Question
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.
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