Thesis Chapter 2: Project Management in Different Sector

2.0 Chapter 2 Literature Review

The second chapter is about the related literature and studies on project management. The chapter is focused primarily on project management, the eight domains of project management and project management in the IT, building and construction, banking and health industries.

  2.1 Project Management

Projects consist of activities, which have interrelationships among one another, produce quality-approved deliverables, and involve multiple resources. A project has an objective. There is usually a time scale attached to the objective of the project. A project has a specific start and end dates. Therefore, it can be argued that being on time is a crucial requirement to ensure the success of a project. The project should be kept on time in order for it to succeed (Rosen 2004). Now let us define what project management is.

 

Project management according to Reiss (1995) involves avoiding problems. It is about tackling new ground, taking a new group of people and trying to achieve some very clear objective quickly and efficiently (p. 2). Any process capable of being managed with a start and end point is a project. A project involves people and often it is the people who are the key to a successful project. If not enough care is taken over the people who have a stake in the project, it is more than likely to be perceived as having failed. The person who manages this process is the project manager. The task of managing a project is complex (Tansey, 2002, p.158). It involves a large number of interrelated activities, such as: planning and control, communicating with stakeholders, managing risk and quality and managing people.

 

Project management is a collection of loosely connected techniques, some of which are useful in bringing projects to a successful conclusion (Reiss 1995, p.16). Project management is viewed as an effective approach that addresses a wide variety of organizational opportunities and challenges. Project management focuses on reducing costs and product cycle times and provides an important link between an organization’s strategy and deployment of that strategy (Marchewka, 2006, p.4).

 

Laszlo (1999) acknowledged the amount of discussion that has taking place, extolling the virtues of project management and its great influence on the overall successful operation of organizations in all sectors. The author also asserts that project management can be also applied to any set of activities and in this context; it is no less than a universal management tool. Longman and Mullins (2004) also noted that project management requires deliberate planning and action to create the conditions for success and put in place the strategy, leadership, goals, process, skills, systems, issue resolution, and structure to direct and exploit the dynamic nature of project work. Several conditions fundamental for the success of any project that apply for all projects are: make it practical, relevant, and beneficial from day one; make systems and procedures project management-friendly; make project management a win for team members and managers; make project management an ongoing learning experience, and; make success public.

 

Thomas (1990) concluded that project management requires distinct skills and competencies and that these will be developed by project managers if they mean to be effective. Because project management is of growing importance as bureaucratic organisations pass through transition to be more flexible “network organisations,” work is increasingly undertaken by groups and teams, and the focus of assessment shifts from input to output. In certain sectors, companies are coming to resemble portfolios of projects.

 

Turner, Ledwith and Kelly (2009) studied and found out that companies of all sizes spend roughly the same proportion of turnover on projects, but the smaller the company, the smaller their projects, the less they use project management and its tools. On the other end of the spectrum, hi-tech companies spend less on projects than lo-tech or service companies, but have larger projects and use project management to a greater extent. These hi-tech companies also use gadgets of project management to a greater extent.

  2.2 Modern Project Management

Weaver (2008) noted that it was until the 20th century that people recognised the project management. Today, modern project management is described by the Association of Project Management (APM), Project Management Institute (PMI) and bodies of knowledge (BoKs) - both current and former. As we now practice it, the modern way of managing projects encompasses other elements such as quality, risk, technology, stakeholder management and communications other than the integration and control of time, cost and scope (Stretton, 1994; Kerzner, 2003).

 

As such, the evolution of project management makes use of the ideas, practices, principles and techniques developed from general management concepts and experiences. It was the American management theories that particularly underpinned the beginnings of modern project management. Reductionism, individualism and work ethic can be traced back to the 15th century which resonates strongly in the spirit of modern project management. These ideas were incorporated in liberalism and Newtoniasm philosophies where the former deals with division of labour and the latter involves scientific enquiry (Weaver, 2008; Stretton, 1994).

 

Around 1900 to 1920s, the classical school of thought made possible the emergence of scientific, bureaucratic and administrative management. Respectively, these have also gave way to focusing on “one best way” to do a job, on rational set of structuring guidelines like rules, procedures and hierarchy and division of labour and on the flow of information in the operation of the organisation. All of these traits are important to modern project management. In terms of decision-making in complex real-world problems concerned with coordination and execution of operations within an organisation, operations research then came into being. Further, the two key distinguishing features of early project management associations were a focus on techniques rather than outcomes (Stretton, 1994; Turner, 2006).

 

When it comes to planning, leading, organising and controlling, modern project management also differs with traditional project management. Project plans of modern projects are more focused on breaking down total effort into assignable units, estimating the work, defining the most efficient order in which the work should be performed and deploying available staff to specific work packets for specific windows of time (Turner, 2006). What is perhaps significant influence, according to Tryon (2008), is on project plans and the planning process since there are totally invalid set of expectations and strategies.

 

Due to diversity of skills needed for modern projects, it is impractical for modern project managers to be the task expert of all work that must be done. Instead, modern project managers work to solicit individual contributions, create consensus within the project team, facilitate group decisions and create an environment where it is possible for the people to accomplish their delegated works with a minimum of distractions (Kolltveit, Karlsen and Gronhug, 2007). Tryon (2008) concluded this by saying that modern project managers plan, organise and control the project with the team and not for the team.

 

Having said this, modern project managers also establish clear roles and responsibilities that are needed for the success of the project. What is expected of each of the member of the project team is also critical to establish. However, this does not necessarily mean that modern project managers have all the authority to control the project since there are occasional interferences of actual administrative managers. The project manager therefore must not be held responsible for deliverables and dates when they have limited and tainted authority over the project team. Addressing this condition means having well-defined roles and clearly stated responsibilities (Tryon, 2008; Kolltveit, Karlsen and Gronhug, 2007; Kerzner, 2003).

 

Rather than the quantity, modern project management is more focused on the quality of the project hence it is critical that verification of completion of promised deliverables must be performed first. Before modern project managers consider a deliverable done, objective criteria for completeness and quality must be met. Followed by, effective measuring of performance and productivity that can be carried out through planned hours, durations, start dates and finished dates against the actual (Tryon, 2008; Kolltveit, Karlsen and Gronhug, 2007). Nevertheless, measurements should be against revised and relevant baseline plans.

 

Koenig (2007) sets guideline for the implementation of modern project management which commence with creating the vision for modern project management. In this way, the implementation of the project will allow people to perform multiple projects in an increasingly complex environment and measure the performance improvements. When visioning, people should be put at the center that does not only focus on getting the best people but also getting the best from them. Objectives and measurable goals could then follow. Next critical step would be to review current standards and procedures, examine project workload, prepare the organisation, implement the support structure and commence training and project management roll out.

 

Tryon (2008) also noted that in general modern project management provides an effective means for an organisation to create a common definition and understanding of the project management discipline. This can be done through establishing a common understanding of the role project management will play for the organisation as a whole. Specifically, modern project management focuses on the responsibilities and contributions needed from each member of the project organisation (Turner, 2006). These roles are evaluated as the project moves through a predictable and repeatable project lifecycle.   

  2.3 Project Manager as Leaders

Leadership and management style, together with the effective communication process is important. This is due to the fact that it can help in order to ensure that all of the stakeholders are properly connected with each other and receiving what they have expected regarding the project.

 

Leadership is considered as critical to high performance on a given project. Leadership focuses on the different factors such as the mission, vision and future state of the nature, goals and changes; high personal commitment as well as motivation to the said goals; actions that will help to achieve the said goals, together with the different strategies; as well as the process of inspiring and maintaining the commitment of others in order to achieve the said goals (Harrison & Lock 2004, p. 264).

 

In order to ensure success of the project, it will be important to focus on application of the employee-oriented leadership/management style. This is due to the fact that employee-oriented manager shows a high emphasis on the members of the team and focuses on participation and teamwork regarding the process of decision-making, problem-solving, planning as well as control. It can help the project manager to focus on the personal needs as well as interests of the stakeholders, particularly the team members that will help to increase the creativity and initiative of the members. Thus, it can help to increase the production and achievement of the group because the morale and satisfaction of the employees will be high, therefore, helping to strengthen the commitment of the employees. However, the decision-making process will take longer (Harrison & Lock 2004, p. 266).

According to Ng (2001), a good project manager is the key to a project’s success. Project managers work with the project sponsors, project team, and other people involved in delivering the project scope and goals. Each project is constrained by its scope, time goals, and costs goals. Scope deals with the question ‘what is the objective of the project?’ Time deals with the question ‘how long it takes the project to be completed?’ Cost deals with the question ‘what should it cost to complete the project?’ (p. 2).

 

Project manager is a vital entity in the entire process of project management. That is why it is important for the project managers to first understand the mission an vision of the organization and then see how the project meshes with the said mission and then steer the project in order to make sure that the interests of the organization are met (Lewis 2007, p. 26).

  2.4 Eight Domains of Project Management

 

Resource Planning

Philips (2003, pp. 279-280) states that resource planning refers to the process of examining the project work and determining what resources, people and equipment are needed to complete the project. Such process also includes identifying the expected quantity of the needed resources to the predicted cost can be calculated. Familiar inputs are work breakdown structure, historical information, scope statement, resource pool description, organisational policies and activity duration estimates. Projectification of the project generally starts from planning and it is in this stage that the direction of the project could be initially determined.

 

Further, operation and projects are sometime mistaken as alike due to the work and means of achieving results that can help to the overall goals and objectives. In addition to that, both are performed by people, constrained by limited resources and it is planned, executed and controlled. Operations are composed of processes that are refined and repeatable, thus each and every step in the entire operation has been performed before, and it produces some predictable output. On the other hand, the Project Management Institute described a project as a temporary endeavor that is take on in order to create a unique product, services or even result (Dobie 2007, p. 4).

 

Project control

Project control, according to Lewis (2002, p. 93), is one single purpose in every action taken in project management. The duty of project controlling is generally vested on the project manager wherein the organisation resources are expected to be managed in such a way that critical results are achieved. Control system focuses on achieving project objectives with the aim of ensuring that the project mission is achieved. Control system should be therefore designed with the following questions in mind: Which aspects of the work are most important to track and control? What are the critical points in the process at which controls should be placed? Control should be exercised over what is important yet what is controlled tends to be important as well as this could determine the extent of the success of projectification. As such, if budgets and schedules are emphasised to the exclusion of quality, only those will be controlled, the quality of the project may suffer. Project managers must monitor performance carefully to ensure that quality will not be jeopardised. 

 

Quality Management

Project managers understand that that failure to achieve quality can have devastating immediate and long term consequences on the entirety of the project. The effective management of quality directly impacts the project outcomes. Over the years, quality tools and techniques have been developed and refined, perceived as a mean to address the triple constraint of time, cost and scope. These three elements are of equal importance to project success. Quality processes that maintain cost and schedule constraints will ensure a quality project and outcomes (Rose, 2005, p. 8). When it comes to making projectification effective and successful, the three constraints should be addressed properly this is because such constraints could either be the basis of the success or failure of the project. Changes in each of these constraints will definitely affect the entire project.

 

Project Risk Management

Lewis (2002) noted that risk management is the systematic process to identify, quantify, analyse and respond to project risk. The management of risks includes maximising the probability and consequences of positive events and minimising the probability and consequences of adverse events to project objectives. Management of risk would be important in such a way that it can create value and a part of the decision-making process of project managers. As risk management is both systematic and structured, this will be relevant in projectification in terms that it can lead to continual improvement and enhancement of processes and activities relating to the project.

 

The responsibility of the project team is to identify and describe risks and assess the probability of risk occurrence in the site as well as assess the impact of the risk(s) identified. The project team will also perform the risk response and assist the project manager with risk monitoring and control. The risk owner, on the other hand, has the responsibility to develop and update the risk response strategies. S/he will also have the jurisdiction to monitor the risk and inform the project manager of the threat of emerging risks or opportunities for the project.

 

Risk will be identified based on applicable risk management handbook and sample risk list. The analysis of risk will be the quantitative risk analysis for the purpose of estimating the risk that the project will finish within objectives and estimating the contingency needed for the cost and schedule. Risk analysis will be used to identify the best decisions in the project site. The risk response strategy will center on deciding on th4 actions to be taken in response to residual risk, plan response to residual risk and then communicate mitigating strategy and response plan to risk review team. The risk management plan will be revised periodically and the changes will be reported to the project manager. 

 

Project Communications

Project communications involves planning, executing and controlling the acquisition and dissemination of all information relevant to the needs of all project stakeholders. Information includes project status, accomplishments, events that may affect other stakeholder or projects and so on. Heerkens (2001, p. 204) mentions that communication and documentation are natural combination as they bind the project together from start to finish. The Project Management Configuration Plan (PMCP) serves as an excellent communication tool. When considering projectification, communication within project units and teams could command responsibility, coordination, status and authorisation. GREAT model would be the most appropriate to bear in mind, implicating goals, results, expectations, accountabilities and timing.

 

Constant and effective communication between all the stakeholders of the projects is considered as the most vital and crucial factors in order to ensure the success of the project. It is considered as the requirement of getting the right things done in the right manners. As knowledge is considered as power, it is also important to consider that the process of sharing knowledge helps to empower every each and every stakeholders of the project (Dobie, 2007).

 

That is why it is important to have a communication plan or the written strategy in getting the right information to the right person at the right time. In addition to that, it is also important to focus on how often to communicate with each stakeholder with respective information (Dobie, 2007).

 

This can be attain by having a visibility room that will display the different project documents such as the project charter, milestone chart and issues log; the current version of the statement of work, project plan, project scheduler, responsibility matrix, risk management plan and other important forms; and information about the development of the project.

 

It is also important to focus on communicating with the upper management together with the customers and other important external stakeholders. This can be done by informing them regarding the different changes or alteration of the project (Dobie, 2007).

 

At the end of the project, a close-out reporting will be presented in order finalize the project in the eyes of all the stakeholders as well as serve as a reference for future development.

 

Project Organisation Structures

Project organisation structures reflect the tasks and reporting structure from project managers, technical managers into schedule, quality, contract and material managers as well as system director and technical working group. Cleland (2007, p. 387) said that the project manager and the project technical manager generally managed the whole project while the two project vice managers and three project technical vice managers were responsible for a specific mission. In projectification, stratification is also critical not just to determine the reporting authorities but also to coordinate delegated tasks.  

 

Project Teams

Project teams share a sense of common purpose while also determining individual talents and expertise and use them, depending on the needs of the project at any given time. Project team development passes through forming, storming, norming, performing and adjourning. It is the project manager’s duty to help the group evolve quickly to the productive performing phase while at the same time making the group understand its own development. Aside from recruiting team members with the necessary experience and knowledge/technical skills critical for completion, team members should have problem-solving ability, availability, technological expertise, credibility and political connections and also ambition, initiative and energy (Gray and Larson, 2002, pp. 350-355). Working groups are also imperative in projectification especially that these groups or teams will be the core of the project. Working teams will definitely influence the direction, strategies and outcomes of the project.

 

Project team members are those individual who plan, organize, implement as well as control the entire project in order to deliver the facility on the designated time and budget (Burke 2003, p. 45). The main demands and expectations of the team members are to have clear directions from the project leaders, as well as other stakeholders in the project.

 

The process of formulation of the project management team is considered as the first and the most vital process in the entire management of the project. This is due to the fact that it focuses on bringing together the different people whose talents, skills and abilities will help the entire team to accomplish the entire project in the desired time and budget. It is important for the project managers to focus on the demands and needs of the planner, engineer, accountant, secretary, procurement, expeditor, designer and draftsman in order to have a wide understanding regarding different issues that will help to have an ability to adapt the ever changing project requirements. Thus, the formulation of a strong team is considered as vital in the project. This is due to the fact that they must be able to talk and deal with the different issues mutually, then learn to negotiate any soft or shadow issues that may arise in order to resolve the different problems effectively.

 

This process will include the process of hiring and selecting different individuals that are considered as expert in their given professions. It will also be important to focus on the different aspects that are related with the connection and relationship between the different members of the team in order to prevent misunderstanding that can cause future problems in the project.

 

It is also important to consider that the project teams pass through a series of different development stages: forming, storming, norming, performing, maturing and declining (Burke 2003, p. 306). 

 

During this stage, it is also important to focus on the different roles and responsibilities of each and every team members in order to ensure that each and everyone knows what’s their contribution as well as their importance in the group (Forsberg & Mooz 2005, p. 173). By doing this, it will help the entire team to prevent redundancy or repetition of actions or activities, thus saving time and effort.

 

Project Leadership

Project management goes hand in hand with leadership especially that the project manager’s job is dealing with people. Exercising leadership skills directly relates with the lack of authority of project managers and management skills since it deals with administrated aspects of the job such as budgets, schedules and logistics among others. Nevertheless, it is through leadership that project managers could get people to perform at optimum levels (Lewis, 2006, p. 30). In ensuring that effective justification would be achieved and aligned to specific roles, management and leadership should be considered thoroughly. Project managers and leaders are well aware of the aspects of project management including tasks, processes and sequences. 

  2.5 Project Management in the Four Industries   2.5.1 Project Management in IT

Whittaker (1999) contends that IT project management is crucial for contemporary organisations. A 1995 study found out that 31% of software projects will be cancelled even before its completion and more than half the projects will cost an average of 189% of the original estimates. The three most common reasons for IT project failures are poor project planning, a weak business case, and a lack of top management involvement and support. When attributing IT project’s success or failure, IT support workers attribute failure to external factors, whilst attributing success to themselves. On the other hand, executive management took a more balanced perspective which attribute success to external factors and only partially to themselves, whereas they attribute significant personal responsibility for failure (Standing et al, 2006).

 

 

Gooch (1997) discussed how to manage effective IT projects. He started with the challenges for IT projects such as less tangible and less familiar than other projects, teams have (and require) a particularly diverse range of skills, experience, attitudes and expectations, project is accompanied by (and contributing to) significant organizational change and the perception that the requirements, scope and benefits are difficult to define in concrete terms.

 

Thite (1999) emphasised the nature and importance of leadership in technical projects. The author noted that there is a need to develop a leadership model incorporating the distinguishing personality and occupational characteristics of technical professionals. The rationale behind this is that a combination of transformational and technical leadership behaviours augments the effectiveness of transactional leadership leading to high project success. Since there is no single leadership style effective for all project situations, what could make projects successful are flexible style characterised by organisational catalyst, intellectual stimulation, behavioural charisma, and contingent reward behaviours for enhanced leadership effectiveness.

 

Zwikael (2008) claimed that top management’s support is considered to be an area that has high impact on project success. However, effective top management support practices may vary across industries. The author explained that project managers in the software industry focus more in non-critical processes than the critical ones. Project managers choose to perform easy-to-do processes.

  2.5.2 Project Management in Building and Construction

Senaratne and Sexton (2009) stress that unplanned changes in construction projects are common and lead to disruptive effects such as project delays, cost overruns and quality deviations. Rework due to unplanned changes can cost 10-15 per cent of contract value. By managing these changes more effectively, these disruptive effects can be minimised. One of the ways to minimise this is through effective knowledge management. Different forms of knowledge are created and shared between project team members during change events which is very much socially constructed and centred on tacit knowledge and experience of project personnel.

 

Lindahl and Ryd (2007), further, claim that innovative and effective communication and collaboration must not be only evident among project managers and teams but also between clients and construction project management professionals. Based on workshops conducted on construction clients, the need for better briefing with the focus on end-users is known to be increasing. Difficulties for construction projects to deliver what the user-clients need include lack of systems and methods to keep track of user client demands sufficiently and in a satisfactory way. As such, goals need to be iterated and validated on a regular and coherent basis throughout projects. 

 

 

Chan and Chan (2004) noted that the construction industry is dynamic in nature wherein the concept of project success has remained ambiguously defined in the construction industry. Time, cost and quality have been fundamental to the success of construction projects. However, as time goes by, the criteria of project success changes which now include value and profit, health and safety, environmental performance, quality, functionality, user expectation and satisfaction and participants’ satisfaction.

 

Smith and Love (2001) opined to consider what type and structure of construction industry is most appropriate to meet the challenges posed by market driven economies. The rationale behind this is that client demands are responding more rapidly to changing organisational and market imperatives. As such, creative and innovative solutions are expected from client analysts, advisers and consultants, from within and outside the construction industry.    

  2.5.3 Project Management in Banking

Heng (1996) investigated the methodology used by a UK-based multinational banking group to develop its business continuity plans. By describing the stages (modules) in the methodology sequentially, the author shows how this modularity is a key success factor, enabling a project manager to complete a module - with specific objectives, tasks and deliverables - within a specific time period, facilitating effective management of the overall project. Carey (2001), on the other hand, explored the importance of risk management in financial projects. The basis of banking and similar financial institutions is taking risk in conditions of uncertainty, making various Turnbull ideas have become the bedrock of risk management.

  2.5.4 Project Management in Health

Budu and Welvaert (2006) highlight the need to invest more in health care management training as a catalyst for accelerating the restructuring of the sector especially in light of projects. By drawing on the existing change management program, the project is evaluated by investigating results achieved to date and the need for its services.

 

 

 

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SWOT Analysis And PESTLE Analysis Of British Airways

            British Airways is the United Kingdom’s largest international scheduled airline flying to 148 destinations around the world. The airline is considered as one of the world’s leading scheduled premium international airlines. The airline’s principal place of business is Heathrow. Aside from scheduled passenger services, British Airways also operates a worldwide cargo business (British Airways 2009).

SWOT Analysis

            SWOT analysis is a management tool that aids in the identification of organizational strengths, weaknesses, environmental opportunities, and threats (Jones and George, 2003). Through the SWOT analysis, the organization will be able to produce an organized inventory of factors that are potentially relevant to the firm’s strategic situation (Saloner, et al 2008).

Strengths

            One of the strengths of British Airways is its acquisition of modern, top of the line fleet of aircrafts. These aircrafts are aimed to improve the airline’s product and service offerings thereby increasing the number of passengers. The acquisition of modern aircrafts also allows British Airways to go head to head with their major competitors and to service wider markets. The company’s human resources is also considered as one of the company’s strengths. As a progressive, high performing organization, British Airways recognizes that engaged employees are more committed to organizational values and more willing to embrace change and improve customer service.

Weaknesses

            One of the weaknesses of the company is its weak marketing campaign and strategy to encourage repeat purchase and customer loyalty. There is a need for British Airways to come up with marketing strategies that will attract more passengers.

Opportunities

            The completion of Terminal 5 is expected to strengthen and improve customer experience, continue to make the business more cost effective, grow British Airways’ operations and make corporate responsibility a prominent part of the business. The company is also in the process f improving its products and services which is expected to attract more passengers.

Threats

            One threat for British Airways is intense competition. The airline operates in highly competitive markets. British Airways face direct competition from other airlines on its routes, as well as from indirect flights, charter services and from other modes of transport. Some competitors have cost structures that are lower than British Airways’ or have competitive advantages such as government support. Another threat is that the airline’s suppliers, in which the airline is highly dependent, are in a high risk of business failure because of the present economic condition. The failure of a key supplier may cause significant disruption to the airline’s operation. Safety and security is also a threat for British Airways. Failure to prevent or respond to a major safety or security incident could adversely impact the airline’s operations and financial performance. Another significant threat is further deterioration in the global economy. If the global economy continues to decline, the financial position of British Airways will be affected.

PESTLE Analysis

            The airline industry is highly competitive and regulations are heavily implemented. Aside from these, the airline industry also faces different challenges brought about by drastic changes in customer behaviour affected by different external factors such as economic condition.

            The PESTLE analysis is used to identify forces in the macro-environment that are affecting the business at present and are likely to continue to affect the business in the future (Haberberg and Rieple 2008). The PESTLE analysis is used as tool for analyzing a company’s macro-environment. Macro-environmental analysis is interested in factors in the wider environment that influence the demand for the product or service offered by a company; demand for the product or service; the manner in which the product or service is distributed; the price that is charged for the product or service; as well as the manner in which organizations compete with each other (Haberberg and Rieple 2008).

Political Analysis

            The airline industry is highly regulated. The airline business in influenced and governed by tight regulatory controls. Almost every airline business operation and decision is influenced by regulations and policies. Regulations are applied in the routes that an airline chooses to fly, the business partners the airline works with, the airport slots it uses as well as the fare it sets and the infrastructure costs it pays. Another area which is heavily regulated in safety and security. In recent years, the environmental impacts of an airline is also subject for regulations and policies. Governments around the world introduced a range pf security measures in order to fight the threat of terrorism and illegal immigration. Airlines continue to engage with different governing bodies such as the European Union and national governments to ensure safety and security while causing minimal inconvenience to customers (British Airways 2008).

            Safety Standards are strictly implemented in Europe by the European Union. The International Aviation Organization (ICAO) is one of the governing bodies concerned with safety standards. The European Union, being a regulatory body in Europe published a list of airlines that failed to meet the safety standards set by ICAO. These airlines are banned in Europe (Department of Transport 2009).

Economic Analysis

            The airline business is highly sensitive to any economic downturn. Economic downturn causes business travel, which is considered as the bread-and-butter of the airline industry, to drop significantly. The global recession in 2008, has tremendous impacts on the airline industry. There are a number of factors that affected the business of British Airways – prices increases in oil and commodities, collapse of sterling, unprecedented financial crisis experienced by the United Kingdom. Consumer and business confidence on airlines declined because of rising unemployment, uncertainty in the capital markets, a continuing squeeze on credit, the erosion of household budgets and falling house prices.

Social Analysis

            Significant decline in consumer demands and changes in consumer behavior are being experienced by airlines around the world. This is due to the global recession. Because of the decline of global economy, consumers from premium, business and individual categories are choosing to cut back on air travel expenses. Consumer confidence is also declining. Though many customers continue to see a first holiday as an essential rather than a luxury, most are cutting back on second and third holidays and short breaks.

            Business travelers and individual passengers are choosing trusted airline brands. Customers seek assurance that their journeys will go smoothly. The downturn in the economy is also pushing the consumers to be more price-sensitive. Consumers are looking for value for money, demanding excellent levels of service and high quality standards at lower costs. Consumers also tend to be less loyal than before. They are more willing to try out other or new airlines, which offer real value. Technological advances such as the internet and mobile phones are helping the consumers to make informed choices. Consumers are using price comparison sites and seeking out personal recommendations on service and quality before booking their trips (British Airways 2008).

Technological Analysis

            Internet, mobile phones and PDAs are tools that passengers use in checking-in. Maintaining a corporate website which also handles customer queries and reservations is also becoming a new requirement for airlines. Technological advances that aim to reduce environmental damage caused by airline operations are also increasing as well as innovations that aim to improve service and passenger experience.

            At present technological advancements especially capacity enhancing technologies and environmental mitigation technologies are continuously introduced. Some of the technologies that are being developed now in the aviation industry are Arrivals Management System, Departure Manager System and technologies that address wake vortex effects.

            An arrivals management system (AMS) is an air traffic management automation tool designed to optimize traffic flow in and around the Terminal Maneuvering Area (TMA). There have been developments in the United Kingdom and across Europe regarding arrival managers and associated tools. Departure Manager Systems (DMS) have also been a focus of research and development.    Boeing in the year 2000, has announced the development of aerodynamic techniques which cause the wing tip wake vortices from an aircraft to collide with each other a short distance behind the aircraft, resulting in them dissipating more quickly (Little 2000).

Legal Analysis

            The airline industry is becoming increasingly regulated. The scope of such regulation ranges from infrastructure issues relating to slot capacity and route flights, through new environmental and security requirements.

Environmental Analysis

            Some of the environmental issues that the aviation industry faces are noise, air pollution, land take, water pollution and waste management. Aircraft noise has the potential to affect the quality of life of at least half a million people living close to UK airports. Aircraft, airport vehicles and rod traffic to access airports emit air pollutants, such as nitrogen oxides, fine particles, carbon monoxide and hydrocarbons. Building an airport inevitably takes land away from its previous uses. In particular, it can affect wildlife habitats, landscape and heritage (Parliamentary Office of Science and Technology 2003; Friends of Earth 2006).

            Like many organizations today, British Airways face several environmental issues such as climate change. Governments and policy makers are now creating regulations and policies that will require airlines to curb emissions growth. All airlines have to meet a comprehensive range of local, national and international environmental regulations (British Airways 2007).

References

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<http://www.dft.gov.uk/pgr/aviation/safety/foreignairlinepermits>.

Annual Report 2007, British Airways, viewed 13 July, 2009,

<http://www.britishairways.com/cms/global/microsites/ba_reports/pdfs/BA_Report_2007_08.pdf>.

Annual Report 2008, British Airways, viewed 13 July, 2009,

<http://www.britishairways.com/cms/global/microsites/ba_reports0809/pdfs/BA_AR_2008_09.pdf>.

Aviation and the environment 2003, Parliamentary Office of Science and Technology, viewed 13 July, 2009

<http://www.parliament.uk/post/pn195.pdf#search=%27uk%20aviation%20industry%20growth%27>.

About British Airways 2009, British Airways, viewed 13 July, 2009

<http://www.britishairways.com/travel/about-british-airways/public/en_gb>.

Herberberg, A & Rieple, A 2008, Strategic management: theory and application, Oxford University Press.

Jones, GR & George, JM 2003, Essentials of contemporary management, McGraw-Hill Professional.

Little, AD 2000, Study into the Potential Impact of Changes in Technology on the Development of Air Transport in the UK, viewed 13 July, 2009,

<http://www.dft.gov.uk/pgr/aviation/airports/ctat/changesintechnologyandairtra.pdf>.

Pie in the sky 2006, Friends of Earth, viewed 13 July, 2009,

<http://www.foe.co.uk/resource/briefings/econ_aviation.pdf>.

Saloner, G et al. 2008, Strategic management, Wiley.

 

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Quality Assurance: Care Control

 

Introduction

Efforts to improve the quality of health care are not new but have been strengthened in the last two decades as evidence is produced of poor performance and wide variations in the quality of care. This has resulted in attempts to measure and demonstrate improvements in quality. Health professionals have traditionally been trusted with primary responsibility for standards of care. Neither individual professionals, nor the organisations within which they work, have had to demonstrate systematically that they were achieving acceptable levels of performance.

It is said that each individual involved in providing healthcare services are highly trained and well educated in order to ensure that they provide high quality of care. In this context the concept of quality assurance had become the topic of different studies.  In simple terms quality assurance can be described as the means of ‘getting it right first time’; or as the attempt ‘to ensure that high quality is achieved first time, without costly repetitions…or slow learning curves. It is concerned with the prevention of error, not with the discovery of errors; its aim is assurance, not the checking of finished products’. Quality assurance, then, is all about putting in place a framework which is designed to maximise the chances of achieving particular goals, as a matter of course.

            In the heath care one of the roles of a practitioner is to ensure that they only provide high quality care to their patients. However, the concept of quality assurance today is being attached to two separate ideas, i.e. quality assurance for care versus control. Hence, this research will focus on the issue of quality assurance and whether QA is considered as care or control within the workplace where I belong. 

Purpose of Research

            Generally, the purpose of this research is to conduct a critical analysis to determine whether quality assurance within the workplace can be considered as quality of care or quality control.  The research will specifically provide details about quality assurance and how this will be helpful in providing effective and efficient care within the workplace.  Moreover, this study would review relevant literature on the same topic. In addition, this is study will be conducted to contribute to the researches made about quality assurance in the healthcare.

Importance of the Research

            The results that will be gathered from this stuffy will be beneficial for health care system of the private home.  This study will be significant to the workplace in such a ways that it will contribute to determining if quality assurance is being imposed and to know If this is quality of care or quality control. By assessing the concept of quality assurance, care and control the researcher will be able to formulate plausible recommendations directed towards the improvement of its use. These recommendations will eventually be applied and help resolve the conflict and issues regarding quality assurance. This study will also be significant to the workplace administration and healthcare workers and the rest of the healthcare system. As this problem is currently occurring, this study will then be relevant to the present time.

Overview of Methodology

            As mentioned, the goal of this research is to assess quality assurance within the workplace and determine if it constituted to quality care or control.  In this research, the researcher opted to use descriptive method. The descriptive method of research will be utilized for this study. The researcher finds this the most appropriate approach as this study would mainly employ gathering and classifying data from the selected population of the study. This type of research also utilizes observations in the study.  To illustrate the descriptive type of research,  states that the descriptive method of research is to gather information about the present existing condition.  The purpose of employing this method is to describe the nature of a situation, as it exists at the time of the study and to explore the causes of particular phenomena. The researcher opts to use this kind of research considering the desire of the researcher to obtain first hand data from the respondents so as to formulate rational and sound conclusions and recommendations for the study.

This study will employ qualitative research method because it intends to find and build theories that will explain the relationship of one variable with another variable through qualitative elements in research. Through this method, qualitative elements that do not have standard measures such as behavior, attitudes, opinions, and beliefs within organizations will be analyzed. Qualitative approaches to research are based on a "world view" which is holistic. Under these approaches, it is believed that there is not a single reality; reality is based upon perceptions that are different for each person and change over time; and what we know has meaning only within a given situation or context.  Furthermore qualitative research is multi-method in focus, involving an interpretative, naturalistic approach to its subject matter. This means that qualitative researchers study things in their natural settings, attempting to make sense of, or interpret phenomena in terms of the meanings people bring to them. Accordingly, qualitative researchers deploy a wide range of interconnected methods, hoping always to get a better fix on the subject matter at hand.

To come up with pertinent findings and to provide credible recommendations, this study will utilize two sources of research: primary and secondary. The primary research data will be obtained through this new research study; questionnaire survey and in-depth interview will be conducted. On the other hand, the secondary research data will be obtained from previous studies on the same topic.  For this research design, the researcher will gather data, collate published studies from different local and foreign universities and articles from books and journals; and will make a content analysis of the collected documentary and verbal material. Afterwards, the researcher will summarize all the information, make a conclusion based on the hypotheses posited and provide insightful recommendations.

Respondents of the study

            The respondents of the study will include the physicians, nurse practitioner and other healthcare workers within the workplace.  Participation in the study will be voluntary, and all explanations about the study, including the informed consent will be presented in verbal and written manner. 

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Market Analysis

Since technology had replaced the positioning of audio recording and playing from LPs to the contemporary digital type find in CDs, there is an un-served market among those males aged 50-60 that still treasure their LPs.  As a result, the efficient and flexible promises of internet and digital age are undermined because old recordings that became collector’s item would not let LPs to be played in portable CD-ROMs, DVDs, MP3s and other music CDs.    

 

            Market analysis is designed to thoroughly examine the target market which the product is to be offered.  The data presented is gathered to a number of United Kingdom’s statistics to further explain the demographics and purchasing behavior of the identified market of males aged 50-60.  This presentation will aid our marketing plan later. 

  

Demography of the Target Market

Characteristics of the target market: they are males aged 50-60 years old in inner and outer London.  Census 2001 of London indicates 355,152 heads for this classification.  Male employment rate in London based on 2003 data is higher than female at 75.5%.  There are 72% of men within 50 years to state pension age (SPA) bracket who are working which is most likely through self-employment. 

 

During National Statistics for 2004, it is found that older households 50 years and over have owner-occupied homes wherein there are more old males living with their married and cohabiting couple than female counterparts.  Most lone males rear only one child and in very fewer cases compared to female.  In 2001, London recorded 17% cases of lone parent families, 7% unemployment rate and the trend of university versus trade certificate or diploma heavily favor the latter with tremendous increase from 1996 census of 8,510 to 2001 censuses of 24,965.     

 

Those who have retired before the SPA are most likely forced to retire by their employers due to health-related issues and also most likely to be deprived of private pension compared those who retired voluntarily.  Men have a life expectancy average of 75.9 years, one-fourth of which would obtain certain disability within 50-64 year bracket.  For households who are headed by 50-64, 441 pounds is spent for a week which decreases along with age of the head to reflect decrease in family size and income.  The upper 20% of families earn 6 times more than the lower 20%. 

 

Listening to music for the target age bracket consumes less than 1 hour but more than 45 minutes of their daily schedules.  Top in the list are watching television (3 hours) and social life (2 hours) while reading has almost same stance as listening to music.  Friends, relatives and neighbors are common people that they have contact with for socialization purposes.

 

Purchasing Decisions

With 418 pounds as budget limit per week (considered as average income which is a range for 140 and 905 for low- and high-income brackets), possible household expenditures that can be spent in the product is from leisure and recreation including computers 57, miscellaneous goods and services 33, household goods and services 31, communication 11 and education 5.  In aggregate, weekly household expenditures attributable to demand the product in a weekly basis is 137 pounds or 32% of the budget limit 418 pounds based on 2003-2004 national data.   As the person in the country becomes old, he increases his spending on food and non-alcoholic drink and decreases restaurant and hotel demand.  Those in the age bracket of 50-64 accounted the highest expenditure on fresh fruits and vegetables including purchases on new cars.       

 

            For a self-employed person, the highest recorded spending is at 588 pounds a week while retired persons are deprived to only one half of this amount.  Further, spending for recreation and culture ranked second trailing behind transport (for the employed at 71) and food (for the unemployed at 27) while economically-inactive households ranked it as their first priority at 38.  Spending in London (average expenditure a week is 491 pounds) is above the United Kingdom’s average with the bulk going to housing, fuel and power.  This is in contrast to other metropolitan areas with population between 25000 and 100000 that placed highest purchase for recreation and culture.  Other rural areas spent the largest share of weekly expenses in transport at 75 pounds while recreations and culture is at 63 pounds.

 

            Fifty eight percent of the household has computers while 49% of which has internet connection.  This ownership and connection varies across income levels in the country with London accounted for the highest of these computer-related demand. 

     
 The Perceived Target Market and the Projected Demand

            Basically, the target market will be males aged 50-60 years old living in either inner or outer London whose household owns computer and have access to internet that could be in dial-up, broadband or wireless type.  To apply the statistics gathered above and come-up with a realistic demand projection, there is a need to quantify the most probable number of males that would purchase the product.  With benchmark at 355,152 (males living in London), we will categorize their purchasing power and effective demand (the demand that actually purchases the product) according to individual power and household power.  An important note to consider is that at this age, children normally flew away from home or even gives the target market “goodwill” allowance.  Thus, it is unlikely that household size could hinder their effective demand (the actual purchase of the product) rather enforce it.

 

To determine the ideal number of effective demand, it is required to rationalize the target market and minimize overestimation.  Thus, the 75.5% of 355,152 will show the employed market at 268,140.  Further, this result will be reduced to 201,105 when the 25% of the age bracket incurs disability wherein the amount to purchase the product would likely be diverted to health-related services.  Lastly, 50% will be deducted to reflect the London household computer ownership and internet connection that could finally show the ideal effective demand of 100,553.  

 

The benchmark weekly expenditure to be used is the national average (with more or less 50 pounds lower than London) at 418 pounds wherein the attributable amount with regards to product demand is at 137 pounds per week.  This amount includes product-related household expenditures.  However, this amount is restricted by the age bracket inclination to buy fresh fruits regularly and demand for new car.  For the purpose of our analysis, such factors will be regarded as mild catalyst because they ca be classified under food and luxury category.  Besides, car purchase is relatively seasonal.  

 

In addition, effective demand is enhanced by national emphasis on recreation and culture regardless of income brackets.  As a result, the 137 pounds per week possible effective budget allocation for the product is evaluated to be very feasible.  Thus, it can be assumed that the household or the male can simply save this amount to finance the product price in the future.  This purchase is enforced by almost one hour per day of the markets’ schedule listening to music and at the top priority of the market in London behind housing, fuel and power.       

 

            Repeat effective demand would depend in the warranty of the product.  In estimate, commercial CD-Burner has tow years warranty.  This means that the 100,553 effective demands most likely keep the first version of the product in this span of time unless the manufacturer releases an upgrade type, newer version or innovative accessories depending in the sales and marketing objectives on hand.  As the increase in SPA pension continues including the improving economy of the country, demand for the product by this specific perceived market is expected to hold up.  Although the manufacturer should be noted that LP vinyl are limited in customers’ hands while borrowing from neighbors could deflect the perceived effective demand after the initial release.  As a result, there is a need to provide a strategic marketing plan for the product.

 

Marketing Plan

            Marketing plan is designed to explain the strategies intended to reach and exploit the potential demand and realizing effective demand or actual purchase of the product.  So far, we determine the ideal potential demand at 100,553 levels representing London males and weekly budget allocation of 137 pounds representing the ideal budget share for the product. 

 

Product Features Benefits and Competitive Position

            The product is a box that fits a gramophone and amplifier of a classical stereo system that resembles a portable CD-burner available today in the market.  LP owners can put the LP on the gramophone player, put a blank CD in the box and copy or record the LP onto CD while hearing the music without use of computer.  Thus the owner will simply and easily made a CD copy of the LP, which he can safely store away, playing the CD instead. 

  

However, it will be definitely much larger than CD-burners because the size of LPs need more space.  A typical long-playing LP format measures 12 inches in diameter with 33 and 1/3 revolutions-per-minute (rpm).  Less common formats can measure as small as 7 inches and as large as 16 inches.  Due to this, compared to a commercial CD-burner with dimensions of 6.6” x 5.4” x 1.3” (L x W x H), our box will measure 21” x 17” x 4” but will prevent and ease portability controversies as it can accommodate all sizes of LPs from the smallest, standard to largest.  The inner compartment allows flexibility to meet all LP sizes.  

 

The box package will consist of the CD-burner (gramophone and amplifier) with remote control, rechargeable battery pack, AC power adapter, batteries for remote control, protective bag, PC connector, instruction booklets and 2-year limited warranty.  With this features, it can go head-to-head against the rivals.  In view of competition, it will provide customers with original sound with fidelity of their vintage bands like Beatles in a portable version in CDs.  Unlike digitalized versions of vintage hits, the box will cater the emotional gratification for customer by giving them the sound that they like to play and listen since the old days.  This will be easily done through burning the LPs into CDs.  Thus, making their all-time hits portable and available whenever and wherever they are. 

 

Further, in view of the customer’s standby phonograph at their homes, the box will not hinder them from listening to their favorite vintage tunes away from their home.  They would simply have to buy a portable CD player and they can ride, drive and listen to the music simultaneously.  The bulky phonograph, and conversely the box, will be left at home protected from damage.  The phonograph would then be used with household and bedtime functions.

 

            Since target market are highly mobile conceded by large weekly expenditure share of transportation and fuel, securing a portable CD is likely.  This is   Also, as almost one hour of their day is spent on listening to music, it is likely that the target market would play the tunes in travel or at work: the former will most probably occur when the target market is in public transport (to prevent noise that could be allowed when one has a car) and the latter most probably occur when the target market is self-employed.  As a result, frequent public transport traveler and self-employed segments of the target market will be profoundly benefited by the product.

            Our position to exclude from the ideal target market those who do not have computers and internet connection can be explained by the second benefit.  Having a copy of LP to the CD would limit the latter use to oneself prohibiting the target market to socialize with others and use music to maintain or create companionship, unless the owner would risk the product to lend it to friends and neighbors.  With computer and internet connection, the customer would simply copy the LP to CD and then store it to computer through WAV and afterwards MP3 format (using the designed software) to easily send the file through internet for group sharing of the music. 

 

            At initial perception, such process will definitely beat the purpose of the product diminishing its value.  The internet transfer will provide a situation wherein the receiver will not be satisfied with the compressed quality of MP3, particularly speaking in behalf of 50-60 male bracket, and would be less impressed by smaller file size.  As a result, they will borrow the product from the sender which would be detrimental to the manufacturer.  But in a positive note, the bulk size of the product would limit original buyers from carrying it from their place to another.  Also, the curiosity of receivers will make them ask about the product, creating potential demand.      

 

              With this, would let the target market enjoy the music and keep their box in the safe of their homes while making friendly relations with receivers through referrals of the product.  Of course, the receivers are scattered across the country giving the customers opportunities to find and keep their interest group in the area of vintage-fidelity music.  They will be benefited by the product’s ability to rip LPs to CDs in such a manner that keeps the fidelity of the music compared to MP3’s lossy compression format heard over the internet.   

 

Pricing Strategy         

            The commercial United States CD-Burner is priced as 136 pounds which is reflective of our weekly projected allocation of target market to the product.  With limitations to determine the actual unit cost of producing the product including relevant financial information of the manufacturing operations and related manufacturing costs, the 136 pound benchmark will be used to reflect the over-all cost per unit upon final packaging but before distribution and marketing of the product.  Market price will be determined after these are incorporated to the product.  It is to note that the product is new to the market and caters to LP owners and enthusiasts. 

 

            A contemporary way to convert LP format to CD or MP3 is to use a tape deck or record player with an audio output where an RCA to headphone cable will be connected that will serve as a channel to computer.  Their cost to be incurred by the target market is insignificant because this market already owns record player for LPs although they are bound to pay for the software to be installed in the computer.  This will allow the format conversion to takes place and amounts to 20 pounds.  With this amount, the LP owner could ignore the product and simply do this cost-effective process. 

 

            However, this modern transfer involves a computer and internet connection that will basically take the other half of our pre-internet deprived household reduction figure. necessitates our present target market projection to be cut in half.  This will be the number of their market.  however,  

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