MBA570 - Individual Assignment - Week Two - 07-29-06

MBA570 - Individual Assignment - Week Two - 07-29-06 -...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Alternative Solutions 1 ROBB: DON’T FORGET TO FIX THIS ONE BACK TO THE FIRST PAPER Alternative Solutions and Risk Assessment: Classic Airlines Robert Sikes, MBA570 University of Phoenix August 12, 2006 Alternative Solutions 2 Alternative Solutions and Risk Assessment: Classic Airlines Situation Background Classic Airlines—the fifth largest global airline—operates over 2,300 flights per day on more than 375 jets servicing 240 cities. With 32,000 employees, Classic Airlines realized a net profit of $10 million and $8.7 billion in sales last year. However, due to increased uncertainty about flying, Classic Airlines experienced a 10 percent decrease in share prices in the past year. Additionally, with low consumer confidence and rising fuel costs, Classic Airlines’ Classic Rewards program measured a 19 percent decrease in the number of members and has limited Classic Airlines ability to compete for the valued frequent flier (University, 2006). In order to curb future revenue losses, the Board of Directors recently mandated a 15 percent across-the-board cost reduction over the next 18 months. Within that mandate, Classic Airlines must still find a way to augment its frequent flier program with methods that will demonstrate a measurable return on investment (University, 2006). Issue Identification Classic Airlines has been confronted with several challenges that could impair positioning the company for growth sustainability including decreased frequent flyer program participation. Furthermore, Classic Airlines has ineffective customer relationship management (CRM) system tools in place, which will require major renovation. Marketing success is another critical issue influencing Classic Airlines’ operations, external business drivers, and stakeholders. However, effective and strategic marketing, reference groups monitoring, value-added market research, conducting focus groups, and a customer-driven CRM system can be the first-steps toward Classic Airlines identifying opportunities and potential solutions. Alternative Solutions 3 Opportunity Identification Marketing Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. This definition relates to two primary goals of marketing: (1) assessing the needs of consumers and (2) satisfying them. For marketing to occur, it is necessary to have (1) two or more parties with unmet need, (2) a desire and ability to satisfy them, (3) communication between the parties, and (4) something to exchange (Kerin, 2006). Marketing means a promotion of products, including advertising. However, in the business environment, marketing is customer centered. Meaning—products are often developed to meet the desires of groups of customers or specific customers. Professor E. Jerome McCarthy divided marketing into four general sets of activities. His typology has become universally divided marketing into four general sets of activities....
View Full Document

Page1 / 13

MBA570 - Individual Assignment - Week Two - 07-29-06 -...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online