May 22, 2013
Audrey Dorsey, MBA
Classic airlines are the fifth largest airline in the world. Classic is currently servicing 240 cities with its 375 airlines. Like many airlines that have seen decline in sales, Classic airlines have begun to see an increase in cost as well as a decrease in customer demand for their services. This has created a need for the company to make significant changes in the way they current operate their business. The setbacks this company faces are both internally and externally. Classic will look to their 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 to 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. Within this organization the problem is that the rising costs has created a hindrance for 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...
References: Chase, R. B., Jacobs, F. R., & Aquilano, N. J. (2006). Operations management for competitive advantage (11th ed.). New York, NY: McGraw Hill/Irwin.
Mabin, Victoria. (n.d.). Goldratt 's "Theory of Constraints" Thinking Processes:. Retrieved from http://www.systemdynamics.org/conferences/1999/PAPERS/PARA104.PDF
Please join StudyMode to read the full document