MOD003337 Research Project Systems Level 6


Background of study

Customer relationship management is considered as sophisticated business practice that provides that provide great benefits to organisation in accomplishment of business objectives. Increase in customers relationship management tends to create strong brand image of organisation in industry (Wang, Chen and Chen, 2012). It is also considered as one of the dimpliest and easiest form of tools which is used by every business enterprise to acquire and retain its customers in market. Through this, companies will get support in managing their operations and business relationship and supporting data associated. With the CRM, Employees of track of customers accounts, contact information, sales and leads in single location. It can crucial to organisation's workflows (Voss, 2012). In aviation industry, CRM has its important relevance among organisation because it provides them support in managing information of their large number of customers. Some organisation in aviation industry does not provide their focus on building relationship with customers which tends to provide influence their business operations. Ineffective use of CRM will also provide impact on the business operations of enterprise. In order to analyse this consequence – A case study on American Airlines is done to explore the impact provide ineffective customer's relationship management on their business operations. In order to accomplish the research proposal effectively, there are some important aims and objectives have been developed which provide direction in accomplish of research project effectively.

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Present research proposal has been made by scholar with an aim “To explore the impact of ineffective customer relationship management on business operations- A study on American Airlines”.


  • To understand the concept of effective customer relationship management.
  • To analyse the importance effective CRM for business operation American Airlines
  • To identify the impact of ineffective customer relationship management on the business operations of American Airline.
  • To understand the issues faced by American airline in customer relationship management.
  • To recommend strategies for improvement in customer relationship management of American Airlines

Research rationale

In order to conduct research, I have developed my interest in this sector. In this, I have also applied various strategies that helps in improving the performance level in effective and efficient manner. In this way, present research will provide support in developing mu comprehending and understanding skills. Further, this will also lead to my overall growth and development. I will be able to develop my Career in aviation under customer relationship department. I will also get to know about the impact of ineffective CRM on business operations of enterprises. There are various important business aspects have been taken in to consideration to analyse their relevance in development of effective customer relationship management.

Literature review

concept of effective customer relationship management

According to Haas, Snehota and Corsaro. (2012), Customer relationship management (CRM), it an important approach that is used by management to manage a company's interaction with their potential customers. It is also considered important tool for organisation for collection and storing essential data of their customers with an aim to achieve the business objectives at workplace. Effective customer's relationship refers to practices which are applied by organisation to raise to retain their previous clients and increase in business opportunities. In Airiness, management is more focused towards maximization of profits for which they always try to reduce their cost of operations. Due to this, company has made use of their CRM Software to raise influence their customers and provided them wrong information about their products and services. On contrary to this Govindan and, (2014), Mainly 42% of organization in Aviation industry of UK has achieved growth in sales and profitability because of effective implementation of CRM.

Importance effective CRM for business operation American Airlines

According to Khodakarami and Chan, (2014), Successful business requires effective managers who can build and maintain strong customer relations. Establishment of good customer relationship is one of the important ways to ensure that organisation will get repeat business and their customers will refer their products and service to their family and friends. Poor management in customer service will leas to disgruntled. As per the view of Kumar and Petersen, (2012), organisation in aviation industry to achieve opportunities for business expansion and sustaining the business in competitive environment with the help of effective business strategies. When the company seeks to be loyal with the customers and satisfy their requirements, they used to apply this strategy. In present context, it was identified that American airline has not provided focus on accomplishment of business objectives. There are various business operations that needs to be taken in to consideration with an aim of getting their operations across the management. They need to focus on effective business management. On contrary to this Khodakarami and Chan, 2014), there are various important business opportunities has been achieved by American Airline when they will apply effective CRM. As per Wang and Feng, (2012), it is also important for American airline in retaining customer and acquiring new customers in market.

Impact of ineffective customer relationship management on the business operations of American Airlines.

According to Nguyen and Mutum, (2012), Poor management of customer relationship leads to ineffective sales calls and lost opportunities. In American Airlines, management always focus on decreasing their cost of operations to raise their profitability. Poor customer relationship has affected their sale of products and service in aviation industry. As per the view of (), the short-sighted customer relationship management results in unhappy dissatisfied customer. Sales agents of organisation who use one presentation style to attract new customer or keep current one often fall short. With poor customer relationship, management, American Airlines will not be able to analyse the requirement of their customers and they face difficulties in making changes to increase their sales in market. In contrast to this Goddard and, (2012), has stated that ineffective customer relationship leads to raise competition. Ineffective customer relations management often results in undisciplined, robotic employees who rely on written sales pitches, outdated sales data and antiquated by-the-book approaches to spark consumer interest and improve sales.

Issues faced by American airline in customer relationship management

According to Ramchandani and Ghias Novitaz Inc, (2013), there are various issues have been faced by American Airlines due to their poor relationship with customer such as increase in cost of operations, increase in competition, decrease customers base, decrease in brand equity among clients, outdated services. The most important issues that is faced by organisation through ineffective customer relationship management is decrease in

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Research methodology

There are various important qualitative and quantitative research methods have been used by Scholar to complete their research. Some of them are mentioned below:

Data collection: data collection is analysed as the most important process of gathering and measurement of data collected by the researcher. The data has been collected either by using methods of questionnaire or survey. Generally there are two important methods which are used by scholar to collected data from their selected sample size such as primary and secondary methods (Mackey and Gass, 2015). Moreover, primary method of data collection involves the collection of fresh data by suing questionnaire from the selected sample size. It also involves observation, interviews and surveys. Secondary method of data collection is involves collection of data from secondary sources that involves internet, books, journals and other important articles. In present context, for conducting effective research on exploring the impact of ineffective customer relationship management on business operations of American Airlines, Scholar will use both primary and secondary method of data collection. Primary data will be collected by scholar with the support questionnaire from the workers of American Airline and Secondary through books, article, journals and websites.

Data analysis: It is process that is used for analysis the gathered and collected data so that useful information can be formulated. Moreover, this can be done by management through inspecting, cleansing, transforming and modelling of data with an aim of obtaining useful information and providing recommendations. It is analysed as one of the most essential process that is used by the scholar to transform the data in to information for analysis and interpretation of results. It will provide support people in analysing the outcomes of research undertaken by scholar (Taylor, Bogdan and DeVault, 2015). In this particular research project, scholar will tend to apply thematic representation of data which enables to present and interpretation of data in the form of tables and graphs.

Sampling: It is also important research method that is based on quantitative analysis which is used to select the sample size from the population (Silverman, 2016). Sampling is mainly classified in to two kinds which are analysed as probabilistic and non probabilistic sampling techniques. In this research, probabilistic sampling techniques will be used by scholar because it involves the reviews of each and every member from which the data will be collected. 20 employees of American Airline have selected by investigator by using simple random sampling technique.

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  • Goddard, M.G.J., Raab, G., Ajami, R.A. and Gargeya, V.B., 2012. Customer relationship management: a global perspective. Gower Publishing, Ltd..
  • Govindan, K., Azevedo, S.G., Carvalho, H. and Cruz-Machado, V., 2014. Impact of supply chain management practices on sustainability. Journal of Cleaner Production, 85, pp.212-225.
  • Haas, A., Snehota, I. and Corsaro, D., 2012. Creating value in business relationships: The role of sales. Industrial Marketing Management, 41(1), pp.94-105.
  • Khodakarami, F. and Chan, Y.E., 2014. Exploring the role of customer relationship management (CRM) systems in customer knowledge creation. Information & Management, 51(1), pp.27-42.
  • Khodakarami, F. and Chan, Y.E., 2014. Exploring the role of customer relationship management (CRM) systems in customer knowledge creation. Information & Management, 51(1), pp.27-42.
  • Kumar, V. and Petersen, J.A., 2012. Customer relationship management (pp. 1-10). John Wiley & Sons, Ltd.
  • Mackey, A. and Gass, S.M., 2015. Second language research: Methodology and design. Routledge.
  • Nguyen, B. and Mutum, D.S., 2012. A review of customer relationship management: successes, advances, pitfalls and futures. Business Process Management Journal, 18(3), pp.400-419.
  • Ramchandani, J. and Ghias, A., Novitaz Inc, 2013. Customer relationship management system for physical locations. U.S. Patent 8,600,804.
  • Silverman, D. ed., 2016. Qualitative research. Sage.
  • Taylor, S.J., Bogdan, R. and DeVault, M., 2015. Introduction to qualitative research methods: A guidebook and resource. John Wiley & Sons.
  • Voss, M., 2012. Impact of customer integration on project portfolio management and its success—Developing a conceptual framework. International Journal of Project Management, 30(5), pp.567-581.
  • Wang, C.H., Chen, K.Y. and Chen, S.C., 2012. Total quality management, market orientation and hotel performance: The moderating effects of external environmental factors. International Journal of Hospitality Management, 31(1), pp.119-129.
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