Classic will look to heir internal marketing team as a resource to find possible solutions that will allow them to fix the company. Classic Airline’s approach to their problems will be assessed using the 9-step model. The 9-step model will allow this company to identify the problem by Identifying the Internal and external pressures that are contributing to the drastic decline In Classic Airlines. This model will also help Identify opportunities to rebuild their business, Identify problems, develop solutions, display ethical dilemmas, and measure solutions.
This will help them attract new members in hopes o increase consumer demand. This paper will discuss Classic Airline’s problem and apply a problem solving process to resolve their crisis. Problem Solving Process Classic Airlines will need to follow the 9-step model to assist them in resolving the current decline they are experiencing in customer return. The following steps are needed to make this process successful: The first step is to identify and define the problem. Classic Airlines need to determine the exact problem in order to define it.
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Within this organization the problem is that the rising costs has created a hindrance or growth. The rising costs within this organization also Include labor cost and fuel cost, which has forced the company to cut budgets In many of their departments. This has resulted In a decrease In the company shares as well as fallout of the shareholders which has resulted in a decline in employee morale. Classic is also experiencing a decrease in their frequent flyers which may be the result of the increased rates or they have decided to patronize another airline.
Classic Airline’s second step will consist of a need to measure the problem and then collect data on t. According to the airlines customer service rewards program, only 44% of their customers are happy with the company while the other 56% are unhappy and all of the customers are unhappy with Classic Airlines redemption options (University of Phoenix, 2013). The data also revealed that 46% of Classic Airlines customers were going to the competition and 68% would not refer their friends or family to fly the airline because they did not like the programs they currently offer their frequent flyers.
Currently 15% of the employees are experiencing low morale because they are uncertain of their Job security. The shareholders are also uneasy because the alertness market share has decreased by 10%. Classic Airlines will need to measure these Classic Airline’s third step will consist of a need to decide the end state vision for the company and set a goal and mission for the company. In order to remain the world’s largest profitable airline, Classic will need to measure their profits by the profits of their competitor airlines. The goal of Classic airlines is to increase their market shares and bottom line profits.
Classic will need to compare the market shares of the revises year and implement a marketing campaign allow them to regain their customers as well as attract new ones. To make this happen the company will need to revise their rewards program and still have the ability to cut costs. They will accomplish this goal setting by utilizing the company’s budget cut report and profit data (University of Phoenix, 2013). Classic Airline’s fourth step will consist of a need to determine the root cause of the problems they are currently facing.
They will need to analyze their current process in order to determine what processes are working and to working for them. There are internal pressures that are the result of the cause of the company’s crisis. In the past the company has used cut backs on production and overhead instead of investing in creativity and creative ideas that could possibly increase revenue within the company. The CEO and executives have failed to keep their customers and marketing top focus when making decisions. The executives increasing customer satisfaction is too costly and takes away from other programs that they feel are more beneficial to the company.