Step One: Describe the Situation Classic Airlines is suffering from self-inflicted operational issues. Expanding too quickly created a financial crisis with a domino effect. Falling stock prices, declining customer loyalty, and low employee morale have resulted. In addition, the media has nothing positive to say about the airline industry because of increasing fuel and labor costs. As a result, the Board of Directors is mandating a 15 percent across-the-board cost reduction over the next 18 months (University of Phoenix, 2011). Classic offers a rewards program to its frequent flying customers, however the program is difficult to understand and frustrating for the employees to explain. Classic
Step One: Describe the Situation Classic Airlines is suffering from self-inflicted operational issues. Expanding too quickly created a financial crisis with a domino effect. Falling stock prices, declining customer loyalty, and low employee morale have resulted. In addition, the media has nothing positive to say about the airline industry because of increasing fuel and labor costs. As a result, the Board of Directors is mandating a 15 percent across-the-board cost reduction over the next 18 months (University of Phoenix, 2011). Classic offers a rewards program to its frequent flying customers, however the program is difficult to understand and frustrating for the employees to explain. Classic