Quality Management of Flagship Airline Company of UAE - Article Example

Quality management Contents Introduction 2 Quality issues faced by Emirates 3 Literature Review 5 Recommendation 11 Conclusion 11 References 13 Introduction The company whose quality issues would be considered in this report is UAE based airline known as Emirates. The company is the largest airlines company in the Middle East. The subsidiary of renowned group that is the Emirates Group is the airlines Emirates. This airline is Flagship Airline Company of UAE mainly undertaken by the government of UAE. It is recognised as one of the prime region connector within the country. So, it became successful in performing its business operations with a total of 3,400 flights flying to over 74 countries in over 133 cities from the International Airport of Dubai. The company was incorporated in the year 1985 and in the present scenario the company ranks amongst the top ten carriers across the globe in relation to the passenger kilometres. The company through its wide business operations has proved to be the largest airline in UAE in terms of fleet size, passengers carried and the revenue generated. However, due to its wide range of flights, the organization became successful to cope up with numerous hurdles such as threat of new entrants and high bargaining power of the customers that may easily slice up the total market share and brand value of the Emirates in global perspectives as compared to others. But, the organization became successful in retaining its market share and reputation in this highly competitive market due to its competitive pricing and excellent customer services. In-spite of its competitive prices, the Emirates Airlines introduced excellent flight operations and numerous long haul flights that proved extremely effective for the organization thereby amplifying its profitability and reliability as compared to others. Thus, due to these efficient features, the Emirates Airlines became successful in retaining itself as one of the most successful and reputed airlines in Asian regions for more than 25 years. This proved effective for the organization in amplifying its customer base and loyalty in the market among many other rival players. Quality issues faced by Emirates The quality factor is a very critical element in the hospitality industry. The companies that operate in the service sector needs to possess high quality standards so that it can maintain high level of customer satisfaction. Emirates during its business lifecycle have been receiving various quality awards. However in the recent years there are no such quality awards that have been given to the company. This clearly indicates that the company is facing serious quality issues that need to be resolved so as to achieve sustainability in the business sector. The company operates in the airline industry where it needs to give its customer value for money. Unlike budget airlines it is not possible for the company to compete in prices while compromising on the quality level of its services. The first quality issue that the company faces is that the staffs are not imparted proper training which makes the customer remain dissatisfied who are flying with the Emirates Airlines. There are complaints that arise from the customers of this airline that the individual service that were given by the staff of the airlines in the present scenario is lacking and the customers receive late service and late meals that they have ordered for while travelling. The major problem that the company is facing in the past few years is financial problems due to the financial crisis that has hit UAE. The company needs time to overcome such a situation as the economic scenario has faced a serious turmoil that has affected its business operations. The industry in which the company operates is highly sensitive to the changing trend of the international market. Due to lack of financial strength the company is not been able to maintain proper infrastructure which makes the customers feel that they are not receiving value for money. In order to stabilize the financial conditions the company has reduced on the fleet size which has greatly affected the service quality in terms of meals that are provided and even to the extent of great degree of rescheduling of flights which has disrupted the image of the company and even the customer perception (Cento, 2008). Another major quality related issue faced by the Emirates Airlines is improper infrastructural facilities such as flight entertainment and catering services. Therefore, due to inappropriate catering services, the reliability and consistency of the customers over the brand is reducing at a significant extent as compared to many other rival players. However, because of the reduction of customer reliability, the rate of switchover costs of the customers increased day by day that resulted in reduction of its portfolio and profitability in the market. Moreover, due to inappropriate dress codes within the staff members of the Emirate Airlines, the level of preventable in front of customers is also reducing significantly. Similarly, improper communication skill is also significant quality issue that decreased the satisfaction level of the customers. Thus due to such dissatisfaction, the range of customers is reducing in this recent days that declined its total revenues and equity as compared to others. Inappropriate operational hours such as delay in departure of the scheduled airlines are also recognised as another important quality related issue of Emirates airlines. However, delay in the scheduled timings of the airlines lead to discontentment and frustration. Therefore, in order to reduce such type of frustrations, maximum extent of the customers try to swift-over towards other brands that declined its profit margin and loyalty in the market. Because of improper approaches and behaviours towards the customers, the level of dependency and trust over the brand and its staffs is declining. Thus, it is also significantly responsible for the reduction of the market share and brand value of the Emirates Airlines as compared to many other rival contenders. Besides these causes, another flaw that declined its prosperity is improper privilege for the older segments of the society. Therefore, these underlining quality issues have significantly hampered the reputation and brand image of the Emirates Airlines is declining with a significant extent. Hence, due to these major reasons of quality issues, the financial condition of the company is not at a stable position and so the customers are shifting more towards budget airlines. Moreover, due to UAE crisis, maximum extent of the customers is also shifting towards cheaper airlines as per the economic scenario. Thus, in order to retain its profitability and popularity within the minds of the customers, the Emirates Airlines might try to analyse and evaluate the feedbacks and requirements of the customers. Then, it might prove effective for the organization to retain its position and market share in the market. Literature Review The term quality has its importance in all the business sectors. But its importance is very high in the organizations in service industry mainly travel, tourism and hospitality sector, as the quality leads to relationship. However, relationship is the prime pillar for the organizations operating under the umbrella of hospitality industry to increase its consistency and equity in the market among others. Moreover, quality is a very erratic variable that helps to increase the inner morale and satisfaction of the target customers that may improve their bonding with the brand among others. Furthermore, quality is the most essential factor for the organizations of hospitality segment in order to cope up with the changing economic scenario and customer preferences. However, by tackling and controlling the external threats, the organizations might easily enhance its uniqueness and position that may amplify its competitiveness and sustainability to a considerable extent. Thus, it might be revealed that quality acts as cornerstone in order to tackle the innovativeness, introduced by the competitors or situations. According to Devlin, Gwynne and Ennew (2002), the lack of quality in any business results into a delivery that is unsatisfactory may that be for a service or product. In the business or hospitality industry quality may be stated as the perception of the product or service ability so as to satisfy the customers. Since, customers are considered as the prime requirement of a business or organizations operating under hospitality segment in order to amplify the brand value and market share in the market among many other rival players. Otherwise, due to inconsistent quality of services, the level of reliability and consistency of the customers over the brand might get reduced that may hinder its position and dominance. However, due to dissatisfaction over the quality of services, the level of bonding or relationship with the customers might get declined. Therefore, the customers might decide to switchover towards other competitive price brands rather than Emirate Airlines thereby declining its market share and prosperity significantly. In order to maintain the level of relationship or bonding with the customers, more number of organizations operating in the hospitality sector such as Emirate Airlines trying to offer highest concentration over quality measures (Gilmore, 2003). Hence, in order to improve the quality issues, most of the organizations are focusing on total quality management. This is a recognised as one of the most effective technique to accomplish the requisite service qualities. The above mentioned indispensable service competencies of Emirate Airlines is achieved by the organizations through the concept of total quality management that relates to the quality management issues of the operations. The quality management aspect is greatly associated with the increasing trend of customer expectations. The pillars on which the concept of quality management is based are – to be necessity then differentiator, better relates to information and services, is everyone’s responsibility, related to dissemination, learning and best practices, to reinforce the customers’ expectations and to recognize a major function in the system. If the expectations of the customers might get enhanced then the level of sustainability and dominance of the Emirate Airlines may be enhanced. This might prove extremely effective for the organization to amplify its customer base and dependency in the market as compared to many other rival players. But, if the expectations of the customers may not be maintained then it may offer negative impacts thereby declining the profitability and equity of the Emirate Airlines in the entire market. So, the management of the Emirate Airline is offering high attention over total quality management concepts (Kanji, 1995). The quality management in an organization is based on certain core elements such as control, learning and quality assurance. Quality management has given rise to various tools to control the quality level as some organization incorporates the six sigma approach while there are some companies that adopts the Just In Time approach so as to maintain high quality standard (Devlin, Gwynne and Ennew, 2002). However, with the utilisation of the concept of “Just In Time” approach, the staffs of the Emirate Airlines might fulfil the desired requirements of the customers exactly in time. This might prove effective for the organization to improve the level of satisfaction of the customers of attaining their meals and many other requirements entirely in time. However, this concept might help the Emirate Airline to retain the customers for a long run that may increase its competitiveness and position as compared to many others. Another such concept that highlights on the gap between the desired quality level and the actual level of quality so as to adopt the best strategies is SERVQUAL. According to Gitlow (2000), there are ten dimensions that are encompassed in the concept such as access, reliability, communication, responsiveness, competence, credibility, security, communication, understanding customer, various tangibles and courtesy. The gaps that are identified in this approach are related with the quality perception and customer expectation. The dimensions of SERVQUAL is based on the level of promised service, courtesy and knowledge of the employees, physical facilities and extending help to the customers through prompt service (Gitlow,2000). Similarly, implementation of the concept of SERVQUAL might prove effective for the Emirate Airline to enhance the communication level, behaviour and personality, responsiveness, competencies and credibility of the staffs. However, due to improvement of these above mentioned qualities or aspects might create a differentiated image or indication within the hearts of the customers (Parasuraman & et. al. 2008). Therefore, this might increase their level of satisfaction and trust over the brand in this age of aggressiveness. Thus, due to improvement of the trust, the level of retention of the customers might get enhanced that may surely amplify the profit margin and total revenue of the Emirate Airlines. Hence, the Emirate Airlines implemented both six sigma and SERVQUAL tools so as to amplify its quality and consistency. Since quality might enhance the level of relationship with customers that may increase the profitability and brand value of Emirate Airlines in the market among others (Nitecki, 1995). According to Zeithaml (2010), the quality triangle as another quality management concept states that there are three factors that are closely knitted with the concept of quality. The below given diagram illustrates the quality triangle- (Source: Zeithaml, 2010) These factors are scope, time and cost. In order to maintain quality each of the constraints are needed to be given equal importance as any of the constraints of the triangle may not be ignored. The time factor is very critical quality triangle where all the tasks are prioritized and then links between them are derived. The factor of cost is dependent on a wide range of variables including labour rates, resources, etc. However the cost variable may be determined using tools such as cost contingency, risk management, indirect cost and cost escalation. The term scope relates to the requirements that are needed to succeed towards the final result (Zeithaml, 2010).The major factor of this constraint is quality which needs to be present in the final product or service. However, if any of the factors is not maintained in an effective way, then it may not offer best results. So, each and every factor needs to be offered equal attention in order to attain best results in terms of quality. Thus, it might be clearly revealed that all the above mentioned factors are highly essential to fulfil the prime requirement, i.e. quality (Shannon & et. al. 2008). Keeping these ideas and views in mind, the Emirate Airlines, offered high concentration over all the aspects of scope, time and cost in order amplify its quality related issues. The Emirate Airlines implemented varied types of personality and behavioural improvement training programs for its staffs as it is regarded as the most essential task for the requisite time frame. It also introduced varied types of communication skill enhancement programs so as to improve the level of responsiveness with the customers, as it is prime responsible for the improvement of customer expectations. However, in order to amplify its prosperity and leadership, the Emirate Airlines bared a huge amount of cost in this age of UAE downturn. This strategy proved to be highly effective for the organization that not only amplified the satisfaction level of the customers along with its market share and profit margin. Moreover, the management of the Emirate Airline decided to offer high attention over the feedbacks presented by its customers as it might help them to reduce their defaults. This strategy also acted as a boon for the organization to amplify its brand image and reliability among the customers (WanKhade & Dabade, 2010). Similarly, it tried to offer more responsiveness and sympathy over the older customers in order to amplify their satisfaction ratio and loyalty. This enhanced the sustainability and competitive position of the organization in the market of UAE in-spite of economic crisis. Hence by implementation of varied types of programs, quality related issues, such as improper communication, dress code, personality, improper response of the staffs and many others lowered considerably. Thus, it helped the Emirate Airlines to increase its supremacy and distinctiveness within the minds of the customers. Recommendation Emirates are recommended to adopt the quality triangle so that it may align well its cost with that of the quality requirements. The company may figure out the financial condition in the present context and explore on its strengths so that it gain a more prominent market presence. As stated in the triangle the balance between the three constraints is very essential so the company needs to adopt the risk management and cost contingency tool so as to adjust on its cost variable, the other requirements would be maintaining high quality service in the airlines and the time would indicate that none of the flights should be cancelled and more importance should be given to sustaining the business operations then to acquire new target markets. As per the concept of SERVQUAL the two recommended areas where the company should focus on is attaining reliability through delivering value for money not just personal attention to the customers in the flight but proper meals as ordered on time and other required facilities. The second aspect is of training their staff properly so that they have sufficient knowledge to deliver exceptional services and set high quality standards for the industry. Conclusion Quality management is the most effective approach that increases reliability from the viewpoint of the customers and also helps to increase the level of profitability and growth for the company. The principles of this approach states that quality is a perception that is build in the consumer mind which may only be maintained through balancing all the factors such as scope, time and cost. Keeping these aspects in mind, the Emirate Airline implemented the concept of quality triangle so as to accomplish the core principles of quality management as described above such as responsiveness, personality, communication, dissemination, best results, etc. This strategy was highly effective for the Emirate Airlines that amplified its brand value and profitability in the market of UAE as compared to many others. Though implementation of varied types of programs with a stipulated time period has increased the fixed cost of the organization but it enhanced the reliability and dependency of the customers. However, due to improvement of the dependency, the rate of profitability and market share of the organization increased that helped it to expand in numerous other regions. Thus, an organization may only achieve sustainability when the level of quality is managed properly in the system. Then, the organization through this approach gains the trust level of the customers, enhances the knowledge of the staff, and even restructures the tangibles which in turn help to sustain the organization in the industry for a long term. Therefore, it may be stated that quality is the most essential tool that improves the recognition and competitiveness of an organization. References Cento, A. 2008. The Airline Industry: Challenges in the 21st Century. Italy: Springer. Devlin, J.A., Gwynne, A.L., and Ennew, C.T. 2002. The Antecedents of Service Expectations, Service Industries Journal. Vol. 22(4). Gilmore, A. 2003. Services Marketing and Management. London: Sage. Gitlow, H. S. 2000. Quality Management Systems: A Practical Guide. USA: CRC Press. Kanji, G. 1995. Total Quality Management: Proceedings of the First World Congress. USA: Springer. Nitecki, D. A. 1995. An Assessment of the Applicability of SERVQUAL Dimensions as Customer-based Criteria for Evaluating Quality of Services in an Academic Library. New York: Cengage Learning. Parasuraman, A. & et. al. 2008. Servqual: A Multiple Item Scale for Measuring Consumer Perceptions of Service Quality. London: Sage. Shannon, A. & et. al. 2008. Drivers of Consumer Satisfaction: Linking Consumer Satisfaction to the Service Concept and Customer Characteristics. Journal of Service Research, Vol. 10 (4). WanKhade, L. & Dabade, B. 2010. Quality Uncertainty and Perception: Information Asymmetry and Management of Quality Uncertainty and Quality Perception. New York: Cengage Learning. Zeithaml, V. A. 2010. Delivering Quality Service. USA: Simon and Schuster. Read More