How might immediate corrective action have been used

Assignment Help Financial Management
Reference no: EM13885742 , Length: 2000 Words

CASE: BAGGAGE BLUNDERS Terminal 5, built by British Airways for $8.6 billion, is Heathrow Airport's newest state-of-the-art facility. Made of glass, concrete, and steel, it's the largest freestanding building in the United Kingdom and has over 16 kilometers of belts for moving luggage. At the terminal's unveiling on March 15, 2008, Queen Elizabeth II called it a "twenty-first century gateway to Britain."

Alas.the accolades didn't last long! After two decades of planning and 100 million hours of labor, opening day didn't work out as planned. Endless lines and severe baggage handling delays led to numerous flight cancellations, stranding many irate passengers. Airport operators said the problems were triggered by glitches in the terminal's high-tech baggage-handling system.

With this massive automation features, Terminal 5 was planned to erase congestion at Heathrow and improve the flying experience for the 30 million passengers expected to pass through it annually. With 96 self-service check-in kiosks, more than 90 check-in fast bag drops, 54 standard check-in desks, and over 16 kilometers of suitcase-moving belts that were supposed to be able to process 12,000 bags per hour, the facility's design didn't seem to support those goals.

Within the first few hours of the terminal's operation, problems developed. Baggage workers, presumably understaffed, were unable to clear incoming luggage fast enough. Many arriving passengers had to wait more than an hour to get their bags.

There were problems for departing passengers, as well, as many tried in vain to check in for flights. Flights were allowed to leave with empty cargo holds. At one point that first day, the airline had no choice but to check in only those with no luggage. And it didn't help matters that the moving belt system jammed at one point.

Lesser problems also became apparent: a few broken escalators, some hand dryers that didn't work, a gate that wouldn't function at the new Underground station, and inexperienced ticket sellers who didn't know the fares between Heathrow and various stations on the Picadilly line.

By the end of the first full day of operations, Britain's Department of Transportation released a statement calling for British Airways and the airport operator BAA to "work hard to resolve these issues and limit disruptions to passengers". You might be tempted to think that all this could have been prevented if British Airways had only tested the system.

But through runs of all systems "from toilets to check in and seating" took place six months before opening, including four full-scale test runs using 16,000 volunteers.

Questions:

1. What type of control - feedforward, concurrent, or feedback - do you think would be most important in this situation? Explain your choice.

2. How might immediate corrective action have been used in this situation? How about basic corrective action?

3. Could British Airways controls have been more effective? How? 4. What role would information controls play in this situation?

Customer interaction controls? Benchmarking?

Reference no: EM13885742

Questions Cloud

Verify zero flux through cylinder required by gauss''s law : Two point charges q are located at positions x = ±R. At points close to the origin on the x axis, find Ex. At points close to the origin on the y axis, find Ey. Make suitable approximations with x « R and y « R.
What conditions would you choose to subnet a network : What is the OSI model and why is it important in understanding networking? Under what conditions would you choose to subnet a network
What is electric field at a point on l, a distance z : If a charge -q with mass m is released from rest on L, very close to the center of the hole, show that it undergoes oscillatory motion, and find the frequency ω of these oscillations. What is ω if m = 1 g, -q = -10-8 C, σ = 10-6 C/m2, and R = 0.1 ..
Implementing comprehensive human resources risk : Implementing Comprehensive Human Resources Risk Management Plan. What are your thoughts about your results? What are you feelings towards this assignment? How would you improve it? Submit this with your assignment
How might immediate corrective action have been used : What type of control - feedforward, concurrent, or feedback - do you think would be most important in this situation and how might immediate corrective action have been used in this situation
What advantage does eva provide as a performance metric : Compared to GAAP earnings, what advantage does EVA provide as a performance metric for incentive compensation purposes? Why might this advantage be particularly important for companies such as Whole Foods Market?
What role do real options in the value of facebook''s shares : What role do real options play in the value of Facebook's shares and in Facebook's strategy?
What is the electric field at the midpoint of the end face : Consider a half-infinite hollow cylindrical shell (that is, one that extends to infinity in one direction) with radius R and uni- form surface charge density σ . What is the electric field at the midpoint of the end face?
Produce comparative relative reports for the adidas company : Produce comparative relative reports (% of sales) for the company for the last three years. Represent it graphically in the assignment.

Reviews

Write a Review

Financial Management Questions & Answers

  Bonus versus stock

The company has offered you a $5,000 bonus, which you may receive today, or 100 shares of the company’s stock, which has a current stock price of $50 per share. Mathematically, what is the best choice? Why?

  What is UBIs weighted average cost of capital

Union Brick Inc. (UBI) has a total market value of $200 million, consisting of 2 million shares of common stock selling for $50 per share and $100 million of 10 percent perpetual bonds currently selling at par. UBI pays out all earnings as dividends,..

  An insurance line has a pure loss ratio-operating ratio

An insurance line has a pure loss ratio of 65%, an expense ratio of 26%, the firm pays 3% of premium to policy holders as dividends, and has an investment yield to premium ratio of 6%. What is the operating ratio?

  What was his annual rate of return on this sculpture

During 2003, a sculpture was sold at auction for a price of $10,313,500. Unfortunately for the previous owner, he had purchased it in 1999 at a price of $12,370,500. What was his annual rate of return on this sculpture?

  Project for financial and performance management

Final Project for Financial and Performance Management, you will prepare and submit a consultancy report to the management of Anthony's Orchard

  What is the definition of the term agency problem

What is the definition of the term agency problem?

  Cost straight-line to zero over the projects life

Romo Enterprises needs someone to supply it with 121,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you’ve decided to bid on the contract. It will cost you $880,000 to install the equipment nec..

  What will your payoff and profit or loss

On Sep 15, 2015 you buy 500 forward contracts on the S&P 500 index with a delivery price of 2000 and an Oct 15, 2016 expiration date. On Oct 15, 2015 you sell 500 forward contracts on the S&P 500 index with a delivery price of 2005 and the same Oct 1..

  What is the current price of van burens stock

Harrison Corporation is interested in acquiring Van Buren Corporation. Assume that the risk-free rate of interest is 5% and the market risk premium is 5%. Van Buren currently expects to pay a year-end dividend of $1.70 a share (D1 = $1.70). Van Buren..

  Construct stephensons market value balance sheet

Stephenson Real Estate Company was founded 25 years ago by the current CEO, Robert Stephenson. The company purchases real estate, including land and buildings, and rents the property to tenants. The company has shown a profit every year for the past ..

  Calculate financial ratios

It is often stated that anyone with a pencil can calculate financial ratios, but it takes a brain to interpret them. What kinds of things should the analyst keep in mind when evaluating the financial statements of a given firm?

  Discuss the three forms of market efficiency

Discuss the three forms of market efficiency. Explain your point of view on which type of efficiency best represents US capital market. Please detailed answers. please write complete meaningful sentences.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd