Target Actual Objectives Measures Performance Performance Financial Perspective Increase shareholder value Operating-income changes from productivity Operating-income changes from price recovery $7,200,000 $8,400,000 $2,700,000 $3,600,000 Operating-income changes from growth $3,000,000 $3,960,000 Cost savings due to reduction in jet fuel consumption $900,000 $1,080,000 Customer Perspective 1st in industry 2nd in industry Increase the number of on-time FAA on-time arrival ranking arrivals Improve brand image Percentage of customer survey respondents with greater than 90% approval rating on com- pany's sustainability efforts 100% 96% Internal-Business-Process Perspective Reduce turnaround time On-ground time Number of engineering changes that decreased CO, emissions <25 minutes 30 minutes Reduce CO2 emissions 10 Learning-and-Growth Perspective Align ground crews % of ground crew stockholders 70% 68% Acquire new energy management tool and technology Acquire certification by Dec. 31 Achieve ISO 50001 certification Acquired certification by Dec. 31 in energy management
Target Actual Objectives Measures Performance Performance Financial Perspective Increase shareholder value Operating-income changes from productivity Operating-income changes from price recovery $7,200,000 $8,400,000 $2,700,000 $3,600,000 Operating-income changes from growth $3,000,000 $3,960,000 Cost savings due to reduction in jet fuel consumption $900,000 $1,080,000 Customer Perspective 1st in industry 2nd in industry Increase the number of on-time FAA on-time arrival ranking arrivals Improve brand image Percentage of customer survey respondents with greater than 90% approval rating on com- pany's sustainability efforts 100% 96% Internal-Business-Process Perspective Reduce turnaround time On-ground time Number of engineering changes that decreased CO, emissions <25 minutes 30 minutes Reduce CO2 emissions 10 Learning-and-Growth Perspective Align ground crews % of ground crew stockholders 70% 68% Acquire new energy management tool and technology Acquire certification by Dec. 31 Achieve ISO 50001 certification Acquired certification by Dec. 31 in energy management
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Balanced scorecard, environmental, and social performance. WrightAir is a no-frills airline that services the Midwest. Its mission is to be the only short-haul, low-fare, high-frequency, pointto-point carrier in the Midwest. However, there are several large commercial carriers offering air transportation, and WrightAir knows that it cannot compete with them based on the services those carriers provide. WrightAir has chosen to reduce costs by not offering many inflight services, such as food and entertainment options. Instead, the company is dedicated to providing the highest quality transportation at the l owest fare. WrightAir’s balanced scorecard measures (and actual results) for 2017 follow:
Q.What is WrightAir’s strategy? Was WrightAir successful in implementing its strategy in 2017? Explain your answer
Transcribed Image Text:Target
Actual
Objectives
Measures
Performance Performance
Financial Perspective
Increase shareholder value
Operating-income changes from
productivity
Operating-income changes from
price recovery
$7,200,000
$8,400,000
$2,700,000
$3,600,000
Operating-income changes from
growth
$3,000,000
$3,960,000
Cost savings due to reduction in
jet fuel consumption
$900,000
$1,080,000
Customer Perspective
1st in
industry
2nd in
industry
Increase the number of on-time
FAA on-time arrival ranking
arrivals
Improve brand image
Percentage of customer survey
respondents with greater than
90% approval rating on com-
pany's sustainability efforts
100%
96%
Internal-Business-Process Perspective
Reduce turnaround time
On-ground time
Number of engineering changes
that decreased CO, emissions
<25 minutes
30 minutes
Reduce CO2 emissions
10
Learning-and-Growth Perspective
Align ground crews
% of ground crew stockholders
70%
68%
Acquire new energy management
tool and technology
Acquire
certification
by Dec. 31
Achieve ISO 50001 certification
Acquired
certification
by Dec. 31
in energy management
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