The Gray Zone
product-mix contraction? Or was it OK to keep
it a secret to protect the compan...
The Gray Zone
product-mix contraction? Or was it OK to keep
it a secret to protect the company and its ob-
jectives?
Due to rising fuel costs and dwindling cash
reserves, a budget airline needs to drop sev-
eral of its destinations so it can stay afloat. This
is part of a contraction product-mix strategy.
So as not to alarm customers or investors, the
company doesn't make the announcement
about the dropped destinations until the day
before the flights stop. Customers can use
their previously-purchased tickets as credit,
but their scheduled flights will not take place
as planned. This leaves many customers
stranded, frazzled, and angry. What do you
think about the airline's actions? Did it have a
responsibility to let customers know about the
Mit
Answers: 3
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