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Classic Airline Marketing Solution

In: Business and Management

Submitted By lakemann1
Words 2268
Pages 10
This paper will cover a full scale and analysis of Classic Airlines, a 25 year airline organization. Classic Airlines demand is over 375 jets that serve 240 cities with more than 2300 daily flights making it the fifth largest airline in the world (University of Phoenix, 2007). Classic Airlines has grown from a small business to an organization of 32,000 employees and earned $10 million on $8.7 billion in sales (University of Phoenix). A general problem-solving process or framework provides leaders with a way to begin managing and understanding a wide range of decisions to be made, problems that needs attention, and concerns that arise from internal and external customers. According to University of Phoenix Week Three Scenario (2011), “Classical Airlines has seen a 10% decrease in share prices in the past year,” (para 2.) With this decrease in share prices the rising cost (fuel and labor) have hit the organization hard. The employees’ morale is at a low and Classic’s financial strain the corporate culture is under pressure. The board of directors for Classic Airlines has mandated a 15% cost reduction over the next 18 months. This cost reduction brings some challenges for all departments including finance, human resources, marketing, and customer service. From a marketing point of view, Classic is challenged with increasing customer loyalty and satisfaction, while decreasing expenditures.

The first step of the problem-solving method is a key question to ask, “Is all the things competing for your attention, which you will deal with at this time?” There are competing issues and all involved parties have a personal vested interest. In Classic Airlines case, decreasing sales impacts the customer’s satisfaction and loyalty; lower employee morale and cutting costs are all examples of the competing issues. There are many key stakeholders who’s vested interest in...

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