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Running Head: MBA 620 1
2-2 Memo: Performance Evaluation
MBA 620
January 15,2022
SNHU
To: Mr. ABC, Chief Financial Officer
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From: Mr. XYZ, Controller of a division of TransGlobal Airlines
Date: January 10, 2022
Subject: Strategic objectives and key performance indicators for evaluating the company’s
performance
The TransGlobal business has been planning to acquire two smaller businesses in the
Caribbean. However, before going ahead with the strategic plan, it is necessary to evaluate the
performance of TransGlobal Airlines. In this memo, a thorough analysis of the company’s
performance has been conducted by using a balanced scorecard. The tool has helped to identify a
set of indicators relating to diverse areas such as financial, internal processes, customer and
learning and growth (Quesado et al., 2021).
In the balanced scorecard, the strategic objectives of the business along with the key
performance indicator shave been catered in order to get an objective insight into the business
performance.
Balanced Scorecard
Category Strategic Objectives
Key Performance
Indicators
Financial
Achieving annual gross revenue of
over $ 20 billion 7
Annual gross revenue7= $
20.683 billion
Internal Processes
7The average age of the aircraft (more
than 10 years)
13 years average age7
Customer or Market 7Growth in new customers on an 27 % annual growth 7
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annual basis (more than 20 %)
Learning and Growth
7Providing training to every employee
on the basics of FAA’s SAS (Safety
Assurance System) through 2-hour
web-based training
Providing training to every
employee (i.e., 40,000
individuals) via 2-hour web-
based training
The rationale for the strategic objectives
The SMART criteria have been used for identifying the strategic objectives of the
company against which the key performance indicators have been compared.
Financial – For evaluating the performance of the company, the strategic objective that has been
considered for evaluating its financial performance is the annual gross revenue. It has helped to
ascertain the sum of money that the company has generated in the specific year.
Internal processes The age of the aircraft has been selected to evaluate the internal processes
of the company because it gives an insight into the efficiency and productivity aspects of the
business.
Customer For evaluating the customer component, the rationale for choosing the growth in
new customers is to identify how effectively the company can expand its customer base.
Learning and growth The strategic objective chosen for evaluating the learning and growth
dimension is the training initiatives taken by the company. It shows the emphasis that the
business lays upon the individual growth of its workforce.
Determination of the Key Performance Indicators
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The KPI relating to the financial performance of TransGlobal Airlines has been
determined by using the information relating to the company or the specific year. The actual age
of the aircraft has been determined with the help of the current business data. As the actual age is
more than the strategic objective that has been set, it implies that the company has been
showcasing strong market performance. As per the business data, prior to the Covid 19
pandemic, the business was able to see a growth in its new customers by 27 %, which implies
that it not only relies on its existing customers but attracts new customers as well. During the
pandemic times, the company has provided web-based training to its employees on the
fundamentals of FAA’s SAS as per the available business information.
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References
Quesado, P., Guzmán, B. A., & Rodrigues, L. L. (2021). Advantages and contributions in the
balanced scorecard implementation. Intangible Capital. Retrieved January 10, 2022, from
https://www.intangiblecapital.org/index.php/ic/article/view/1110
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