Module 1 Background Required Material The Following Interact

Module 1 BackgroundRequired Materialthe Following Interactive Tutori

The assignment requires analyzing a decision-making scenario involving Qantas airline and its CEO Alan Joyce. You need to determine whether the decision to sell the frequent flyer program is strategic or operational, whether it is a programmed or non-programmed decision, and explain this using references to Moshal (2009) or Kourdi (2011). Additionally, you should recommend a rational decision-making process if Joyce opts for a rational approach, detailing each step with specific information considerations from your research and the background materials. Furthermore, assess whether Joyce should apply a rational or intuitive approach based on his experience, and recommend what approach a new CEO from another industry should use, providing justification supported by the readings. Ensure to follow the instructions closely, cite all references properly, and keep focus on the specific questions posed.

Paper For Above instruction

The decision facing Qantas CEO Alan Joyce regarding whether to sell the airline’s lucrative frequent flyer program is a complex and strategic issue that involves multiple decision-making dimensions. Analyzing this decision requires understanding its classification as either strategic or operational, and whether it constitutes a programmed or non-programmed decision, as outlined by Moshal (2009) and Kourdi (2011).

Firstly, the choice to sell the frequent flyer program can be characterized as a strategic decision. Strategic decisions are long-term, high-impact choices that significantly influence the organization’s future direction and competitive advantage (Moshal, 2009). Given that the frequent flyer program is the airline’s most valuable asset—accumulating over ten million members and generating revenue through diverse avenues—including partnerships, credit card alliances, and retail redemptions—any decision to sell would profoundly impact Qantas’s market positioning, customer loyalty, and revenue streams. This decision directly affects the company’s long-term strategy concerning customer retention, brand loyalty, and competitive differentiation, indicating its strategic nature (Kourdi, 2011).

Secondly, regarding decision type, this is primarily a non-programmed decision. Non-programmed decisions are novel, complex, and non-routine, requiring custom solutions because they involve unfamiliar situations, uncertainty, and significant consequences (Moshal, 2009). Selling the frequent flyer program is not a routine operational decision; it involves weighing the long-term implications of divesting a core asset, handling stakeholder reactions, and forecasting market responses—factors that are unpredictable and not embedded in standard operating procedures (Kourdi, 2011).

If Joyce adopts a rational decision-making approach, a systematic, step-by-step process should be employed. Initially, he must clearly define the problem: evaluating whether selling the frequent flyer program aligns with Qantas's strategic goals amid financial hardship. Next, he needs to gather relevant information, such as the program’s financial value, customer loyalty impacts, market trends, potential buyers, and legal considerations. For example, analyzing the program’s contribution to revenue, the potential sale price, and the implications of data sharing with partners are essential details (Moshal, 2009).

The third step involves identifying and evaluating alternatives. Joyce should consider options including selling the program, leasing it, or restructuring partnership agreements. For each alternative, he should assess the benefits, risks, and impacts on stakeholders (Kourdi, 2011). The fourth step is to analyze all the information collected, applying quantitative techniques such as cost-benefit analysis, scenario planning, or SWOT analysis to predict outcomes for each alternative clearly.

Subsequently, he must select the most feasible and advantageous option based on the analysis, emphasizing data-driven insights. After selecting an option, implementing it requires detailed planning, risk mitigation strategies, and stakeholder communication. Finally, Joyce should monitor the outcomes of the decision, adjusting the strategy as necessary, which underscores the importance of feedback mechanisms in rational decision-making (Moshal, 2009).

Given his six years of experience as CEO and an established knowledge of the airline industry’s complexities, Joyce might lean toward a rational approach when making this decision. His familiarity with the intricacies of airline operations, customer loyalty programs, and market conditions provides a solid foundation for making well-informed, analytical decisions. According to Kourdi (2011), experienced leaders tend to favor rational decision-making, leveraging facts and data to minimize uncertainty and bias.

However, for a new CEO from a different industry without deep airline expertise, an intuitive approach might initially be more appropriate. Intuitive decision-making relies on experience, gut feeling, and quick judgment, especially in unfamiliar circumstances where quick action is needed, and comprehensive data may not be readily available (Kourdi, 2011). This approach can be effective when decisions are complex and time-sensitive, and the leader heavily relies on prior experience to interpret ambiguous information.

In conclusion, the decision to sell the Qantas frequent flyer program is best classified as a strategic, non-programmed decision because it involves high-impact, long-term considerations and novel circumstances. For Joyce, with his accumulated airline industry experience, a rational, analytical approach is recommended, allowing for detailed evaluation and minimizing risks. Conversely, a new CEO from another industry might find an intuitive approach more suitable initially, particularly when facing unfamiliar decision environments. Both approaches should be employed judiciously, with a preference for rational analysis supported by data in complex, high-stake decisions like this one.

References

• Kourdi, J. (2011). Effective Decision Making: 10 Steps to Better Decision Making and Problem Solving. London: Marshall Cavendish International.
• Moshal, B. S. (2009). Decision making in an organization. In Principles of Management (pp. 125-154). New Delhi: Global Professional Publishing Ltd.
• Ross, K. (2014, August 27). Qantas CEO faces tough choices. Wall Street Journal. ProQuest.
• Ironside, R. (2014, August 15). Qantas warned to ground plans to sell frequent flyer program. The Gold Coast Bulletin. ProQuest.
• Gilder, P. (2014, March 29). Loyalty future cloudy. The Gold Coast Bulletin. ProQuest.
• Australia: Qantas frequent flyer hits 10 million member mark. (2014). MENA Report. ProQuest.
• Buhler, P. M. (2001). Decision-making: A key to successful management. SuperVision, 62(2), 13-15. ProQuest.