Classic Airlines Problem-Solving Process Barbara Terry MKT/571 – Marketing April 10, 2012 Clifford M. Lavin MSIM University of Phoenix

Classic Airlines Problem-Solving Process

Classic Airlines, one of the largest airline carriers in the world, servicing 240 cities, and more than 2,300 flights every day is in the service industry (UOPX Classic Airlines scenario, 2012). Classic Airlines is making a profit; however, its share prices have decreased 10% in the past year alone, and its customer base is also on the decline. This year the company had a net income of 10 million, whereas the previous year they had a net income of $71 million (UOPX Classic Airlines scenario, 2012). There are numerous internal and external factors contributing to Classic Airline’s current predicament. Decreasing stock prices, rising fuel costs, and declining consumer confidence are a few of the challenges the airline is facing. Additionally, internal disagreement among upper management is causing a direct problem to the Marketing team. Air travel around the globe is steadily increasing, and many people fly because it is necessary, however; minimal research has been conducted on how stress is related to people who fly frequently (Mawhinney, 2007). Classic Airlines management must take proactive measures, and conduct some in-depth research to determine the root cause of the current dilemmas. The purpose of this paper is to use the nine step problem-solving process to analyze the situation that Classic Airlines finds itself confronted with, and further discuss the steps that Classic Airlines need to take to reach a resolution to their problem.
The Problems Classic Airlines faces multiple problems, their customer satisfaction, loyalty, and membership in the classic rewards program has decreased