Problem Solution: Classic Airlines - Case Study Example

These decreases have been accompanied by rising operational costs that have forced the company to find ways to cut costs by 15 percent over the next 18 months. These cost cutting measures are necessary in order for them to remain financially sound. While cutting costs the company must also find a way to attract new customers, produce a higher level of satisfaction for their current flyers, as well as bring their once loyal customers back as frequent flyers with their airline. In the wake of financial crisis any marketing efforts cannot involve airfare price reductions; therefore the company is challenged with finding ways to improve the perceived value of flying with them.

The organization's focus must be centered on the needs and wants of their consumer while being conscious of costs. Currently Classic Airlines is the fifth largest airline in the world and has been in the industry for twenty-five years. They have been faced with challenges such as decreases in stock prices and profits. These challenges have caused employee morale to be affected, which has been noted to be at its lowest state ever. Rising costs, coupled with decreases in Classic Reward members have lead them to a point where they need to cut costs and find ways to improve customer service.

Classic Airlines has the opportunity to create an effective marketing plan, improve upon employee morale and the level of service that they offer their customers, and change the future outlook for the company. Classic Airlines also has the opportunity to enter into a marketing alliance with another airline that may prove to be a beneficial move for them. It has been noted that the CEO is closed minded to marketing alliances which may cause her to dismiss the opportunity without giving it proper consideration.

It is important to be flexible and willing to try new thing in order to meet organizational objectives. The "fast-paced domestic and global markets have caused massive restructuring of many American industries and businesses" (Kerin, 2006, ch.1 p. 15) and it may be time for Classic Airlines to follow suit. Stakeholder Perspectives/Ethical DilemmasIn perusing these opportunities there are conflicting values and perspectives among the higher- ups and the customer service and marketing executives.

There has also been a conflict identified between organizational leaders and the employees of the company. The customer service department is deeply concerned about the level of customer service and satisfaction that has been given to clients in the past. This is very important because in order to create a loyal customer base it is crucial for a company to value their opinions. In fact, it has been noted by experts that in order for an organization to be successful today, they must realize that consumers have changed and they are more concerned with receiving value then they used to be.

Classic Airlines must become "customer-focused" in order to compete in today's marketplace (Angel, 2004). However, the customer service manager has to fight to get key decision makers to pay attention to their