Declining profit in classic airlines

Assignment Help Operation Management

Reference no: EM131649886

Case study : Declining profit in Classic Airlines

Classic Airlines is facing an organizational issue. External and internal marketing programs have not been able to satisfy the needs and wants of the stakeholders. Target customers are looking at the services offered by other airlines to satisfy their wants and needs. This has resulted in poor sales and reduced profits for the company. The marketing plan of a firm “helps the firm connect with its customers” . Therefore, Classic Airlines wants to develop an effective plan of action that will not only help attract and retain customers, but also boost sales and profits. Classic Airlines is a 25 year old company that commands a fleet of more than 375 jets that serve 240 cities with more than 2300 daily flights. The company is facing numerous challenges because of rising costs and lack of innovation. Customers are not satisfied with the service they are receiving and management cannot agree on how to correct the issues. A manager at Classic Airlines expresses, “Your challenge is going to be rising above our competition without discounting airfare”. The company will have to figure out strategies to overcome the challenges. Classic Airlines must address the challenges the company is facing. The company is experiencing a decrease in stock prices. Employee morale is low because of finger pointing and lack of unity. The case study states that “loyal customers were jumping ship and the ones still aboard seemed to be flying less frequently”. The senior vice president of customer service explains that “customers have no voice” which is a major challenge for the company. Classic Airlines and many of its rivals expanded too quickly. The case study mentions that the CEO and CFO focus on numbers and less on marketing. Membership in classic rewards is down nearly 20% and the average number of flights per member is down more than 20%. The company recently mandate d a 15% across the board cost reduction over the next 18 months which is also a major challenge for all departments. “Changes in the marketing environment are a source of opportunities and threats to be managed. The process of continually acquiring information on events occur ring outside the organization to identify and interpret potential trends is called environmental scanning”.

Question: As a CEO what will be your course of actions to improve the performance of this company?

Reference no: EM131649886

Questions Cloud

Record the balances indicated : Using the attached T-account template: Record the balances indicated above. Label the balances "Bal"

Debate in the hr field concerning performance appraisals : For years, there has been a debate in the HR field concerning performance appraisals.

Discuss if the company practiced discrimination based : Discuss if the company practiced discrimination based on any of the prohibited categories with a justification.

What kind of design did the researchers use : Among the 41 students who initially said their parents were lenient about smoking, 11 became smokers. Do these data provide strong evidence that parental.

Declining profit in classic airlines : Classic Airlines is facing an organizational issue. External and internal marketing programs have not been able to satisfy needs and wants of the stakeholders.

Identify and classify the noncash assets and liabilities : Identify and classify the noncash assets and liabilities resulting from the current-year transactions

Star allocate the common costs between drinks-pastries : Star Buck, coffee shop manager, has two major product lines-drinks and pastries.How would you recommend Star allocate the common costs between drinks-pastries?

What is the duration of acorn equity : You have been hired as a risk manager for Acorn Savings and Loan. What is the duration of Acorn's equity

Differences between corporate bonds and ordinary shares : What are the major differences between corporate bonds and ordinary shares

User Account

All Pages