3.

The launching of any new company comes with risk and

uncertainty and must be considered carefully. When creating

MegaSaver Airlines, some of the examples of decisions would

be as follows:

Strategic (decisions made by high level managers):-

-appointment of directors and what the expectations are of

their roles. Ensuring

- understanding the expectations of shareholders and

shareholder distribution

-managing the environmental implications

Tactical (decisions made by middle level managers):-

-sourcing of workforce to manage the new business. How

many staff and how will the staff be structured?

- Presentation of data to ensure the business is going as

expected

- What is the target customer and how do they reach them?

Operational (Day to day running of business):-

-Training of new staff. Will GoGo Airlines staff be used for

training?

- What reporting methods will be used to report to middle

management?

-Measurement of quality standards

A CEO will be faced with many challenges when starting a new

launch. Faced with challenges such as rising jet fuel prices

rising around 85.7% since 2021 (Air Cargo News, 2022),

environmental implications, rising competition, and more

demanding customers.

The CEO may use NPV (Net Present Value). This will allow the

CEO to calculate what investment value they will expect. To be

profitable, it is expected that the NPV must result in a positive

value. This method is very commonly used and is a successful

decision-making tool.

What other challenges may the CEO face when launching this

new airline?