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9-1 Project Submission: Acquisition Proposal
MBA 620
March 6,2022
Situation Assessment
The situation analysis has helped to evaluate the business environment of TransGlobal,
including the internal as well as the external environment. In the internal context, some of the
key elements that can influence its performance and operations are the culture, solid leadership,
strong internal processes, human resources, global operations, and strong financial performance
(Straková et al., 2018). Similarly, some of the key external variables that would play an
instrumental role to influence the business and its operations aviation market setting include high
competitive intensity, market types including the first-class, business-class, economy and luxury
segments, stringent regulatory elements, customers, suppliers, and other relevant stakeholders.
The situation analysis has played a key role as it has influenced a suitable acquisition strategy
that can be adopted by the TransGlobal Airlines firm for expanding in the airline market setting.
According to Strakova, performing situation analysis is considered to be of vital importance in
terms of the strategic aspect (Straková et al., 2018).
Data and Analysis
A detailed evaluation of Company A and Company B has been carried out so that it
would aid in the decision-making process relating to the acquisition activity. In the case of
Company A, there are numerous elements that can add value for the TransGlobal Airlines
business, such as the positive cash position of the entity, the provision of ample degree of
flexibility to operate in the dynamic airline industry, etc. By acquiring the company, TransGlobal
will get the opportunity to enter the Caribbean Islands market and expand its presence in the vast
market setting in a better way. However, the evaluation of the business has helped to identify the
opportunity costs that may arise for TransGlobal. One of the major opportunity costs is the need
to spend money to provide training to the employees so that the issue relating to staff turnover
can be managed and curtailed. Training would have to be offered in areas such as FAA basics,
FAA Safety Assurance System etc. so that they could acquire the latest skills and capabilities.
The evaluation of Company B has shown that even though its performance is similar to
that of Company A, there exist further areas of improvement. Some of the benefits that the
TransGlobal Airlines business would be able to enjoy by acquiring it include the ability to
capitalize on the aircraft which have a better average age and the ability to operate in a flexible
and adaptable manner in the evolving airline industrial setting. Some of the key opportunity costs
that may arise for TransGlobal in case it decides to acquire Company B include the need to
spend money to offer training to the staff members and the costs relating to the introduction of an
industry-standard customer portal that will help the business to appeal to the target audience in
the market setting. The company-based data that has been captured in the balanced scorecard
tool has played an instrumental role to aid in the exhaustive evaluation of both Company A and
Company B. The detailed analysis has helped to identify the company that the TransGlobal
Airlines business must acquire in order to expand in the unpredictable and evolving airline
market setting.
After performing the in-depth and thorough evaluation of Company A and Company B
by using the Balanced Scorecard tool, a feasible recommendation has been made for TransGlobal
Airlines. The company must acquire Company A because it would give rise to increase benefits
in comparison to the associated opportunity costs. Such an acquisition strategy will enable the
business to enter into the Caribbean Islands market setting and target potential customers in the
luxury vacation area. In addition to this, by acquiring Company A, TransGlobal would be able to
leverage the strengths of the newly acquired firm and create value for the target market audience
in the airline market.
The acquisition strategy that has been recommended for TransGlobal Airlines would
support the goals and objectives of the entity. It would create an opportunity to grow in the
market setting and offer its airline solutions in new regions. In the highly competitive airline
market setting, the firm would be able to increase its aircraft fleet and offer quality flying
services to customers in the Caribbean. Thus, acquiring Company A seems to be more beneficial
and feasible for TransGlobal Airlines to achieve its goals.
Straková, J., Pártlová, P., Dobrovič, J., & Váchal, J. (2018). Situational analysis and its role in
the process of strategic business management.@Polish Journal of Management Studies,@18.
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