3 [25 MARKS]

FastFly (Pty) Ltd traded for two years before the Covid-19 pandemic affected its operations and

markets. The entity provides airline services between four major cities in South Africa and a few

regional cities. The major shareholder and CEO, Miss B, wants to be aggressive, as there are signs

of green shoots after the pandemic, with routes opening up as countries open their borders.

She wants to re-evaluate strategic intent by leveraging artificial intelligence (AI) and data science,

marketing strategies, focusing on using the internet and social media for marketing and sales. She

observes that the company could double sales through marketing and selling via online platforms at

no additional cost, as the entity invested in technology before the pandemic. Increasing call centre

staff to double the sales effort would result in higher staff costs and health safety issues around Covid-

19 protocols. FastFly (Pty) Ltd does not need additional costs right now, as revenue is not yet stable.

Currently FastFly (Pty) Ltd sells tickets via the call centre. The entity has a website and online

platforms which are used only for publicity. The technology FastFly (Pty) Ltd bought before the

pandemic will allow:

Realtime access to data that can be used to inform decisions relating to improving operational

efficiency and eventually improving purpose hence strategic perspective;

Revenue management aspects that can define how to sell tickets to those who need them at

an economical price, at the time they want them, and through appropriate online platforms.

The system is based on the premise that value is perceived differently by different targetmarket

groups and at different times of purchase. The system can define and optimise

destinations and adjust prices for specific markets, find seats to keep the airline competitive,

and is customer friendly;

Messaging automation that updates customers when there are delays and provides other

pertinent information; and

Manage crew flight-hours and days off within union limits.

Required:

a. In a professional report to the FastFly (Pty) Ltd board advise directors on how the

company should pursue the new strategic direction. Your report should critically

evaluate the difficulties FastFly might encounter in moving from strategic intent to

implementation, offer appropriate strategies for managing the strategic change

envisaged, and outline a new strategic plan.

(18)

Professional presentation of report.

(2)

b. Discuss corporate governance challenges and conflict of interest that may arise from

FastFly (Pty) Ltd having Miss B as a shareholder and CEO.

(5)3 [25 MARKS]

FastFly (Pty) Ltd traded for two years before the Covid-19 pandemic affected its operations and

markets. The entity provides airline services between four major cities in South Africa and a few

regional cities. The major shareholder and CEO, Miss B, wants to be aggressive, as there are signs

of green shoots after the pandemic, with routes opening up as countries open their borders.

She wants to re-evaluate strategic intent by leveraging artificial intelligence (AI) and data science,

marketing strategies, focusing on using the internet and social media for marketing and sales. She

observes that the company could double sales through marketing and selling via online platforms at

no additional cost, as the entity invested in technology before the pandemic. Increasing call centre

staff to double the sales effort would result in higher staff costs and health safety issues around Covid-

19 protocols. FastFly (Pty) Ltd does not need additional costs right now, as revenue is not yet stable.

Currently FastFly (Pty) Ltd sells tickets via the call centre. The entity has a website and online

platforms which are used only for publicity. The technology FastFly (Pty) Ltd bought before the

pandemic will allow:

Realtime access to data that can be used to inform decisions relating to improving operational

efficiency and eventually improving purpose hence strategic perspective;

Revenue management aspects that can define how to sell tickets to those who need them at

an economical price, at the time they want them, and through appropriate online platforms.

The system is based on the premise that value is perceived differently by different targetmarket

groups and at different times of purchase. The system can define and optimise

destinations and adjust prices for specific markets, find seats to keep the airline competitive,

and is customer friendly;

Messaging automation that updates customers when there are delays and provides other

pertinent information; and

Manage crew flight-hours and days off within union limits.

Required:

a. In a professional report to the FastFly (Pty) Ltd board advise directors on how the

company should pursue the new strategic direction. Your report should critically

evaluate the difficulties FastFly might encounter in moving from strategic intent to

implementation, offer appropriate strategies for managing the strategic change

envisaged, and outline a new strategic plan.

(18)

Professional presentation of report.

(2)

b. Discuss corporate governance challenges and conflict of interest that may arise from

FastFly (Pty) Ltd having Miss B as a shareholder and CEO.

(5)