Scenario
You are a former Navy officer and fighter pilot, and you are now the controller of a division of TransGlobal Airlines, a large organization that operates a fleet of corporate jets for charter at several airports in the southeast part of the United States. Your division’s private charter clients include several Fortune 500 companies in the region. The Chief Financial Officer (CFO) has informed you that the company is considering the acquisition of two smaller aviation firms in the region specializing in chartered flights for luxury vacations using light aircraft (60 passengers or less). The CFO has tasked you with assessing the organizational benefits of acquiring these aviation firms. The CFO intends to develop a new business plan for the organization if your analysis recommends moving forward with the acquisition.
After an initial assessment, the company has shortlisted two airlines, Company A and Company B, to examine further for acquisition. To understand all aspects of the two airlines under consideration, you have visited each proposed site to assess their performance.
The CFO has asked you to generate two scenarios for the proposed acquisition based on your analysis and governing or predictive assumptions. They include a worst-case scenario that considers the most serious outcomes that could occur if anticipated targets and assumptions are dramatically wrong; and a best-case scenario if anticipated targets and assumptions significantly exceed forecasts.
Based on your assessment and analysis of the companies create and deliver a PowerPoint Presentation for senior management’s review and analysis. Also write an executive summary with your recommendations for the leadership team.
Directions
Part 1: Presentation- 6-7 slides
Submit a PowerPoint presentation with detailed speaker notes to share your analysis and recommendations for the proposed acquisitions.
Overview
- Situation Analysis of TransGlobal Airlines (parent company). Use the information from the Supporting Materials section to highlight the parent company’s current business environment.
- Internal environment: culture, leadership, internal processes, human resources, operations, and financial performance
- External environment: competitive, market, regulatory, customers, suppliers, and other relevant stakeholders
- Acquisition Rationale: Explain why your company is planning to acquire these airlines. What strategic objectives will the acquisition meet? How might the acquisition support the bigger picture goals of TransGlobal?
Proposal
- Recommendation: Recommend whether TransGlobal Airlines should acquire one or both companies.
- Rationale: Justify how your recommendation supports the company’s strategic objectives. This includes one or more of its financial, market, competitive, and cultural objectives.
- Assumptions: Explain how your acquisition recommendation will impact the company’s success in different scenarios:
- A worst-case scenario that considers the most serious outcomes that could occur if anticipated targets and assumptions are dramatically wrong; and
- A best-case scenario that considers outcomes that significantly exceed anticipated targets and assumptions.
Part 2: Executive Summary- 2 pages
Submit a Word document summarizing your analysis and recommendations for both companies. Include sources cited with APA7.
- Situation assessment: Briefly summarize your company’s current internal and external business environments and the rationale for acquisition.
- Data and analysis: Provide a brief overview of the two airlines under consideration, including your findings and analysis from your balanced scorecards.
- Recommendation: Justify your recommendation for the acquisition and explain how it supports the company’s objectives.