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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Questions ?