Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

need help in rewriting this in my own words please Balanced Scorecard Analysis of Company A Before TransGlobal can make a final decision on the

need help in rewriting this in my own words please

Balanced Scorecard Analysis of Company A

Before TransGlobal can make a final decision on the acquisition of Company A, the

airline must evaluate several issues. Company A has an annual sale of $28-29 million dollars,

with a 2.5-2.9 percent annual growth rate. Over the next five years, Company A has set a

strategic target of increasing sales by 10%. That means Company A will be raking in an extra $2.9 million a year by the end of 2026. Keeping this in mind, TransGlobal Airlines' acquisition of Company A might result in more revenue. When the purchase price exceeds the current yearly revenue, the investment is rather pricey. TransGlobal Airlines would gain several advantages

because of the acquisition. The first is the number of ships in the fleet. Given the company's size

and number of workers, the 55-vehicle fleet is rather impressive. Company A also has several

fantastical destinations (15 in total), all of which are in the Caribbean. With the increased marketing TransGlobal will perform to promote these locations, the airline will see a significant

increase in revenue.

The corporate culture of Company A is also conducive to TransGlobal. The airline had

previously been recognized as a premium upmarket carrier, but the president and leadership have

opted to change that to attract new consumers by improving customer service, reservation

systems, and on-site operations. Given Company A's objectives and expected revenue increases,

it looks that the purchase has a lot of benefits. The hypotheticals are the most significant risk

associated with the purchase of Company A. What this idea means is, what if all the projected

outcomes are realized? What if the president's and leadership's objectives aren't met? If this is the

case, the deal will not benefit TransGlobal Airlines. Consequently, Company A is the most

financially risky. Because TransGlobal is mature and profitable, Company A is at medium risk in terms of culture and operating environment. If any problems arise due to the pre-existing cultural and organizational environment, TransGlobal Airline will be able to recover. However, the

acquisition of Company A may have an adverse effect on this. When looking at Company A's 15

current destinations, customer retention of 66 percent, and new customer growth of 22 percent,

it's clear that the airline will bring in money for TransGlobal.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Environmental Law Text Cases And Materials

Authors: Elizabeth Fisher, Bettina Lange, Eloise Scotford

2nd Edition

0198811071, 978-0198811077

More Books

Students also viewed these Law questions

Question

2. Find five metaphors for communication.

Answered: 1 week ago