Introduction to Decision-Making

Making a Strategic Decision

The question of whether or not to sell Qantas frequent flyer program is primarily a strategic decision. This is because the program is a valuable asset that generates a significant amount of revenue for the company. However, there are also operational considerations that need to be taken into account. For example, if the program is sold, Qantas will need to find another way to generate loyalty among its customers. It is also important to consider the potential impact on Qantas' brand identity. Overall, the decision to sell the frequent flyer program is a complex one that requires careful consideration of both strategic and operational factors.

The difference between strategic and operational decision-making has to do with the overall aims of the two approaches (Buhler, 2001). Strategic decisions are made at the top level of an organization and concern the organization's overall direction. Operational decisions, on the other hand, are made at lower levels of the organization and concern the day-to-day running of the business. Strategic decisions are typically long-term and involve a lot of planning, while operational decisions are usually short-term and require less planning. Because strategic decisions have a greater impact on an organizations overall performance, they are usually made by senior executives. Operational decisions, on the other hand, can be made by middle managers or even frontline employees.

There is no hard and fast rule about how to make strategic or operational decisions. However, it is generally accepted that operational decisions should be made as close to the point of action as possible, while strategic decisions should be made at the highest level of the organization. This is because operational decisions tend to be more time-sensitive and require more detailed knowledge of the situation than strategic decisions. Strategic decisions, on the other hand, require a broader perspective and can often be made without detailed knowledge of the situation (Buhler, 2001).

Programmed vs. Non-Programmed

Also, when it comes to making decisions, businesses can choose between two different types of approaches: programmed and non-programmed. A programmed decision is one that follows a set of established rules or guidelines, while a non-programmed decision is one that is made on a case-by-case basis. So, when it comes to the question of whether or not to sell Qantas' frequent flyer program, which type of decision would it be?

There are several factors to consider. On the one hand, selling the program could be seen as a way to generate a quick influx of cash (Ross, 2014). On the other hand, the program is a key part of Qantas' brand identity and customer loyalty strategy (Ironside, 2014). Given these considerations, it seems that the decision whether or not to sell Qantas frequent flyer program is a non-programmed decision.

Rational Approach

If Alan Joyce were to take a rational approach to the decision of whether or not to sell the frequent flyer program, I would recommend that he consider the following steps. Firstly, he should gather information on the current state of the program, including membership numbers, growth rates, and profitability. When...…more reliant on gut feeling and instinct. So, which approach should Joyce use in this situation?

Given that Joyce has been the CEO of Qantas for 6 years, it could be argued that he has the necessary experience to make a rational decision. He will be well-aware of the potential risks and rewards of taking this course of action, and will be able to weigh up these factors to come to a logical conclusion. However, it could also be argued that an experienced airline executive like Joyce should trust his intuition in this situation. He has likely faced similar situations before, and his instincts will have been honed by years of experience in the industry. There is no right or wrong answer here, and ultimately it will come down to Joyce's personal preferences. However, both the rational and intuitive approaches have their merits, and Joyce would be wise to consider both before making his final decision (Kourdi, 2011).

If a new CEO were to come from a different industry to take the helm at Qantas, I would recommend the rational approach. The rational approach has the advantage of being more objective and data-driven. By carefully studying the airlines operations, the CEO could identify areas that need improvement and make changes accordingly. This type of analysis would help him to avoid making costly mistakes that could jeopardize the airlines profitability. The intuitive approach is generally faster and can be more nimble in response to changes in the marketplace. However, it would require the CEO to use their past experience to make quick decisions…