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The Problems and the Management at Classic Airlines - Term Paper Example

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The paper 'The Problems and the Management at Classic Airlines' presents Classic Airlines that has seen a drastic reduction in its share prices, added to it the factors such as with increased public scrutiny and reduced customer confidence has added to the organizational discomfort…
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The Problems and the Management at Classic Airlines
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Download file to see previous pages The issues discussed in Table 1, are framed in accordance with the situations discussed in the case of Classic Airlines. The organization is facing problems on account of steadily declining share prices as well as a simultaneous increase in the fuel prices and labor costs. This is a serious issue faced by management. Also the customer satisfaction is on a decline leading to further complications in the given scenario. The management is now faced with a dilemma of resorting to cost-cutting and has contemplated the implementation of automated customer care systems but the customers have expressed desire of availing the facility of being able to talk to a real person instead. This is further adding to the management’s troubles. Moreover the trade unions on the other hand are also concerned over retaining the number of employees, which in the wake of such crisis could be reduced by the management. As reducing headcount is an alternative way of keeping check on the increasing labor costs.
However, the major problem faced by the management at Classic Airlines is the ineffective implementation of the CRM system, which if properly addressed, might lead to solving the other related problems as they are highly interrelated.
The organization is currently faced with ethical dilemmas involving its stakeholders such as the management team, the customers as well as the labor unions. The problems discussed in the case clearly depict that all the three stakeholders mentioned above have conflicting interests which when studied from their individual perspective hold credibility. However, the management has to make appropriate choices regarding the decisions involved and choose the best alternative that is in the overall interest of the company. The proposed solution for this scenario is to ensure the effective implementation of a better CRM system. This has immense potential to eliminate certain problems identified, earlier in the case, as several of the problems stated are interdependent and are highly dependent on the solving of the key issues involved. ...Download file to see next pages Read More
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