Effects of Quality Management

Effects of Quality Management

MGT/449

June 4, 2012

Trina Greer

Effects of Quality Management

Even before globalization businesses struggled to remain competitive, but now that the world is opening up competition has reached all new heights. Companies now struggle with the question of how to maintain market share now that price is only one characteristic among many that consumers consider. The answer to that question is by providing value through quality. The airline industry, an already highly competitive industry, continually grapples with finding a balance between quality and costs. Leaders in this quest are Southwest Airlines and Ryanair, both of which have enjoyed optimal market postion as a result.

Southwest Airlines and Ryanair

Southwest Airlines and Ryanair are both airlines that employ low cost leadership strategies. Southwest is a domestic airline operating in the United States; Ryanair is an international airline operating in Europe. The name of the strategy, low cost leadership, is a bit misleading because although low airfares have been a result of the strategy, the tactics used to achieve those low fares has as much to do with efficiency as it does with controling costs. Southwest Airlines and Ryanair both use similar strategic tactics, but they implement in different ways. Despite the varied implementation methods, both airlines have experienced success in their respective markets.

Strategic Processes and Their Advantages

Southwest Airlines

Southwest Airlines attributes its 35 consectuive profitable years to its culture that as a result of the airline’s strategic plan focuses on quality in every facet of its operations (Box & Byus, 2009). The quality-driven culture can be seen at every level of the organization. In fact, executives at Southwest do not service the objective of maximizing shareholder profits like most executives; instead, “the primary responsibility of [Southwest] executives is to take care of employees first which will...