Safety Issues W/ Company B
You have almost completed your analysis of Companies A and B and are scheduled to deliver your proposal to the board. 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.
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?
- Do you see any additional risks? Explain.
- Will it impact your recommendation about acquisition? Why or why not?
- What additional information about this situation will you need to make your final decision?
Guidelines for Submission
Submit a 1- to 2-page Word document using double spacing, 12-point Times New Roman font, and one-inch margins. Sources should be cited according to APA style. Consult the Shapiro Library APA Style Guide for more information on citations.