Situation Analysis: Classic AirlinesClassic Airlines has grown to a 32,000 employee organization since inception of operations. Last year the company posted a profit of $10 million on revenue of $8.7 billion. Although the airline is profitable, share prices have fallen 10% in the past year and employee morale is at rock bottom amid growing scrutiny of the airline industry from all sectors of the economy. (Classic Airlines, 2008) Classic Airline's customer loyalty is declining, as evidenced by the 19% decrease in the number of Classic Reward members and the 21% decrease in flights per remaining member. The company is also facing a restrictive cost restructuring due to overly optimistic expansion plans based on the expected post-9/11 travel recovery. Classic's Board of Directors recently mandated an overall cost reduction of 15% over the next 18 months (Classic Airlines, 2008). Within the limits of the mandate, Classic must also improve the frequent flyer program with methods that demonstrate a measurable return on any investment (ROI) while meeting the cost reduction objective. Classic is the only carrier that does not have a partnership alliance agreement, under the assumption that no one else can understand or meet the needs of its customers better than Classic. Additionally, the carrier implemented a pricing strategy that put the company in direct competition with younger airlines, which do not have the same cost structure as Classic, resulting in a competitive advantage. Classic's ability to accurately predict changing market and consumer trends will allow the carrier to increase marketing campaigns, adjust budgets and reallocate resources to take advantage of prevailing trends. the needs of their consumers and offered small businesses a new portal to remotely access airline information. This was achieved through a partnership with a smaller company. Classis Airlines has satisfied stakeholders, beats Wall Street analysts' projections for market share, and other companies admire the overall performance along with the measures put in place to ensure continued wealth maximization. Voted best in class for customer service, Classic Airlines has truly become a global resource. References Couretas, J. (2006) Mining for Gold, Automotive News, (81) 6223, 38-39. Retrieved April 6, 2008, from EBSCO host database. McShane, S. L., & Von Glinow, M. (2004). Organizational behavior: Emerging realities for the workplace. New York: McGraw-HillLegal Dictionary, accessed April 6, 2008 http://www.legal.com/dictionary/s.asp