Running head: PROBLEM SOLUTION: CLASSIC AIRLINES
Problem Solution: Classic Airlines
Brenda Guzman
University of Phoenix
July 9, 2008
Problem Solution: Classic Airlines
In order to be successful in increasing sales and profits, it is important that every organization take steps to sustain customer relationships and improve their business processes. Classic Airlines is the world’s fifth largest airline. They were established 25 years ago and grown to include a fleet of more than 375 jets that serve 240 cities with more than 2, 300 daily flights. Classic Airlines is a profitable company but have been struggling in recent years due to increase costs and reduced consumer confidence. The airline industry as whole had decreased in industry share prices, Classic Airlines is no exception, in the past year Classic Airline has seen a 10% decrease. The airline industry has been watched very closely recently. The Classic’s Board of Directors recently mandated a 15% across-the-board cost reduction over the next 18 months.
The following paper will break down and discuss the current state of Classic Airlines, identifying issues and opportunities, stakeholder perspectives/ethical dilemmas, problem statement, end-state vision, alternative solutions, analysis of alternative solutions, risk assessment and mitigation techniques, optimal solution and plan implementation.
Describe the Situation
Issue and Opportunity Identification
Classic Airlines has grown and become a successful company in the Customer Relationship Management (CRM) field. But along with the growth and success, several issues have occurred which need to be respond to by identifying a few potential opportunities. Some of the issues include:
• Price structure on tickets are not competitive with other airlines in the industry, especially companies that have just started and do not have legacy costs
• Increased operating costs have shortened Classic Airlines ability to compete forcefully with larger...