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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

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