Classic Airlines

Running head: PROBLEM SOLUTION: CLASSIC AIRLINES

Problem Solution: Classic Airlines

Curtis Tomczak

University of Phoenix

Problem Solution: Classic Airlines

This paper will cover best practices of strategic implementation and how it will align with the goals of the company and be supported by measurements of success. It will address implementation shortfalls, risks and discuss mitigation of potential negative consequences. It will detail the steps to implement a solution and gain buy-in from all entities and stakeholders. Leveraging experts and incorporating bench-marketing will mitigate risk.

Classic Airlines needs to leverage their existing resources, managed expenses and create opportunities for their investors without losing their identity as a top-notch carrier. This problem analysis and process to identify key solutions and implement them successfully regardless of the challenges, is provided through a series of steps, exercises and figures to aid in the decision making.

Describe the Situation

Issue and Opportunity Identification

Classic Airlines has long been a leader in the industry. They managed to capture a loyal customer base and repaid them with an attractive rewards program. Like many airlines, they are faced with increasing costs of labor and a diverging consumer. The firm’s senior leadership is faced with making key decisions to show investors and the board of directors that the company can turn around the recent trend. Corporate cost cutting has been publicly promised but the leadership team needs to prioritize spending and develop new and innovative ways to create more business and regain the market share.

According to a collection of correspondence, the CEO, CMO and CFO discussed the strategic decisions made in the past. Decisions such as the renewal of a labor contract with the union, hedging on fuel and price cutting that has led to a battle between competitors that Classic is not...