Case Study Distribution Management

Case Study of NAIA Terminal 1

A Written Requirement
In
Distribution Management

Prepared by:
Francisco, Roland C.
Resoco, Edward Joseph M.
Tibayan, Brian Jhon
Viceral, Miles Denver C.

Global Reciprocal Colleges

Submitted to:
Joan R. Imperial, MBA, CPME
 Case Study Distribution Management

Table of Contents
Page

I. Time context………………………………………………………… 1

II. Viewpoint……………………………………………………………. 1

III. Central Problem……………………………………………..…….. 1

IV. Objectives……………………………………………….………….. 1

V. Areas of Considerations…………………………….……………. 2

VI. Alternative Courses of Action…………………….…….………. 2

VII. Recommendation…………………………………………...……. 2

VIII. Plan of Action………………………………………………………. 3

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Company Background
It was first named Manila International Airport, but after Benigno Aquino’s assassination in 1983, It was
changed to Ninoy Aquino International Airport. The terminal was completed in 1981 and began
operations in 1982. On April 2, 1982, a PAL Boeing 747-200B arriving from San Francisco via Honolulu
became the first aircraft to dock at the terminal.
During its opening, NAIA Terminal 1 was viewed as one of the world's most modern airports. Its design
were magnificent back then, but as time goes until now, it has never been re designed or modernized
therefore some systems they have are already obsolete.

CASE SUMMARY
NAIA Terminal 1 has been voted as world’s worst airport by the users of a travel website in October 2013
due to the old aged structure of the whole facility and mediocre systems of the services, the main goal of
the air port is being compromised. The development and improvement of the airport is always affected by
the change of leader in the Philippines.
Majority of its passengers, specially those who participated in the polls, has clearly made the image of it
being one of the worlds' worst. "The problems said in the article are just tips of the iceberg of NAIA 1's
problem, therefore in just these simple complains about the services and the facilities, the airport is really
compromised to its top main priority to bring service quality.
This problem, particularly in the bird’s eye view, being the number one world’s worst airport, has many
affected areas. It means it needs a major change in the different areas of NAIA 1. Like a change in the
processes, inside the airport. Major and minimal Renovations in most areas and etc.
TIME CONTEXT

 October 2013
VIEWPOINT

 Manager – Dante Basanta

CENTRAL PROBLEM

 NAIA Terminal 1 has been hailed as the worst airport not only in Asia but also in the world
(Symptom)
 The customers complain about how bad is their service (Cause)
OBJECTIVE/S

 Must Objective: To remove NAIA Terminal 1 from the world’s worst airport ranking.
 Want Objective: To be included in the most improved airports in the world.
AREAS OF CONSIDERATION

 Consider the internal system processing of the airport

 Consider the status of the physicality of the airport
 Consider the Market’s standard/expectations

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ALTERNATIVE COURSES OF ACTION

1. Improvement of the whole physicality of the airport internal, external, and the facilities
2. Change the employment standard
3. Improve service quality
ACA 1: Improvement of the whole physicality of the airport internal, external, and the facilities
Advantages:
1. This will help address all of the complaints by the customers
2. This will help lessen the negative feedbacks
Disadvantages:
1. This will give some inconvenience to customers in the short term run
2. Higher cost will be required
ACA 2: Change the employment standard
Advantages:
1. This will remove rude and slacking airport’s employees
2. This will improve the performance of all employees
Disadvantages:
1. May replace some employees
2. Higher compensation
ACA 3: Improve service quality
Advantages:
1. This will closely meet customer needs and expectations
2. This will provide more positive feedback
Disadvantages:
1. The trainings and seminars are costly
2. Requires more attention from managers
RECOMMENDATION
I recommend all of the ACA because each serves different areas to assess for the objective be fulfilled.
Removing NAIA Terminal 1 from the worst airport ranking has many affected areas to fix as only fixing
one area will not have an effect. So therefore as a manager, I recommend all three.
PLAN OF ACTION
For ACA 1:
1. Replace the old and malfunctioning machines and devices
2. Replace the old or malfunctioning objects
3. Redesign and expand the capacity of waiting area
4. Expand the parking and organize roads

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For ACA 2:
1. Improve the standards in accepting employees
2. Hire people who have values and have potential to be versatile
3. Tighten the screening process
4. Give sanctions to those who are caught showing rude and misbehavior towards customers
and slacking on time of duty
For ACA 3:
1. Apply customer service trainings and monthly evaluation for employees
REFERENCE

 http://www.philippineflightnetwork.com/2013/10/airports-not-more-fun-in-philippines.html?m=1