Chapter 12, Problem 12.42P

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 point-to-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 lowest fare. WrightAir’s balanced scorecard measures (and actual results) for 2017 follow:

1. 1. What is WrightAir’s strategy? Was WrightAir successful in implementing its strategy in 2017? Explain your answer.

Required

1. 2. Draw a strategy map as in Figure 12-2 for WrightAir describing the cause-and-effect relationships among the strategic objectives described in the balanced scorecard. Identify what you believe are any (a) strong ties, (b) focal points, (c) trigger points, and (d) distinctive objectives. Comment on your structural analysis of the strategy map.
2. 3. Based on the strategy identified in requirement 1 above, what role does the price-recovery component play in explaining the success of WrightAir?
3. 4. Would you have included customer-service measures in the customer perspective? Why or why not? Explain briefly.
4. 5. Would you have included some measure of employee satisfaction and employee training in the learning-and-growth perspective? Would you consider this objective critical to WrightAir for implementing its strategy? Why or why not? Explain briefly.
5. 6. Why do you think Wright Air has introduced environmental measures in its balanced scorecard? Is the company meeting its performance objectives in this area?