8-2 Executive Summary_ Safety Issues in Company B

docx

School

Southern New Hampshire University *

*We aren’t endorsed by this school

Course

620

Subject

Business

Date

Feb 20, 2024

Type

docx

Pages

Uploaded by christinahope0312

8-2 Executive Summary: Safety Issues in Company B Christina H. Mitchell Southern New Hampshire University MBA620 Measuring Success in an Organization Prof. Alin Tomoiaga

8-2 Executive Summary: Safety Issues in Company B TransGlobal Airlines (TGA) seeks expansion in the Caribbean market through the acquisition of smaller aircraft charter companies. In evaluating potential targets, safety issues were identified in Company B, influencing our acquisition considerations. This summary outlines safety concerns, their impact on Company B, implications for our evaluation, and the consequent effect on our acquisition recommendation. Safety Concerns Overview: ● Company B experienced two recent aircraft groundings due to technical issues, including an FAA safety violation. ● Remediation efforts incurred an $80,000 cost increase and a 10% revenue drop, with negative customer reviews. Broader Impact Beyond Revenue: ● The recurring safety incidents within a short timeframe raise concerns about a potential systemic problem. ● Safety malfunctions may lead to further FAA violations, attracting fines and impacting customer trust. ● The aged fleet may necessitate significant expenses for repairs or fleet renewal, affecting revenue and customer retention. Effect on Performance Analysis: ● Company B already faced challenges, including an aging fleet, high turnover, and financial struggles.

● The recent operating cost drain exacerbates financial concerns, hindering necessary fleet improvements. Influence on Acquisition Recommendation: ● Company B's instability in leadership, identity, and culture, coupled with financial underperformance, contrasts unfavorably with Company A. ● The safety incidents require comprehensive testing and recovery efforts, posing a time constraint incompatible with TGA's acquisition timeline. Conclusion The aircraft groundings have inflicted tangible harm on Company B's immediate growth potential, creating a multifaceted impact that extends beyond the realm of revenue considerations. The safety concerns have not merely posed a financial setback but have further exacerbated existing challenges within the company, rendering the prospect of its acquisition considerably riskier. The intricate web of issues encompasses not only the immediate financial repercussions of the grounding incidents but also the potential long-term ramifications on customer trust, operational stability, and strategic development. Given the intricate nature of these challenges and the associated uncertainties, recommending the acquisition of Company B would be imprudent at this juncture. The complexities arising from safety issues demand a thorough and time-consuming assessment, from comprehensive safety testing of the entire fleet to rebuilding customer confidence. The urgency of TGA's acquisition timeline further compounds the impracticality of pursuing Company B, necessitating a cautious and strategic evaluation of alternative opportunities.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Related Documents

IFSM 304 Week 6 Discussion (1).docx

MeganCookWeek2ADRApplication.docx

MeganCookFinalStrategicPlan.docx

IFSM3046382PaperA.docx

6-1 Milestone Two_ Performance Analysis.pdf

7-2 Report_ Performance Improvement Strategies.docx

Wilczynski Text Learning Assignment.docx

Exam3_StudyGuide.docx

Worksheet 4 (Avoiding Plagiarism).pdf

SWOT & Financial Ratio.docx

Breads of the World Case Study.docx

INTL301_Assg 1- Megan Patterson.docx

Recommended textbooks for you

Purchasing and Supply Chain Management

Operations Management

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Cengage Learning

Management, Loose-Leaf Version

Management

ISBN:9781305969308

Author:Richard L. Daft

Publisher:South-Western College Pub

MARKETING 2018

Marketing

ISBN:9780357033753

Author:Pride

Publisher:CENGAGE L

SEE MORE TEXTBOOKS

Recommended textbooks for you

Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Management, Loose-Leaf Version
Management
ISBN:9781305969308
Author:Richard L. Daft
Publisher:South-Western College Pub
MARKETING 2018
Marketing
ISBN:9780357033753
Author:Pride
Publisher:CENGAGE L