Airlines Customer

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AAA Auto Club South

Problem Statement

Classic Airlines needs to focus on the opportunities available to them in order to increase profits and sales through a new and improved customer rewards program. By performing an environmental analysis, using the SWOTT, SLEPT or PESTLE model (Freiwald, 2007, p. 1-2) the company will be able to identify internal and external forces that can have an affect on the organization and airline industry as a whole.

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Using these models will also allow the company to conduct effective surveys to enable them to become the voice of the customer (Freiwald, 2007, p. 1) turning its attention to their needs and by revising its current CRM system to fit a marketing strategy appropriate for accomplishing the company’s goals and objectives. The company must deliver services desired by the customer’s or they will continue to lose profits and market share in the airline industry. Classic Airlines must also recognize the needs of all employees, both union and non-union, and perhaps implement an incentive program which could help boost moral and motivation.

Company Overview

Part of the American Automobile Association, AAA Auto Club South’s (ACS) has an image that is recognized internationally. ACS’s purpose is to provide unsurpassed service to every customer; treating the members the way you want to be treated by providing courteous and friendly service (AAA Auto Club South, 2006). They are dedicated to attracting and retaining quality employees; therefore, they use various motivational strategies and reward systems to keep the employees enthusiastic about work. Although, the company’s compensation package is very competitive, they offer various incentives and reward programs. The purpose of the additional incentives and rewards is to help the company achieve its goals by attracting, motivating, and retaining highly qualified support staff and salespeople.  

Keys Findings-Employee Incentives

Beneficial incentives offered at ACS include paid holidays, vacation and personal time, health, dental and life insurance for the employees and their families and flexible work schedules in some departments. In addition, the company started experimenting with educational assistance by providing employees $500 per year as an opportunity to improve their work skills and upgrade their knowledge in an effort to develop their career within the organization. Due to the increasing interest and efforts of the employees the education assistance was raised to $1000 per year (AAA Auto Club South, 2006). One of the monetary reward programs offered at AAA is the quarterly incentive bonus, which is based on departmental goals and not the individual. This reward system was implemented to promote teamwork. Another reward which is awarded annually is the Extraordinary Performers Bonus (AAA Auto Club South, 2006). This program focuses on goals set by the employee and his or her ideas which can be implemented to improve departmental practices and processes,

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