Project 620 Executive Summary

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School

Southern New Hampshire University *

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Course

620

Subject

Management

Date

Apr 3, 2024

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docx

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Uploaded by ahmahniw

Executive Summary TransGlobal Airline is located in Miami, Florida, which began operations in 1951. When the company increased their market share, it enabled the company to be placed second in the global market. This airline employs more than 40,000 employees to operate the daily operations of the carrier to ensure they are operating effectively. The organization is managed by an executive board, and goes through a president, VP administrator, CFO, COO, and VP sales. The Corporation leadership allows them to continue to remain successful by confirming that each executive and department leader delivers exceptional communication. The company continues to travel to 242 locations in 52 countries that encompass 6 continents. The Company is acquiring two new airlines that they feel will bring more profit and business to the company. Inquiring about two new companies can help TransGlobal gain a larger share, which is beneficial for them to advance the competition. The company can also increase their earnings. Company A is based in Miami, FL with 165 employees that began operations in 1981. The customer base is vacationers, tourists, Caribbean business, and government clients. A few of the Major competitors are Delta Connection. Cape Air, Bahamas Charter Airlines. Company A can be viewed as a valuable company. Within a three-year period between the years of 2017- 2019, the company's revenue increased. The profit was $27,981 in 2017, in 2018 the revenue increased to $28,772 and in the third year, it increased to $29,580. After analyzing the data, they have $86,439 in assets alone, $2,380 in net earnings and $44,319 in cash flow. The company has a great chance of increasing each year, even with a 66% retention rate on returning customers, and a 22% rate of new customers annually. The risk of TransGlobal taking on Company A airlines is a medium risk. TransGlobal could lose between $7.5 million and $8 million if they

consider taking on Company A and it is unsuccessful. They could be at risk of losing customers to another company due to the fact that their customers are Caribbean tourists, business, or even government clients. Company B was established in 1988 in Orlando Fl. Company B is one of the smaller airlines, so they employ 98 employees. Their customer segment is based on Vacationers, Tourists, and Business Travelers. Some of the few major competitors are Sun Country, Frontier, and American Eagle. Their leadership consist of an executive board, a president, VP admin, CFO, COO and VP Sales. Company B is less profitable, and this is why. Over a three-year period between the years of 2017 to 2019, the company's profit decreased significantly. In 2017, their profit was $27,981, but as it went into the year 2018, it decreased to $26,302. In 2019, there was an increase in revenue of $27,091. Company B also had some decreases in net earnings of $2,025 which was in 2017 and continued to have $79 decreases until 2019. Company B is more of a High risk for TransGlobal. The Airline could lose $18 million if they fail to achieve success. Company B's customer return rate is low, which can be detrimental to the company's overall reputation. Because they do not have a high retention rate it affects their booking because they do not receive fully booked flights. After analyzing both airlines, TransGlobal Airlines should acquire only Company A. Even though Company B is a smaller company, they are a higher risk to the company due to two of their aircrafts are grounded because they need to be fixed due to safety issues. Their customer return rate is not the best due to the aircraft being grounded as well. It affects the company’s profit and customer base. Company A has fewer issues that can be fixed, which are upgrading their system. They have a better return rate for customers and between 2017-2019 their profit sales have increased.

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