Guillermo

Guillermo Furniture Store Concepts

FIN/571

March 27, 2013

Professor Farookh Syed

Guillermo Furniture Store Concepts

There were several finance concepts found in the readings in which they relate to the context of Classic Airlines is the fifth largest airline carrier in the world with 375 airplanes that service 240 cities with more than2,300 flights each day. Since its inception 25 years ago, Classic Airlines has more than32,000 employees. Last year the company had a net income of 10 million dollars (Classic Airlines, 2010).

Classic Airlines is the fifth largest airline in the world. Classic has 375 jets and serves 240 cities. Classic Airlines employs over 32,000 people and provides over 2,300 flights on a daily basis. Classic Airlines is very profitable, posting $10 million in profits in 2005.

Although profitable, Classic is suffering from declines in its Classic Rewards memberships and flights per remaining members programs. Classic is also feeling the effects of being too aggressive in expansion after the September 11 debacle. It overestimated consumer’s readiness to fly, resulting in budget constraints. This paper will discuss the products or services Classic Airlines is marketing, the marketing challenges it faces, and the current corporate culture at Classic Airlines. Further, I will discuss some of the marketing concepts available to Classic Airlines and how they may relate to the current situation. There were several marketing concepts found in the readings that should often be reviewed in any organizational business.

Current Challenges

Although the company is making a good profit, it has also encountered some major challenges. The downturn in the economy has caused net income to decrease. This year the company had a net income of $10 million, however; the previous year had a net income of $71 million. The company has experienceda 10% decrease in share prices. Classic Airlines has the highest labor cost in the industry (Classic...