Write to summarize your analysis and recommendations for both companies. A. Situation assessment:…

Write to summarize your analysis and recommendations for both companies.
A. Situation assessment:
Briefly summarize your company’s current internal and external business environments and the rationale for the acquisition.
B. Data and analysis:
Provide a brief overview of the two airlines under consideration, including your findings and analysis from your balanced scorecards.
C. Recommendation:
Justify your recommendation for the acquisition and explain how it supports the company’s objectives.
Company A Information
Location, Size, and Age of the Firm
Name:
Location: Miami, FL
Size: 165 employees
Age: began operations in 1981
Customer Segment and Target Market
Market: Caribbean Islands
Destinations: 15 )
Market segment: luxury tourist and business class
Aircraft capacities: 20 to 60
Market share of Caribbean destination airlines: 4th at 18.9%
Customer segment: vacationers, tourists, Caribbean business, and government clients
Retention: 66% return customers
New customer growth: 22% annually
Seat occupancy average: 74% (top quarter of benchmarks)
Average customer fare: $450 USD
Major Competitors
Delta Connection
American Eagle
Bahamas Charter Airlines
Cape Air
Seaborne Airlines
Company Leadership
Privately held, with a board, president, VP admin, CFO, COO, VP sales
Company Strategy and Direction
The company is well positioned for a transition and strategic investment. Its cash position is especially positive, providing ample flexibility. Long known as a premium upscale provider, there is an awareness of the need to broaden the customer base, attract younger travelers, and modernize both the fleet of aircraft and customer-facing technologies. The president and leadership team have adopted these goals for the coming five years:
Improve public image and brand in ways that attract new customers
Improve employee retention; reduce turnover by half
Address aging fleet of aircraft; reduce average age of fleet to eight years
Achieve 20% improved fuel efficiency; leverage this into brand and public promotions
Reduce on-ground aircraft turnaround time from two hours down to 45 minutes (industry average is 90 minutes)
Current Financial Highlights
Annual revenues: $28–29 million
Annual growth YoY: 2.5–2.9%
Gross profit margin: 45%
Net profit margin: 8%
Aircraft in fleet: 55
Average age of aircraft: 14 years (25 years of useful life is typical)
See financial statements for further details
Background
The company is recognized as a premium provider.
In 2016, the company sold a portion of its fleet and its real estate holdings, resulting in a substantial influx of cash.
Employees (excluding pilots) have frequently discussed unionizing but have not acted in this direction.
The management team is experienced and focused on revenue growth and customer satisfaction.