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2-2 Memo: Performance Evaluation
MBA 620
SNHU
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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
C
S O
K P
I
Financial
Achieving annual gross revenue of
over $ 20 billion aa
Annual gross revenue = $
20.683 billion
Internal Processes
The average age of the aircraft
(more than 10 years)
13 years average age
Customer or Market
Growth in new customers on an
annual basis (more than 20 %)
27 % annual growth aa
Learning and Growth
Providing training to every
employee on the basics of FAA’s
Providing training to every
employee (i.e., 40,000
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SAS (Safety Assurance System)
through 2-hour web-based training
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
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
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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.
References
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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
