January 21, 2015
1. How is this decision emblematic of your job as a manager?
This decision is emblematic of my job as a manager because of the risk factor. As manager, there will be times that decision making could possibly be harmful to the airline instead of benefiting from my decision. Due to the unpredictability of the airline industry, a decision such as the one I would be facing as a manager of the company could potentially be detrimental to the long term and short-term success of the airline. Because of the additional baggage fees, the competing airlines are bringing in a large amount of profit. As a manager, I would weigh the options to help the airline remain competitive with the other airlines by making the best decision possible for the airline.
2. What are the advantages and disadvantages of following competitors by charging for checked baggage?
When making a business decision to help better the short and long-term success of the airline, there will be advantages and disadvantages. The net effects of baggage fees have been incredible, amounting to millions in revenue. One advantage to charging baggage fees is that it will result in passengers checking fewer bags, allowing for more space for cargo on the plane. Another advantage to following the competitors with baggage fees is that the fares do not have to be lowered after charging for checked baggage and no other expenses should increase, allowing for total profit.