Scenario
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?
o Do you see any additional risks? Explain.
• Will it impact your recommendation about acquisition? Why or why not?
o What additional information about this situation will you need to make your final decision?
What to Submit
Criteria Exemplary (100%) Not Evident (0%) Value
Summary of Situation Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner Does not attempt criterion 20
Impact on Factors Other Than Revenue Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner Does not attempt criterion 20
Impact on Performance Analysis Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner Does not attempt criterion 20
Impact on Acquisition Recommendation Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner Does not attempt criterion 15
Additional Information Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner Does not attempt criterion 15
Articulation of Response Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner
Submit a 1.5-page Word document using double spacing, 12-point Times New Roman font, and one-inch margins. Sources should be cited according to APA style.