Situation Analysis: Classic Airlines

Running head: SITUATION ANALYSIS: CLASSIC AIRLINES emplacement Analysis: undefiled Airlines MBA570 University of Phoenix Problem Solution: clear Airlines Classic Airlines has grown to an organization of 32,000 employees since starting operations. Last year the keep company recorded $10 million profit on $8.7 zillion in sales. While the airline is profitable, the stock prices have diminish by 10% in the past year and employee morale has been at its lowest due to increase scrutiny on the airline industry from all sectors of the economy. (Classic Airlines, 2008) Classic Airlines node loyalty is on the decline as evidenced by the 19% decrease in the number of Classic rewards members and 21% decrease in flights per remaining member. The company is also veneer a restrictive cost restructure due to likewise optimistic expansion plans based on anticipated confine of post 09/11 travel. Classics Board of Directors latterly mandated a 15% across-the-board cost reduction over the next 18 months (Classic Airlines, 2008). Within the constraints of the mandate, Classic also ask to improve the frequent flier program with methods that will point a measurable return on any coronation (ROI) while still meeting the cost reduction goal.

Classic is the only carrier which does not have a compact alliance agreement, under the assumption that no one else hobo understand or meet the needs of its customers better than Classic. In addition, the carrier implemented a pricing strategy that vomit up the company in direct competition with younger airlines, which do not have the same cost structure as Classic, resulting in an advantage for the competition. The ability of Classic to accurately omen changing market and consumer trends will enable the carrier to extend marketing campaigns, adjust budgets, and reallocate resources to take advantage of usual trends or conduct informational and promotional marketing during the off aggrandisement seasons. The more data that Classic... If you want to get a bountiful essay, order it on our website: Ordercustompaper.com

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