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MBA 620 Project Guidelines and Rubric
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Course
Measuring Success in an Org (MBA 620)
156 Documents
Students shared 156 documents in this course
University
Southern New Hampshire University
Academic year: 2024/2025
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9-1 Project Submission: Acquisition Proposal
Nicole Henry
Southern New Hampshire University
MBA 620 - Measuring Success in an organization
Eric Brown
September 28, 2024
9-1 Project Submission: Acquisition Proposal
Transglobal Airlines has finished the activities related to the acquisition of Company A
and Company B, and a decision has been made.
Situation Assessment
Transglobal Airlines is a dominant player in the aerospace industry and controls about
one-sixth of the market share. It had a strong year with over $2 billion in net revenue and a 28%
increase in market share. Transglobal is a forward-thinking company well-positioned for growth
and investment.
Internally, TransGlobal’s culture is based on respect and value for customers and
employees. They focus on building relationships within the market and protecting the
environment. The leadership consists of a hierarchy with a board, president, VP, CFO, COO, VP
of sales, and division VPs followed by subsidiaries. The operations movement forward includes
a vision for 2030; this vision is to reintroduce the MAX373 safety, which had been previously
grounded due to significant concerns. All concerns have been rectified.
Transglobal external environment includes competition, market, regulations, customers,
suppliers, and stakeholders. The main competitor to Transglobal is American Airlines (Global)
and Southwest (Domestic). Transglobal has an 80% return of customers, with a growth of about
27% annually. It currently holds second place globally and domestically in market share. They
are making their external environment favorable.
Data and analysis
Company A is a well-established airline based in Miami, ranking fourth in the market
share of Caribbean destination airlines at 18%. There is a 66% return on customers and an
expected 22% new customer growth annually. On average, 74% of seat occupancy is obtained
out on when choosing
one alternative over
another” (Fernando,
2024). If Transglobal
acquires
only Company A and not
Company B, it will miss a
few unique aspects of
Company
B. This airline is
profitable; despite YoY's
annual growth of 3%, it is
not trending
upward, implying that
Transglobal would have
to put more effort into
increasing the net profit
margin. With minimal
added internal
accountability, seat
occupancy can be
increased by
tackling some consumer
cleanliness feedback.
Company B offers the
possibility of
eight additional nearby
destinations. This airline
has a joint venture with
the SITA Horizon software
consumer feedback and
retention. Company B
has established business
relationships with area
employers in the theme
park industry, which
Transglobal could
capitalize on for minimal
cost or
effort. Improving
educational offerings and
growth opportunities
would be a cost to
Transglobal
as Company B has
minimal training
programs. Also, the
current culture of
Company B needs
attention as turnover is
high, and finding quality
employees in the Orlando
area is challenging.
Recommendation
Company A is the most logical acquisition choice for Transglobal. It is located in the
same city as Transglobal and offers many benefits. The company culture is strong and well-
established, with a strong customer base. In addition, it continues to prove that it can increase
revenue, making this an attractive investment. The clear focus makes Company A well-
positioned to achieve its strategic goals and ability to drive growth, making it a great addition to
the well-established Transglobal Airlines.
Company B is facing financial and operational challenges and an investigation by the
FAA. A high employee turnover rate and aging aircraft will need to be replaced within the next
few years.
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MBA 620 Project Guidelines and Rubric
Course: Measuring Success in an Org (MBA 620)
156 Documents
Students shared 156 documents in this course
University: Southern New Hampshire University
Was this document helpful?
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9-1 Project Submission: Acquisition Proposal
Nicole Henry
Southern New Hampshire University
MBA 620 - Measuring Success in an organization
Eric Brown
September 28, 2024
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