5:

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?