Luft Airlines, a leading global travel company has not yet recuperated from the 2007-2009 financial crisis in the United States. The company has accumulated huge losses in excess of US $ 100 million in the recent years which threatens its continued operations.
The Board believes that it is spending significantly on employees’ salaries, wages and allowances, while some departments are simply underperforming.
James Smith, the CEO and renown Business Analyst, is requested by the Board to critically think over this problem and to advise on whether to lay off workers or to restructure business processes and functions.
You are required to prepare a short essay and presentation describing the problem solving techniques that Mr. Smith could use and evaluate the decision he makes as a solution to the problem. Is it a logical or emotional decision? Provide facts for your response.
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