In the early days of People Express‚ the top management team at the airline was personally involved in the training and selection of employees. This participation was key to instilling spirit and dedication among the staff‚ and the organizational culture that resulted led to the airline’s successful initial growth. (Started in 1981‚ People Express grew in a few years from three to 80 planes‚ reached both U.S. coasts and Europe‚ and earned positive profits.) Explain why decreasing returns might have set in with continued expansion, however‚ and thus ultimately led to the company’s demise in 1986.
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