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.
While there are many issues facing Classic Airlines, the most relevant to this analysis are contained in the communication threads of emails and meeting excerpts. Of these, there were three primary indicators or events that prompted the issues listed in Table 1.
First, the relational dynamic among the members of the management team is unhealthy. ...