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Executive Sum Guide MBA 620
Measuring Success in an Org (MBA 620)
Southern New Hampshire University
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Donny Workmon MBA – 620 Instructor Eric Brown October 11, 2022 Executive Summary Guidelines
Safety Issue Summary Company B:
Company B has had two aircrafts grounded for over a month relating to a problem with some technical issues. Recognized in a timely manner, they have diverted the attention of being visited by the FAA. A violation in safety was the result. With the aircraft out for the short period of time, Company B has suffered a decrease in revenue at 10% for about a month. Company B has also obtained another added expense to mitigation at the cost of $80,000 which affected the operation cost. Some of these factors has led up to Company B receiving negative survey feedback after these events.
Impact on Factors other than Revenue:
When a company receives negative customer feedback, it leaves a large impact on the company’s overall revenue. Negative impacts also lead to a drop in confidence from shareholders. If a Company brand name and image receives bad media from the press, this may lead to a drop in share prices. These events can have a significant impact on how much value and financial health a company like Company B is viewed by the public.
Impact on Performance Analysis:
The first performance analysis for Company B was described as having a small profit margin. In the order they would have to increase their rates to build back up their profit margin. By doing this, it creates a huge risk to TransGlobal Airlines considering they chose to continue with the acquisition of Company B. If Company B would have received negative publicity, this may cause a problem with filling the seats and drive a wedge with their sustainability and growth within the company organization for moving forward.
Impact on Acquisition Recommendation:
The unfavorable setback for Company B may have a major impact on the future acquisition with TransGlobal Airlines that they were seeking to acquire. This issue will stem from the major impact on any potential revenue being lost. Resolving the cause of the technical issue to get the downed aircraft back into service, needs of discovering if the problem was a manufacturer error or employee related error or neither.
Reference:
Organizational capabilities meaning, importance & example, MBA skool. (2020, May 17).
(n) MBA 620 TransGlobal Airlines Information.
Executive Sum Guide MBA 620
Course: Measuring Success in an Org (MBA 620)
University: Southern New Hampshire University
