Directions for TransGlobal Airlines
1. General directions.
a. The case is due on the date listed on the syllabus.
b. One paper copy per group turned in to me at the beginning of class.
c. One electronic copy per group submitted to Turnitin.com via the link on our Titanium course page. Turnitin.com evaluates the “originality” of the document and provides a score of the amount of material in your case that is the same as in other submitted cases and on the internet as a whole.
2. Content. Generally, your report should follow “The Assignment” section on the final page of the case, with your written report serving as you presentation. Below are some additional directions and information to help you complete the case.
a. Profitability by Segment. Re-make the “condensed income statement by market segment” in Table 2 using the updated cost information in Table 3.
b. Breakeven volume of passengers for the SOF to PLE route.
i. Compute breakeven passenger volume, both in terms of passengers per one way flight and the annual number of passengers, on the SOF-PLE route
1. What is the cost object?
2. Which costs are fixed and which are variable for the cost object?
3. How do you decide what portion of total fixed costs are attributable to the SOF to PLE route? Show your calculations.
ii. Compute the current average number of passengers per one way flight on SOF to PLE, and compare that to the results of your breakeven computations
iii. Using the current number of passengers per one way flight computed in part (iii) above, compute the ticket price needed to break even.
iv. Compute breakeven passenger volume on SOF-PLE again. This time, use an alternative method or assumptions about cost/operational structure when deciding how fixed costs get allocated to the SOF-PLE flight. In other words, re-compute your results using some alternative allocation bases.
c. SWOT analysis (this should be done in list/bullet point format)
i. List the four or five most important attributes in each area.
d. Strategy recommendation (this must be written in Standard English in full sentences). The strategy recommendation should be clearly stated, and supported by your analyses in parts (a) and (b) above, your SWOT analysis, and other information in the case. You should consider addressing issues related to the aircraft fleet, markets and pricing, customer service, staffing, operations (i.e. gates, hubs, flights), and national politics. This is your “presentation the board” so it should be clear, concise and complete.
3. Grading Criteria. You presentation will be graded on the following items:
a. The correctness and clarity of calculations for profitability by segment.
b. The correctness and clarity of calculations for SOF-PLE breakeven, including explanation of assumptions used in cost structure analysis and costs allocated to the SOF-PLE route.
c. The SWOT captures key attributes in each area.
d. Your strategy recommendation clearly stated, and is explained and supported. This includes acknowledging weaknesses and difficulties with the recommendation.
e. Overall organization and writing quality, including spelling, punctuation and grammar
f. Each student is required to complete an evaluation of the contributions of all members of their group. I reserve the right to adjust individual group member grades based on the feedback of all group members. If you make no contribution to your group, you will receive a zero.
4. Working in groups: advice and expectations.
a. Act in a professional manner. For example, you should
i. Return emails within 24 hours
ii. Be flexible about meeting times. Everyone is busy.
iii. Always be courteous and respectful to other group members.
b. Let me know if there are significant problems, such as one group member never responds to emails and skips group meetings.
c. Everyone should contribute to all parts of the project. The “split up the work and each person just does one section” does little to help your learning, and almost always ends up with poorly executed cases.
d. As explained in class and on the syllabus, you may only work with members of your group. If you collaborate in any way with members of other groups, all members of both groups will receive a zero.
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