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Heathrow Terminal 5: The Making of A World Class Service Case

The document discusses issues related to the opening of Terminal 5 at Heathrow Airport by British Airways. It provides a SWOT analysis of British Airways and identifies weaknesses such as poor employee relations and lack of innovation. It also discusses challenges faced during the opening including technological malfunctions, inadequate capacity planning, and poor queue management. Key contributing factors were identified as poor operational strategies, lack of trained staff, and not properly assessing feasibility. Strategies discussed to overcome challenges included boosting operations through reformulating human-intensive and technology-based processes, as well as improving capacity planning.

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S.M. Jakaria Abir
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270 views4 pages

Heathrow Terminal 5: The Making of A World Class Service Case

The document discusses issues related to the opening of Terminal 5 at Heathrow Airport by British Airways. It provides a SWOT analysis of British Airways and identifies weaknesses such as poor employee relations and lack of innovation. It also discusses challenges faced during the opening including technological malfunctions, inadequate capacity planning, and poor queue management. Key contributing factors were identified as poor operational strategies, lack of trained staff, and not properly assessing feasibility. Strategies discussed to overcome challenges included boosting operations through reformulating human-intensive and technology-based processes, as well as improving capacity planning.

Uploaded by

S.M. Jakaria Abir
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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North South University

Case 6 MKT 460

Prepared for:
Samy Ahmed
Faculty Member School of Business North South University

Prepared by:
Shah M. Jakaria 081317530

Submission Date: 25th March, 2013

Q1. Answer: SWOT analysis for British Airlines British Airlines Internals: Strengths: 1. 2. 3. 4. Strong Brand Image Partnership and alliance Financial size and stability Terminal 5 (Later Synergies)

Weaknesses:

1. Poor employee relations history 2. Reliability and trust 3. Innovation and change

Externals: Opportunity

1. 2. 3. 4.

SkyTrax Quality System Competitors forced exit Competitors failing on delivering reliability Emergence of new markets

Threats

1. 2. 3. 4.

Open Skies Agreement Environmental awareness Global economic crisis Lower cost competition

Issues confronting the BAs todays global industry:

Irrational optimism of top management asserting dates and expecting the project realities to bend to their force of will. While there is a time and place for setting stretch goals, when the Project Managers are saying "Its not possible" and the executives refuse t o hear them, expect trouble. It is foolish to minimize or trivialize the human component in fielding a new system. Designers and engineers convince themselves that their invention will work as planned, but often forget that the people using their creation are not fellow engineers. When deploying a new customer-focused system, it is foolhardy to skimp on training, testing and dry-runs. Restaurant chains rolling out new technology to accelerate order-taking and accuracy have this down to a science. Perhaps the Executives at BAA should spend some time at McDonalds.

Risk analysis and mitigation? Someone can hardly over-plan for what might go wrong, especially when their business and corporate credibility are on the line. The Project Sponsor is responsible. Well likely never know what role politics played in the Terminal 5 fiasco, but the Project Sponsor should not have let the terminal open without being confident in the outcome. And while no one would have been happy with a delay, the discomfort of an announcement and some minor bad press pales in comparison to the impact of going live prematurely. A client does not want to hear about "Simple and Silly" from the top executive of the company that just grossly inconvenienced them. They failed to understand the importance of public relationships in business. Build in quality to the project plan? As evidenced by most experiences on airlines recently, "quality" is not a word that jumps to mind. Nonetheless, hope springs eternal. Building in quality is of course table-stakes for good project planning.

Q2.Answer: Management anticipated that about 80% passengers will check-in online or at computer stations in the vast departure area, making the handling of baggage easier! But they failed to anticipate in number of areas1. Technological malfunction and immediate alternative solution, baggage system failure. 2. Capacity management : car parking facility 3. Customer pressure and poor queue management Factors that contributed to the problem: 1. 2. 3. 4. Poor operational strategies Lack of trained staff Key indicators for passengers Lack of feasibility and flexibility: management were not concerned for the projects feasibility in implementing the new technologies and were not flexible enough to cope with the customer pressure in case of emergencies

Q3.Answer: The scope and complexity of fixing the problems at Terminal 5 grow; additional reports show the sacking of two BAA executives, estimates of lost revenue currently at 16 million pounds and early indications that the total fix may cost upwards of $299 million U.S. Last but not least, all of the other airlines planning to move into vacated BAA terminal slots starting in April are now delayed indefinitely. It is expected that those airlines will seek compensation from BAA. Strategic consideration that had been undertaken to overcome the challenges was as followingBoost operational activities through Reformulation human-intensive activities: training and development had been undertaken to improve customer services technology based process activities: self check-in in computer stations to reduce queue problem Capacity planning: Floor plans to make the place more scapulas and accessible

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