\EFFECTS OF QUALITY MANAGEMENT ON DOMESTIV AND GLOBAL COMPANIES Date Survival in the airline industry depends significantly on the quality of management of the organizations and service delivery for their customers. Both domestic and global organization in the airline industry has to ensure that their services are attractive and preferred by their customers in order to record better performance (Goetsch & Davis, 2010)…
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In the case of a domestic airline, southwest airline has performed well and survived adverse effects on airline business like terrorism and inflation in the fuel prices. Similarly, the German based Lufthansa has operated internationally and maintained a good market share hence posing good financial performance (Lufthansa Consulting, 2011). The two firms recognized the need of improving the quality of their products while keeping their costs low to become more competitive. The two companies are in the airline industry and pursue strategies to improve the quality of their services. In the airline industry, the domestic and global organizations are interrelated and affected by similar environmental factors. To survive in the US domestic industry, southwest airline has engaged in restructuring and focusing on the customer service. The company believes that the satisfaction of customers is instrumental in gaining positive performance. At the same time, Lufthansa has restructured and entered into strong alliances that would allow the company be robust in the airline business (Lufthansa Consulting, 2011). ...
For Lufthansa, their wide range of services focuses on quality and safety of their customers. This has been achieved by adhering to the set regulations and standards. Likewise, southwest airline mission is clearly hinged on the maintaining quality by adhering to the regulations set by the US authorities. The two organizations have entrenched in all the procedures and decisions of the firms. The first stage in the process is a well-defined mission and vision statement that demands employees to remain answerable to the company. This has also been integrated in the company strategic objectives of demanding commitment to law and procedure adherence. The second process for both the companies is the aligning the company acquisition and strategic alliances to achieve organizational order and efficiencies. The two firms evaluate strategic alliances and undertake evaluations to determine feasibility and profitability of the actions keeping in consideration the safety and demands of their customers. The businesses consider the health of their workers and customers essential for the smooth operation of the businesses. The obligation to make their stakeholders safe is not just, because it is a legal requirement but because the businesses consider it as a social responsibility (Southwest Airlines Co., 2011). Finally, the two companies have a similar procedure I their staff training and development. They believe that for success to be realized in the business the companies must have a staff capable of executing perfectly and in a timely manner, the chosen courses of actions. Both southwest airline and Lufthansa in its international operation trains its employees to improve the quality of
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