Classic Airlines Problem Solution

Classic Airlines Problem Solution

Problem Solution: Classic Airlines
Chuck Stauffer
University of Phoenix


Executive Summary
Classic Airlines is faced with pressure from key stakeholders that are looking for increased value from the company. This means that Classic’s senior leadership team needs to direct change that builds overall value for the company while also reducing expenses across the board by 15%. There are several viable solutions to increase revenues, margins, and decrease expenses. I will explore these options in detail, select the optimal solution, and defend this optimal solution while explaining how Classic’s senior leadership team can implement a business strategy that not only builds overall value but also positions the company for continued growth and increased profitability. Ultimately, the optimal solution will increase stakeholder value and ensure that Classic Airlines maintains a sustainable competitive advantage in the airline industry.

Problem Solution: Classic Airlines
Challenged with rising cost, declining stock price, and overall reduction in customer confidence and ridership, Classic Airlines is at a crossroads and needs to make some significant business changes to ensure profitability. The company needs to develop a business strategy and imperatives that deliver value to its key stakeholders. Some of the key issues that plague Classic Airlines are reduced ridership, poor customer relationship management and escalating operation costs. Overall, Classic Airlines has not been able to meet the expectations of its customers with regard to the customer relationship management areas such as ease of booking flights, setting itself apart from the competition with outstanding customer service and making its most valuable and frequent customers return to Classic Airlines. Therefore, Classic Airlines’ CEO, Amanda Miller, has challenged the senior leaders to develop strategies that will increase revenues, increase profit margins, and regain customer confidence...