Toolkit for public management Case study: Classic Airlines

The current global competition among businesses has attracted an environment where companies or organizations must device all the possible ways in order to make the most of profits and also ensure growth by concentrating on strategic marketing methods. Classic Airlines has a chance to change the general perspective of the airlines business. In order to guarantee its success, Classic Airlines must be in a position to suitablypredict the market capacity and impending demand, by forming long-term marketing goals.

Classic Airlines

Classic Airlines has been facing managerial issues. Both the external and internal marketing departments have not been capable to fulfill the needs and desires of theshareholders. Regrettably, potential clients have been looking at other services provided by other airlines to guarantee that their desires and needs are met. To a greater extent, this has led or resulted in meagre sales and continued reduction of profits for the airline company. An important fact to note here is that, to a greater extent, the marketing strategy of a company assists the company to bond with its clients at all times (Kerin et al., 2006, 10). Therefore, Classic Airlines have no choice but to develop afunctioningstrategy of action that will aid, attract and keeptheir clients as well as increasetheir sales and profits.

The Situation

Issue and Opportunity divination

Classic Airlines is a company that has been in business for the last 25 years. The company operates a fleet of approximately 375 jets that offer services to around 240 cities with more than 2000 trips every day (Tokhi, 2009, 16). The company has been facing many challenges due to rising prices, lack of innovation and lack of creativity. Many clients are not pleased with the services they receivewhile the management on the other hand have not been able to agree on how to work on or correct the issues. The company at this point has no option but to work on how to motivate their managers who act as crucial pillars of the company.

Challenges Identification

Classic Airlines has to address the issues it is facing as a company. The company has been experiencing a reduction in stock costs a challenge largely related to employee motivation perspective which is very low due to acts of blaming each other and the consequent lack of unity. A different case study conducted revealed that devotedclients were leaving the company while the ones aboard appeared to be flying less often (Case Study, 2008, 1). A critical look at the company and one will realize that both the employees and the customers are not motivated to have a sense of ownership of Classic Airlines. Additionally, the employees and mostly the customers have no voice which contributes to the managerial issue (Case Study, 2008, 1). A case study conducted in 2008 reveals that both the CEO and CFO paid more attention on numbers and paid less focus on marketing and the motivation aspect(Case Study, 2008, 1).

By the year 2009, membership at Classic Airlines rewards was down by nearly 20% while the average total of flights for each member was down by more than 20% (Tokhi, 2009, 17). Additionally, the company in the recent past authorized a 15% price drop for a period of 18 months which was a rather main challenge for all the departments in the company (Tokhi, 2009, 17). Any alterations in the marketing setting or environment is actually a basis of prospects and threats that need to be managed (Tokhi, 2009, 17). The procedure of repeatedlyobtaining information on events happening outside the company in order to categorize and deducepossible trends is known as environmental scanning (Kerin et al., 2006, 10). In this case, conducting an environmental scanning will aid the company to achieve growth.

Stakeholder Perspectives

As a matter of fact, Classic Airlines is actually skating on very thin ice since the employees are unhappy, they are not unified, the customers are unhappy while competition is on the rise (Case Study, 2008, 4). Strategic decision makingand improved performance must be achieved in order to help the company get back on the right track. As a way of solving the challenges it is facing, special emphasis should be aimed on innovation, creativity, client service, and productivity. Since the company is anticipating to improve the quality of services they offer, the marketing will obviously play a criticalrole in the success of the company.

Classic Airlines must utilize all the possible ways as way of maximizing development and profitability. Competition generally keepscosts lower. Therefore, thecompany must be in a position to predict market prospective and prospective demand, by forming long-term marketing goals that efficiently address the challenges (Tokhi, 2009, 17). The particular case study supports the fact that employee motivation in the company is particularly low owing to the acts of blaming each other and also due to lack ofunity. Therefore, Classic Airlines must actualize its inner marketing approachesor strategies to support their employees.

In a nutshell, internal marketing is normally founded on the view that a service company must concentrate on its employees, or its inner market, before any positive programs can be focused at the customers or clients (Tokhi, 2009, 17). Therefore, a services company such as Classic Airlines needs to guarantee that employees of the company have the right attitude, abilities,commitment and most importantly the motivation required to meet clientprospects and ensure customer devotion. This notionsubmits that employee growth thrustaffing, performance, communication, training, supervision, and leadership are vital to the overall achievement of service companies. (Kerin et al., 2006, 10).

As a way of solving the managerial issue, Classic Airlines must be in a position to comprehend or use the four exclusivecomponents to services for instance:

The above four components are popularly known as the four I’s of services. This is to mean that, services are intangible; to be exact, services cannot be touched, held or seen before the decision to purchase. Therefore, in order to help clientsevaluate and collate services, marketers basically to make services tangible or reveal the advantages of using the service (Kerin et al., 2006, 11). Inconsistency refers to increasing, valuing, promoting, and the delivery of services, since the quality of a service is basically uncertain. Inseparability can refer to the situation when the purchaser is not able to distinguishbetween the services itself from the deliverer of the service (Kerin et al., 2006, 11). On the other hand, inventory is vitalsince many things are likely to decay and inventory management is expensive (Kerin et al., 2006, 11). In summary, through the understanding of the four I’s structure, the Classic Airlines can make its way to the top.

The end-state perspective

Classic Airlines is dealing with many competitors, low employee motivation, reducing sales, and customer frustration. As a form of end game for the company, it should ensure that it has a huge target market while at the same time consider providingmotivations for using their services or flying with their airlines (Tokhi, 2009, 18). The notionof market attraction is actually a huge target market with very high development and real consumer needs (Kerin et al., 2006, 11). Therefore, cross-functional teams can be made as way of ensuring that the employees are united.

Identifying and Assessing Risks

Classic Airlines should predict the market prospects and impending demand, evaluatethe competitive scenery and clientbuying behaviors, as well as identify the present and future client needs. Additionally, the company must be capable of forecasting the impending demand through the use of marketing research as anintermediaryfor evaluation.

Making the Decision

The company is presently unengaged with its employees and the customers also, so, whendetermining the best solution, the company must recognize what its objectivesare, what is their end-state vision, and the challenges they have experienced with product growth. These elements will aid the company in deciding how to move advance and emerge as thetop airline provider.

Conclusion

Research has established that employee motivation has a direct effect on the general performance of a company. Therefore, companies must concentrate on establishingresourcefully and supplyingefficiently what the customer needs. Through altering their internal and external marketing strategies, as well as motivate their employees, Classic Airlines would have been able to improve their abilities in establishing and supplying what the clientneeds and also avoid the main managerial issue.

Reference List

Case Study, 2008. Classic Airlines Scenario [online] 25 September. Available at: <www.case_studies.com> [Accessed 30 March 2016].

Case Study. (2008). Classic Airlines Scenario. Retrieved on September 25, 2008 from www.case_studies.com

Kerin, R., Hartley, S., Berkowitz, E, and Rudelius, W., 2006. Marketing (8th ed). NY: McGraw-Hill.

Tokhi, M., 2009. A Case Study on Classic Airlines: Practical Marketing Solutions. Journal of Business Studies Quarterly, Vol. 1, No. 1, pp. 16-25.