Improving Service Quality at EasyJet: A Kaizen Approach

Desklib provides past papers and solved assignments. This report analyzes EasyJet's service quality issues and proposes solutions.

Managing Quality in Hospitality, Tourism and Events
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Executive Summary
The airline industry as a part of hospitality service sector relies on the customer satisfaction
levels to succeed in the competitive market economy. The ability of an airline industry operator
in the UK market economy is based on the type of customer reviews the operator gains through
their operations. Managing the quality of services is essential in order to achieve appropriate
results in the market. EasyJet is a popular airline brand in the UK hospitality industry and has
promising growth in the airline industry of the country. Recently, the company has experienced
bad reviews and high rates of customer dissatisfaction due to their falling quality of services. The
following report provides a brief understanding of the issues the brand experiences in managing
their operations in the UK market economy. Quality management within EasyJet through Kaizen
framework would prove beneficial for the company, as suggested through the report.
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Table of Contents
Introduction......................................................................................................................................4
Main Body.......................................................................................................................................5
Conclusion and Recommendations................................................................................................12
Reference List................................................................................................................................14
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Introduction
Quality issues within service sector industries reduce the profit earning ability of the organisation
in the competitive market economy. EasyJet was established in 1995 as Europe’s cheapest flight
provider. The company operates across 30 different countries encompassing 1000 airports across
the world (Corporate.EasyJet.com, 2019). The company’s popularity is on the rise due to the
economic slowdown the UK and global economy had experienced. EasyJet’s ability to provide
low-cost flights to different countries attracts customers to the company’s services but currently
the poor quality of services provided by the brand have become a concern for the senior
management of the company.
Following study will identify the various issues regarding quality management the company
experiences in the UK market economy. The company needs to modify their customer service
quality in order to raise the customer satisfaction levels. Adopting Kaizen framework of quality
management will prove beneficial for the organisation.
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Main Body
1. Outline the problems being currently experienced by EasyJet
The airline industry operates in the UK market economy with the intent of providing services to
the customers that are beneficial and appreciated. EasyJet entered the market economy as the
cheapest flight operators and attracted customers to their brand. However, certain issues crept up
due to the company’s operations as the cheapest flight. The employees of the company receive
low payments as compared to other organisations. The service quality of the operator is low due
to the low price customers pay for their services. As the customer reviews for the organisation
suggests, EasyJet services in the UK market economy has fallen in quality. There are a number
of issues that the brand experiences.
 Poor customer service- As per the negative reviews of the customers, EasyJet has poor
customer relations strategy and even poorer communication policy with the customers.
The company practices feeble Customer Service Management techniques that play a
major role in degrading the brand image in the competitive market economy. The
company has poor customer relations as well as poor policy regarding ticket bookings
and cancellation payments (Trustpilot, 2019). These tactics implemented by the
company, enabled EasyJet to function as the cheapest flight operator in the market
economy but reduced the reliability and competence of the brand among the target
customer base.
 Ill-mannered staffs- The staffs employed by EasyJet in their business operations are not
competent and are unemotional. The root cause of dissatisfaction among the staffs is
stated as the low payments and lack of proper incentives provided by the organisation.
The reason for staff’s rude behaviour is considered as a rising problem for EasyJet as it
reduces the brand’s appeal to the customers. Lacking assurance and empathy from the
staffs towards anxious customers are one of the issues that EasyJet experiences while
operating in the UK economy.
 Inappropriate booking and cancellation system- EasyJet has a crooked booking and
cancellation system and the customers are not happy with the services provided by the
staff in regards to flight booking or cancellation. The reviews left by the customers
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provide information regarding the poor and illogical flight booking system the company
provides. Purchasing a ticket does not guarantee a seat to the customer on an EasyJet
flight. Cancellations of those flights are equally confusing for the customers and the
company provides no guarantee of a refund.
 Reduced customer satisfaction- Despite entering the UK market as the cheapest flight
provider, the company experiences negative feedbacks from the customers and most
customers are dissatisfied with the services they receive from the staffs and the
management of the organisation (Tripadvisor.in, 2019). As a service-providing
organisation, it is essential for EasyJet to maintain appropriate customer satisfaction
rates. However, the lack of quality in services and poor customer relations has reduced
satisfaction of the customers.
 Falling popularity of the brand- The reduced popularity of the brand in the competitive
market economy influences the company’s market share. The dissatisfaction among
major stakeholders of the company along with the reduced customer satisfaction results
in the falling popularity of the brand in the competitive market economy. Reduced
employee satisfaction results in high employee turnover rate in any business organisation.
This attributes as a major issue that EasyJet experiences in the market economy.
Considering the factors that developed negative customer opinion regarding the company, certain
issues hinder the company’s success in the market economy. Despite the rising profits the
company experiences and growing number of customers, the negative impression of the
customers regarding EasyJet customer services influence the brand image of the company in the
competitive market economy. The falling popularity of the brand has put EasyJet in competition
with Ryanair, as the worst airline company in the world (Metro.co.uk, 2019). The lacking
customer relations within the company have developed the negative image regarding the brand in
the customer subconscious. The customers have intercepted falling quality of services as lack of
value for money (Eboli and Mazzulla, 2015). Quality of services provided by EasyJet to their
consumers has reduced the brand’s objective of retaining customers. This aspect negatively
influences the company’s possibility of earning profits from the competitive market economy.
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2. Examine to what extent EasyJet has the right capabilities and competencies to improve
quality
The ability of an organisation operating in the service sector requires them to maintain an
appropriate quality (Flouris and Oswald, 2016). Considering EasyJet as a popular service
provider to the UK consumer market, the company has to develop their services according to the
market demands. The company has a wide selection of competencies and capabilities that would
enable the organisation to develop their services appropriately.
In order to recognise the competencies and capabilities EasyJet possess, a VRIO analysis is
performed as follows:
Attributes of
EasyJet
Value of the
resource
Rarity of the
resource
Inimitability of
the resource
Organisational
ability to utilise
the resource
Low cost flights Yes. Yes. No. Yes.
Wide range of
flight routes
Yes. No. No. Yes.
Variety of
services
Yes. No. No. Yes.
Varied
communication
channels
Yes. No. No. No.
Simple flight
booking and
cancellation
services
Yes. No. No. No.
Effective CRM
strategies
Yes. No. No. No.
Table 1: VRIO analysis of EasyJet
(Source: Created by the learner)
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The VRIO analysis of the company provides a brief overview of the available resources within
the organisation. It is observed from the table that EasyJet’s performance in the competitive
market economy is reliant on the value of several resources available to the organisation.
 The low cost flights offered by the company to the target consumer groups act as a
reliable asset for EasyJet as this was the uniqueness of the company that allowed the
organisation to enter the market economy. The rare attribute increases the competitive
advantage for the organisation in the UK airline industry. It is not feasible for other
organisations to imitate the low cost model that EasyJet follows (Holloway, 2017). The
company is aware of the value of their service hence, the company utilises their attribute
effectively.
 The availability of low cost flights in a wide range of routes enables the organisation to
generate more profits from their services. The presence of numerous operators providing
consumers with a wide selection of flight routes reduces the rareness of the asset,
EasyJet utilises the resource appropriately.
 EasyJet offers a wide variety of services to the consumer base. The company provides
flight bookings, hotel bookings as well as rental car services as subsidiary facilities to
the consumers through their online portal. The resource is not rare since several other
competitors provide similar services to the consumers at varied price range.
 The VRIO analysis proves that EasyJet is incapable of utilising three major valued
resources of the company appropriately which has resulted in the company’s falling
popularity with the customers. EasyJet has several communication channels to improve
their relations with the stakeholders and the customers. The company fails to incorporate
this resource in their business operations as observed from the negative reviews left by
the customers.
 The inability of the company to implement simple booking and cancellation system in
their operations affect the brand image of the organisation and affects the service quality
of the company directly. The resource is not rare or difficult to imitate in the competitive
market economy.
 EasyJet’s resource of implementing effective Customer Relations Management (CRM)
within their business operations is low as proved from the reviews regarding the service
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quality of the company. As a service provider, it is essential for EasyJet to develop better
customer relations but the company fails to implement them in their business activities.
It can be observed from the VRIO analysis that EasyJet’s performance in the service providing
business is poor due to several incapacities of the company. Based on the SERVQUAL
dimension of service quality, it can be stated that EasyJet performs poorly in maintaining
appropriate quality in providing services that are reliable, responsive, assured and empathic.
The problems experienced by EasyJet would be resolved if the company adopts better strategies
at providing quality services to the customers. Implementing Kaizen framework in their business
operations would enable the company to improve the quality of their services and develop the
reliability, responsiveness and assuredness to the consumers (Chay et al., 2015). By
implementing the PDCA cycle of continuous development in their business operations, EasyJet
would be able to enhance the empathic behaviour of their staffs and improve the customer
satisfaction levels.
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3. Assess the impact of Kaizen techniques could have on EasyJet in terms of delivering
consistent and effective quality management
It is essential for EasyJet to improve the quality of their services through appropriate
implementation of total quality management (TQM) in their business operations. As a service
provider, EasyJet would benefit from the implementation of Kaizen framework in their quality
development model. Improvement of certain attributes within the company will allow the brand
to develop their business operations in the market economy. The attributes of Kaizen techniques
when incorporated within the business operations of EasyJet will prove beneficial for the success
of the company in delivering improved quality of services that are consistent with the market
demands. By integrating the PDCA cycle, along with the Kaizen technique in service
development will garner the following benefits for EasyJet in the competitive UK business
environment:
 By integrating appropriate planning strategy, the company would be able to identify the
opportunities available to them in the market economy. Developing appropriate tactics to
improve the quality of services would improve the brand image for the organisation in
the competitive market economy (Rajaguru, 2016). Managing effective customer
relations through proper staff training and utility of communication channels with the
business operations will enhance the quality of services the company has to offer to their
target consumer demographic.
 The successful implementation of Kaizen techniques of continuous process
improvement in the business operations of EasyJet will enable the organisation to
develop a deeper understanding of the customer demands and issues with the quality of
services provided by the organisation (Sachdev and Agrawal, 2017). This will allow the
brand to generate improved quality of services in the UK business environment.
 It is an essential aspect for organisations following the PDCA cycle to evaluate the
available services. This enables the company to identify the discrepancies between
market demands and services provided by the organisation. Continuous development of
their services will provide the company to generate better results in the market economy
by increasing the customer satisfaction levels.
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 Continuous development of their services through examination will allow EasyJet to
observe necessary stages of their business operations that require improvement. This
enables the company to manage their staffs and provide them with training that would
improve the quality of services provided to the target consumers (Ali, 2016).
 By enacting the strategic improvements in their business operations, service providers
are able to enhance the quality of services offered by them to the consumer demographic.
It would be beneficial for EasyJet to implement TQM strategies in their business
planning procedure to enhance the quality of services and to ensure appropriate quality
management within the competitive market economy.
 Effective quality management within the organisation would be feasible for the
organisation by integrating the aspects of Kaizen techniques as well as PDCA cycle in
developing their business operations. EasyJet would be able to regain their brand image
in the competitive market while developing the quality of their services according to the
dimensions of SERVQUAL.
 The PDCA cycle when incorporated in business development aspect of service industry
operators, it generates improved quality of services for the organisation. Continuous
development enhances the ability of the organisation in generating better revenue and
customer satisfaction in the market economy.
 EasyJet would be able to improve the quality of their customer relations management
activities through the implementation of TQM tactics in their business operations.
Improvement of communication channels within the business operations would enable
EasyJet to enhance their market share through effective CRM tactics (Stranjancevic and
Bulatovic, 2015).
Thus, it can be stated that implementing Kaizen and PDCA cycle in business operations for
EasyJet would improve the quality of service provided by the company to their customers.
Increasing the customer satisfaction level as well as managing the employee satisfaction rates
within their business would prove effective for the company in providing consistent and effective
services that are of improved quality.
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Conclusion and Recommendations
The study provides a brief understanding of the issues that EasyJet experiences in their market
operations. Consistent negative feedback from the customers provides the organisation with an
idea regarding the issues that are prevalent within the company. The study develops the VRIO
analysis of the company in order to identify the availability of resources to the company and the
ways the company utilises them in conducting business. The analysis provides information
regarding the inability of the company to implement effective strategies in their business
operations that would improve the quality of services. Managing appropriate CRM tactics would
improve the quality of services that the company has to offer. Integrating Kaizen frameworks in
their business operations will benefit the organisation in promoting their brand image and
improving the quality of services.
Several attributes exist that EasyJet needs to implement in their business operations in order to
achieve desired results from the market economy. They are:
 Implementation of Kaizen technique in their business operations will enable the
company to develop continuous improvement in their business perspective (Barnes,
2017).
 Training their staff to be more effective in maintaining customer satisfaction would
improve the brand image of the organisation.
 Maintaining appropriate policies in flight booking and cancellation tactics of the
company will develop the customer satisfaction levels within the market economy.
 EasyJet would improve their brand image and the quality of services by implementing
customer-oriented services in their business operations. Effective TQM strategies
improve the quality of services provided by organisations operating in the service sector
(Farrington et al., 2018).
 It would be beneficial for the organisation to implement appropriate employee and
customer relations techniques in their business operations in order to achieve appropriate
results from the competitive market economy.
Thus, it can be stated that in order for EasyJet to enhance the quality of their services the
company needs to implement these strategies in their business operations. These strategies will
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