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Problem Solution: Classic Airlines
Classic Airlines is facing a challenging time in the industry with environmental forces at work increasing fuel and labor prices and creating intense competition among the airlines to gain and maintain a loyal customer base. As the world’s fifth largest airline with over 32,000 employees, Classic desires to boost consumer and employee confidence by keeping costs down while increasing customer and employee satisfaction in the company. To do this, Classic will need to analyze customer feedback to understand long-term forecasting and marketing objectives. Classic needs to find a cost effective way of differentiating its brand from the other airlines and this will help meet the company’s goal of increasing shareholder wealth and global growth. This paper will provide analysis to help facilitate management’s decision making process on how to implement the changes required keeping the organization on the leading edge of the aviation industry through addressing Classic’s situation, shareholder perspectives, end-state vision, and defining a problem. This paper will show how Classic has arrived at the most optimal solution or solutions that would address the organizational problems affecting the company and at the same time, achieve the end-state goals.
Describe the Situation
Issue and Opportunity Identification
Classic Airlines has several diverse factors influencing their marketing activities which are largely uncontrolled. The company is faced with rising fuel and labor costs. These large increases have forced Classic to cut costs through high passenger load ratios and better efficiency, but these costs remain an obstacle to high profitability. The industry is still ...