Decision Marking Essay Example | Topics and Well Written Essays - 2500 words

Decision Marking - Essay Example The issue will first be illustrated, and then it will be necessary to identify the importance of decision making process for the company; the major part of the work will e devoted to the detailed structured analysis of the issue and application of the soft system technology to it. Conclusion will summarize the acquired information and will make it possible to define the best solutions. Last year more than 50% of total passenger traffic was generated within North America and Europe, with Japan accounting for an additional 4% from domestic or international flights. These three regions equate to more than 70% ($US400 billion) of airline revenues. However the picture will change dramatically in the next five years, due mainly to the emergence of China and India as economic superpowers set to capture about 15% of expected growth in global traffic. It is clearly seen, that the issue to be discussed in the present work is how to keep the existing market share in the global traffic and how to attract additional customers to the area of the North American and European airlines, so that with the emergence of China and India as new super powerful economic states these market shares should not be threatened to minimize. It is obvious, that possessing significant market share in global traffic and especially airline needs constant attention and decision-making, because the thr eat of India and China occupying its considerable part is based on objective reasons and grounds. However, on the other hand, these assumptions may underlie another aspect - tending to stability and knowing the quality of the services provided by European and North American airlines many customers would not be willing to change the supplier of these services, that is, the airline company they usually use for traveling on business or entertainment. Background The starting point for any aircraft demand analysis is clear understanding of the issues driving air transport and the way in which they relate to the future air traffic and aircraft capacity. Airbus' traffic forecast process is based on four major building blocks, and it should be noted that these building blocks are also important to be known in the present decision-making process. These are Brand, Emerging Markets, Human Assets and Technology. The two aspects which will be taken for analysis here are Brand and Technology. It will be essential to see how these two aspects of the airline business should be involved into keeping the present market share and what decisions should be made in relation to these two aspects to make them work for the benefit of the leading world airline companies. These will be taken as the two major issues or challenges to be faced by the companies in the nearest future and thus appropriate decision-making techniques should be chosen. (Isenberg 1996, p. 7 78) It is stated, that airlines based in Middle East and Asia are expected to develop more quickly than airlines based in other regions, growing by an average of 6.4% and 6.2% respectively. This is fuelled by the aspiration of airlines and in some cases the countries themselves, as well as access to bourgeoning markets driven by liberalization and a growing propensity to travel. But for the companies which are