FACTS for Question No. 1: (8 points) Thai Airways (TA) is an airliner based in B
ID: 400020 • Letter: F
Question
FACTS for Question No. 1: (8 points) Thai Airways (TA) is an airliner based in Bangkok, Thailand. TA is a founding member of the Star Alliance, an industrial group whose members now include 27 airlines from around the world. The alliance had been prosecuted for anti-competitive practice in its pricing in the US under anti-trust law. Anti-trust law in the US is intended to protect the market and consumers. In 2011, Thai Airways was ordered to pay S3.5 million for price fixing in cargo service litigation. In 2012, Thai Airways was also ordered to pay $7.5 million for anti-competitive price fixing practice in passenger service. Then in 2015, the US downgraded Thai Airways for safety issues. In additional to transporting passengers, Thai Airways also transports cargoes. One of the cargoes it transported was frozen fish from Thai Fishing Company (TFC). TFC uses Thai Airways to deliver its frozen sea food products to high end hotels and restaurants in European countries. TFC is a fish processing factory based in Bangkok. TFC buys its fish from independent fishing trolley operators. These trolleys used slave labor to catch fish. In 2016, the EU placed a ban on fish imported from Thailand alleging that it was produced with slave labor. As the result TFC could not export its frozen fish to the EU market. Thai Airways lost TFC's cargo account and revenue from that account disappeared. Since Thai Airways is used to transport TFC's frozen fish to the EU people in the EU countries called for boycotting Thai Airways for transporting products that are produced with slave labor. The boycott adversely affected Thai Airways passenger revenue. The boycott inflicted great loss to the airlines' revenue in 2018 Mean while Vietnam Airlines (VA) based in Hanoi, Vietnam, is competing to increase its market share by vying for Thai Airways' market in the EU. VA is a member of the Star Alliance, but does not face allegation of slave labor among its cargo accounts. However, recent audits show that VA failed to pay over-time to its domestic staff while foreign employees are generally overpaid for doing the same work. QUESTON-2: Discuss problems and propose solution based on lecture and chapters 1, 2, 3 & 4. No personal opinions. Customer service iii.Quality & benchmarking DATA for Question No. 2: (7 points). ii.Competition QUESTON-2:What are UCL & LCL? DESCRIPTIWE Date 3101/18 3001/18 2901/18 26/01/18 2501/18 24.0118 2301/18 2201/18 1901/18 B/01/18 8.06 10 8.10 805 8 20 8.15 820 INFERENTIAL 8 20 B26 8.30 NORMAL CURVE 0.1% 2% 16% 98% 999% 50230 .8so 601/18 5/0118 B.45 ANDARDExplanation / Answer
Customer Service
Customer service and satisfaction is an important part of any organization. But in this context Thai Airways tried to capture the market, using unethical way, like they fixed the price to get more business. Their aim was only to capture the market, in wrong way. They never care about customer satisfaction. That is the reason US downgraded its service is 2005, due to poor safety measures. It is a best example, how the Thai Airways was operating in US, and it strategy. If the business only means to make money, it won’t survive long, Thai Airways Cargo is the best example of unethical way of money marking, they used slave labor to catch more fish, and hence they thought they can make more money. European countries banned Thai sea food items, as they were produced using slave labor. No organization can survive with our proper customer satisfaction, if we have more satisfied customers, automatically it will lead to higher business, because word of mouth advertising will be the best advertisement for any product or services. And Vietnam Airways also used bad strategy paying less to own employees and more to foreign employees, it created a bad image to them in the market. Companies should aim for higher customer satisfaction, rather than just money making business. If we can fulfill customer’s needs, surely lot of customers automatically attract to us.
Competition
In this contest completion is transformed into a bad format. Ethical completion is good for any economy, but here Thai Airways used bad method to capture the US market, also used slave labor to more production. In normal assumption, completion is good for customer’s point of view. But here they forgot the completion, and just aimed only making money. Good competition is something like, where company’s innovate the existing product or service to get more business, that is good for economy. But without providing good services to customer, we cannot be competitive in the new era of business.
Quality & bench marking
Benchmarking is keeping a standard for its products or services and this standard can be already done in the current organization’s different team or it can be an external organization’s stranded. Many companies’ now a day’s adopt bench marking method to increase productivity. Best advantage is that, it is already achieved and all historical date is available, hence it is easy to implement. But even, dependents upon nature of business, the result may vary, so they need to consider nature of business in the bench marking method. Quality is also an important element. Without quality product, there is no customer satisfaction. For the business want to survive in the cut throat market, they need to provide quality product in consistent way.
Lower limit will be 898.8145 and upper limit will be 4718.776
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