MBA 620
You have been asked to evaluate Company A and Company B and make your recommendation for acquiring one or both companies. Based on your initial assessment, you have created balanced scorecards for both companies. You are now ready to analyze the information you have gathered so far about the two companies so that you can compare the costs, benefits, and risks associated with acquiring each company and make a well-informed decision.
In this milestone, you will first analyze the current situation of TransGlobal Airlines using the given data and other sources to understand their business environment. You will also evaluate the performance of Company A and Company B using the balanced scorecards you created in Milestone One.
Prompt
Write a report with your performance evaluation of the three companies involved in the acquisition.
Specifically, you must address the following rubric criteria:
- Situation Analysis of TransGlobal Airlines (parent company). Use the provided TransGlobal Company Information and Financials to highlight the 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
- Balanced Scorecard Analysis of Company A. Using the balanced scorecard for Company A from Milestone One, describe your analysis of Company A’s performance. Perform a cost-benefit-risk analysis to explain whether the benefits justify the costs of acquisition.
- Opportunity cost: What will it cost to move forward with this opportunity?
- Risk: Identify and explain the magnitude (low, medium, or high) of the risks this acquisition poses to the parent company related to its market, financial, cultural, and operational environments.
- Balanced Scorecard Analysis of Company B. Using the balanced scorecard for Company B from Milestone One, describe your analysis of Company B’s performance. Perform a cost-benefit-risk analysis to explain whether the benefits justify the costs of acquisition.
- Opportunity cost: What will it cost to move forward with this opportunity?
- Risk: Identify and explain the magnitude (low, medium, or high) of the risks this acquisition poses to the parent company related to its market, financial, cultural, and operational environments.
What to Submit
Submit a 6- to 8-page Word document using double spacing, 12-point Times New Roman font, and one-inch margins. If references are included, they should be cited in APA format. Consult the Shapiro Library APA style guide for more information on citations.
RubricCriteriaProficient (100%)Needs Improvement (80%)Not Evident (0%)ValueSituation AnalysisDescribes the current situation of the parent company; highlights the company’s current business environment using its market, regulatory, competitive, and cultural environmentsShows progress toward proficiency, but with errors or omissions; areas for improvement may include describing the company’s market, regulatory, competitive, and cultural environments adequately and clearlyDoes not attempt criterion25Analysis of Company A: Balanced Scorecard Analysis of Opportunity CostPerforms a cost-benefit-risk analysis for Company A based on its balanced scorecard components to explain whether the benefits justify the costs of acquisition; measures the correct opportunity cost associated with this acquisitionShows progress toward proficiency, but with errors or omissions; areas for improvement may include accurately determining the opportunity cost associated with the acquisitionDoes not attempt criterion15Analysis of Company A: Balanced Scorecard Analysis of RiskAnalyzes the balanced scorecard of Company A to accurately identify and explain the magnitude (low, medium, or high) of the risks acquisition poses to the parent company as related to its market, financial, cultural, and operational environmentsShows progress toward proficiency, but with errors or omissions; areas for improvement may include correctly identifying and rationally explaining the magnitude of the risks acquisition poses to the parent company related to the market, financial, cultural, and operational environmentsDoes not attempt criterion15Analysis of Company B: Balanced Scorecard Analysis of Opportunity CostPerforms a cost-benefit-risk analysis for Company B based on its balanced scorecard components to explain whether the benefits justify the costs of acquisition; measures the correct opportunity cost associated with this acquisitionShows progress toward proficiency, but with errors or omissions; areas for improvement may include determining the correct opportunity cost associated with the acquisitionDoes not attempt criterion15Analysis of Company B: Balanced Scorecard Analysis of RiskAnalyzes the balanced scorecard of Company B to accurately identify and explain the magnitude (low, medium, or high) of the risks this acquisition poses to the parent company related to its market, financial, cultural, and operational environmentsShows progress toward proficiency, but with errors or omissions; areas for improvement may include correctly identifying and rationally explaining the magnitude of the risks acquisition poses to the parent company related to the market, financial, cultural, and operational environmentsDoes not attempt criterion15Articulation of ResponseClearly conveys meaning with correct grammar, sentence structure, and spelling, demonstrating an understanding of audience and purposeShows progress toward proficiency, but with errors in grammar, sentence structure, and spelling, negatively impacting readabilitySubmission has critical errors in grammar, sentence structure, and spelling, preventing understanding of ideas15Total:100