Gogo Airline has the option of down-sizing its full-service
carries. Although this may affect Gogo airline's target
customer that expect to receive high quality service. Dividing
the business carries both advantages and disadvantages on
the original business (Cowling 2013).
Strategic decision- A long-term impact which affects the
which direction the company decides on. The accounting
department could have a rise in costs in operations, due to
other departments requiring additional work, and the split of
this airline. The advantages of divisionalisation can improve
the quality of decision making, giving divisional managers the
freedom to make more informed decisions. In light of the
Mega Saver launched, the decision-making process will be
quick due to the information being reported directly to the top
manager, thus avoiding hierarchy.
This strategy will enable it to compete with the competition
that has emerged. Moreover, the original airline will maintain
its regular customer, while the Mega Saver will attract new
ones (Kumar 2015). Cost control is one of the main strategies
to be used. Also, in Flight Entertainment (IFE) system has
different application in a low-cost airline. A high-quality IFE
can bring more revenue to low-cost airline (Balcombe et al,
2009). Fixed cost is not taken into consideration, such as
factory rent which is a fixed cost.
Tactical decisions-- managed by middle management, tactical
points requiring decisions, such as size and structure of the
workers, for marketing strategy productivity levels and running
costs. (FDM lecture cast 1, N.D and operational manage KFKB,
N.D)
Operational decisions-run by junior managers, implementing
tasks such as scheduling employees' working hours, buying
office supplies, and making decisions on employees improving
career development.
Recommended technique that can be used by CEO's is net
present value (NPV) for long term financial decisions. It is an
acceptable forecasting decision making technique
What other various techniques can be applied for decision
making?