Module 6 – Homework Help Scenario
You have been asked to evaluate Company A and Company B and make your recommendation for acquiring one or both companies.
Scenario
You have been asked to evaluate Company A and Company B and make your recommendation for acquiring one or both companies. Based on your initial assessment, you have created balanced scorecards for both companies. You are now ready to analyze the information you have gathered so far about the two companies so that you can compare the costs, benefits, and risks associated with acquiring each company and make a well-informed decision.
In this milestone, you will first analyze the current situation of TransGlobal Airlines using the given data and other sources to understand their business environment. You will also evaluate the performance of Company A and Company B using the balanced scorecards you created in Milestone One.
Prompt
Write a report with your performance evaluation of the three companies involved in the acquisition.
Specifically, you must address the following rubric criteria:
- Situation Analysis of TransGlobal Airlines (parent company). Use the provided TransGlobal Company Information and Financials to highlight the company’s current business environment.
- Internal environment: culture, leadership, internal processes, human resources, operations, and financial performance
- External environment: competitive, market, regulatory, customers, suppliers, and other relevant stakeholders
- Balanced Scorecard Analysis of Company A. Using the balanced scorecard for Company A from Milestone One, describe your analysis of Company A’s performance. Perform a cost-benefit-risk analysis to explain whether the benefits justify the costs of acquisition.
- Opportunity cost: What will it cost to move forward with this opportunity?
- Risk: Identify and explain the magnitude (low, medium, or high) of the risks this acquisition poses to the parent company related to its market, financial, cultural, and operational environments.
- Balanced Scorecard Analysis of Company B. Using the balanced scorecard for Company B from Milestone One, describe your analysis of Company B’s performance. Perform a cost-benefit-risk analysis to explain whether the benefits justify the costs of acquisition.
- Opportunity cost: What will it cost to move forward with this opportunity?
- Risk: Identify and explain the magnitude (low, medium, or high) of the risks this acquisition poses to the parent company related to its market, financial, cultural, and operational environments.
Guidelines for Submission
Submit a 6- to 8-page Word document using double spacing, 12-point Times New Roman font, and one-inch margins. If references are included, they should be cited in APA format. Consult the Shapiro Library APA style guide for more information on citations.
Balanced Scorecard-Company A
| BASIC BALANCED SCORECARD TEMPLATE | 3 | |||||||||||||||||||||||||||||||||||||||||||||
| COMPANY NAME | ||||||||||||||||||||||||||||||||||||||||||||||
| ADDRESS | [Insert text | CITY | STATE | ZIP | ||||||||||||||||||||||||||||||||||||||||||
| Category | STRATEGIC OBJECTIVES | KEY PERFORMANCE INDICATORS | TARGET VALUES | KPI ACTION PLAN DETAILS | STUDENTS KPI SELECTION RATIONALE | |||||||||||||||||||||||||||||||||||||||||
| YEAR 1 | YEAR 2 | YEAR 3 | EXAMPLES OF PROGRAMS/INITIATIVES | BUDGETS | SELECTION RATIONALE | CAUSE-EFFECT RELATIONSHIP | ||||||||||||||||||||||||||||||||||||||||
| FINANCIAL | Offer discounts for fast payments | $0 | Increased cash flow and market share helps the company revenue to increase and become sustainable | Increases number of tickets sold | ||||||||||||||||||||||||||||||||||||||||||
| Survive | Cash flow | |||||||||||||||||||||||||||||||||||||||||||||
| Prosper | Surged ROE and market share | |||||||||||||||||||||||||||||||||||||||||||||
| INTERNAL PROCESSES | Design Productivity | Engineering efficiency | Enact appropriate ICT systems | $1,500 | Enact ICT structures to ensure payment are tracked and tickets are scheduled appropriately | Increases internal control | ||||||||||||||||||||||||||||||||||||||||
| Service excellence | yield | |||||||||||||||||||||||||||||||||||||||||||||
| CUSTOMER/MARKET | Marketing campaign that highlights benefit of flying with this airline | $3,000 | The marketing campaigns will ensure that the brand name is well known attracting more clients | Increases the number of clients | ||||||||||||||||||||||||||||||||||||||||||
| New products | % of sales from novel goods | |||||||||||||||||||||||||||||||||||||||||||||
| Preffered supplier | Share of key accounts purchases | |||||||||||||||||||||||||||||||||||||||||||||
| LEARNING AND GROWTH | Employee training for surge in growth | $8,000 | Trained staff provide high quality services ensuring clients re satisfied with the services | Improved services | ||||||||||||||||||||||||||||||||||||||||||
| Technology leadership | Time to develop next generation | |||||||||||||||||||||||||||||||||||||||||||||
| Service focus | % of service that results to 80% of sales | |||||||||||||||||||||||||||||||||||||||||||||
Balanced Scorecard-Company B
| BASIC BALANCED SCORECARD TEMPLATE | 3 | |||||||||||||||||||||||||||||||||||||||||||||
| COMPANY NAME | ||||||||||||||||||||||||||||||||||||||||||||||
| ADDRESS | [Insert text | CITY | STATE | ZIP | ||||||||||||||||||||||||||||||||||||||||||
| Category | STRATEGIC OBJECTIVES | KEY PERFORMANCE INDICATORS | KPI TARGET VALUES | KPI ACTION PLAN DETAILS | STUDENTS KPI SELECTION RATIONALE | Category | ||||||||||||||||||||||||||||||||||||||||
| YEAR 1 | YEAR 2 | YEAR 3 | EXAMPLES OF PROGRAMS/INITIATIVES | BUDGETS | SELECTION RATIONALE | CAUSE-EFFECT RELATIONSHIP | ||||||||||||||||||||||||||||||||||||||||
| FINANCIAL | Consider selling tickets online | $500 | Increase convenience | Increase income | FINANCIAL | |||||||||||||||||||||||||||||||||||||||||
| Prosper | Surged market share | |||||||||||||||||||||||||||||||||||||||||||||
| Succeed | Quarterly sales growth | |||||||||||||||||||||||||||||||||||||||||||||
| INTERNAL PROCESSES | Reward programs for staff | $2,000 | Increase motivation | Reduce staff turnover | INTERNAL PROCESSES | |||||||||||||||||||||||||||||||||||||||||
| Service excellence | Yield | |||||||||||||||||||||||||||||||||||||||||||||
| Technology capability | Competition | |||||||||||||||||||||||||||||||||||||||||||||
| CUSTOMER/MARKET | Pay timely delivery for supplies | $5,000 | Create a good rapport with suppliers | Have a consistent supply to ensure better service delivery | CUSTOMER/MARKET | |||||||||||||||||||||||||||||||||||||||||
| Customer partnership | Number of cooperative engineering efforts | |||||||||||||||||||||||||||||||||||||||||||||
| Responsive supply | On time delivery | |||||||||||||||||||||||||||||||||||||||||||||
| LEARNING AND GROWTH | Create programs to enhance service delivery | $10,000 | Train staff | Effiient delivery of services | LEARNING AND GROWTH | |||||||||||||||||||||||||||||||||||||||||
| Time to market | Novel product introduction | |||||||||||||||||||||||||||||||||||||||||||||
| Service learning | Process time to maturity | |||||||||||||||||||||||||||||||||||||||||||||
