Problem Solution: Classic AirlinesSummaryClassic Airlines is the fifth largest airline in the world (University of Phoenix, 2008). According to UOP, it was considered profitable but faced with the challenges that plague today's airlines. Increased uncertainty regarding flights has affected industry stock prices across the board, and Classic has experienced a 10% decline in its stock price over the past year (University of Phoenix, 2008 ). There is concern that the investment community is putting the airline industry under a microscope in terms of its operations, opening it up to scrutiny from all sectors. Wall Street's negativity toward the media and public has affected employee morale and trust in the organization, driving them to the lowest level in years. Consumer confidence also appears to be declining due to a decrease in the Classic Rewards program, measuring a 19 percent decrease in the number of Classic Rewards members and a 21 percent decrease in flights per remaining member (University of Phoenix, 2008) . It was evident that loyal customers were no longer attached to them and those who remained on board seemed to be flying less frequently – or at least less frequently with Classic Airlines (University of Phoenix, 2008). Rising costs, particularly those of fuel and labor, have limited Classic's ability to compete with valuable frequent flyers. Solution to the Problem: Classic Airlines The Classic Airlines fleet consists of more than 375 aircraft serving 240 cities with more than 2,300 daily flights (University of Phoenix, 2008). ). Classic has grown to a 32,000-employee organization in its 25-year history and last year earned $10 million on $8.7 billion in revenue (University of Phoenix, 2008). from others and numerically prove that the problem is a problem (in business, any time you lose money, it's a problem as instructed by the speaker, Professor Ancis). Which business concept in the case study the problem is linked to by justifying where in the case study the concept/problem is identified. In doing so, efforts will be made to relate it to my personal experience as outlined in the guidelines provided. Identifying and Measuring Problems One of the problems within Classic Airlines is that the company experienced a 10% drop in stock price (stock price is the price of a single share of a company) over the past year.