Posted: September 17th, 2022

Steps in Decision Making

5 Key Steps in Decision Making

Problem Recognition
Aviation industry is among the most viable markets globally. Business survival and competitiveness depend on managerial acuity, which among others demand an ability to make quick decisions in complex scenarios. The primary issue in question is the lack of enough B787-8 aircraft needed to launch daily fleets along DOH-MAN v.v. The company has sufficient crafts to launch three fleets every week. The B787-8 model is most suitable for flight to Manchester city. Arguably, the company would prefer to launch daily fleets possibly as a route domination strategy and for reliability by routine travelers. However, the biggest problem lies in the possible delay of at least two years, during which the company would be finding ways to correct structural issues of the required model.
Definition of the Problem
The problem Qatar Airways is facing is multifactorial. Perceiving it as merely an inability to launch flight services to Manchester is a superficial understanding that ignores factors such as securing crafts of choice, competition and financial implications. A viable decision must take into account of the impact of each factor. It is important to note that Qatar Airways is unable to launch daily services because of certain domineering technical challenges. Understanding the scope of this problem will help suggest possible solutions. However, it can be viewed as a dilemma in choosing the best method to optimize returns rather than a problem. For instance, instead of employing B787-8 aircraft to service the route DOH-MAN v.v., the company could resort to the use of B777-300ER. Hence, the problem ultimately becomes a question of which option is more viable for the company. Yet, the meaning of various choices from a business perspective is more important than their availability. Consideration of these alternatives, including both their advantages and disadvantages can help Qatar Airways understand what could affect the viability of their venture into UK market.
Possible Solutions
Excellent managerial decision-making enables solutions that account for the scope of the problem. A number of solutions are apparent from the case study. First, the company can consider delaying the launch of daily services to Manchester for the two years period awaiting Boeing to correct design flaws of its crafts. As a result, this might negatively affect company’s current and future financial status. However, the company might deem it necessary to follow safeguarding standards and secure its brand reputation since B787-8 aircraft has design and production issues. Secondly, the company has an alternative model B777-300ER aircraft, which has a relatively high capacity and can be used to launch services to Manchester. In order to choose between waiting and resorting to a different model, Qatar Airways must consider all dynamics relating to the brand image of the company and impact on its finances. Second option seems more tenable since it can greatly reduce initial investment. Another option is to halt the launch of services to Manchester UK, and instead shift to regions beyond the Middle East to Indian subcontinent, such as Australasia and South East Asia. Since Qatar Airways shares a code arrangement with British Airways on LHR-MAN, the company could use it as a head start to initiate services from Manchester to regions far beyond the Middle East. Although it might cost company’s resources, the potential of a new market along with existing competition from the Etihad Airways in the UK market, present significant facts in favor of a latter solution. A final alternative is to launch the fleet, but settle for three time’s fleet, which will in any case make it possible to operate with the preferred aircraft model. The company can growth from that position with time.
Preferred Solution
The best strategy to adopt is to deploy the alternative model B777-300ER. This choice rests on two reasons factors. First, the model has a tested legacy. … Has used the model for many decades. Secondly, it would make it possible for the company to take advantage of the opportunity. The only thing the company might have to forego is operating with a model of choice. Undeniably, B777-300ER has even higher capacity in both classes, which would translate to a higher return on investment. Besides, the company could consider the use of the model as temporary measure and revert once it is able to acquire the required number of B787-8 aircrafts.
Adopt and Implement the Solution
Having considered the use of alternative model as the best solution in the circumstances, it is important to consider relevant implementation logistics. On this, the company might consider the factors that made the model unsuitable for the model, and work to develop special mechanisms needed to make the use of the model fruitful. The company might consider some further research and where possible benchmark from the companies that have lived experiences on the use of the model.
Commentary on Operational and Financial Implications
Each of the solutions proposed above has reaching implications in terms of company’s operational efficiency and return on investment. Clearly, delaying the launch of the Manchester services is a poor solution since it would cause a loss of a viable opportunity. The alternative to use a different aircraft model is arguably a better option although not perfect for that route. Moreover, adoption of a different model would affect operational efficiency of the company and imply many management challenges. Interestingly, adoption of the alternative model could be prevented if the management of B777-300ER would be unsustainable and financially infeasible. Any decision made must leave the company in a better financial position and not detract it from its primary goal: profit generation. Delaying the launch of services to Manchester might not be financially hazardous from the start, but can prove to be a self-defeating decision in the end. For instance, saturation of the market by rival companies can make it difficult for Qatar Airways to enter the market effectively and generate revenues. Moreover, overcrowding of the DOH-MAN v.v. route could result in additional operational challenges.

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