Classic_Airlines

Classic Airlines PSS #4 1. What are some possible solutions for CA' • Follow up on the potential alliance with Skyway Airlines and their global reach; benchmark Nordstrom for their customer service. • Don’t just focus on repeat buyers; value all customers well and develop long relationships and expand the customer base • Reposition senior management; possibly use their expertise in another area of the company • Upgrade the CRM to merge it with another system so it will be more effective with pricing • Current CRM is capable of doing more; revisit the current CRM system and make it do what it potentially can do. • Benchmark the CRM potential and how it has worked well for other companies • Develop a unified mission or goal; some of the executives think in wildly divergent ways. 2. What are your assumptions and constraints' Can you let them go' • Board might be a constraint; might not accept all of Kevin’s marketing ideas with the cost reduction mandate • Union is a constraint cuz they will want the maximum for ees • Revamping the CRM does not guarantee that customers will stay; this is an assumption • Not including the right options in the Classic Rewards programs can be a constraint • That the 15% Percent cost reduction can hamper relations and cause a problem with ee morale; this is an assumption; this cost a reduction is a short term solution • 3. What are some best case solutions' Number one: Develop a new strategic plan and a strong suit of business goals. Senior management will be informed of all changes of the existing plan and will have the opportunity to assess all future goals. Risk= Developing a new strategic plan and realigning business goals may put Classic Airlines at risk of losing employees because of the new direction the company is heading in.loose good ees, even senior management; they may not like the new direction. Mitigate an open forum, conduct surveys, and seek for all employee’s to buy in with the new plan. Communicate the benefits of the new plan. Number Two: Revisit the 15% cost reduction; instead stagger it vs a blanket across the board reduction; Risk = If Classic chooses to stagger the cost of reduction the company may still go bankrupt especially if the cost reductions are put in wrong areas, may still go bankrupt; company may be so far gone. A staggered time roll out can help to mitigate the risk. Number Three: Successful alliance and global expansion Risk = making sure the partner is a good fit and can offset your weaknesses. CA might not be welcome in other countries, and not fit in with their customs and ways; Research and benchmarking other airlines can mitigate the risk. A strong legal team can help mitigate this risk. Number Four: Revisit current CRM and revamp if needed. Risk=When revamping the for the CRM system due to a system outdate this maybe very time consuming software and costly for the company,might be outdated; it may be too time consuming to retrain ees to operate the CRM correctly; there could be a cost associated with optimal CRM use. This can be mitigated by utilizing the in house talent of existing IT CA employees. Number Five: Revamp the Classic Rewards program and couple with a strong marketing campaign Risk=the program may be too far gone and beyond saving; cust may leave anyway. But this might be an opp to get rid of CR program. Mitigate this by getting real time data from customers such as an real time exit survey. Conclusion that these risks must be taken; it is either up or out. Classic Airlines PSS#5 Develop a matrix for evaluating each potential solution against key success factors relative to the company, the customer and the competition. Assign scores based on the degree to which each alternative delivers on each success factor. Meets customers needs Cost to Classic Airlines Difficult for competition 1. New strategic plan 5 3.5 2 2. Revisit the 15% cost reduction 1.5 5 2 3. Successful alliance/global expansion 5 3 2 4. Revisit current CRM and revamp if needed 5 1.5 3 5. Revamp the Classic Rewards program 5 4 3 Classic Airlines PSS #6 What are the risks of the alternatives from step five' What are the consequences of the risks' How do you mitigate the risks' Eliminate any alternatives where the risks are too high ***************************************** Please break into teams. Each team evaluates one alternative based on this matrix: Risk Consequence Pot. Mitigate Alt. #1 Alt. #2 Alt. #3 Alt. #4