Overview
When performing an evaluation to determine the performance or health of a company, it is important to identify and evaluate any current or potential risks the company might face.
In this assignment, you will perform a risk assessment for TransGlobal Airlines to better understand its business environment.
Prompt
Perform a risk assessment for TransGlobal Airlines and write a report describing the results.
Specifically, you must address the following rubric criteria:
·
Identification: Identify two risks the company is facing, including at least one high-impact risk.
· Identify the balanced scorecard component each risk corresponds to.
· Classify the risk based on these two types:
· Operational
· Strategic
·
Evaluation: Determine whether the probability and impact of each identified risk is low, medium, or high. Justify your evaluation of the impact and probability of each risk.
·
Mitigation: Recommend a possible risk-prevention or mitigation strategy for each identified risk.
What to Submit
Submit a 1- to 2-page Word document using double spacing, 12-point Times New Roman font, and one-inch margins. Sources should be cited according to APA style.
Scenario
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:
A.
Situation Analysis of TransGlobal Airlines (parent company). Use the provided TransGlobal
Company Information
and
Financials
to highlight the company’s current business environment.
a. Internal environment: culture, leadership, internal processes, human resources, operations, and financial performance
b. External environment: competitive, market, regulatory, customers, suppliers, and other relevant stakeholders
B.
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.
a.
Opportunity cost: What will it cost to move forward with this opportunity?
b.
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.
C.
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.
a.
Opportunity cost: What will it cost to move forward with this opportunity?
b.
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
