Assignment Prompt & Instructions
– 2 years ago
**files (6)**
– ## CompanyAInformation.pdf
– ## CompanyBInformation.pdf
– ## BalancedScorecardTemplate.xlsx
– book3.docx
– CompanyBFinancials.xlsx
– CompanyAFinancials.xlsx
**## CompanyAInformation.pdf**
MBA 620 Company A Information
Location, Size, and Age of the Firm
• Name:
• Location: Miami, FL
• Size: 165 employees
• Age: began operations in 1981
Customer Segment and Target Market
• Market: Caribbean Islands
• Destinations: 15 (Guadeloupe, Guyana, Martinique, Puerto Rico, St. Kitts, St. Lucia, St. Maarten, St.
Thomas, St. Vincent, Trinidad, Antigua and Barbuda, Barbados, British Virgin Islands, Dominica,
Grenada, and Tobago)
• Market segment: luxury tourist and business class
• Aircraft capacities: 20 to 60
• Market share of Caribbean destination airlines: 4th at 18.9%
• Customer segment: vacationers, tourists, Caribbean business, and government clients
• Retention: 66% return customers
• New customer growth: 22% annually
• Seat occupancy average: 74% (top quarter of benchmarks)
• Average customer fare: $450 USD
Major Competitors
• Delta Connection
• American Eagle
• Bahamas Charter Airlines
• Cape Air
• Seaborne Airlines
Company Leadership
Privately held, with a board, president, VP admin, CFO, COO, VP sales
Company Strategy and Direction
The company is well positioned for a transition and strategic investment. Its cash position is especially
positive, providing ample flexibility. Long known as a premium upscale provider, there is an awareness of
the need to broaden the customer base, attract younger travelers, and modernize both the fleet of aircraft
and customer-facing technologies.
The president and leadership team have adopted these goals for the coming five years:
• Improve public image and brand in ways that attract new customers
• Improve employee retention; reduce turnover by half
• Address aging fleet of aircraft; reduce average age of fleet to eight years
• Achieve 20% improved fuel efficiency; leverage this into brand and public promotions
• Reduce on-ground aircraft turnaround time from two hours down to 45 minutes (industry average
is 90 minutes)
Current Financial Highlights
• Annual revenues: $28–29 million
• Annual growth YoY: 2.5–2.9%
• Gross profit margin: 45%
• Net profit margin: 8%
• Aircraft in fleet: 55
• Average age of aircraft: 14 years (25 years of useful life is typical)
• See financial statements for further details
Background
• The company is recognized as a premium provider.
• In 2016, the company sold a portion of its fleet and its real estate holdings, resulting in a substantial
influx of cash.
• Employees (excluding pilots) have frequently discussed unionizing, but have not acted in this
direction.
• The management team is experienced and focused on revenue growth and customer satisfaction.
• Customer feedback at or above industry benchmarks (at industry benchmarks 60th percentile or
higher; positive feedback):
o On-time arrivals/departures
o Airplane cleanliness
o Amenities
o Employee courtesy
o In-flight entertainment
• Customer feedback below industry midpoint (negative feedback):
o Frequent flier program (none)
o Check-in convenience and speed
o Baggage handling
o Convenient departure times
Internal Process Highlights
• The reservation system is an early version of Radixx Galaxy; cloud-based upgrades have not been
implemented.
• Customer check-in and ticketing is manually processed using hard-copy tickets.
• Bookkeeping is accomplished using QuickBooks and an external accounting firm.
• HR hiring and benefits packages are administered by a third-party provider.
• On-ground operations teams rated very good against industry-standard benchmarks.
Human Resource Highlights
• Employees: 165
• Employees with a post-secondary degree (two-year or higher): 75%
• Average turnover rate: 12% annually
• Internal training offered:
o FAA Basics (five-day course, required of all new employees)
o FAA Safety Assurance System (online two-hour course; all new hires)
o Customer Service (eight hours annually)
o Regulation refreshers (20 hours per year)
o Quality Control Through Six Sigma (optional, up to eight hours per year)
o Using MS Office (on-demand, online offerings; optional
– MBA 620 Company A Information
– Location, Size, and Age of the Firm
– Customer Segment and Target Market
– Major Competitors
– Company Leadership
– Company Strategy and Direction
– Current Financial Highlights
– Background
– Internal Process Highlights
**## CompanyBInformation.pdf**
MBA 620 Company B Information
Location, Size, and Age of the Firm
• Name:
• Location: Orlando, FL
• Size: 98 employees
• Age: began operations in 1988
Customer Segment and Target Market
• Market: Florida and nearby destinations
• Destinations: eight (the Bahama Islands; Savannah, Georgia; Atlanta, Georgia; Tampa, Florida; Fort
Myers, Florida; Miami, Florida; Tallahassee, Florida; and New Orleans, Louisiana)
• Market segment: tourists and business
• Aircraft capacities: 12–50 seats
• Customer segment: vacationers, tourists, business travelers
• Retention: 40% repeat customers
• Seat occupancy average: 62% (middle of industry benchmark data)
• Average customer fare: $249 USD
Major Competitors
• Delta Connection
• American Eagle
• Sun Country
• Frontier
Company Leadership
Privately held, with a board, president, VP admin, CFO, COO, VP sales
Company Strategy and Direction
As a smaller player, the company is more of a follower than a leader; however, the new president has a desire to
shake things up. The image of the company as cheap transportation is no longer sufficient, and the leadership
team seeks to demonstrate that even a small company can be an innovation leader. They hope to do this by
emphasizing the potential benefits of agile problem solving and a lean and clean working environment.
These 10-year goals were adopted in 2015; they were reaffirmed in 2019 shortly before the arrival of the new
president:
• Demonstrate adaptability, flexibility, and speed in decision making and innovation
• Build the best workforce; be a winning team
• Do the right thing; provide excellence in customer service
• Enjoy the short run; invest in the long run
Current Financial Highlights
• Annual revenues: $26-27 million
• Annual growth YoY: 3%
• Gross profit margin: 33%
• Net profit margin: 0.2%
• Aircraft in fleet: 40
• Average age of aircraft: 18 years (25 years of useful life is typical)
• See financial statements for more information
Background
• The company is known as a value leader.
• In 2016, the company sold its ownership in a regional hotel chain, resulting in substantial cash holdings.
• The company has strong business relationships with area employers in the theme park industry.
• The company president is new this year; prior experience has been heavily influenced by organizational
transformation initiatives.
• Turnover among employees is higher than many airline companies, but average for the central Florida
economy; maintenance employees are increasingly more difficult to find and retain; overtime is common
in the maintenance department.
• Wage levels in the Orlando area are growing, resulting in upward pressure in compensation.
• Customer feedback received that is at or above industry benchmarks (at industry benchmarks 60th
percentile or higher; positive feedback):
o Short wait times at counter
o Ease of modifying reservations
o Cost
o Overall value
• Customer feedback received below industry midpoint (negative feedback):
o Airplane cleanliness
o Amenities
o Food and beverages
o In-flight noise
Internal Process Highlights
• Within the last 30 days, an investment and joint venture was established with SITA Horizon software
system, including an industry-standard customer portal and a hospitality industry interface functionality.
• Bookkeeping is integrated with the new SITA system; an external accounting firm will still be used for
audits.
• HR function is provided by a consortium partner in the local area (outsourced).
• On-ground operations teams rated fair against industry-wide efficiency standards.
Human Resource Highlights
• Employees with a high school diploma or higher: 95%
• Employees with a post-secondary degree or diploma: 60%
• Average turnover rate: 18% annually
• Internal training offered:
o Regulatory refresher courses (as needed, with supervisor approval)
o Quality and Customer Service Principles (self-study)
– MBA 620 Company B Information
– Location, Size, and Age of the Firm
– Customer Segment and Target Market
– Major Competitors
– Company Leadership
– Company Strategy and Direction
– Current Financial Highlights
– Background
– Internal Process Highlights
– Human Resource Highlights
**## BalancedScorecardTemplate.xlsx**
## Balanced Scorecard-Company A
| | | | | | | | | | | | | | | | |
| — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| | | BASIC BALANCED SCORECARD – Company A |
| | | COMPANY NAME |
| | | ADDRESS | [Insert text] | | CITY | | | STATE | | | ZIP |
| | | Category | STRATEGIC OBJECTIVES | KEY PERFORMANCE INDICATORS | KPI TARGET VALUES | | | KPI ACTION PLAN DETAILS | | | | | KPI SELECTION RATIONALE | | Category |
| | | | | | YEAR 1 | YEAR 2 | YEAR 3 | EXAMPLES OF PROGRAMS/INITIATIVES | | | BUDGETS | | SELECTION RATIONALE | CAUSE–EFFECT RELATIONSHIP |
| | | FINANCIAL | | | | | | [Provide examples of supporting programs or initiatives in this column.] | | | [Provide budget allocations for the supporting programs or initiatives in this column.] | | [Share your rationale behind your prioritization of the KPIs in this column.] | [Identify the main cause–effect relationships between your chosen KPIs in this column.] | FINANCIAL |
| | | INTERNAL PROCESSES | | | | | | | | | | | | | INTERNAL PROCESSES |
| | | CUSTOMER/MARKET | | | | | | | | | | | | | CUSTOMER/MARKET |
| | | LEARNING AND GROWTH | | | | | | | | | | | | | LEARNING AND GROWTH |
## Balanced Scorecard-Company B
| | | | | | | | | | | | | | | | |
| — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| | | BASIC BALANCED SCORECARD – Company B |
| | | COMPANY NAME |
| | | ADDRESS | [Insert text | | CITY | | | STATE | | | ZIP |
| | | Category | STRATEGIC OBJECTIVES | KEY PERFORMANCE INDICATORS | KPI TARGET VALUES | | | KPI ACTION PLAN DETAILS | | | | | KPI SELECTION RATIONALE | | Category |
| | | | | | YEAR 1 | YEAR 2 | YEAR 3 | EXAMPLES OF PROGRAMS/INITIATIVES | | | BUDGETS | | SELECTION RATIONALE | CAUSE–EFFECT RELATIONSHIP |
| | | FINANCIAL | | | | | | [Provide examples of supporting programs or initiatives in this column.] | | | [Provide budget allocations for the supporting programs or initiatives in this column.] | | [Share your rationale behind your prioritization of the KPIs in this column.] | [Identify the main cause–effect relationships between your chosen KPIs in this column.] | FINANCIAL |
| | | INTERNAL PROCESSES | | | | | | | | | | | | | INTERNAL PROCESSES |
| | | CUSTOMER/MARKET | | | | | | | | | | | | | CUSTOMER/MARKET |
| | | LEARNING AND GROWTH | | | | | | | | | | | | | LEARNING AND GROWTH |
**book3.docx**
This file is too large to display. [View in new window](https://www.sweetstudy.com/files/book3-docx-10255011)
**CompanyBFinancials.xlsx**
This file is too large to display. [View in new window](https://www.sweetstudy.com/files/companybfinancials-xlsx-10255009)
**CompanyAFinancials.xlsx**
This file is too large to display. [View in new window](https://www.sweetstudy.com/files/companyafinancials-xlsx-10255007)
**CompanyAFinancials.xlsx**
This file is too large to display. [View in new window](https://www.sweetstudy.com/files/companyafinancials-xlsx-10255007)
**## CompanyAInformation.pdf**
MBA 620 Company A Information
Location, Size, and Age of the Firm
• Name:
• Location: Miami, FL
• Size: 165 employees
• Age: began operations in 1981
Customer Segment and Target Market
• Market: Caribbean Islands
• Destinations: 15 (Guadeloupe, Guyana, Martinique, Puerto Rico, St. Kitts, St. Lucia, St. Maarten, St.
Thomas, St. Vincent, Trinidad, Antigua and Barbuda, Barbados, British Virgin Islands, Dominica,
Grenada, and Tobago)
• Market segment: luxury tourist and business class
• Aircraft capacities: 20 to 60
• Market share of Caribbean destination airlines: 4th at 18.9%
• Customer segment: vacationers, tourists, Caribbean business, and government clients
• Retention: 66% return customers
• New customer growth: 22% annually
• Seat occupancy average: 74% (top quarter of benchmarks)
• Average customer fare: $450 USD
Major Competitors
• Delta Connection
• American Eagle
• Bahamas Charter Airlines
• Cape Air
• Seaborne Airlines
Company Leadership
Privately held, with a board, president, VP admin, CFO, COO, VP sales
Company Strategy and Direction
The company is well positioned for a transition and strategic investment. Its cash position is especially
positive, providing ample flexibility. Long known as a premium upscale provider, there is an awareness of
the need to broaden the customer base, attract younger travelers, and modernize both the fleet of aircraft
and customer-facing technologies.
The president and leadership team have adopted these goals for the coming five years:
• Improve public image and brand in ways that attract new customers
• Improve employee retention; reduce turnover by half
• Address aging fleet of aircraft; reduce average age of fleet to eight years
• Achieve 20% improved fuel efficiency; leverage this into brand and public promotions
• Reduce on-ground aircraft turnaround time from two hours down to 45 minutes (industry average
is 90 minutes)
Current Financial Highlights
• Annual revenues: $28–29 million
• Annual growth YoY: 2.5–2.9%
• Gross profit margin: 45%
• Net profit margin: 8%
• Aircraft in fleet: 55
• Average age of aircraft: 14 years (25 years of useful life is typical)
• See financial statements for further details
Background
• The company is recognized as a premium provider.
• In 2016, the company sold a portion of its fleet and its real estate holdings, resulting in a substantial
influx of cash.
• Employees (excluding pilots) have frequently discussed unionizing, but have not acted in this
direction.
• The management team is experienced and focused on revenue growth and customer satisfaction.
• Customer feedback at or above industry benchmarks (at industry benchmarks 60th percentile or
higher; positive feedback):
o On-time arrivals/departures
o Airplane cleanliness
o Amenities
o Employee courtesy
o In-flight entertainment
• Customer feedback below industry midpoint (negative feedback):
o Frequent flier program (none)
o Check-in convenience and speed
o Baggage handling
o Convenient departure times
Internal Process Highlights
• The reservation system is an early version of Radixx Galaxy; cloud-based upgrades have not been
implemented.
• Customer check-in and ticketing is manually processed using hard-copy tickets.
• Bookkeeping is accomplished using QuickBooks and an external accounting firm.
• HR hiring and benefits packages are administered by a third-party provider.
• On-ground operations teams rated very good against industry-standard benchmarks.
Human Resource Highlights
• Employees: 165
• Employees with a post-secondary degree (two-year or higher): 75%
• Average turnover rate: 12% annually
• Internal training offered:
o FAA Basics (five-day course, required of all new employees)
o FAA Safety Assurance System (online two-hour course; all new hires)
o Customer Service (eight hours annually)
o Regulation refreshers (20 hours per year)
o Quality Control Through Six Sigma (optional, up to eight hours per year)
o Using MS Office (on-demand, online offerings; optional
– MBA 620 Company A Information
– Location, Size, and Age of the Firm
– Customer Segment and Target Market
– Major Competitors
– Company Leadership
– Company Strategy and Direction
– Current Financial Highlights
– Background
– Internal Process Highlights
**## CompanyBInformation.pdf**
MBA 620 Company B Information
Location, Size, and Age of the Firm
• Name:
• Location: Orlando, FL
• Size: 98 employees
• Age: began operations in 1988
Customer Segment and Target Market
• Market: Florida and nearby destinations
• Destinations: eight (the Bahama Islands; Savannah, Georgia; Atlanta, Georgia; Tampa, Florida; Fort
Myers, Florida; Miami, Florida; Tallahassee, Florida; and New Orleans, Louisiana)
• Market segment: tourists and business
• Aircraft capacities: 12–50 seats
• Customer segment: vacationers, tourists, business travelers
• Retention: 40% repeat customers
• Seat occupancy average: 62% (middle of industry benchmark data)
• Average customer fare: $249 USD
Major Competitors
• Delta Connection
• American Eagle
• Sun Country
• Frontier
Company Leadership
Privately held, with a board, president, VP admin, CFO, COO, VP sales
Company Strategy and Direction
As a smaller player, the company is more of a follower than a leader; however, the new president has a desire to
shake things up. The image of the company as cheap transportation is no longer sufficient, and the leadership
team seeks to demonstrate that even a small company can be an innovation leader. They hope to do this by
emphasizing the potential benefits of agile problem solving and a lean and clean working environment.
These 10-year goals were adopted in 2015; they were reaffirmed in 2019 shortly before the arrival of the new
president:
• Demonstrate adaptability, flexibility, and speed in decision making and innovation
• Build the best workforce; be a winning team
• Do the right thing; provide excellence in customer service
• Enjoy the short run; invest in the long run
Current Financial Highlights
• Annual revenues: $26-27 million
• Annual growth YoY: 3%
• Gross profit margin: 33%
• Net profit margin: 0.2%
• Aircraft in fleet: 40
• Average age of aircraft: 18 years (25 years of useful life is typical)
• See financial statements for more information
Background
• The company is known as a value leader.
• In 2016, the company sold its ownership in a regional hotel chain, resulting in substantial cash holdings.
• The company has strong business relationships with area employers in the theme park industry.
• The company president is new this year; prior experience has been heavily influenced by organizational
transformation initiatives.
• Turnover among employees is higher than many airline companies, but average for the central Florida
economy; maintenance employees are increasingly more difficult to find and retain; overtime is common
in the maintenance department.
• Wage levels in the Orlando area are growing, resulting in upward pressure in compensation.
• Customer feedback received that is at or above industry benchmarks (at industry benchmarks 60th
percentile or higher; positive feedback):
o Short wait times at counter
o Ease of modifying reservations
o Cost
o Overall value
• Customer feedback received below industry midpoint (negative feedback):
o Airplane cleanliness
o Amenities
o Food and beverages
o In-flight noise
Internal Process Highlights
• Within the last 30 days, an investment and joint venture was established with SITA Horizon software
system, including an industry-standard customer portal and a hospitality industry interface functionality.
• Bookkeeping is integrated with the new SITA system; an external accounting firm will still be used for
audits.
• HR function is provided by a consortium partner in the local area (outsourced).
• On-ground operations teams rated fair against industry-wide efficiency standards.
Human Resource Highlights
• Employees with a high school diploma or higher: 95%
• Employees with a post-secondary degree or diploma: 60%
• Average turnover rate: 18% annually
• Internal training offered:
o Regulatory refresher courses (as needed, with supervisor approval)
o Quality and Customer Service Principles (self-study)
– MBA 620 Company B Information
– Location, Size, and Age of the Firm
– Customer Segment and Target Market
– Major Competitors
– Company Leadership
– Company Strategy and Direction
– Current Financial Highlights
– Background
– Internal Process Highlights
– Human Resource Highlights
**## BalancedScorecardTemplate.xlsx**
## Balanced Scorecard-Company A
| | | | | | | | | | | | | | | | |
| — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| | | BASIC BALANCED SCORECARD – Company A |
| | | COMPANY NAME |
| | | ADDRESS | [Insert text] | | CITY | | | STATE | | | ZIP |
| | | Category | STRATEGIC OBJECTIVES | KEY PERFORMANCE INDICATORS | KPI TARGET VALUES | | | KPI ACTION PLAN DETAILS | | | | | KPI SELECTION RATIONALE | | Category |
| | | | | | YEAR 1 | YEAR 2 | YEAR 3 | EXAMPLES OF PROGRAMS/INITIATIVES | | | BUDGETS | | SELECTION RATIONALE | CAUSE–EFFECT RELATIONSHIP |
| | | FINANCIAL | | | | | | [Provide examples of supporting programs or initiatives in this column.] | | | [Provide budget allocations for the supporting programs or initiatives in this column.] | | [Share your rationale behind your prioritization of the KPIs in this column.] | [Identify the main cause–effect relationships between your chosen KPIs in this column.] | FINANCIAL |
| | | INTERNAL PROCESSES | | | | | | | | | | | | | INTERNAL PROCESSES |
| | | CUSTOMER/MARKET | | | | | | | | | | | | | CUSTOMER/MARKET |
| | | LEARNING AND GROWTH | | | | | | | | | | | | | LEARNING AND GROWTH |
## Balanced Scorecard-Company B
| | | | | | | | | | | | | | | | |
| — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| | | BASIC BALANCED SCORECARD – Company B |
| | | COMPANY NAME |
| | | ADDRESS | [Insert text | | CITY | | | STATE | | | ZIP |
| | | Category | STRATEGIC OBJECTIVES | KEY PERFORMANCE INDICATORS | KPI TARGET VALUES | | | KPI ACTION PLAN DETAILS | | | | | KPI SELECTION RATIONALE | | Category |
| | | | | | YEAR 1 | YEAR 2 | YEAR 3 | EXAMPLES OF PROGRAMS/INITIATIVES | | | BUDGETS | | SELECTION RATIONALE | CAUSE–EFFECT RELATIONSHIP |
| | | FINANCIAL | | | | | | [Provide examples of supporting programs or initiatives in this column.] | | | [Provide budget allocations for the supporting programs or initiatives in this column.] | | [Share your rationale behind your prioritization of the KPIs in this column.] | [Identify the main cause–effect relationships between your chosen KPIs in this column.] | FINANCIAL |
| | | INTERNAL PROCESSES | | | | | | | | | | | | | INTERNAL PROCESSES |
| | | CUSTOMER/MARKET | | | | | | | | | | | | | CUSTOMER/MARKET |
| | | LEARNING AND GROWTH | | | | | | | | | | | | | LEARNING AND GROWTH |
**book3.docx**
This file is too large to display. [View in new window](https://www.sweetstudy.com/files/book3-docx-10255011)
**CompanyBFinancials.xlsx**
This file is too large to display. [View in new window](https://www.sweetstudy.com/files/companybfinancials-xlsx-10255009)
**CompanyAFinancials.xlsx**
This file is too large to display. [View in new window](https://www.sweetstudy.com/files/companyafinancials-xlsx-10255007)
**## CompanyAInformation.pdf**
MBA 620 Company A Information
Location, Size, and Age of the Firm
• Name:
• Location: Miami, FL
• Size: 165 employees
• Age: began operations in 1981
Customer Segment and Target Market
• Market: Caribbean Islands
• Destinations: 15 (Guadeloupe, Guyana, Martinique, Puerto Rico, St. Kitts, St. Lucia, St. Maarten, St.
Thomas, St. Vincent, Trinidad, Antigua and Barbuda, Barbados, British Virgin Islands, Dominica,
Grenada, and Tobago)
• Market segment: luxury tourist and business class
• Aircraft capacities: 20 to 60
• Market share of Caribbean destination airlines: 4th at 18.9%
• Customer segment: vacationers, tourists, Caribbean business, and government clients
• Retention: 66% return customers
• New customer growth: 22% annually
• Seat occupancy average: 74% (top quarter of benchmarks)
• Average customer fare: $450 USD
Major Competitors
• Delta Connection
• American Eagle
• Bahamas Charter Airlines
• Cape Air
• Seaborne Airlines
Company Leadership
Privately held, with a board, president, VP admin, CFO, COO, VP sales
Company Strategy and Direction
The company is well positioned for a transition and strategic investment. Its cash position is especially
positive, providing ample flexibility. Long known as a premium upscale provider, there is an awareness of
the need to broaden the customer base, attract younger travelers, and modernize both the fleet of aircraft
and customer-facing technologies.
The president and leadership team have adopted these goals for the coming five years:
• Improve public image and brand in ways that attract new customers
• Improve employee retention; reduce turnover by half
• Address aging fleet of aircraft; reduce average age of fleet to eight years
• Achieve 20% improved fuel efficiency; leverage this into brand and public promotions
• Reduce on-ground aircraft turnaround time from two hours down to 45 minutes (industry average
is 90 minutes)
Current Financial Highlights
• Annual revenues: $28–29 million
• Annual growth YoY: 2.5–2.9%
• Gross profit margin: 45%
• Net profit margin: 8%
• Aircraft in fleet: 55
• Average age of aircraft: 14 years (25 years of useful life is typical)
• See financial statements for further details
Background
• The company is recognized as a premium provider.
• In 2016, the company sold a portion of its fleet and its real estate holdings, resulting in a substantial
influx of cash.
• Employees (excluding pilots) have frequently discussed unionizing, but have not acted in this
direction.
• The management team is experienced and focused on revenue growth and customer satisfaction.
• Customer feedback at or above industry benchmarks (at industry benchmarks 60th percentile or
higher; positive feedback):
o On-time arrivals/departures
o Airplane cleanliness
o Amenities
o Employee courtesy
o In-flight entertainment
• Customer feedback below industry midpoint (negative feedback):
o Frequent flier program (none)
o Check-in convenience and speed
o Baggage handling
o Convenient departure times
Internal Process Highlights
• The reservation system is an early version of Radixx Galaxy; cloud-based upgrades have not been
implemented.
• Customer check-in and ticketing is manually processed using hard-copy tickets.
• Bookkeeping is accomplished using QuickBooks and an external accounting firm.
• HR hiring and benefits packages are administered by a third-party provider.
• On-ground operations teams rated very good against industry-standard benchmarks.
Human Resource Highlights
• Employees: 165
• Employees with a post-secondary degree (two-year or higher): 75%
• Average turnover rate: 12% annually
• Internal training offered:
o FAA Basics (five-day course, required of all new employees)
o FAA Safety Assurance System (online two-hour course; all new hires)
o Customer Service (eight hours annually)
o Regulation refreshers (20 hours per year)
o Quality Control Through Six Sigma (optional, up to eight hours per year)
o Using MS Office (on-demand, online offerings; optional
– MBA 620 Company A Information
– Location, Size, and Age of the Firm
– Customer Segment and Target Market
– Major Competitors
– Company Leadership
– Company Strategy and Direction
– Current Financial Highlights
– Background
– Internal Process Highlights
**## CompanyBInformation.pdf**
MBA 620 Company B Information
Location, Size, and Age of the Firm
• Name:
• Location: Orlando, FL
• Size: 98 employees
• Age: began operations in 1988
Customer Segment and Target Market
• Market: Florida and nearby destinations
• Destinations: eight (the Bahama Islands; Savannah, Georgia; Atlanta, Georgia; Tampa, Florida; Fort
Myers, Florida; Miami, Florida; Tallahassee, Florida; and New Orleans, Louisiana)
• Market segment: tourists and business
• Aircraft capacities: 12–50 seats
• Customer segment: vacationers, tourists, business travelers
• Retention: 40% repeat customers
• Seat occupancy average: 62% (middle of industry benchmark data)
• Average customer fare: $249 USD
Major Competitors
• Delta Connection
• American Eagle
• Sun Country
• Frontier
Company Leadership
Privately held, with a board, president, VP admin, CFO, COO, VP sales
Company Strategy and Direction
As a smaller player, the company is more of a follower than a leader; however, the new president has a desire to
shake things up. The image of the company as cheap transportation is no longer sufficient, and the leadership
team seeks to demonstrate that even a small company can be an innovation leader. They hope to do this by
emphasizing the potential benefits of agile problem solving and a lean and clean working environment.
These 10-year goals were adopted in 2015; they were reaffirmed in 2019 shortly before the arrival of the new
president:
• Demonstrate adaptability, flexibility, and speed in decision making and innovation
• Build the best workforce; be a winning team
• Do the right thing; provide excellence in customer service
• Enjoy the short run; invest in the long run
Current Financial Highlights
• Annual revenues: $26-27 million
• Annual growth YoY: 3%
• Gross profit margin: 33%
• Net profit margin: 0.2%
• Aircraft in fleet: 40
• Average age of aircraft: 18 years (25 years of useful life is typical)
• See financial statements for more information
Background
• The company is known as a value leader.
• In 2016, the company sold its ownership in a regional hotel chain, resulting in substantial cash holdings.
• The company has strong business relationships with area employers in the theme park industry.
• The company president is new this year; prior experience has been heavily influenced by organizational
transformation initiatives.
• Turnover among employees is higher than many airline companies, but average for the central Florida
economy; maintenance employees are increasingly more difficult to find and retain; overtime is common
in the maintenance department.
• Wage levels in the Orlando area are growing, resulting in upward pressure in compensation.
• Customer feedback received that is at or above industry benchmarks (at industry benchmarks 60th
percentile or higher; positive feedback):
o Short wait times at counter
o Ease of modifying reservations
o Cost
o Overall value
• Customer feedback received below industry midpoint (negative feedback):
o Airplane cleanliness
o Amenities
o Food and beverages
o In-flight noise
Internal Process Highlights
• Within the last 30 days, an investment and joint venture was established with SITA Horizon software
system, including an industry-standard customer portal and a hospitality industry interface functionality.
• Bookkeeping is integrated with the new SITA system; an external accounting firm will still be used for
audits.
• HR function is provided by a consortium partner in the local area (outsourced).
• On-ground operations teams rated fair against industry-wide efficiency standards.
Human Resource Highlights
• Employees with a high school diploma or higher: 95%
• Employees with a post-secondary degree or diploma: 60%
• Average turnover rate: 18% annually
• Internal training offered:
o Regulatory refresher courses (as needed, with supervisor approval)
o Quality and Customer Service Principles (self-study)
– MBA 620 Company B Information
– Location, Size, and Age of the Firm
– Customer Segment and Target Market
– Major Competitors
– Company Leadership
– Company Strategy and Direction
– Current Financial Highlights
– Background
– Internal Process Highlights
– Human Resource Highlights
**## BalancedScorecardTemplate.xlsx**
## Balanced Scorecard-Company A
| | | | | | | | | | | | | | | | |
| — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| | | BASIC BALANCED SCORECARD – Company A |
| | | COMPANY NAME |
| | | ADDRESS | [Insert text] | | CITY | | | STATE | | | ZIP |
| | | Category | STRATEGIC OBJECTIVES | KEY PERFORMANCE INDICATORS | KPI TARGET VALUES | | | KPI ACTION PLAN DETAILS | | | | | KPI SELECTION RATIONALE | | Category |
| | | | | | YEAR 1 | YEAR 2 | YEAR 3 | EXAMPLES OF PROGRAMS/INITIATIVES | | | BUDGETS | | SELECTION RATIONALE | CAUSE–EFFECT RELATIONSHIP |
| | | FINANCIAL | | | | | | [Provide examples of supporting programs or initiatives in this column.] | | | [Provide budget allocations for the supporting programs or initiatives in this column.] | | [Share your rationale behind your prioritization of the KPIs in this column.] | [Identify the main cause–effect relationships between your chosen KPIs in this column.] | FINANCIAL |
| | | INTERNAL PROCESSES | | | | | | | | | | | | | INTERNAL PROCESSES |
| | | CUSTOMER/MARKET | | | | | | | | | | | | | CUSTOMER/MARKET |
| | | LEARNING AND GROWTH | | | | | | | | | | | | | LEARNING AND GROWTH |
## Balanced Scorecard-Company B
| | | | | | | | | | | | | | | | |
| — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| | | BASIC BALANCED SCORECARD – Company B |
| | | COMPANY NAME |
| | | ADDRESS | [Insert text | | CITY | | | STATE | | | ZIP |
| | | Category | STRATEGIC OBJECTIVES | KEY PERFORMANCE INDICATORS | KPI TARGET VALUES | | | KPI ACTION PLAN DETAILS | | | | | KPI SELECTION RATIONALE | | Category |
| | | | | | YEAR 1 | YEAR 2 | YEAR 3 | EXAMPLES OF PROGRAMS/INITIATIVES | | | BUDGETS | | SELECTION RATIONALE | CAUSE–EFFECT RELATIONSHIP |
| | | FINANCIAL | | | | | | [Provide examples of supporting programs or initiatives in this column.] | | | [Provide budget allocations for the supporting programs or initiatives in this column.] | | [Share your rationale behind your prioritization of the KPIs in this column.] | [Identify the main cause–effect relationships between your chosen KPIs in this column.] | FINANCIAL |
| | | INTERNAL PROCESSES | | | | | | | | | | | | | INTERNAL PROCESSES |
| | | CUSTOMER/MARKET | | | | | | | | | | | | | CUSTOMER/MARKET |
| | | LEARNING AND GROWTH | | | | | | | | | | | | | LEARNING AND GROWTH |
**book3.docx**
This file is too large to display. [View in new window](https://www.sweetstudy.com/files/book3-docx-10255011)
**CompanyBFinancials.xlsx**
This file is too large to display. [View in new window](https://www.sweetstudy.com/files/companybfinancials-xlsx-10255009)
**CompanyAFinancials.xlsx**
This file is too large to display. [View in new window](https://www.sweetstudy.com/files/companyafinancials-xlsx-10255007)
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