Airline Catering Industry Analysis

The assignment provides an in-depth analysis of the airline catering industry, specifically highlighting Gate Gourmet as a leading service provider. It explores various aspects of working in this field, including career paths, professional development opportunities, and the influence of the industry's dynamic environment on individual growth. The analysis draws upon relevant research, case studies, and industry trends to provide a comprehensive understanding of the challenges and rewards associated with a career in airline catering.

WORK BASED LEARNING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
a) Analysing business environment of Gate Gourmet.................................................................1
b) Discussion of two management practices that have impact on the performance of employee
......................................................................................................................................................6
TASK 2............................................................................................................................................7
a) How the personal development change the an individual as a person.....................................7
b) Required knowledge, skill and competencies..........................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Work based learning can be defined as an academic strategy that provides students or
individuals that are completed their studies and moving in their professional life with real life
work experience where they can apply educational and technical knowledge and skill to develop
their employability. The present study of work-based learning aims to produce a report on the
business environment in which individual will apply necessary learning to the workplace. The
study will provide an understanding of the business environment and management practices
available to the Gate Gourmet. To analyse environment of the organization some specific tools
will use such as; PESTLE analysis, SWOT analysis, Porter's five forces analysis. Lastly the
study will cover the auditing part for personal and professional development for the required
position. Impact of the personal development on the person will analyse and will cover the
identification of new skills, knowledge and competencies will require for professional
development.
TASK 1
a) Analysing business environment of Gate Gourmet
Business environment is refers to the sum total of all the factors of external and internal
influences in a business surrounding (Agarwal, 2018).
PESTLE Analysis
Gate gourmet provides catering services to many of the airline industry in the world such
as; Virgin Atlantic, British Airways, Delta. As the company operates in many countries and in
many airlines, thus, various factors of different countries can affect the organization.
Political factors
The political factors have intense influence on the company. The Gate Gourmet is
international in-flight catering service provider, thus many political factor affects the catering
industry such as; employment laws, tax policies and the political stability of the country. The
company have agreements or contract with different airlines. Such agreement strengthen the
political association (Banjari, Marček and Jukić, 2017). Employment laws are put in place by the
UK government to ensure that employees have access to certain rights in the workplace. It
includes; workplace pension schemes, rise in national minimum wage and holiday leave. This
factor appears as a threat for company as they tend to mean bigger costs for company and that
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result in, Gate Goumet making redundancies in order to cover the cost. Other than that, lack of
political stability in UK have negative effect on the company. Organization is suggested to not
affects by the employees laws and for reduce the prices they should make changes in the
operation of production pattern. Other than that political stability is not in control of the
company.
Economic factors
After the recession in 2008, when unemployment rates were high. This kind of uncertain
times are difficult for Gate Gourmet. Economic condition of airlines affects the quantity and
quality and growth of Gate Gourmet. Prices of airline ticket are flexible that is a threat for the
industry to make changes constantly in their cost (Blanca-Alcubilla and et. al., 2018). It is
suggested to gate Gourmet to maintain their price so that passengers can spend money to buy the
services and products. The economic criteria make important for Gate Gourmet to keep their cost
low. They are suggested to hire more young workers on zero hour contracts. By this they can
keep their cost down.
Social factors
This factor created by buying behaviour of consumers, social responsibilities level, cost
inflation, etc. The buying behaviour is an opportunity as well as threat for the company. The
passengers have various demand and need that can affect the operation of the industry. The
company known for providing food on very low rate from their competitors but increase in taxes
like VAT can have negative impact on the performance as it affect the cost of products and
change the buying behaviour of customer. In 2017, the UK government increased VAT from
17.5% to 20% (Dissanayake and Fernando, 2017). It is suggested to the company to being
responsible towards the environment, ethical business practices, etc. Under this factor consumers
loyalty and changing trend is an opportunity for Gate Gourmet.
Technological factor
The technological advancement and innovation is developing rapidly in airline catering
that can affect the industry and put pressure on them to continuous innovation and bring
technology to provide fast services. The emerging technologies enable company to track the
availability of passenger on the specific flight. The catering services through mobile technology
transformed consumer expectations. Gate Gourmet is required to consider how their website is
displayed across the airline website that can attract other organisations and consumers as well
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(Ko and Chen, 2016). This is the only industry that uses microbiological laboratory in
monstering their production of food process that is a strong point for the company and they are
also equipped with latest equipment that is beneficial for them to provide a meal in the flight and
on the airport lounge to the consumers that is tasty and present beautifully in the least amount of
time.
Environmental factor
Companies in food service industry are managing over production and waste
management of food. Thus, it is essential for the company to estimate the passengers that will
help them to reduce over production and waste of food. Also, different countries and their
government set some laws, policies and ethical code of conduct regarding environment that need
to be consider by Gate Gourmet. The industry is social and environmental responsible that help
them in staying ahead from their competitors (Wellin, 2016). Furthermore, company improvise
their packaging and try to avoid plastic to protect environment and look how each ingredients is
sources and tested. The social responsible image of the industry boost their social profile. It also
have negative impact on the industry as regular scrutiny by the environmental agencies add
operating cost of Gate Gourmet.
Legal factor
Government of various countries and their legal norms affect the industry. The health and
food safety norm is the most effective law that have direct or indirect effect on the catering
industry. Also, environmental laws and guidelines is different in all the countries where the
industry provide their services. Airlines have their own set of rules and regulations that also need
to consider by the company. The air catering companies like Gate Gourmet are responsible for
follow various policies that are set by the government and international laws such as; World food
safety guidelines for Airline Catering that help them to serve better to their consumers.
SWOT Analysis
This analytical tool helps to identify the potential strength, weakness, opportunities and
threats.
Strength
 Brand Name: Gate Gourmet is the renowned brand in providing catering services in
several famous airlines as well as in airport lounge (Agarwal, 2018). This is the biggest
strength of the company and that help them to add advantage over its rivals.
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 Valuable to consumer: The consumer of Gate Gourmet needs healthy and hygienic food
and the aim of the company is to take care of the consumer need and maintain their
standard. Accordingly the workforce work with the same purpose.
 Variety of chef: Company hire regional chef to provide the authentic taste of the specific
region to the consumers. For example; for traditional sushi dish they have a Japanese
Chef. This little effort works magical for the company and attract consumers to try the
food.
Weakness
 Structure of the company: This is the biggest weakness of Gate Gourmet is their
organisational structure. The structural change is undergoing for a number of years.
People have fear of regarding their job security.
 Marketing: The company is weakened at marketing and promoting the brand. The
investment is also less in the promotional activities by the company (Banjari, Marček and
Jukić, 2017).
Opportunity
 Implement latest technology in the services: As their service and performance of the
employees is at the top they have opportunity to expand and experiment with
technologies in the services and products. This will give the industry an edge from their
competitors.
 Expand the business: With the success in present market and airlines, company have
opportunity to expand their business in more airlines and in new market. The expansion
plan will lead the company to become world famous airline catering business.
Threat
 Competition: The biggest threat for Gate Gourmet is the intense competition. The entry
barrier for the new entrants is low that reduce the market share of the industry.
 Changes in the airline: Continuous changes in the airline from the air-ticket prices as it
depends on the government regulations, increase fuel prices and competition of the
airline make pressure on the airline and that can impact the catering industry
(Dissanayake and Fernando, 2017). For example; if airline reduce the prices of the
tickets, it have pressure on Gate Gourmet to reduce their prices as well.
Porter's Five Forces Analysis
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The national and international airline catering market is being very competitive, thus, it is
essential for the company to understand various competitive forces that drive the market of air
catering.
Bargaining power of buyer
Now a days passengers are become smart they would prefer an airline that provides a
complete deal including price of tickets, food and beverages and additional services (Porter's
Five Forces Analysis, 2019). If the consumer is not satisfy with the services or price point they
easily switch to other airline. Thus, the bargaining power of consumer is high for the company.
For overcoming the factor, company bring their prices of services and food at the cheaper rate by
adapting competitive pricing strategy.
Bargaining power of supplier
Supplier power for Gate Gourmet is low to moderate as they are not dependent on only
one supplier. The overall cost of labour, raw material and other services determine the
profitability of the company. As per the statement of Gate Gourmet in the international flight, the
average meal cost around £10 per person. It is easy for the company to adopt new supplier.
Threat of new entrants
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Illustration 1: Porter's Five Forces Analysis
(Source: Porter's Five Forces Analysis, 2019)

The threat of new entrants and compete with gate Gourmet is very low as no new
competitor can provide product and services at the low price, company provides. New entrants
required to adhere various laws in this business such as; food safety laws, employment laws, etc.
Threat of substitute products
This threat is high for Gate Gourmet as other international catering such as; LSG Sky
Chef and Emirate industry provide many choices of drinks, and they have various kind of menus
that can attract consumers. Along with it, fluctuation in the price of the substitute products is
beneficial for the company to make appropriate changes that help them in control the cost.
Competitive rivalry
The competitive rivalry is moderate to high of the company. The main competitor of gate
Gourmet is LSG Sky-chef (Dissanayake and Fernando, 2017). And they both are the largest
flight caterers in the world. From all the competitor LSG have high power to influence the
business of Gate Gourmet. Other than that, to beat the competitive rivalry, Gate Gourmet needs
to bring innovative ideas and implement in the company.
b) Discussion of two management practices that have impact on the performance of employee
The performance of the workforce is the mental and physical stability and support they
get from the management and the system of the organisation. Gate Gourmet is well known for
their quality services, in this a big role plays by the employees (Types of Training programs,
2019). Although the industry have many management practices to enhance the performance of
their workforce but two are the main practices;
Training and Development: The main reason behind the best services that provide to
the passengers is they are very well-trained and skilful workforce from chef to food server.
Under the T&D management practices, Gate Gourmet provide proper learning and development
to the employees so that they are able to understand what consumer's want and to meet ever-
changing needs of the industry. Training and development is the most impactful practice that
have improved performance of the service provider as this find out the weakness of the
individual as per the job requirement and train them to fulfil the weak point. Gate Gourmet
provide on the job training and ensure that the workforce are technologically trained, serve the
food with attractive presentation, welcome passenger with warm smile, have team working
skills, etc. The practice improves the skills and quality and quantity of the workforce and
enhance their productivity and performance as well as improve job satisfaction that boost morale.
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Employee Relation: Gate Gourmet mentioned that the workforce is the most valuable
asset of the company. The performance of the employees depends what type of relation they
have with the industry, people, management and with their work. This management practice aims
to build good relationship with the employees (Gate Gourmet, 2019). The term employee
relation refers to the effort made by the company to manage relationships between employees
and employers. For that purpose the company have employee relation program that focuses on
resolving the issues related to pay and benefit, supports work-life balance and provide them a
safe working environment. This leads to more efficient, productive and motivated workforce
which further leads to enhance in sales level.
TASK 2
a) How the personal development change the an individual as a person
Personal development is an essential part in my life that bring change as the whole person
and make me able for the respective position. The skills and knowledge bring the biggest change
in my professional development and with the help of those developments I am able to manage all
the daily catering activities of Gate Gourmet. Before working on the current position, I was not
so efficient in the technical skill but the work environment and the support of seniors helped me
to develop the skill by providing proper training and development.
As working in Gate Gourmet as a Manager, Catering Operations, there are various
changes I experienced in my personal life (Moutinho and Phillips, 2018). As working with Gate
Gourmet, I am able to develop goal in my personal life. Along with, I am able to communicate
with people effectively outside the organization.
Personal Skill Audit:
Strengths
 I have great communication skills.
 Great decision-making skills.
Weakness
 Lack of leadership skills and
competencies.
 Lack of motivation skills.
Opportunities
 Developing management skills and
competencies.
 I will develop the technical skills and
Threats
 My organization and planning skills are
very weak.
 I am unable making the quick decision.
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abilities.
Personal Development Plan:
Skills Activities Resources Time-frame
Planning and
organization skills
I will take advice from
my superior for
developing planning
and organization skills
in the Gate Gourmet
I will follow different
online resources for
organizing and
planning of activities
in the Gate Gourmet.
I will develop my this
skill within 1 week.
Leadership skill I will lead the small
group of members for
developing leadership
skills and
competencies within
the Gate Gourmet.
I will follow online
resources for
developing leadership
skills in the Gate
Gourmet.
I will develop my this
skill within 1 month.
b) Required knowledge, skill and competencies
According to the position of catering operation manager, I had many skills that I develop
with time and some skills are required to be improved. As working at Gate Gourmet, I was able
to gain knowledge and new skills as the organization conduct various T&D programs and with
the help of my seniors. The working environment of the industry is very cooperative and
supportive that help me to improve my weakened skills. My previous experience is the only
knowledge in airline catering service that seems my professional development in some major and
important skills:
Leadership skill: After working on the position as Catering Operational Manager, I learn
to lead the team and other employees in the company towards achievement of the goal. I also
learn how to maintain and promote a team work environment with effective and clear
communication amongst co-workers through positive leadership. For this many things will help
me such as; environment of the workplace, seniors in the company, many leadership programs
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conducted by previous leaders and owner of Gate Gourmet and other than that, various books,
courses also helped me (Blanca-Alcubilla and et. al., 2018).
Negotiating skill: This skill I got from the workplace of Gate Gourmet as I got chance
to negotiate with various departments. I able to develop this skill by observing my senior
manager and this helped me to coordinate and cooperate caterers and enhance their productivity,
overseeing catering team, changes in menu, flight schedules, required equipment in catering.
CONCLUSION
From the present study it has been summarized that each and every position in the
professional life of an individual required to assess their own strength and weakness. The
environment of the industry matters in helping individual to improve their skills and knowledge.
The Gate Gourmet is one of the leading airline catering service provider and opportunity to work
in the industry open the future growth and development of the individual person. The
professional and personal development helps at both personal and professional level.
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REFERENCES
Books and Journals
Agarwal, V., 2018. Development of Higher Education through Academic and Administrative
Audit. Development.
Banjari, I., Marček, T. and Jukić, I. M., 2017, January. Vulnerability assessment of the airline
catering and on-board food service. In 1st Croatian Congress of Biosafety and
Biosecurity with international participation (CROBiB).
Blanca-Alcubilla, G. and et. al., 2018. TACKLING INTERNATIONAL AIRLINE CATERING
WASTE MANAGEMENT: LIFE ZERO CABIN WASTE PROJECT. STATE OF THE
ART AND FIRST STEPS. Detritus. (3). p.159.
Dissanayake, A. and Fernando, W. W., 2017, September. Optimization Model to Identify the
Benefits of Developing an Inventory Model to Reduce the Dummy Items Flown in an
Aircraft in Airline Catering Industry. In International Forum on Shipping, Ports and
Airports (IFSPA) 2017: Innovative Transport Logistics in Shaping the Future of Supply
ChainsHong Kong Polytechnic University.
Ko, W. H. and Chen, F. R., 2016. A Study of the Factors on Menu Design for Airlines
Catering. Journal of Tourism and Hospitality Management. 4(2). pp.88-105.
Moutinho, L. and Phillips, P., 2018. Strategic analysis. In Contemporary Issues in Strategic
Management. (pp. 46-79). Routledge.
Wellin, M., 2016. Managing the psychological contract: Using the personal deal to increase
business performance. Routledge.
Online
Gate Gourmet. 2019. [Online]. Available Through:<https://gategroup.com/en-gb/brands/gate-
gourmet/>.
Porter's Five Forces Analysis. 2019. [Online]. Available
Through:<https://www.cgma.org/resources/tools/essential-tools/porters-five-
forces.html>.
Types of Training programs. 2019. [Online]. Available Through:<https://www.uscreen.tv/blog/6-
types-online-employee-training-programs/>.
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