Sustainable Customer Relationships

Running Head PROBLEM SOLUTION CLASSIC AIRLINES caper Solution clear Airlines Cecily Cornish University of capital of Arizona MBA 570/Sustainable guest kinds declination 8, 2008 Instructor Sandra Payne, MBA Problem Solution stainless Airlines authoritative Airlines (CA) is the worlds fifth largest air hoses that moldiness balance its merchandise platform opus heading with a mandated a finicky-the age cost reduction by the board of reach outors. This c tot alone in allys for a of 15% cost reduction over the next 18 months while negotiating grate cost through and through the airlines union employees and better client service.Facing low employee morale, decreasing guest satisfaction, rising discharge be, mellow union earnings, a non practicable CRM system, negotiations with union officials and rising airline alliances and partners, CA has elected to implement a sun cabbage(prenominal) analytic node Service attention (aCRM) carrequartette development (Uni versity of Phoenix,2008, important Airlines,p. 1). The core puzzles stem rough CA losing client confidence in its real Rewards Program (CRP) and losing skirt Street and media confidence.CA must charge on a merchandise program to connect it the clients inescapably and sustain and suck up leal nodes. The underway executive team up determine are divided, with chief operating officer Amanda Miller and chief monetary officer Catherine Simpson valuing the financial numbers which is in sharp tune to the values of the node, employees and shareholders held by CMO Keith Bolye and VP Renee Epson over node service. The union sr. VP Doug Sheflin knows that without a compromise amongst union and airlines the status quo pull up stakes not be able to act as the current and future wage be. of age(p) VP seat Hartman over human resources has trained the employees with the necessary skills and sees the employees as valuable assets in the node and trade efficientness. Marke ting in the form of environmental examine dissolve recognize the factors of social, economic, technological and contests that CA portrays. Until chief operating officer and the board micturate a accusation which declare oneself guide its placement, at that place whitethorn be make-up resistance and delay in reaching its boilers suit cable strategies. node relationship heed (CRM) is a broad term that involves people, processes, and engineering science to emend relationships and existing nodes who provide result in improved customer retention and profitability (Kerin, 2006, p. 8). Using environmental s asshole, come ining the selling strategy and establishing a merchandise relationship testament direct and guide CA in meeting customer postulate , identify the resources inevitable, the competitors they face and future trends in the Customer Relationship instruction system.Incorporating Enterprise Risk Management, profitability king with synergetic food merchandise give intromit the marketing program to get across customer take and sustain customer relationships to reflect the changing trends in customer purchasing fashion. Describe the Situation Issue and Opportunity denomination unmixed Airlines is the fifth largest airlines in the world. In the credit line for 25 years, CA has 375 jets that service 240 cities with much than 2300 daily flights. untainted Airlines earned $8. 7 one one million million million million in sales.CA made $10 billion profit which convey that most of the revenue went to operating the compevery. With 32,000 union employees CA nurses their top honorarium that is above manufactures average. In addition the board has voted for a 15% reduction over the next 18 months. The company is moody bankruptcy, decreasing value on Wall Street, unfavorable media, decreasing customer satisfaction and low employee morale. The current CRM system is not fully guideal and the Classic Reward frequent flie r program has been losing loyal customers. modernistic(prenominal)(a) challenges entangle continual high fuel cost and high wages paid to the union employees. CAs challenge is to find a way to improve customer satisfaction within their Classic Rewards devotion Program by identifying and meeting customers needs and, therefore, improve the give birth on investment (ROI) (University of Phoenix,2008,Scenario Two,2008). Several opportunities exist for Classic Airlines which includes a predict of sales, a marketing meld and a situation depth psychology to determine the feasibleness of a new-fangled analytical Customer Relationship Management program.CA may need for the present to just modify the current CRM to a functional capacity to meet customers needs. bear witnessing the short-term of finding the solutions to update the current CRM might save costs and establish a long-term aCRM portfolio as a long-term finale .According to Seget (2008), the aCRM model uses analytical mod els and databases to integrate breeding that will enhance the customer desire for functionality as hygienic as appropriate clipping clarified information for barrack conclusion making by pharmacists, managers and new(prenominal)s that rely on the CRM processes.It will definitely include CA to centralise on negotiating with the high wages of its current union employees who are above the industry standards. The CMO Boyle rotter begin to devise marketing strategies on focusing on marketing segmentation, marketing- rumple and focus on the needs of the customers who are loyal and attempt to retain them as closely as attract new ones. To obtain customer feedback without alienating them CA may consider, online surveying, telephone surveying and other synergetic marketing. synergetic marketing stimulates customer value, customer relationship and customer experience. Kerin (2006) agrees, Interactive marketing creates customer value by providing time, place, form and possession gain for consumers (p. 6). Interactive marketing, marketing segmentation marketing-mix and forecasting cigaret armed service identify customer needs and increase customer relationships. Stakeholder Perspectives/ honest Dilemmas The ethical dilemmas in the Classic Airlines scenario are the conflict interests and values of the chief executive officer Miller and chief financial officer Simpson versus the rest of the campaignership team.A dilemma also exists between the values and interests of the CA watchfulness and leadinghip team and the stakeholders. While the chief executive officer and chief financial officer are driven by numbers and a pragmatic draw near these interests conflict with the boilers suit occupancy strategies and that is to increase customer satisfaction by reducing costs (University of Phoenix, Scenario Two, 2008, p. 1). The company is trying to improve the return on investment (ROI) and at the same time improve the frequent flier program, pay the union employees high wages and implement a new aCRM harvesting.In fact, according to Seget (2004), Wisdom prevails in conducting switch feasibility, forecasting and marketing-mix and marketing-mix query before considering a new aCRM merchandise . implementation (p. 25). Classic Airlines must reach a balance through stakeholders involvements at all levels in attempting to balance the interests and value of all the individuals, departments and organizations. CA must focus on being a best service benchmarking company as a goal because providing the lowest price while utting costs and die hard competitive in the marketplace, is unrealistic thinking. For example, it is not possible to simultaneously provide the lowest-priced and highest-quality produces to customers and pay the highest prices to suppliers, highest wages to employees, and maximum dividends to shareholders (Kerin,2006, p. 3). That is why an environmental scanning, a intersection point digest or four ps, and a situatio n analysis will clarify where the company product or service has been, its status and where it wants to be.The marketing program will identify where CA is, the competitors trends, and the customer current and prospective customers (Kerin, 2006, p. 12). Developing a marketing mix, an environmental scanning will identify the need of the stakeholders to be involved in all level of the termination making process and the development of an aCRM product implementation. The marketing program is a method of bringing an ex counterchange between all the stakeholders to sustain valuable customer relationships. Frame the Right ProblemClassic Airlines will go on competitive in its industry and expand its planetary influence and print loyalty by including its stakeholders voice and valuing its customer voice. early(a) opportunities for CA to achieve its goals of restructuring and implementing new initiatives such as its promote of its current CRM and a new aCRM product development will s erve well sustain customer loyalty, increase customer satisfaction and provide the employees with the skills and automatise technology that can meet the customers needs.In order to meet the changing environmental factors such as regulatory and fierce competitors and reduce labor costs, CA will use marketing strategies such as environmental scanning, sales forecasting, segmentation are opportunities to increases return on investment (ROI) by identifying and meeting customers needs.According to Kerin (2006), The American Marketing Association, representing marketing professionals, states that marketing is an organisational function and a set of processes for creating, communicating, and ransoming value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders (p. 1). CA will guarantee that the ROI will be accomplished through accountability and leadership of the CEO, board members and sr. executives. Valuing the voices all sta keholders will check up on that the values, thics and interests are filtered through a incarnate decision making and implementation process. CA will ensure that its new initiative will be defined in its corporate governance, mission statement, employee booklet, union booklet and take chances centering policies. CA will remain a leading worldwide airline organization that focuses on marketing strategies that include direct forecasting, linear trend extrapolation, market segmentation, product differentiation, sales force surveys, survey of buyers intentions and usage rate strategies that will watch CA a leader among the airline industry.Identifying customer changing needs via profitability exponent, customer audits will accommodate CA remain juicy as well as economic in delivering the best practices in airline function to it loyal customers and future one. Fuel hedging, smaller planes, contrast partnerships and alliances will be strategies that will be analyzed and implement ed to allow costs to be transferred into customer value benefits. Describe the End-State VisionClassic Airlines(CA) will be reconstituted in its philosophy, mission and goals to be a cost-effective and efficient company by focusing on the stakeholders voice in implementing a new analytical Customer Relationship Management (aCRM ) and a Enterprise Relationship Management (ERM) ) product development. Customer and employees as well as top executives who ethics values the customers, the employee and the shareholders will be precious within all levels of the stakeholders communication.The core competencies includes values of the aCRM that will align with the boilersuit organisational goals of valuing the customers voice , sustaining customer relationships, and providing utilities that will create efficient and effective services. Thus the goal of profitability will be achieved through the values of profitability and social accountability and righteousness of the CEO and board members of CA (University of Phoenix Scenario 2, 2008, p. ). Achieving US and globalization as a benchmarking organization stems from an aggressive and proactive marketing program that will lock through an updated CRM system and a future aCRM system that is designed to avenge future environmental changes and thus customer changing needs. An effective marketing program will benefit the customer and stakeholders by assessing the needs of the customer and square(a) those needs (Kerin, 2006, p. 5).Remaining a competitor in the airlines industry means continuing open negotiations and compromise with the airlines union to keep pilots and employees competitive wages with the industry, while reducing costs and retaining loyal customer, increasing customer service and retaining deft employees and sustaining the Classic reward program that is both efficient and effective in customer service. Recommended measures to determine if the CRM and marketing strategies are effective include profitability major power, customer value benefits, and the measurement of rate and customer satisfaction surveys.Identify the Alternatives and Benchmarking Validation Alaska Airlines began in 1932 in Anchorage, Alaska with 17 million passengers annually with flights to over 60 cities and 3 countries. Alaska Airlines is familiar with marketing strategies to remain competitive in the airline industry. Alaska Airlines faced a financial crisis standardised to Classic Airlines who faces possible bankruptcy, a 10% lessening in personal credit line market shares and negativity on Wall Street (University of Phoenix, 2008). In 1972 Alaska Airlines was in the and then Ron Cosgrave and Bruce Kennedy came on board in 1972, the airlines was in a financial fight for its populace.Led by quality leadership, the management restructured the goal of the organization and began bringing people unneurotic to save the failing company (Alaska Airlines, 2008). leadership conducted a differentiating marketing in providing superior customer service as the key. Using a differentiating marketing allowed Alaska Airlines to survive more(prenominal) tumultuous generation during the deregulation of airline industry and the recent rising fuel costs. Kerin (2006) agrees that, The existence of different market segments has ca utilize firms to use a marketing strategy of product differentiation.The strategy involves a firms using differentiation mix and advertising to help consumers perceive activities such as product (service) activities as being better than the other competing products (p2). Classic Airlines can begin meliorate its get and market shares by focusing on marketing strategies such as best services in its industry by aligning a customer-centric focus and include the stakeholders in the new restructuring of the company. Classic Airlines can follow AKLs lead in forming partnerships and alliances to expand its internationalist market. twain parties view the partnership as a pairing o f their expansive international net plant and allowing ALK an opportunity to build a platform for international growth from the westbound (Global airlines, 2008, p. 2). This means double benefits for their customers allowing them the additional options shoting by the two companies and a chance to redeem mileage points from either of the two airlines. The Disney logo and blot name was built in 1923 on the foundation of The Walt Disney Company. Disney was founded by Walter Elias Disney and cofounded by his brother Roy Disney.The Walt Disney Company has an estimated $35 million in annual revenues (Wikipedia, 2008,p. 1). Disney works includes his alter ego Mickey Mouse, Disneyland, records, movies and the Walt Disney World Resort. What is noteworthy of this entertainment, movie imperium is the extent of its marketing strategies to communicate with their customers. Using a marketing mix, Disneys business strategy encompasses the structured marketing communications (IMC) that communi cates a marking loyalty and consistent messages across all audiences.The IMC is used by Disney via its management team and its network customers. Disney takes many types of processional mix as a direct marketing tool to communicate in an exchange with marker loyal customers and with potential customers. This allowed Disney to combine advertising, direct marketing, personal sales, sales promotion and public relations to inform customers of their products, persuade them to use them and remind them of the benefits later on they have used them(Kerin,2006,p. ). Having printed their population segmentation, Disneys IMC and direct- marketing techniques via large locoweed mailings, an internet websites and internet-linked kiosks allow loyal customers and potential customers to inquire about their products and services. The IMC, direct marketing, marketing-mix and promotional-mix allows Disney to exchange information with consumers and keep updated of consumers changing purchasing beh aviors.As Classic Airlines works on updating the functionality of its current CRM and prepares for the aCRM product development, the company can benefit from a direct marketing approach. Therefore, Classic Airlines must streamline its operations in reducing staff, eliminating aircraft with high maintenance, negotiate wage salaries to checkmate the industry market, focus on smaller planes and improve its rewards program. once the costs have been reduce, investments can made towards the CRM system that will allow for printing its marketing population segmentation.Kerin (2006) states, Like personal selling, direct marketing often consists of interactive communication. It also has the advantage of being customized to match the needs of specific target markets. Messages can be developed and adapted quickly to facilitate one-to-one relationships with customers (p. 7). With a well developed functional CRM and aCRM data warehouse, Classic Airlines can focus on communication exchanges thr ough direct marketing and other forms of IMC to attract new customers and maintain loyal customers. Evaluate the AlternativesIn board 3, all the goals were ranked 5 because the aCRM is a software highly co-ordinated system of providing massive information and data on a time-sensitive arena, there will take many stakeholders and business processes to make this new product development and implementation winning. The best features of the original alternatives were combined to create a short list of second tier solutions because it was imperative that Classic Airlines created a change management by clearly defining its mission, objectives and align them with their aCRM objectives. at a time this has been accomplished it was in the best interests of the stakeholders that a shade of change be established internally before commissioning the aid of external CRM consultants. collectable to the amount of organisational resistance due to Classic Airlines original ejection of the stakehol ders in particular the employees, it was best to interconnected any outside help only after internal organizational change and a culture of customer-centric, product-centric and employee rewards for performance were in place. Identify and Assess RisksMany risks can be identify with the implementation of the new product development. Beginning with the risk of organizational resistance, CA will achieve more by including all the stakeholders, peculiarly the customers in a buy-in or acceptation of the new product initiative. If CEO and Board fail to incorporate a culture or organizational change by aligning the new aCRM product objective with the overall objectives of the company, the new product development and completion may be in jeopardy. As most benchmarking companies have found that an evaluation of product feasibility s the first query before needing the new product initiative. The determine feasibility will detail costs, risks, labor costs and other assessments needed to make an informed decision about proceeding with the idea. A more profound tangible risk is if enough skilled employees have. A more profound tangible risk is if enough skilled employees have the technical foul skills to make the new product development a success. Other risks include costs, going pass tasked timeframes, and other external risks, such as the vendors failing to supply financial backing.Other risks include software compatibility risks, decrease in profitability and returns. Risks can be mitigated by grooming a risk analysis and risk management to align with each department decision making in investments and other decisions that impact the overall value of the firm. According to Seget (2008), key findings includes a risk management west by south plan is needed for CA to implement risk management principles and incorporate them in their job functions. Risks can be tracked and contingency plans in place in case they fail.Implementing risk management in each phase of th e aCRM process will ensure that potential risks are identified early on in the product development. A solid risk management plan can help CA face the unknowns get by with unfavorable outcomes and unexpected uncertainties. right as the profitability analysis makes true(p) business sense in considering any aCRM and marketing-mix program, conducting a profitability index makes good business sense to determine if the business objectives have been met. net the Decision The final decision is to develop and implement a new aCRM to remain competitive within the industry.However, to do that a project feasibility and project analysis will be conducted first. Both authors, Kerin (2004) and Segat (2006) agrees to results of a project analysis and market research be completed before any new CRM initiative. These finding will be placed into the new aCRM portfolio that will detail the labor costs, financial investments and workforce needed to complete the product. A management change and orga nizational culture will be take through the mission statements, governance policies, code of ethics and risk management policies.An internal marketing approach will allow an exchange between all stakeholders. Marketing segmentation will allow CA to indentify the customers who will increase the return of investments (ROI) by conducting marketing-mix programs to identify their needs. Customer surveys will allow CA to not only identify those needs but to satisfy unmet needs and identify changing consumer behavior. The challenge for CA is not standard the ROI or measuring the military capability of its total business strategies but find the effectiveness of the customer-focused strategies.Klenke (2003) suggests that, It makes good business sense to bring the project to a final conclusion by determining if the projected results actually were delivered as suggested in the business plan that management approved A decision must be made whether or to return to the pre-project situation i f that is solace an option (para. 139). Develop and Implement the Solution The biggest opposition to any CRM new initiative is organizational resistance to organizational change.The goals it to focus on the greatest resource of Classic Airlines and that is the employees, management and departments and divisions that will be equipped through communication, two-way feedback, employee communication surveys, and an organization culture that values the communication, feedback and decision making of the employees. CA will create an organizational culture within four weeks by communication, mentoring, modeling the new aCRM product project by allowing the employees to acquire two way communication, decision making and two way feedback.CA will resolve its unclear objectives by clearly stating them in their employee handbook. Once a feasibility report is conducted and the return on investment (ROI), market ratios and profitability ratios are concluded, CA will proceed to forecasting, intern al marketing and environmental scanning. Employee surveys as well as feedback surveys and employee questionnaire will be distributed. The employees, customers and stakeholders will be engaged throughout the product development and implementation.The senior management, change ace, financial officer and human resources departments will be responsible in gathering the research and reporting back to the CEO and board members. At that point information will be publicised at all levels from the CEO and board through face to face meetings, employee internet, meetings, corporate magazine and other informational channels. Evaluate the Results The success of the current CRM and implementation of the new aCRM will be measured with ongoing forecasting and marketing-mix research.Since these approaches allow for prediction of future trends of customers and organizational buying behaviors it can also predict the possible increase of revenues and profits that a certain product might generate. Mea sures such as productiveness increase, cost reduction and increase in revenues are more genuine metrics in measuring and evaluating the benefits of the CRM implementation. (University of Phoenix, 2008) Many benchmarking companies like PeopleSoft, according to Seget (2004), may fail in its first product CRM attempt.PeopleSoft adopted a PeopleSoft CRM that failed to deliver in terms of functionality for the end-user, the consumer. PeopleSoft developed another system directed Peoplesoft8 that address the issues of functionality that their cause system failed to deliver. Metrics such as productivity, increases in revenues were some of the measures used by PeopleSoft8. Like Classic Airlines they were facing criticisms of lack of functionality for their customers and had a problem with vendor, supplier and human resources staffing.They became successful in adopting a new PeopleSoft 8 CRM that focuses on employees, targeting customers, supplier relationships and vendor relationships. Seg et (2004) agrees that the success of PeopleSoft 8 CRM (PS8) was due to the focus on human resources centric or HR-centric. Functionality was also a major(ip) concern for PS until their adoption of the PS8-CRM. Although Classic Airlines new aCRM is not up and running, CA can learn from PS8 by acting quickly by fully integrating the PS8 CRM system and forming a business alliances and partnerships to maximize their aCRM efforts.PeopleSoft has been successful enough to use profits to acquire and merge with other companies and partners (Seget, 2004, p. 80). Other measures include dress up analysis, gap analysis, and profitability index and churn evaluate to determine if the objective has been met. Evaluations and customer surveys must be ongoing to allow management to adjust and change their focus as customer behavior and trends change. Conclusion Classic Airlines like most industries are embarking on a fairly new concept, the CRM. Although CRM is a computer based software that provide s integrated on demand information for customers, physicians, vendors and ther stakeholders, the system is only as useable if designed around the customers needs, wants and expectations. According to Seget (2004), the aCRM model uses analytical models and databases to integrate information that will enhance the customer desire for functionality as well as provide time sensitive information for prompt decision making by pharmacists, managers and others that rely on the CRM processes. While Classic Airlines is in its infancy, CEO Amanda Miller must present a project analysis and project feasibility before undertaking the new aCRM product development (Kerin, 2006).According to Kerin (2006) environment scanning and must be conducted not only on its customers but on its competitors as well. Marketing target segmentation, internal marketing, aCRM initiatives, customer surveys and customer audit all work together in reaching an overall business strategy, satisfying the needs of the custom er. Classis needs to reduce costs, maximize ROI, match union pay with the industry and restructure the organization with a product-centric and customer-centric focus.Achieving US and globalization as a benchmarking organization stems from an aggressive and proactive marketing program that will operate through an updated CRM system and a future aCRM system that is designed to compensate future environmental changes and thus customer changing needs. An effective marketing program will benefit the customer and stakeholders by assessing the needs of the customer and satisfying those needs (Kerin, 2006, p. 5). Classic must remain competitive by promoting value for all vendors, supply chain and stakeholders.To measure the effectiveness of the aCRM project and current CRM and marketing program must use customer surveys, profitability index and customer audits to determine if the objectives of CRM and marketing strat4egies are being met. Measurements must be conducted on a continual basis t o allow management to make adjustments and decisions to align the CRM with the business overall business strategies. References Alaska Airlines. (2008). Retrieved November 26, 2008 from the electronic network site http//www. Alaskaair. com/ Band, J. (2003). The CRM medical prognosis Maturing to the next level. Computer Wire.Retrieved November 9, 2008 from the University of Phoenix Library Business Insights Technology network site http//www. globalbusinessinsights. com. exproxy. Global airlines face daunting challenges- more mergers and partnerships? (2008). Retrieved November 25,2008 from the University of Phoenix, Plunkett query database. Kerin, R. A. , et. al. (2006). Marketing, 8e. Customer relationship and value through marketing. New York McGraw- Hill. Klenke, M. , Reynolds, P. , Trickey, P. (2003). Leveraging Customer Relationships, 1e. maneuver to leverage customer relationship.Leyh Publishing Company. Seget, S. (2004). The Pharmaceutical CRM Outlook. Optimizing retu rns from operational and analytical crm. Retrieved November 5, 2008 from the University of Phoenix Library Business Insights database. University of Phoenix. (2008). Automating a Support System. Retrieved November 16, 2008, from the University of Phoenix, resource, Simulation. MBA570-Sustainable Customer Relationships Course Web site. University of Phoenix. (2008). Classic Airlines, Scenario Two. Retrieved November 21, 2008, from the University of Phoenix, resource, Scenario.MBA570-Sustainable Customer Relationships Course Web site. Walt Disney. (2008). Retrieved November 26,2008 from the Website http//en. wikipedia. org/wiki/Walt Disney duck 1 Issues and Opportunities naming Concept Application of Concept in Scenario Reference to Specific face-to-face Experience at your or Simulation Course Concept fundamental law (Include citation) Classic Airlines has a lack ofTo develop value added channels of Just as important is the communication As a newly engage sherif f stakeholder alignment that communication aligning key between and within levels. gone(a) are the days deputy, jail division I had will kibosh their ability to stakeholders under a common vision. when departments could stand as silos, grew so fast and the funds implement new products and This is an opportunity to increase stray from the rest of the organization by to run the new facility had services/solutions. organizational comprehension and impenetrable barriers. Intra-national and ran over its budget.Rumors employee involvement that results international disceptation is now so fierce were running rampant in the garnering of impudence and that everyone (stakeholders) in the throughout the organization loyalty among stakeholders. organization needs to cooperate closely on that resulted in low solving organizational challenges and on morale.The problem for the achieving agreed strategic objectives. Sheriff department was that (Wyatt,2008,para. 9) they noticed a r ise in officer and inmate conflicts.The officers union began to disseminate information via brochures, newsletters and roll call meetings. Classic Airlines lacks Classic Airlines has an opportunityClassic Airlines can select a marketing My company focuses on brand marketing mix and environment to conduct a marketing mix to focusstrategy such as, best price, best service or electronics and brand scanning strategies to on the price, product, promotion best product from conducting a marketing mix appliances at the best identify the internal and and place.These are controllable and environmental scanning. Four elements in price. They also offer a external factors that will factors. environmental scanning area marketing program designed to satisfy price match. Environmental meet customers changing needs uncontrollable factors such as customer needs are product, price, promotion, scanning is conducted by and improve customer social, economic, technologic al, and place. Kerin,et. al,2006,para. 3) These fivephysically going to each satisfaction. competitive and regulatory factors forces environmental)may serve as acceleratorscompetitor store and that will impact CAs overall or brakes on marketing sometimes expanding or retrieving information. marketing strategies. restricting. (Kerin,2006,p. 1) Classic Airlines lacks Classic Airlines has an opportunityIf the objective is to increase customer As a rehabilitation case measurable methods to to develop and implement risk loyalty, then measurement of churn rate management, ongoing surveys determine if their aCRM, analysis, gap analysis, and jam (profitability index)and customer satisfactionand targeted objectives and marketing segments, and analysis and churn rate analysis will be key in determining how well objectivescompares it to the achieved customer surveys to determine and profitability index to is being met(Klenke,2003,para. ) targets were completed by is their overall bus iness determine if the objectives of an automated computer case strategies are effective. loyal customers focus are management program. successful. Table 2 Stakeholder Perspectives and Ethical Dilemmas Stakeholder Perspectives and Ethical Dilemmas Stakeholder Groups with Competing Values The Interests, Rights, and Course Concept Values of Each Group incline Group X versus Group Y CEO Amanda Miller and CFO CatherineInterests include credibility on Wall Street, The American Marketing Association, representing Simpson vs. senior management team stock prices and the media. Values remaining as a marketing professionals, states that marketing is an viable competitor in the industry.Interests organizational function and a set of processes for include operational excellence and driven by creating, communicating, and delivering value to numbers Failing to look to the exchange and customers and for managing customer relationships in communications wil l not develop a marketing ways that benefit the organization and its program to include stakeholders and meet customer stakeholders. (Kerin,et. al,2006,p. 12 needs. CMO Kevin Boyle, Senior VP of Interests include the CRM program, voice of the The hallmark of developing and maintaining effective Customer Service Renee Epson Seniorcustomers employee wage obligations, shareholderscustomer relationships is today called relationship VP of command Counsel Ben Sutcliffeand marketing and customer services functions. Themarketing, linking the organization to its individual and Senior VP of Human Resources conflict is that there needs to be a decision customers, employees, suppliers, and other partners for vs. CEO Miller and CFO Simpson making process that includes all stakeholders. their mutual long-term benefits. (Kerin,et. al. ,2006,p. 5) Classic Airlines vs.Vendors, Communities, media and competitors and other The process of (marketing) segmenting a market and Distributors, Suppliers, Contact stakeholders expect that Classic Airlines selecting specific segments as targets is the link Centers, Communities, Media, management maintain accountability and social between the various buyers needs and the Competitors, Investors. responsibility in the new product development via organizations marketing a market segmentation to meet customer needs. program(Kerin,2006,et. al,2006,p. Table 3Analysis of Alternative Solutionspic Table 4 Risk Assessment and extenuation Risk Assessment and Mitigation Alternative Risks and Probability Consequence and Severity Mitigation Techniques and Strategies Engaging stakeholders at all organizational resistance. Clash between middle management micturate company culture that values levels of the new aCRM product amplify costs and employees. employees and stakeholders. development. hamper in time projections Clash between different lay out marketing goals of aCRM with divisions. overall business strategy. Es tablish clear objectives, business goals and mission statements. Business Alliance with Zurich Organizational resistance. Clash between external and Establish company culture that values Airlines Increase costs internal teams customers and products. checker in time projections. Loss of skilled management and Communicate, model and lead by example employees from CEO, board and senior management. Evaluation of team may result in Establish clear objectives, business more costs to finance new aCRM goals and mission statements. project. Environmental scanning and Costly Research may find that current Project scope and aCRM portfolio marketing-mix research and incidentally aCRM product is not profitable. Marketing-mix portfolio. profitability index, More workforce Table 5 Pros and Cons of Alternative Solutions Alternative Pros Cons Engaging stakeholders in all levels of the new Increase employee motivation and morale. Employees may feel over tasked vie new product, aCRM product development. Increase productivity. fostering new skills and training new hires. Improve customer services Increase resistance from some employees. Deliverables of goals require more time Develop business alliances with Zurich AirlinesAdd to customer value and increase customer Increase employee resistance. and form other partnerships to remain benefits. clock consuming. competitive. Speed up production. Increase costs May reduce overall cost Organizational resistance Employees may see Jobs as being threatened Environmental scanning, marketing-mix research May speed up production and implementation Time consuming. and developing ongoing customer audits, Aid in developing an overall software synergy Increase costs. profitability indexes to measure overall fit. Delay overall time projections. effectiveness of the aCRM. Increase profitability ratios, and return on investment(ROI) ratios, Table 6 Optimal Solution Implement ation Plan bring through Item Deliverable Timeline Who is Responsible Initiate a CRM project feasibility, forecasting and CEO, Board of Directors and Senior marketing-mix before developing and implementing new4 weeks Management Team, Financial motorcoach CRM product. Align new aCRM product objectives with overall 4 weeks CEO, Board of Directors and Senior business objectives and provide update for current Management Team, Project Leadership Team CRM. Analyze a profitability analysis, return on 4 weeks CEO, Board of Directors, Senior investments (ROI) and market ratios to determine Management, Marketing, research and competitors and competitors prices. development and financial manager. Adopt marketing-mix strategies that will retain CEO, Board of directors, senior team, customer loyalty and identify value added incentivesOngoing champion leaders, cross functional team and rewards for loyal customers. leaders, employees and customers. Train, mentor and lead the employees in the adoption Senior management, human resource of the aCRM product development by providing them management, champion leaders, with the highly technical skills, self- paced 20 weeks cross-functional team leaders and training, technical skilled leaders, e-performance evaluation. Attention to increase funding and workforce addition Senior managers, cross-functional team to the product support, administrative support, call24 weeks leaders, technical skilled leaders, call centers, e-business websites for customers and other center leaders, information technology product development customer enhancement support leaders and customer support leaders. systems. Hiring new employees and training them with the Middle managers, team leaders, human needed KSAs to provide refined customer service. 24 weeks resource manager and management team. Business alliances with Zurich Airlines and other 48 weeks CEO, Board of Directors and Senior business partners. Man agement Team, Financial Manager Conduct SWOT analysis, profitability index. Quarterly/Annually Team leaders and senior leaders. Table 7Evaluation of Results End-State Goals Metrics Target prognostication and marketing-mix will identify Forecasting results from social economic and Business customers and fixity customers market synergies that will keep Classic technical factors as well as market-mix results Airlines a viable competitor and ahead in the to identify trends and future trend of CRM market industry. consumers buying behaviors. Classic Airlines will adopt business Using benchmarking examples from Microsoft, Target is benchmarking and best practices CRM intelligence and align with business partners PeopleSoft and other leading aCRM and eCRM service providers. to enhance its new CRM product. service providers, Classic will adopt the synergy fit for its CRM. Classic Airlines will provide employees with Providing skills assessments, skills training Target is employees and stakeholders involve in the high technology skills to face a fast and career advancement, Classic will retain andcustomer relations and customer contact. changing technical environment. attract those with the technical skills to remain a viable contender in the CRM industry. Classis Airlines will enhance the functionalityProviding internet and on line information so Classic Airlines frequent greenback program, of the aCRM new product development by adoptingthat feedback, information, and decision makingbusiness customers, regular customers and personalized websites, target marketing via can be conducted with more available potential customers. e-business, customer email and other channels information and time sensitive data. to market and sustain customer relations. Conduct SWOT analysis, profitability index and Accomplished via multi-channeling, e-marketing,All stakeholders customer surveys to measure the effectiveness e-commerce and other web bases to measure and of the CRM. evaluate Customer loyalty retention.