British Airways Service Quality Analysis and Recommendations Report

This report, prepared for the Director of the TUI Group, examines the service quality of British Airways (BA). It begins by identifying underlying reasons for potential quality issues, such as increasing competition and the need for skilled staff. The report then assesses BA's financial capabilities and the availability of competent staff to improve service quality, referencing financial data from 2013 to 2018. A key recommendation is made to implement control charts as part of a Total Quality Management (TQM) approach to adapt to dynamic market situations. The report concludes by emphasizing the importance of service quality in the hospitality sector and the need for proper awareness of customer demands, alongside the application of TQM principles for continuous improvement.

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

Total
operati
ng
profit/(
loss)
includi
ng
associ
ates 852 463 334 (88) 444 159
Other
incom
e and
charge
s 24 13 (4) 21 1 5
(Loss)/
profit
on
sales
of
fixed
assets
and
invest
ments (85) (46) 60 145 (69) 249
Dilute
d
weight
ed
averag
e
numbe
r of
shares 1,070 1,070 1,073 1,078 1,085 1,075
Amou
nts in
accord
ance
with
US
GAAP
(3):
Net
incom
e/(loss
) for
the
year
before
cumul
ative
effect
of
change
in
accoun
ting
729 396 (115) (123) 244 (371)

princip
le
Cumul
ative
effect
on
prior
years
of
adopti
ng
SAB
101 — — — — — (80)
Net
incom
e/(loss
) for
the
year 729 396 (115) (123) 244 (451)
The above table depicts the financial position of British Airways
From the above stated table, it has been analysed that BA is financially capable of
making changes and providing good quality to customers. Furthermore, finance and audit
tea, of British Airways also make ensures that figures and numbers of profit as well as loss
are recorded in careful manner (Tuigroup.com. 2019).
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
Quality plays vital role in service as well as hospitality sector. To manage and
maintain it consistently, it is important to understand the concept of total quality
management. TQM is defined as management approach in which staff are responsible for
maintaining high standards in quality of their service for achieving objectives effectively.
Further, it also seen that applying this approach results in positive outcome and new ideas of
managing quality standards. It is a time consuming concept and requires skills as well as
knowledge to achieve the goal (Ft.com. 2018).
In relation with British Airways, they use total quality management approach so that
customer satisfaction is achieved and firm goodwill increases. In this tool, there are various
ways through which they used in control quality which are mentioned below-
Check sheet- It is a structured prepare form which is used for gathering and collecting data.

Control chart- These are displayed as charts to identify and determine the changes occurs in
process over a period of time.
Histograms- It is mostly used by firm in which frequency distribution or different values are
determined.
Pareto chart- It is type of bar graph which depicts factors or elements which are more
appropriate (Johnston, 2012).
Recommendation-
The above mentioned are some of the tools which are used by British Airways for
improving quality of their service. The recommendation is that BA should use control charts
at most because market and situations are dynamic and to deal with them properly this chart
will help them to make decisions according to changing situations. (King, 2006).

CONCLUSION
After a brief analysis of above report, it is analysed that quality of service is the
topmost priority in hospitality sector. If the quality is not good, than customer satisfaction and
objectives cannot be achieved by firm. Financial capabilities are also crucial to determine so
that changes in business are carried out effectively. Furthermore, to improve the quality Total
quality management concept has been discussed through which entity is gets new ideas to
improve quality of service. Hence, proper awareness and knowledge is needed to understand
customers demand as well as requirements.

REFERENCES
Books & Journal:
Ana Stranjancevic, & Iva Bulatovic. 2015). CUSTOMER SATISFACTION AS AN
INDICATOR OF SERVICE QUALITY IN TOURISM AND HOSPITALITY.
International Journal for Quality Research, 9(4), 689-704. [online] Available at:
https://doaj.org/article/54e1e1aac14247a39d3662da279c4957 [Accessed 14th July,
2019].
Dale, B. 2013). Managing Quality(5th ed.). Hoboken: Wiley. [online] Available at:
https://ebookcentral.proquest.com/lib/anglia/detail.action?docID=1498560 [Accessed
12th July 2019].
Fitzsimmons, (2014). Service management: Operations, Strategy, Information Technology,
8thed. New York, US: McGraw Hill Education.
Tuigroup.com. 2019). About TUI Group. [online] Available at:
https://www.tuigroup.com/en-en/about-us/about-tui-group [Accessed 25 Sep. 2019].
Ft.com. 2018). Has British Airways really gone to the dogs? | Financial Times. [online]
Available at: https://www.ft.com/content/6770dc84-4704- 11e8-8ee8-cae73aab7ccb
[Accessed 16 Sep. 2019].
Johnston, 2012). Service Operations Management: Improving Service Delivery, 4thed.
Harlow, England: Pearson Education Limited.
King, 2006) Managing for Quality in the Hospitality Industry. New Jersey: Pearson
Education Limited.
Mishra- Patricio, 2018) eds. Managing Quality in Hospitality, Tourism and Events (Custom
textbook), Pearson: Harlow.
Smith, 1993). "The Meaning of Quality". Total Quality Management 4.3: 235-244.
(Available on ARU Digital library).

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