MBA_620 Module 2_Performance Evaluation_CGC
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Module 4 4-2 Report: Business Environment Analysis
Southern New Hampshire University - MBA
Professor: Susan Dixon
MBA_620: Measuring Success in an Organization Carlos Gustavo Costa
January 2nd 2023
1
To
: Leadership Team at TransGlobal Airlines
From
: Controller
Date
: December 17, 2023
Subject: Strategic Objectives and Key Performance Indicators (KPIs)
Since 1951, TransGlobal Airlines has engaged in marketing activities about the Caribbean Islands,
offering high-end services to business class and tourism market segments. To sustain our success and
preserve a competitive edge, the present moment demands that we reorganize our operational
framework. To maintain market leadership and facilitate further expansion, several significant strategic
objectives have been formulated to enhance performance. The Performance Pyramid, commonly referred to as SMART, was developed to address the deficiencies
of conventional performance monitoring approaches primarily focused on financial metrics. This
pyramid integrates operational performance factors and strategic objectives within a four-tier structure.
Success will be guided by strategic and operational enhancements and improvements that are precisely
reflected in key performance indicators to achieve the SMART goals and objectives.
As stated, the chosen strategic objectives must be aligned with the SMART goals and KPIs established
to track progress. The utilization of a balanced scorecard is recommended over financial accounting
measures due to their inability to offer a comprehensive assessment of an organization's current state and
future trajectory. The balanced scorecard includes the following four elements: finance, internal
processes, customers, and learning and development. Key performance indicators (KPIs) should be
monitored by a corporation for every component. These metrics are employed to assess the operational
effectiveness of a company within a particular industry.
2
SMART Goals: Financial
A financial aim would be to increase revenue from chartered flights in the Caribbean by 20% over the
following three years due to the acquisition of another business. This goal is precise since it explains
what the company wants to accomplish, how much it wants to achieve, and how it wants to do it.
The revenue created by purchasing another business may be determined using financial data from that
division. This aim will be fulfilled because the company will grow its market share in the Caribbean,
enhance advertising by collaborating with local hotels and entertainment venues, and improve the
customer experience with a new ticketing system.
KPI: Revenue Growth - Prioritize the expansion of our domestic revenue.
SMART Goals: Internal Process
Integrate lodging, ground transportation, and tourist activities with airline purchases in person, online,
and via a phone app that will be developed to enhance the user experience. Use cutting-edge technology
to achieve the one-year goal. Customer satisfaction surveys will be conducted quarterly in the first year
and then every six months in the second year to assess progress. This will aid in establishing whether or
not customers are satisfied with the progress.
KPI: Employee satisfaction index (ESI) and Employee Satisfaction Survey - The ESI quantifies the level of
satisfaction that workers experience in their workplace. An Employee Satisfaction Survey provides
managers with insights into the contentment and welfare of their employees.
3
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