British Airways Service Quality: Financial Capabilities and Competency

This report analyzes the service quality of British Airways, identifying unskilled employees and financial constraints as key factors contributing to poor customer service. It utilizes the Gap Model to illustrate discrepancies between customer expectations, perceptions, and the actual service provided. The report examines the financial capabilities and competency of British Airways' staff, highlighting the impact of inadequate training and decreasing profits on service quality. It recommends the implementation of a Total Quality Management approach, specifically the PCDA cycle, to enhance service quality through strategic planning, control, development, and action. The report references relevant academic sources to support its findings and recommendations.

Managing Quality in
Hospitality, Tourism and
Events

Contents
Underlying reasons for poor quality that may have impacted British Airways..........................1
Examining the financial capabilities and competency of British Airways’ staff to improve
quality..........................................................................................................................................2
Recommendation to British Airways, so that they could improve quality of their service.........3
REFERENCES................................................................................................................................4

ASSIGNMENT TASK 2
Underlying reasons for poor quality that may have impacted British Airways
British Airways is a large scale organisation which is experiencing various problems due to
poor customer services. As a head of customer services department of British Airways, the most
important reason behind poor quality of this company’s service is identified, that is unskilled
employees. From the case study of British Airways and various customer reviews for its service,
it has been seen that ample customer are dissatisfied with the on board service of this company.
Ample of customer reviews are summarised as the breakfast meal in British Airways is
unsatisfactory and not worth the ticket’s price. This reason of unskilled employees not only
resulted into dissatisfactory on board meals but also lead to un satisfied complaints. It has been
observed that on an average out of seven customers, only one customer is satisfied with the
compliant resolution of this company. This reason of unskilled staff is further analysed below
using Gap model.
(Source: Gap Model of Service Quality. 2018)
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Gap model is an approach which helps in analysing the gaps in service and the reasons
why they occur. In this case of British Airways, it has been analysed that unskilled staff is the
main reason behind poor service quality of this company. This reason has been raised in this
company due to various gaps in their service quality. By implying above figure of gap model, it
has been identified that the expectations of customer are different from their perception. This
perception is created by service quality policies which are different from actual service quality
due to which another gap is developed. Lastly, the service quality given to customer is different
from what is communicated to them due to which another gap is developed (Mishra- Patricio,
Nishi and et.al., 2018).
Similarly, the customers of British Airways expect to have a nice breakfast from the
skilled employees of this company. But the perception of these customers is that they will be
provided a full course meal in breakfast as the price of tickets is quite expensive. This
expectations and perception does not match with the actual service quality as the staff of this
company incompetent to provide a nice breakfast. This again develops a gap as company fails to
fulfil customer needs and fulfil their promised communicated service quality. And lastly, as the
employees are incompetent, the provided service quality does not even matches with their
policies.
All these gaps can be bridged if British Airways will understand their customer’s
requirement and then develop their policies accordingly. Furthermore, communicate similar
service quality to the customers so that their expectations and perception can be redrawn and
make sure that their employees are skilled enough to fulfil the level of service quality which was
decided in service policy (Johnston, Clark and Shulver, 2012).
Examining the financial capabilities and competency of British Airways’ staff to improve quality
As the head of customer service, it is important to analyse the competency of staff to
improve quality of British Airways. According to the reviews analysed from Glassdoor, it has
been summarised that staff of this company is not competent enough to improve the quality and
the reason behind this the lack of training which is provided to the on board staff of this
company. One review has been stated the British Airways as rotten roots, as according to the
review writer the initial training of this company is not adequate due to which on board staff has
turned to be non satisfactory (Glassdoor British Airways reviews, 2020).
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Apart from incompetent staff, it is also important to review financial capabilities of this
company. By analysing the consolidated income statement of this company, it has been analysed
that the profit in 2019 was immensely decreased. Net profit earned by British Airways in 2018
was 2897 million euros which decreased in 2019 as 1715 million euros. The reason behind this
decrease in net profit is the higher expenditure on operations and financing of this company.
After observing this income statement in detail, it has been seen that operating expenditure of
this company has increased from 20580 million euros to 22893 million euros and the non
operating costs of this company has increased from 191 million euros to 338 million euros. So, it
can be said that this company is not financially competent to improve their service quality,
besides; this company has to figure out a way by which gaps in service quality can be bridged
without expending heavily (King, John and Cichy, 2006).
Recommendation to British Airways, so that they could improve quality of their service
British Airways is a large scale company which intends should improve their service quality
so that high profitability and consumer satisfaction can be acquired. As a head of customer
service department, it has been analysed the most important aspect while ensuring quality service
is total quality management approach. This is an operational efficiency approach by which every
activity of the organisation is evaluated so that quality can be enhanced (Uysal, Sirgy and
Kruger, S. Eds.2018).
A suitable total quality management concept is recommended for British Airways which is
PCDA cycle. According to this cycle, management of the company should set their strategies and
plans for future quality enhancement. These plans then be controlled by the heads of British
Airways. Once all the plans are approved and controlled so that they can be developed and lastly
an action can be taken. According to the analysis, it was identified in this report that unskilled
staff and lack of their training is the reason behind non satisfactory quality of this company. For
this issue, company must first plan all the aspects of training and then control it by various
simulations. And then develop it by making amendments and then finally implement in to train
the employees so that they can ensure quality service of British Airways.
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REFERENCES
Books and Journals
Johnston, Robert, Clark, Graham and Shulver, Michael (2012). Service Operations Management:
Improving Service Delivery, 4thed. Harlow, England: Pearson Education Limited.
King, John H. and Cichy, Ronald F. (2006) Managing for Quality in the Hospitality Industry.
New Jersey: Pearson Education Limited.
Mishra- Patricio, Nishi (2018) eds. Managing Quality in Hospitality, Tourism and Events
(Custom textbook), Pearson: Harlow
Uysal, M., Sirgy, M. J., and Kruger, S. (Eds.). (2018). Managing Quality of Life in Tourism and
Hospitality. CABI.
Online
Gap Model of Service Quality. 2018 <https://expertprogrammanagement.com/2018/03/gap-
model-service-quality/>
Glassdoor British Airways reviews. 2020. [Online]. Available through:
<https://www.glassdoor.co.in/Reviews/British-Airways-Reviews-E3462.htm>
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