Exploring the Impact of Ineffective CRM on American Airlines Business

This report examines the impact of ineffective customer relationship management (CRM) on American Airlines' business operations. The study begins with an introduction to CRM and its importance, followed by an aim to explore the effects of poor CRM practices on American Airlines. The objectives include understanding effective CRM, analyzing its importance for the airline, identifying the impact of ineffective CRM, understanding the issues faced by American Airlines, and recommending improvement strategies. A literature review covers the concept of effective CRM, its importance, and the impact of ineffective CRM. The research methodology outlines the data collection methods, including primary and secondary data sources such as questionnaires and academic literature. Data analysis techniques, sampling methods, and references are also included, providing a comprehensive analysis of the issue and potential solutions for American Airlines to improve its CRM strategies and business outcomes. The report highlights the consequences of poor customer relations, such as decreased sales and customer dissatisfaction, and emphasizes the need for effective CRM to enhance business performance and customer loyalty.

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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Background of study ..............................................................................................................1
Aim: .......................................................................................................................................1
Objectives:..............................................................................................................................1
Research rationale.................................................................................................................2
Literature review..............................................................................................................................2
Research methodology.....................................................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
Background of study
Customer relationship management is considered as sophisticated business practice that
provides that provide great benefits to organisation in accomplishment of business objectives.
Increase in customers relationship management tends to create strong brand image of
organisation in industry (Wang, Chen and Chen, 2012). It is also considered as one of the
dimpliest and easiest form of tools which is used by every business enterprise to acquire and
retain its customers in market. Through this, companies will get support in managing their
operations and business relationship and supporting data associated. With the CRM, Employees
of track of customers accounts, contact information, sales and leads in single location. It can
crucial to organisation's workflows (Voss, 2012). In aviation industry, CRM has its important
relevance among organisation because it provides them support in managing information of their
large number of customers. Some organisation in aviation industry does not provide their focus
on building relationship with customers which tends to provide influence their business
operations. Ineffective use of CRM will also provide impact on the business operations of
enterprise. In order to analyse this consequence – A study on American Airlines is done to
explore the impact provide ineffective customer's relationship management on their business
operations. In order to accomplish the research proposal effectively, there are some important
aims and objectives have been developed which provide direction in accomplish of research
project effectively.
Aim:
Present research proposal has been made by scholar with an aim “To explore the impact of
ineffective customer relationship management on business operations- A study on American
Airlines”.
Objectives:
 To understand the concept of effective customer relationship management.
 To analyse the importance effective CRM for business operation American Airlines
 To identify the impact of ineffective customer relationship management on the business
operations of American Airline.
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 To understand the issues faced by American airline in customer relationship
management.
 To recommend strategies for improvement in customer relationship management of
American Airlines
Research rationale
In order to conduct research, I have developed my interest in this sector. In this, I have
also applied various strategies that helps in improving the performance level in effective and
efficient manner. In this way, present research will provide support in developing mu
comprehending and understanding skills. Further, this will also lead to my overall growth and
development. I will be able to develop my Career in aviation under customer relationship
department. I will also get to know about the impact of ineffective CRM on business operations
of enterprises. There are various important business aspects have been taken in to consideration
to analyse their relevance in development of effective customer relationship management.
Literature review
concept of effective customer relationship management
According to Haas, Snehota and Corsaro. (2012), Customer relationship management
(CRM), it an important approach that is used by management to manage a company's interaction
with their potential customers. It is also considered important tool for organisation for collection
and storing essential data of their customers with an aim to achieve the business objectives at
workplace. Effective customer's relationship refers to practices which are applied by organisation
to raise to retain their previous clients and increase in business opportunities. In Airiness,
management is more focused towards maximization of profits for which they always try to
reduce their cost of operations. Due to this, company has made use of their CRM Software to
raise influence their customers and provided them wrong information about their products and
services. On contrary to this Govindan and et.al., (2014), Mainly 42% of organization in
Aviation industry of UK has achieved growth in sales and profitability because of effective
implementation of CRM.
Importance effective CRM for business operation American Airlines
According to Khodakarami and Chan, (2014), Successful business requires effective
managers who can build and maintain strong customer relations. Establishment of good customer
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relationship is one of the important ways to ensure that organisation will get repeat business and
their customers will refer their products and service to their family and friends. Poor
management in customer service will leas to disgruntled. As per the view of Kumar and
Petersen, (2012), organisation in aviation industry to achieve opportunities for business
expansion and sustaining the business in competitive environment with the help of effective
business strategies. When the company seeks to be loyal with the customers and satisfy their
requirements, they used to apply this strategy. In present context, it was identified that American
airline has not provided focus on accomplishment of business objectives. There are various
business operations that needs to be taken in to consideration with an aim of getting their
operations across the management. They need to focus on effective business management. On
contrary to this Khodakarami and Chan, 2014), there are various important business
opportunities has been achieved by American Airline when they will apply effective CRM. As
per Wang and Feng, (2012), it is also important for American airline in retaining customer and
acquiring new customers in market.
Impact of ineffective customer relationship management on the business operations of
American Airlines.
According to Nguyen and Mutum, (2012), Poor management of customer relationship
leads to ineffective sales calls and lost opportunities. In American Airlines, management always
focus on decreasing their cost of operations to raise their profitability. Poor customer relationship
has affected their sale of products and service in aviation industry. As per the view of (), the
short-sighted customer relationship management results in unhappy dissatisfied customer. Sales
agents of organisation who use one presentation style to attract new customer or keep current one
often fall short. With poor customer relationship, management, American Airlines will not be
able to analyse the requirement of their customers and they face difficulties in making changes to
increase their sales in market. In contrast to this Goddard and et.al., (2012), has stated that
ineffective customer relationship leads to raise competition. Ineffective customer relations
management often results in undisciplined, robotic employees who rely on written sales pitches,
outdated sales data and antiquated by-the-book approaches to spark consumer interest and
improve sales.
Issues faced by American airline in customer relationship management
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According to Ramchandani and Ghias Novitaz Inc, (2013), there are various issues have
been faced by American Airlines due to their poor relationship with customer such as increase in
cost of operations, increase in competition, decrease customers base, decrease in brand equity
among clients, outdated services. The most important issues that is faced by organisation
through ineffective customer relationship management is decrease in
Research methodology
There are various important qualitative and quantitative research methods have been used by
Scholar to complete their research. Some of them are mentioned below:
Data collection: data collection is analysed as the most important process of gathering
and measurement of data collected by the researcher. The data has been collected either by using
methods of questionnaire or survey. Generally there are two important methods which are used
by scholar to collected data from their selected sample size such as primary and secondary
methods (Mackey and Gass, 2015). Moreover, primary method of data collection involves the
collection of fresh data by suing questionnaire from the selected sample size. It also involves
observation, interviews and surveys. Secondary method of data collection is involves collection
of data from secondary sources that involves internet, books, journals and other important
articles. In present context, for conducting effective research on exploring the impact of
ineffective customer relationship management on business operations of American Airlines,
Scholar will use both primary and secondary method of data collection. Primary data will be
collected by scholar with the support questionnaire from the workers of American Airline and
Secondary through books, article, journals and websites.
Data analysis: It is process that is used for analysis the gathered and collected data so
that useful information can be formulated. Moreover, this can be done by management through
inspecting, cleansing, transforming and modelling of data with an aim of obtaining useful
information and providing recommendations. It is analysed as one of the most essential process
that is used by the scholar to transform the data in to information for analysis and interpretation
of results. It will provide support people in analysing the outcomes of research undertaken by
scholar (Taylor, Bogdan and DeVault, 2015). In this particular research project, scholar will
tend to apply thematic representation of data which enables to present and interpretation of data
in the form of tables and graphs.
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Sampling: It is also important research method that is based on quantitative analysis
which is used to select the sample size from the population (Silverman, 2016). Sampling is
mainly classified in to two kinds which are analysed as probabilistic and non probabilistic
sampling techniques. In this research, probabilistic sampling techniques will be used by scholar
because it involves the reviews of each and every member from which the data will be collected.
20 employees of American Airline have selected by investigator by using simple random
sampling technique.
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REFERENCES
Books and Journals
Goddard, M.G.J., Raab, G., Ajami, R.A. and Gargeya, V.B., 2012. Customer relationship
management: a global perspective. Gower Publishing, Ltd..
Govindan, K., Azevedo, S.G., Carvalho, H. and Cruz-Machado, V., 2014. Impact of supply
chain management practices on sustainability. Journal of Cleaner Production, 85,
pp.212-225.
Haas, A., Snehota, I. and Corsaro, D., 2012. Creating value in business relationships: The role
of sales. Industrial Marketing Management, 41(1), pp.94-105.
Khodakarami, F. and Chan, Y.E., 2014. Exploring the role of customer relationship
management (CRM) systems in customer knowledge creation. Information &
Management, 51(1), pp.27-42.
Khodakarami, F. and Chan, Y.E., 2014. Exploring the role of customer relationship
management (CRM) systems in customer knowledge creation. Information &
Management, 51(1), pp.27-42.
Kumar, V. and Petersen, J.A., 2012. Customer relationship management (pp. 1-10). John Wiley
& Sons, Ltd.
Mackey, A. and Gass, S.M., 2015. Second language research: Methodology and design.
Routledge.
Nguyen, B. and Mutum, D.S., 2012. A review of customer relationship management: successes,
advances, pitfalls and futures. Business Process Management Journal, 18(3), pp.400-419.
Ramchandani, J. and Ghias, A., Novitaz Inc, 2013. Customer relationship management system
for physical locations. U.S. Patent 8,600,804.
Silverman, D. ed., 2016. Qualitative research. Sage.
Taylor, S.J., Bogdan, R. and DeVault, M., 2015. Introduction to qualitative research methods:
A guidebook and resource. John Wiley & Sons.
Voss, M., 2012. Impact of customer integration on project portfolio management and its success
—Developing a conceptual framework. International Journal of Project Management,
30(5), pp.567-581.
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Wang, C.H., Chen, K.Y. and Chen, S.C., 2012. Total quality management, market orientation
and hotel performance: The moderating effects of external environmental factors.
International Journal of Hospitality Management, 31(1), pp.119-129.
Wang, Y. and Feng, H., 2012. Customer relationship management capabilities: Measurement,
antecedents and consequences. Management Decision, 50(1), pp.115-129.
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