Scenario
You have almost completed your analysis of Companies A and B and are scheduled to deliver your proposal to the board. While researching to ensure accurate and up-to-date data, you learn that two of Company B's aircraft have been grounded over the past couple of months due to technical issues, one of which could have been an FAA safety violation.
The subsequent investigations, technical repairs, and grounded flights have led to a 10% drop in their revenue over the last month. Mitigation expenses have added about $80,000 to their operating costs. Company B has also suffered negative customer feedback due to some of the ground crew's mishandling of the situation.
In this assignment, you will write an executive summary to capture the situation and share your analysis and perspective on how these safety issues might affect your acquisition recommendation.
Prompt
Write an executive summary describing the newly discovered concerns and your analysis of the situation at Company B.
Specifically, you must address the following rubric criteria:
- Summarize the safety issues and their direct impact on the company over the past month.
- Describe how this news affects factors other than revenue, which will then affect the company's value.
- How does this affect your initial performance evaluation and analysis of the company?
- Do you see any additional risks? Explain.
- Will it impact your recommendation about acquisition? Why or why not?
- What additional information about this situation will you need to make your final decision?
Guidelines for Submission
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. Consult the Shapiro Library APA Style Guide for more information on citations.
| Criteria | Exemplary (100%) | Proficient (90%) | Needs Improvement (70%) | Not Evident (0%) | Value |
|---|---|---|---|---|---|
Summary of Situation | Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner | Summarizes the situation analysis related to the safety issues and their direct impact on the company | Shows progress toward proficiency, but with errors or omissions; areas for improvement may include accurately summarizing the safety issues and explaining the impact of these safety issues | Does not attempt criterion | 20 |
Impact on Factors Other Than Revenue | Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner | Evaluates and describes the impact of new information on factors other than revenue | Shows progress toward proficiency, but with errors or omissions; areas for improvement may include identifying and evaluating which business factors, other than revenue, can be impacted by the new information | Does not attempt criterion | 20 |
Impact on Performance Analysis | Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner | Evaluates and describes clearly the impact of new information on the performance analysis | Shows progress toward proficiency, but with errors or omissions; areas for improvement may include explaining how the new information can impact the overall performance analysis of the company | Does not attempt criterion | 20 |
Impact on Acquisition Recommendation | Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner | Analyzes and describes clearly the impact of the news on the acquisition recommendation | Shows progress toward proficiency, but with errors or omissions; areas for improvement may include analyzing how the new information can influence the recommendation on acquisition | Does not attempt criterion | 15 |
Additional Information | Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner | Identifies the additional information required for decision making | Shows progress toward proficiency, but with errors or omissions; areas for improvement may include identifying the gaps/inadequacies in the available information for decision making | Does not attempt criterion | 15 |
Articulation of Response | Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner | Clearly conveys meaning with correct grammar, sentence structure, and spelling, demonstrating an understanding of audience and purpose | Shows progress toward proficiency, but with errors in grammar, sentence structure, and spelling negatively impacting readability | Submission has critical errors in grammar, sentence structure, and spelling preventing understanding of ideas | 10 |
| Total | 100% |