Classic Airlines problem solving model

Classic Airlines problem solving model - Classic Airlines...

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Classic Airlines Problem 1 Classic Airlines Problem Solution Hector Sierra University of Phoenix
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Classic Airlines Problem 2 Abstract Classic Airlines is the world’s fifth largest airline. This airline is under much scrutiny due to the recent changes in the airline industry which have affected the company’s ability to maintain a stable customer base. The company has agreed to focus more on their frequent flier program because of the loyalty that this customer base brings. Classic Airlines has subsequently begun to re-think their marketing strategy and focus solely on their frequent flier program. This synopsis will identify the company’s current marketing challenges and their current corporate culture and how it relates to their marketing challenges. Classic Airlines Problem Identification The primary product or service that Classic Airlines offers customers is the ability to travel from one place to another by a faster means. In this case travel. Classic Airlines caters to the public particularly to people who need to get from point A to point B with the least haste. However, a few challenges have risen out of the economy, which have made a direct impact on the way Classic Airlines does business. Events such as the terrorist attacks on September 11, 2001 directly affected the airline industry as a whole. More recently, labor and fuel costs have sky-rocketed, not leaving the airline industry much choice but to implement budget changes. A 15 percent reduction over 18 months in Classic Airlines’ budget has forced this company to
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Classic Airlines Problem 3 concentrate on marketing to one specific type of customer for the time being. The frequent flier program has had its share of downturns; however there is a foundation to build an effective strategy to prevent the company from going bankrupt. The frequent flier program is a well- established program although recent changes have indicated otherwise. The main issue at hand is establishing a solid marketing plan for the frequent flier program with a 15 percent budget deficit over the next 18 months keeping in mind that the plan must effectively address a guaranteed ROI (return on investment). Corporate Culture According to (Kotler, P., Keller, K., 2006), “A company's organization consists of its structures, policies, and corporate culture, all of which can become dysfunctional in a rapidly changing business environment.” In this scenario, the corporate culture seems to represent a professional business environment with hard charging executives. The environment is definitely diverse from many angles. However, the CEO is more in tune with working individually than forming alliances with other company’s. All of the marketing team members seem to have the same objective in mind, which is regaining customer loyalty and preventing bankruptcy. However, even though there is a strict objective, not all the members see fit. This challenge is
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This note was uploaded on 04/23/2010 for the course BUSINESS 551 taught by Professor Charnell during the Spring '10 term at University of Phoenix.

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Classic Airlines problem solving model - Classic Airlines...

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