This paper will cover a full scale and analysis of Classic Airlines, a 25 year airline organization. Classic Airlines demand is over 375 jets that serve 240 cities with more than 2300 daily flights making it the fifth largest airline in the world (University of Phoenix, 2007). Classic Airlines has grown from a small business to an organization of 32,000 employees and earned $10 million on $8.7 billion in sales (University of Phoenix). A general problem-solving process or framework provides leaders with a way to begin managing and understanding a wide range of decisions to be made, problems that needs attention, and concerns that arise from internal and external customers. According to ...view middle of the document...
It is my recommendation that Classic Airlines focus on efforts on improving customer satisfaction and loyalty as this will directly and indirectly improve the sales, employee morale, board of directors, and shareholders. Next, it will be important to use a priority-setting process step to gain an agreement on the problem statement and how the problems are framed. The last action item for this first step is to develop a clear statement with understanding of each gap between what is and what it should be. According to Kotler and Keller (2007) customers compare the perceived service to the expected service and if the perceived service falls below customer’s expectation, customers will be disappointed. On the other hand, if the perceive service meets or exceeds the customer’s expectation; they are apt to use the service again. The Senior Vice President of Customer Service, Renee Epson at Classic Airlines can offer some insight to these expectations. During the past four years with Classic she implemented a customer relationship management system (CRM) program. A survey was also completed with 500 from basic, silver and gold-level Classic Rewards members. The final action item in this first step is to address all the personal interests to proceed. In this Classic Airlines scenario, each department is looking at these issues from their individual perspective and will need to step out of their personal view to come up with a mutual agreement on what is the best change initiative for Classic Airlines.
The second step of the problem-solving method in Hiebert & Bruce model is to analyze the problems for causes. What is causing the shortfall between what it is and should be? There will be lots of data to sort through with many potential and unexpected causes. It is important to use a systematic process for handling the data and finding cause(s) that will be identified and verified. In Classic Airline’s case, possible causes may affect the customer service as a result of implementing cost-savings, failure to address key customer complaints and competitors’ strategy and offerings. Reviewing the results of the customer survey Epson administered a form of data that Classic can use to determine potential causes for decreasing sales and customer satisfaction and loyalty.
1. How many flights do you take per year with Classic Airlines?
a. 1 to 3 – 22%
b. 3 to 7 – 33%
c. 7 to 12 – 31%
d. More than 12 – 14%
2. How many flights do you take per year with airlines other than Classic?
a. 1 to 3 – 29%
b. 3 to 7 – 42%
c. 7 to 12 – 14%
d. More than 12 – 15%
3. How well do you feel Classic’s advertising campaigns convey an accurate and meaningful picture of the airline?
a. Not accurate and meaningful – 14%
b. Somewhat accurate and meaningful – 48%
c. Very accurate and meaningful – 38%
4. How satisfied are you with the customer service you receive from Classic Airlines?