Classic_Airline

According to the scenario, Classic Airlines is the fifth biggest airline carrier in the world with 375 airplanes.  Classic Airlines services more than 240 cities and nearly 2300 flights going out each day.  Classic was founded more than 25 years ago, employing more 32,000 personnel.  The Company net more 10 million dollar alone last year. (Classic Airlines, 2011).  Current challenges  Although Classic Airline is currently making a good profit, there are still encountering challenges.   The slump in the economy has caused Classic Airline's net income to decrease.  In the current year, Classic Airlines has earned a gross income of $10 million. In the prior year, the net income was $71 million.  Classic Airlines experienced a 10% decrease in their current shared prices.  The labor cost at Classic Airlines is the highest in the industry (Classic Airlines, 2011). This challenge caused the morale of the employee at Classic Airlines to hit an all time low.  Because of the challenge, Classic Airlines is trying different things to determine how they will be able to solve the current challenge and then evaluate their position in the marketplace.     Product and services marketed and marketing concepts According to the scenario, in order for the company to grow their net profit, there needs to be an increase each year. In order for Classic Airlines to accomplish this they will need to develop a better marketing plan.  Developing a good marketing plan could increase passenger activity by offering benefits for new customers. By implementing this plan, this would bring potential markets and bring on new customers that Classic Airline will be getting, keeping and growing into a superior customer company.  (Kotler & Keller, 2006).  Customer surveys are a good way for Classic Airlines to see how the company is performing.  Surveys are a way for a company to obtain good information on how to gain new and keep existing customers.  With these surveys, Classic Airline can use these tools in integrating them into the proposed marketing plan.  Classic Airline can determine what benefits they can offer the new and existing customer through the survey responses.     Current corporate culture  Classic Airlines has a mixed culture. Classic Airline strives to pay their employees top salaries, while their competition is cutting back.  Classic Airlines is leading the industry with their awesome retirement plans.   Nevertheless, Classic Airline will be cutting cost by 15% over the next year and a half in order save money and increase the employee morale.    Conclusion  Classic Airlines has some major challenges including a $61 million dollar decrease in net profit, 10% decrease in share prices, a downturn in the economy, and a need to reduce costs by 15% over the next 18 months. The company markets a frequent flier program to increase business and rewards its loyal customers. The company needs to update the current rewards program. The corporate culture has been impacted by the lowest employee morale in the company's history. The company is in the process of solving their current challenges and evaluating their current position in the marketplace.                   References  Classic Airline Scenario: Classic Airlines (2011). Retrieved April 6, 2011 from the University of Phoenix MKT/571 Management Web site: https://myresource.phoenix.edusecure/resource  Hansen, R. (2010). Uncovering a company's corporate culture is a critical task for job-seekers. Retrieved on March 12, 2010 from: http://www.quintcareers.com/employer_corporate_culture.html Kotler, P. & Keller, K. (2007). A Framework for Marketing Management (3th edition). Pearson Prentice Hall, Upper Saddle River, New Jersey