SAITO

UNIVERSITY
COLLEGE
PRINCIPLE OF
MANAGEMENT
INDIVIDUAL
ASSIGNMENT
NAME ID NOC COHORT
UNISHWARY SANDRAN 20191234-01-12116 BHRM B5
 1. What are internal and external factors of Heathrow Terminal 5 that you can elucidate.
Discuss these factors that are essential for strategic formulation.

The internal factor of Heathrow Terminal 5 that I can elucidate that is essential for
essential for strategies formulation is legal factor. The legal factor for Heathrow Terminal 5
defines that airways strategic were cuts some its operational, during the same time that the
passenger number has increased. For examples, during March 2010 British Airways
announced a decline in a passage number, the decline was so high that was compared with
the month after September 11th terrorist attack. It was the worst much in more then a decade
for passenger number and the British Airways strategic were cut some operational capacity.

The external factor of Heathrow Terminal 5 that I can elucidate that is essential for
essential for strategies formulation is economic factor. This aggravates its pension deficit and
it also impacted its demand because many companies are trying to reduce the cost with
travelling and trying to use communication technology. For example, Airline companies were
direct affected by economic recession has ever faced in especially U.S and Europe. The
global recession has affect in both cases passengers dan business people in air travel.

The another external factor of Heathrow Terminal 5 that I can elucidate that is essential
for essential for strategies formulation is technological factor. The technology has created a
lot of benefits for consumers. Online booking services and check-in and price comparison
using the internet is good because young people prefer to used, but old people don’t like this
new technologies. Furthermore, British Airways can also reduce the number of employees
because its possible to use more machines than people as an example, the clocking-in system
implemented by BA to control employees hours and it also creates new way of
communicating with customers.
 The external factor of Heathrow Terminal 5 that I can elucidate that is essential for
essential for strategies formulation is political factor. Almost every aspect of running an
airline is governed by tight regulatory controls. This various from the routes companies can
fly, the business partners they can cooperate, the airport slots they can use, the fares they set
and they infrastructure costs they pay. Terrorism is another political problem which affects
companies one example are attacks which occurred in the U.S in 2001, which reduce the
demand for flights and also demanded for companies more investments in security
measurements and policies to rebuild consumers confidence.
2. What are the activities that should be considered in feed-forward, concurrent and
feedback controls. What type of control could be used during the baggage blunder
stage? Why?

Feedforward controls, sometimes called preliminary or preventive controls, attempt

to identify and prevent deviations in the standards before they occur. Feedforward
controls focus on human, material, and financial resources within the organization. These
controls are evident in the selection and hiring of new employees. For example,
organizations attempt to improve the likelihood that employees will perform up to
standards by identifying the necessary job skills and by using tests and other screening
devices to hire people with those skills.
Concurrent controls monitor ongoing employee activity to ensure consistency with
quality standards. These controls rely on performance standards, rules, and regulations for
guiding employee tasks and behaviours. Their purpose is to ensure that work activities
produce the desired results. As an example, many manufacturing operations include
devices that measure whether the items being produced meet quality standards.
Employees monitor the measurements; if they see that standards are not being met in
some area, they make a correction themselves or let a manager know that a problem is
occurring.
Feedback controls involve reviewing information to determine whether performance
meets established standards. For example, suppose that an organization establishes a goal
of increasing its profit by 12 percent next year. To ensure that this goal is reached, the
organization must monitor its profit on a monthly basis. After three months, if profit has
increased by 3 percent, management might assume that plans are going according to
schedule.
Type of control could be used during the baggage blunder stage is concurrent
controls. All the three types of control are necessary but among the three, concurrent
control would be the most important type of control in this situation because it takes place
while a work activity is in progress or is being done. Fundamentally in this kind of scale
project, it is a moving operation or system. It must have a thorough check and balance
and a time to time update in the system, in order to lessen problems from occurring.
Immediate corrective action could be used in this kind of situation in order to avoid some
damage to the consumer confidence and trust in the new terminal and arthritis Airways.
 Basic corrective actions like implementing regulations that would prevent actions
such as passengers carrying their luggage to terminal and better communication between
the terminal staff and customers must have been prioritize, so that some of the stress
would be delayed from occurring. In this type of project, it is really prone to have some
problems. It would be not realistic if ever all the elements would work Just perfectly on
the first day and issues like the broken hand dryers are inevitable because it is an
everyday occurrence.
One example that implement a baggage transportation system is the Denver
International Airport, this type of system should be not Implement because it would be
costly if ever problems happen to occur and those repairs and modifications would be an
additional cost for the company. We can conclude through this case study that the
Terminal 5 Baggage system allure was not merely caused by faulty facilities but also of
being understaffed and untrained staff. It was revealed that the glitches supposedly
avoided if they followed the guidelines in testing the facility since they were testing late
and less than recommended.
3. Reflecting from the episode of Heathrow Terminal 5, give four take-home lessons that
other organization should not repeat.

1. Logistics and planning. According to baggage handlers, the problems had started
weeks ago. Rather than having proper training, handlers say they were simply shown
around the terminal. On the opening day, handlers and other staff were unable to get into
the BAA car parks. There were no staff and no spaces, meaning they arrived two hours
late for work. When they got into the terminal, signage was poor and staff found it
difficult to navigate the building. Union representatives said workers “didn’t know where
to go”.

2. Technical and human errors. T5’s computer system didn’t recognise staff IDs.
Doors that should have opened were locked, 17 out of the 18 terminal lifts were jammed,
the transit system that moves passengers from the main terminal to the satellite terminal
broke down, and the carousels, escalators, walkways and electronic screens all failed. The
supposedly state-of the art baggage-handling system (12 miles of belts and tracks capable
of handling up to 12,000 bags per hour) crashed around 11am. It had never been tested in
a ‘live’ terminal. Bags only came off the first incoming flight from Hong Kong because
managers were drafted to drag them off the plane. As passengers arrived, the baggage
piled up, overwhelming staff.

3. Low morale and goodwill. BA and BAA have long struggled with poor staff
morale and goodwill has evaporated over the years. Staff say that morale in recent months
has been so bad that many staff didn’t even turn up for training. On the day, disorientated
baggage handlers and stressed ground staff became surly and unhelpful as the problems
unfolded. Tempers frayed and there were reports of dust-ups between colleagues. There
were not enough staff to cope on the day and fewer still volunteers to help out.

4. Lack of communication and crisis management. Passengers said one of the

major causes of frustration at the terminal was the total breakdown in communications
from BA. There was confusion about whether hold baggage was being accepted, with
some flights leaving with baggage, others without. Passengers said no one was on hand to
help and there were no announcements or information on monitors and websites.