Astro Airlines - King's College
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Transcript Astro Airlines - King's College
Astro Airlines
Presented by Sara Weron
Astro Airlines Summary
Arthur Burton establishes Astro Airlines in
1980
Low-cost, no-frills airline
Company emphasized quality, participative
leadership, and self- management
Despite early success, organizational
problems eventually occurred
Company filed for bankruptcy in 1986
Problems with Astro Airlines
Problem # 1
– Organizational Problems
Lack of communication, overwhelming workload, and decision
processes
Sub-problem # 1
– Lack of experiences management
Issues occurred in company, absence of managerial staff
Problem # 2
– Burton as CEO and President
Not capable of handling all issues, reluctant to hire a new company president,
not able to keep up with trends of industry and major competitors
Problem # 3
– Internal problems associated with employees
Attempts of organizing unions, employees quitting jobs, and atmosphere
different than original atmosphere of company
Alternative Solutions to Problem # 1
Hire new employees for Astro Airlines
Pros
– More work will get done
– Room for communication
– Employees are happy
Cons
– Costs would be greater
– Finding the right employees takes time
– Additional time to properly train new employees
Alternative Solutions to Problem # 1
Delegate certain tasks to specific individuals
Pros
– Reduces overwhelming workload
– Communication to higher authorities is minimal
– Jobs are routine, making them easier
Cons
– Dissatisfied employees
– Employees not fit for their assigned task
– Repeated tasks become boring
Alternative Solutions to Problem # 1
Do absolutely nothing
Pros
– Saves company money
Cons
– Lower customer service
– Unhappy employees
– Company loses money long-term
Solutions to Sub-Problem # 1
Hire outside experienced managers
Pros
–
–
–
–
Eliminate chaos and disorder
Time management will be more efficient
New insights on company projects
Boost team morale
Cons
– Expensive
– Requires time and resources to train new management
– Existing employees could no longer be part of management
Solutions to Sub-Problem # 1
Train current employees for management positions
Pros
– Cost effective
– Earn more respect from current employees
– Employees can use past experiences to help with future problems
Cons
– No expert advice
– Old ideas
– Resistance to change
Alternative Solution to Problem # 2
Arthur Burton needs to hire a company president
immediately
Pros
– New innovative ideas
– Less stress on Burton
– Fresh start for Astro Airlines
Cons
– New president and Burton may not see eye to eye
Alternative Solution to Problem # 3
Company should hold a meeting to discuss
employees’ needs and concerns
Pros
– Open communication
– Answers how goals be achieved
– Employee satisfaction
Cons
– Time
– Resources
– No solutions stem from the meeting
Recommendations
Astro Airlines should hire more employees
and hire outside experienced managers
Arthur Burton needs to hire a company
president
Astro Airlines and Burton should hold a
company meeting to discuss what needs to
be done in the organization
Conclusion
Astro Airlines will be successful if they
implement new strategies
Need a clear vision of what their company
will represent in years to come
Solutions are in the best interest of the
company, not Arthur Burton
Comments
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