Question
The CEO of GoGo Airlines realises MegaSaver Airways will have a unique business model. Whereas GoGo Airlines will continue to operate as a full-service flight,
The CEO of GoGo Airlines realises MegaSaver Airways will have a unique business model.
Whereas GoGo Airlines will continue to operate as a full-service flight, MegaSaver will be a no-frills airway. Attempts will be made to keep MegaSaver's airfare low by making it a cost and price leader.
MegaSaver’s customers will be charged extra for in-flight meals and for checking in luggage. MegaSaver's cabin crew’s salary will be lower than GoGo's, but they will get an opportunity to earn higher commissions for their in-flight sales.
The proposed new business model has made the CEO feel apprehensive of the associated risks.
In this discussion forum, you are required to
State the qualitative and quantitative factors which the CEO should consider while evaluating the feasibility of the new airline
Explain how strategic management accounting can assist the CEO to make a suitable decision on the viability of MegaSaver and
Critically evaluate the use of the balanced scorecard to measure the future performance of MegaSaver.
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