Classic Airlines is facing the same issues that many organizations are faced with which is providing increased value to their customers with a tighter budget, as the fifth largest airline Classic airlines has had declining profits and their stock prices have fallen this has adversely affected the organization. To make matters worse Classic Airlines has lost 19 percent of their Classic reward members; and the members they have left are flying with Classic even less these days (UOP Portal, Classic Airlines, 2011). This has forced the company to restructure based on extreme competition and the declining metrics disclosed from their customer loyalty report.

Chief Executive Officer Amanda Miller has tasked the leadership teams to make improvements to the frequent flier program that will promote positive returns. The board of directors recently mandated a 15 percent cost reduction across the board that will be in effect for the next 18 months. To achieve this task Classic will need to analyze feedback from customers and understand their objectives and align those with their long term goals. The issues and opportunities present in Classic airlines will be addressed as well as any ethical dilemmas or stakeholder perspectives that need to be addressed. The problem definition and the end state vision will be discussed and the optimal solution will be proposed for Classic Airlines.

Issue and Opportunity Identification

Classic Airlines has several issues that they need to address in order to turn around the condition of their organization. Classic Airlines Chief Marketing Officer, Kevin Boyle has been tasked with finding ways to help resurrect the frequent flier program with ideas and processes that will demonstrate a measurable return on their investment (UOP Portal, Classic Airlines). Due to mandated budget cuts from the board of directors of 15 percent across