accordingly. Also, it
specifies that resources are to be used in proper manner so that capital is used properly.
Year ended March 31
2013 2014 2015 2016 2017 2018
(in millions, except per Ordinary Share amounts)
$ (1) £ £ £ £ £
Amou
nts in
accord
ance
with
UK
GAAP
Turno
ver 13,910 7,560 7,688 8,340 9,278 8,940
Cost
of
sales (12,895) (7,008) (7,263) (8,291) (8,757) (8,679)
Gross
profit 1,015 552 425 49 521 261
Admin
istrativ
e
expens
es (270) (147) (130) (159) (141) (177)
Operat
ing
profit/(
loss) 745 405 295 (110) 380 84
Share
of
operati
ng
profit
in
associ
ates 107 58 39 22 64 75