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BALANCED SCORECARD, ENVIRONMENTAL, AND SOCIAL PERFORMANCE. WrightAir is a no-frills airline that services the Midwest. Its mission is to be the only short-haul, low-fare,
BALANCED SCORECARD, ENVIRONMENTAL, AND SOCIAL PERFORMANCE. WrightAir is a no-frills airline that services the Midwest. Its mission is to be the only short-haul, low-fare, high- frequency, point-to-point carrier in the Midwest. However, there are several large commercial carriers offering air transportation, and WrightAir knows that it cannot compete with them based on the services those carriers provide. WrightAir has chosen to reduce costs by not offering many inflight services such as food and entertainment options. Instead, the company is dedicated to providing the highest quality transportation at the lowest fare. WrightAir's balanced scorecard measures (and actual results) for 2020 follow: Target Actual Objectives Measures Performance Performance Financial Perspective Increase shareholder value Operating-income changes $7,200,000 $8,400,000 from productivity Operating-income changes from price recovery $2,700,000 $3,600,000 Operating-income changes $3,000,000 $3,960,000 from growth Cost savings due to reduction in jet fuel consumption $900,000 $1,080,000 Customer Perspective Increase the number of on- FAA on-time arrival ranking 1st in 2nd in time arrivals industry industry Improve brand image Percentage of customer survey respondents with greater than 90% approval rating on company's sustainability 100% 96% efforts Internal-Business-Process Perspective Reduce turnaround time On-ground time < 25 minutes 30 minutes Reduce CO, emissions Number of engineering changes that decreased Co, emissions 10 Learning-and-Growth Perspective Align ground crews % of ground crew stockholders 70% 68% Acquire new energy Achieve ISO 50001 certification Acquire Acquired management tool and technology in energy management certification certification by Dec. 31 by Dec. 31 Required 1. What is WrightAir's strategy? Was WrightAir successful in implementing its strategy in 2020? Explain your answer. 2. Draw a strategy map as in Exhibit 13-2 for WrightAir describing the cause-and-effect relationships among the strategic objectives described in the balanced scorecard. Identify what you believe are any (a) strong ties, (b) focal points, (c) trigger points, and (d) distinctive objectives. Comment on your structural analysis of the strategy map. 3. Based on the strategy identified in requirement 1 above, what role does the price-recovery component play in explaining the success of WrightAir? 4. Would you have included customer-service measures in the customer perspective? Why or why not? 5. Would you have included some measure of employee satisfaction and employee training in the learning-and-growth perspective? Would you consider this objective critical to WrightAir for implementing its strategy? Why or why not? 6. Why do you think WrightAir has introduced environmental measures in its balanced scorecard? Is the company meeting its performance objectives in this area?
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WrightAirs Strategy and Implementation in 2020 WrightAirs strategy is to differentiate itself as a nofrills shorthaul lowfare highfrequency pointtopoint carrier in the Midwest The company aims to redu...Get Instant Access to Expert-Tailored Solutions
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