Case | HBS Case Collection | 1994 (Revised from original version)

British Airways: Using Information Systems to Better Serve the Customer

Abstract

Explores the uses of scanning technology, interactive software, and powerful data bases to assist customer relations representatives in resolving customer complaints. Competitive alliances in international markets are noted, but the focus is on the evolving commitment to customer service and the measures, technology, and economics that come into play to recover customers who have complained.

Keywords: Debates; Customer Focus and Relationships; Globalized Markets and Industries; Service Delivery; Alliances; Information Technology; Aerospace Industry;

Format: Print

15 pages

Purchase

Citation:

Sasser, W. Earl, and Norman Klein. "British Airways: Using Information Systems to Better Serve the Customer." Harvard Business School Case 395-065, November 1994. (Revised from original October 1994 version.)

This is the fourth in a 35-year series of HBS cases on an organization that has changed the rules of the game globally for an entire industry by offering both differentiated and low-price service. The focus of the case is on whether Southwest Airlines should buy gates and slots to initiate service to New York's LaGuardia airport, which does not fit the airline's profile for cost, ease of service, and other factors. The bigger issue is how the organization should deal with competition that has successfully emulated more and more of what it does in an operating environment that has changed significantly. Hence the subtitle, which was suggested by Herb Kelleher, Southwest's Chairman and CEO, Emeritus.

A restaurant chain based in California offers made-to-order sandwich wraps using fresh, healthy ingredients. The founders of the company take a very active role in day-to-day business and tightly control every aspect of the restaurant operation from hiring store managers to planning the menu. Management is concerned that employee turnover is high, customer satisfaction is decreasing, and revenue growth is flat. The newly hired human resources leader believes addressing employee turnover can help solve the other problems. She develops a profit-sharing program as a pilot at two restaurants. The managers in the pilot program have their compensation tied directly to restaurant profits. The program also allows managers to customize menus, work with local suppliers, and try different promotion ideas. After six months, profits at the pilot locations improve while customer reviews are mixed. The HR manager must review the complete results and decide whether to roll out the pilot program to more locations, modify the program, or abandon it altogether. Students consider the operational challenges of running a service business and the issues related to compensation, change management, and employee autonomy.

General Information

Academic Programs

Alumni

Faculty & Research

Recruit

Resources

Faculty & Research

British Airways: Using Information Systems to Better Serve the Customer

Abstract

About the Author

More from the Author

Contact

Related Links

Resources