Classic Airlines Dilemma

Classic Airlines Dilemma

Cherrise Walker-Betts

University of Phoenix

Classic Airlines has been in business for twenty five years and is the world’s fifth largest airline. Classic Airline is facing some challenges in the decline of industry stock prices and share prices over the past year. Consumers’ ambiguity about flying in addition to the recent public   squabbles of Wall Street has contributed to these said declines. Moreover, employee morale is at an all time low. The once successful rewards program offered by Classic is diminishing in consumer support as rewards program members are down 19% and for the remaining rewards members there is a 21% decrease in their flight purchase. Some customers are no longer doing business with Classic Airlines and remaining customers seemed to be doing business a lot less frequently. Due to   these issues at hand, Classic Airline have been forced to adopt a 15% cost reduction across the board for eighteen months. Nonetheless, Classic must find a way to increase membership within its rewards program.

The organizational culture appears to be one of division at the present moment. Employees are not motivated to perform at their best because of all the public scrutiny. Even among the management team there is obvious tension. The CEO and the CFO are consumed with the bottom line in regards to profits, sales, and cutting cost; whereas, amongst the other team players the customer, marketing, or employees are the main focus. Corporate culture can be defined as a way of living within an organization. Management styles (are the managers open or do they adhere to a traditional bureaucratic style), dress, shared experiences, atmosphere, norms all make up corporate culture (Kotler & Keller, 2006).

Classic must find a way to promote their rewards program. “T he process of obtaining a desired product from someone by offering something in return” is known as exchange ( Kotler & Keller, 2006, p.6). Furthermore, for exchange to be...