7-2 MBA 620

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Southern New Hampshire University *

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Feb 20, 2024

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Running head: 7-2 REPORT: PERFORMANCE IMPROVEMENT STRATEGIES 1 Pointia Desravines MBA-620-Q2778 Measuring Success in an Org 23TW2 Southern New Hampshire University 7-2 Report: Performance Improvement Strategies Remi-Pascal Joyeuse January 25, 2024 The airline industry has changed how it operates, from using more eco-friendly biofuel and carbon offsets to using more fuel-efficient aircraft. TransGlobal Airlines is willing to pursue more eco-friendly alternatives to make it possible for the company to become a more sustainable one. It is apparent from the company's leadership principles that the company is committed to

7-2 REPORT: PERFORMANCE IMPROVEMENT STRATEGIES 2 ensuring customer safety and good stewardship as well as being environmentally friendly in what they do. Sustainability is the future for every industry in the business world. More and more organizations are placing their time and money into this movement to keep stakeholders happy and investing in their businesses. The production of biofuel is similar to that of jet fuel. Still, it has a lower carbon footprint, as it is made from waste products and renewable resources, which boosts the economy of the agricultural sector, improves the environment, and improves the efficiency of aircraft engines. The United States leads the world in biofuel production, which supports the national economy, generates employment, and lowers greenhouse gas emissions (Office of Energy Efficiency & Renewable Energy - Bioenergy Technologies Office 2024). Biofuel is a more expensive fuel alternative but leaves a more lasting impression on the industry. The company will be in a favorable position to lead in the industry in ten years. This will allow it to adhere to sustainable practices. TransGlobal is entirely focused on environmentally friendly operations. In the next ten years, the company will shift its focus to more fuel-efficient aircraft and indulge in carbon offset programs, cementing its position as an industry leader in sustainable practices. From a current level of $2,099 billion in net income, the company should be able to increase its net income by no less than $400 million annually, reaching a goal of $2.499 billion within five years of its revenue being increased by $400 million. By doing this, the company could take advantage of biofuel's advantages as a primary fuel source for its aircraft more efficiently. The increase in research and development funds and our ability to buy biofuel will help us achieve our strategic goal. This will enable us to allocate more funds for research and development.

7-2 REPORT: PERFORMANCE IMPROVEMENT STRATEGIES 3 Reducing the average age of the company's fleet from 13 years to 9 years and forming a partnership with an environmental company to produce a consumer-buyable carbon offset program are two performance improvement strategies that will help the company achieve its sustainability objectives. The latter is a goal of upper management and coexists with other sustainable objectives within the organization. Reducing the average age of the company's fleet will bring in more fuel-efficient aircraft that work better with the proposed biofuel goal. As research shows, "Successful green innovations must improve value or decrease expenses and, in the end, either raise revenues from current customers or draw in new ones" (Shamsuzzoha, A., Suihkonen, A.-M., Wahlberg, C., Jovanovski, B., & Piya, S. 2023). Suppose the company can raise its net income within the next five years. In that case, it will allow the company to purchase biofuel as its primary fuel source as soon as possible since it is more expensive than traditional jet fuel. In addition to the primary goal of switching fuel sources, implementing a carbon offset program and reducing the fleet's average age will also help fulfill the company's sustainable practices objectives. TransGlobal is making a massive shift to sustainable practices to appeal to stakeholders. A goal of using more environmentally friendly fuel like biofuel as the primary fuel source will help catapult the company into one of the industry's leaders in sustainable practices.

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7-2 REPORT: PERFORMANCE IMPROVEMENT STRATEGIES 4 Reference: Office of Energy Efficiency & Renewable Energy - Bioenergy Technologies Office. (2024). Sustainable Aviation Fuels. https://www.energy.gov/eere/bioenergy/sustainable-aviation-fuels Shamsuzzoha, A., Suihkonen, A.-M., Wahlberg, C., Jovanovski, B., & Piya, S. (2023). Development of value proposition to promote green innovation for sustainable organizational development. Cleaner Engineering and Technology. https://doi-org.ezproxy.snhu.edu/10.1016/j.clet.2023.100668 TransGlobal Airlines Information (2024). https://learn.snhu.edu/content/enforced/1445251- MBA-620-Q2778-OL-TRAD GR.23TW2/Course%20Documents/MBA %20620%20TransGlobal%20Airlines%20Information.pdf?ou=1445251

7-2 MBA 620

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