Question
Required information [The following information applies to the questions displayed below.] Susan Lopez, a consultant with Deloitte & Young, has just begun an engagement at
Required information
[The following information applies to the questions displayed below.] Susan Lopez, a consultant with Deloitte & Young, has just begun an engagement at Four Corners Airlines, which is based in Santa Fe, New Mexico. The company has fallen on hard times of late despite record profits for the rest of the airline industry. Management is somewhat set in its ways and could probably use some new blood, as the most recent hire to the firms executive team was 12 years ago. In Lopezs first meeting with the team, the airlines chief executive officer commented that all that mattered in this industry were load factorsthe percentage of seats sold on scheduled flights. If load factors were adequate, everything else would take care of itself. Lopez noted that while this measure was important, other, broader facets of operation were significant as well. She asked if any of the management team had heard of the balanced scorecard, and received dead silence as a response. Based on her experiences with other engagements, including two that involved airlines, Lopez was convinced that the balanced scorecard could provide benefits in helping to solve the airlines woes. After a presentation about the philosophy of the balanced scorecard, Four Corners Airlines management team accepted her idea, feeling that a shift in operating philosophy was needed for survival.
3. Identify the type of measure used to evaluate the key elements below. (Hint: There are 6 financial measurements, 6 customer-satisfaction measures, 8 internal business process measures, and 5 Learning and growth measures.)
table
Aircraft turnaround time between flights
Average age of aircraft in fleet
Average trip length (in miles)
Average wait time when calling reservations center
Cost per meal served
Earnings per share
Employee satisfaction scores
Employee training programs
Employee turnover
Enhancements to product line (new class of service)
Load factors
Market shareNet income
New unique features of frequent-flier club
Number of aircraft in fleet
Number of bags lostNumber of cities/new cities served
Number of passenger complaints
Operating expenses per seat mile
Passenger revenue per seat mile
Percentage of on-time arrivals
Percentage of on-time departures
Percentage of tickets sold through travel agents, reservation agents, and the Internet
Response time for resolving customer problems
Revenue growth
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