Balanced Scorecard- MBA

Scenario

You are a former Navy officer and fighter pilot who is now the controller of a division of TransGlobal Airlines, which utilizes a fleet of corporate jets for charter at several airports in the southeast part of the United States. Your division’s private charter clients include several Fortune 500 companies in the region. The Chief Financial Officer (CFO) has informed you that the company is considering the acquisition of two smaller aviation firms in the Caribbean specializing in chartered flights for luxury vacations using light aircraft (60 passengers or less). The CFO has tasked you with assessing the organizational benefits of acquiring these aviation firms. The CFO intends to develop a new business plan for the organization if your analysis recommends moving forward with the acquisition.

After an initial assessment, the company has shortlisted two airlines they want to examine further for acquisition. To understand all aspects of the two airlines under consideration, you have visited each proposed site to assess their performance. The assessment includes creating and analyzing a balanced scorecard for each airline with all four components—financial, internal processes, customers/market, and learning and growth—that will impact the acquisition.

In this milestone, you will use the given information to create balanced scorecards for Company A and Company B.

Prompt

Use the Basic Balanced Scorecard Template to create a balanced scorecard for each company. Specifically, you must address the following rubric criteria:

1. Use the data given in Company A Information and Company A Financials to create a balanced scorecard for Company A. The balanced scorecard should highlight key performance indicators, such as net profit, annual growth, and market share, and include the four components:

   Financial: Complete the financial section of the balanced scorecard template, identifying two of the most relevant key performance indicators.

   Save Time On Research and Writing

   Hire a Pro to Write You a 100% Plagiarism-Free Paper.

   Get My Paper

   Explain your rationale for the KPIs chosen, with an explanation of the cause-and-effect relationship between the chosen KPIs.

   Internal Processes: Complete the internal processes section of the balanced scorecard template, identifying two of the most relevant key performance indicators.

   Explain your rationale for the KPIs chosen, with an explanation of the cause-and-effect relationship between the chosen KPIs.

   Customers/Market: Complete the customers/market section of the balanced scorecard template, identifying two of the most relevant key performance indicators.

   Explain your rationale for the KPIs chosen, with an explanation of the cause-and-effect relationship between the chosen KPIs.

   Learning and Growth: Complete the customers/market section of the balanced scorecard template, identifying two of the most relevant key performance indicators.

   Explain your rationale for the KPIs chosen, with an explanation of the cause-and-effect relationship between the chosen KPIs.

2. Use the data given in Company B Information and Company B Financials  to create a balanced scorecard for Company B. The balanced scorecard should highlight key performance indicators, such as net profit, annual growth, and market share, and include the four components:

   Financial: Complete the financial section of the balanced scorecard template, identifying two of the most relevant key performance indicators.

   Explain your rationale for the KPIs chosen, with an explanation of the cause-and-effect relationship between the chosen KPIs.

   Internal Processes: Complete the internal processes section of the balanced scorecard template, identifying two of the most relevant key performance indicators.

   Explain your rationale for the KPIs chosen, with an explanation of the cause-and-effect relationship between the chosen KPIs.

   Customers/Market: Complete the customers/market section of the balanced scorecard template, identifying two of the most relevant key performance indicators.

   Explain your rationale for the KPIs chosen, with an explanation of the cause-and-effect relationship between the chosen KPIs.

   Learning and Growth: Complete the customers/market section of the balanced scorecard template, identifying two of the most relevant key performance indicators.

   Explain your rationale for the KPIs chosen, with an explanation of the cause-and-effect relationship between the chosen KPIs.

Include APA 7 style citations to support.

Balanced Scorecard-Company A

SELECTION RATIONALE

BASIC BALANCED SCORECARD TEMPLATE

3

COMPANY NAME

ADDRESS

[Insert text

CITY

STATE

ZIP

Category

STRATEGIC OBJECTIVES

KEY PERFORMANCE INDICATORS

TARGET VALUES

KPI ACTION PLAN DETAILS

STUDENTS KPI

SELECTION RATIONALE

YEAR 1

YEAR 2

YEAR 3

EXAMPLES OF PROGRAMS/INITIATIVES

BUDGETS

CAUSE-EFFECT RELATIONSHIP

FINANCIAL

Provide examples of supporting programs or initiatives in this column

Provide budget allocations for the supporting programs or initiatives in ths column

Share your rationale behind your prioritization of the KPIs in this column

Identify the main cause-effect relationships between your chosen KPIs in this column

INTERNAL PROCESSES

CUSTOMER/MARKET

LEARNING AND GROWTH

Balanced Scorecard-Company B

BASIC BALANCED SCORECARD TEMPLATE

3

COMPANY NAME

ADDRESS
[Insert text

CITY

STATE

ZIP

Category
STRATEGIC OBJECTIVES
KEY PERFORMANCE INDICATORS

KPI ACTION PLAN DETAILS

Category

YEAR 1
YEAR 2
YEAR 3
EXAMPLES OF PROGRAMS/INITIATIVES

BUDGETS

SELECTION RATIONALE
CAUSE-EFFECT RELATIONSHIP

FINANCIAL

Provide examples of supporting programs or initiatives in this column

Provide budget allocations for the supporting programs or initiatives in ths column

Share your rationale behind your prioritization of the KPIs in this column
Identify the main cause-effect relationships between your chosen KPIs in this column
FINANCIAL

INTERNAL PROCESSES

INTERNAL PROCESSES

CUSTOMER/MARKET

CUSTOMER/MARKET

LEARNING AND GROWTH

LEARNING AND GROWTH

KPI TARGET VALUES	STUDENTS KPI SELECTION RATIONALE

COMPANY B

Three

–

Year Data

COMPANY B

2,910

1,354
1,354

1,800

21

2017
2018
2019

90,000

33,685
33,685

Shareholders’ Equity

124,316
123,236
113,301

2017
2018
2019

Net Earnings

2,025
(529)
79

2,814
2,806
2,776

25

)

)

)

(2,706)
(2,400)
(2,800)

of Debt

–
–

–
–
–

–
–
(10,000)

82,445
82,914

82,445
82,914
72,944

Accounts Receivable

1,380
1,297
1,336

Inventory

3,078
2,018
1,989

Accounts Payable

1,560
1,009
995

2,306

(10,312)
(592)
25

37,413
37,007

2,706
2,400
2,800

2,814
2,806
2,776

37,413
37,007
37,032

90,000
90,000
90,000

Issuance (repayment)

–
–
(10,000)

90,000
90,000
80,000

2,700
1,800
1,800

																																																																																																												B_CO_FINANCE	Learner Copy	Rev 3/14/	21
Illlustrative Data for Educational Purposes
All values shown are in thousands.
		2017			2018			2019
Income Statement
Revenue	27,981	26,302	27,091
Cost of Goods Sold (COGS)	15,389	18,411	18,151
Gross Profit	12,591	7,891	8,940
Expenses
Salaries and Benefits		2,910	2,600
Rent and Overhead			1,354
Depreciation and Amortization			2,814			2,806			2,776
Interest		2,700				1,800
Total Expenses	9,778	8,560	8,840
Earnings Before Tax	2,813	(669)	100
Taxes	788	(141)
	Net Earnings		2,0		25		(529)		79
Balance Sheet
Assets
Cash			82,445			82,914		72,944
	Accounts Receivable		1,380		1,297		1,336
	Inventory		3,078		2,018		1,989
Property and Equipment			37,413			37,007		37,032
Total Assets		124,316		123,236		113,301
Liabilities
	Accounts Payable		1,560		1,009		995
Debt							90,000		80,000
Total Liabilities	91,560	91,009	80,995
	Shareholders’ Equity
Equity Capital			33,685
Retained Earnings	(929)	(1,458)	(1,379)
32,756	32,227	3	2,306
Total Liabilities and Shareholders’ Equity
Cash Flow Statement
Operating Cash Flow
Plus: Depreciation and Amortization
Less: Changes in Working Capital		(10,312)		(592)
Cash from Operations	15,151	2,869	2,830
Investing Cash Flow
Investments in Property and Equipment		(	2,706		(	2,400		(	2,800
Cash from Investing
Financing Cash Flow
	Issuance (repayment)			(10,000)
Issuance (repayment) of Equity
Cash from Financing
Net Increase (decrease) in Cash	12,445	469	(9,970)
Opening Cash Balance	70,000
Closing Cash Balance
Supporting Schedules
Working Capital Schedule
Net Working Capital (NWC)	2,898	2,331
Change in NWC
Depreciation Schedule
PPE Opening	37,521
Plus Capex
Less Depreciation
PPE Closing
Debt and Interest Schedule
Debt Opening
Debt Closing
Interest Expense

COMPANY A

Three

–

Year Data

COMPANY A

1,804
1,804

2,806

900
900

2017
2018
2019

30,000

33,685
33,685

Shareholders’ Equity

104,136
104,334
86,439

2017
2018
2019

Net Earnings

1,846
(170)
2,380

2,814
2,806
2,806

)

(2,800)

2,706
(2,800)
(2,800)

of Debt

–
–

–
–
–

–
–
(20,000)

62,265
61,708

62,265
61,708
44,319

Accounts Receivable

1,380
1,419
1,460

Inventory

3,078
3,799
3,257

Accounts Payable

1,560
1,926
1,651

(10,312)
394
(226)

37,413

2,706
2,800
2,800

2,814
2,806
2,806

37,413
37,407

30,000
30,000
30,000

Issuance (repayment)

–
–
(20,000)

30,000
30,000
10,000

900
900
900

A_CO_FIN	Learner Copy	Rev 6/19/21
Illlustrative Data for Educational Purposes
All values shown are in thousands.
		2017			2018			2019
Income Statement
Revenue	27,981	28,772	29,580
Cost of Goods Sold (COGS)	15,389	18,997	16,285
Gross Profit	12,592	9,775	13,295
Expenses
Salaries and Benefits	4,510	4,500	4,480
Rent and Overhead			1,804
Depreciation and Amortization			2,814						2,806
Interest						900
Total Expenses	10,028	10,010	9,990
Earnings Before Tax	2,564	(235)	3,305
Taxes	718	(65)	925
	Net Earnings		1,846		(170)		2,380
Balance Sheet
Assets
Cash			62,265			61,708		44,319
	Accounts Receivable		1,380		1,419		1,460
	Inventory		3,078		3,799		3,257
Property and Equipment			37,413	37,408	37,403
Total Assets		104,136		104,334		86,439
Liabilities
	Accounts Payable		1,560		1,926		1,651
Debt							30,000		10,000
Total Liabilities	31,560	31,926	11,651
	Shareholders’ Equity
Equity Capital			33,685
Retained Earnings	38,891	38,723	41,103
72,576	72,408	74,788
Total Liabilities and Shareholders’ Equity
Cash Flow Statement
Operating Cash Flow
Plus: Depreciation and Amortization
Less: Changes in Working Capital		(10,312)		394		(226)
Cash from Operations	14,972	2,242	5,411
Investing Cash Flow
Sales (Investments) in Property and Equipment			2,706				(		2,800
Cash from Investing
Financing Cash Flow
	Issuance (repayment)			(20,000)
Issuance (repayment) of Equity
Cash from Financing
Net Increase (decrease) in Cash	17,678	(558)	(17,389)
Opening Cash Balance	44,587
Closing Cash Balance
Supporting Schedules
Working Capital Schedule
Net Working Capital (NWC)	2,898	3,292	3,066
Change in NWC
Depreciation Schedule
PPE Opening	37,521		37,407
Plus Capex
Less Depreciation
PPE Closing	37,402
Debt and Interest Schedule
Debt Opening
Debt Closing
Interest Expense