Question
Need help in rewriting this in my own words please Balanced Scorecard Analysis of Company B Company B's yearly revenue is presently $26-27 million, with
Need help in rewriting this in my own words please
Balanced Scorecard Analysis of Company B
Company B's yearly revenue is presently $26-27 million, with a 3% annual growth rate.
The acquisition will necessitate a price that is close to its current worth. This number is not
considered a concern when considering Company B's sales and profits. The financial situation
and annual sales of Company B are expected to improve. Company B is a smaller airline with a
lower profit margin than TransGlobal, which may have an impact on TransGlobal. Company B's objective of increasing its gross profit margin by 3% over the next five years would result in a
significant rise in revenue. The inauguration of the new president bodes well for the
implementation of internal processes. Because airlines want to improve online growth, public
support, and adopt new methods and standards, the cost of implementation is considerable.
Because of the low profit margin, there are risks associated with the acquisition of
Company B. TransGlobal airline would have to wait longer to break even on its purchase costs.
The amount of money TransGlobal Airlines will invest in Company B, as well as the length of
time it will take for the ROI, raises the financial risk. The purchase of Company B will result in
significant operational and cultural changes. As a result, the operating risk is reduced from
medium to low. TransGlobal will modernize Company B's operations and enhance revenues by
implementing the 2030 strategic plan and objectives, as well as the TransGlobal airline goals.
In the market, the risk of this acquisition is the lowest. Vacationers, tourists, and business
travelers are the target markets for Company B's eight destinations. Company B has a retention
rate of 40% and an average seat occupancy rate of 60%. The cost of acquiring Company B on the
market, as well as the rewards, are quite low.
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