Milestone 2, 6-8 page paper
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.
FIRST: Make corrections to the attached milestone 1 based on the feedback below, then complete the following prompt using the balanced scorecards created in Milestone 1.
Milestone 1 Feedback: the formulation of some KPIs is incorrect (the KPIs are formulated as objectives). Please replace the KPIs with a clear formula that reflects the parameter which you will track and measure to see if you are one step closer to reaching the objective.
A key performance indicator (KPI) is a measure reflecting how an organization is doing in a specific aspect of its performance (Kaplan 2009).
KPIs- Reduced travel costs
An increase in reservations and bookings
An improved and customized food menu
We track and measure the KPIs despite their fluctuations (Increase or decrease).
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.
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
