Classic Airlines Case Study Example | Topics and Well Written Essays - 2500 words

Classic Airlines - Case Study ExampleThese decreases have been accompanied by travel operational costs that have forced the company to capture slipway 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 one time loyal customers back as frequent flyers with their airline. In the wake of financial crisis any marketing efforts can non involve airfare price reductions thitherfore the company is challenged with finding ways to improve the perceived value of flying with them. The organizations 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 meetin g excerpts. Of these, there were three primary quill indicators or events that prompted the issues listed in Table 1.First, the relational dynamic among the members of the management team is unhealthy. The fact that the individuals do not necessarily agree on the processes that will silk hat contribute to the overall success of Classic Airlines is not the issue. The problem lies in the way management is polarizing into an us vs. them mentality. As can be seen from the informal meetings and emails, the chief operating officer and CFO have a general lack of regard as for the value of marketing to enhance shareholder value, and view it as a necessary set down of operations. Further, the CEOs reference to Boyle and friends suggests a suspiciousness of motive. The CFOs personal comments about Mr. Boyle demonstrate an outright hostility. Management of a company that is having profitability issues must resist the tendency to polarize. In fact, the CEO and CFO are presenting a classical example of push down responsibility, where because they are often unfamiliar with entangling details, top management tends to expect palmy results without complications. (Pulhamus, 1991, 86) The marketing team, in a similar fashion, is closing ranks and taking an adversarial view of the CEO and CFO. This dynamic must be adjusted to bring balance and respect in the communication of conflicting ideas.Secondly, the CEO and CFO are focused on a singular model to attain profitability, i.e., cost leadership in the market and operational efficiencies. While cost management is a valid tool, it is not exclusive. The CEO views marketing primarily as an operational expense and not a component of the business model that will add value to the company. The CFO is so focused on the fuel hedging tactic that she has interpreted a defensive position around it to protect it from encroachment this territorial view of a single method precludes the introduction of new, and more effective, methods of co ntaining costs and change magnitude profitability.Finally, the CEO has specifically stated that the company does not need an alliance. Even a cursory glance at industry