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Strategic Cost and Performance Management Assignment: Background

Set Airways is an Indian domestic airline that has received approval for 5 international routes but lacks the capital and experience for international expansion. It is negotiating an investment deal with a UAE airline that could provide funding and expertise to transform Set Airways into an international carrier through a detailed balance scorecard approach.

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37 views

Strategic Cost and Performance Management Assignment: Background

Set Airways is an Indian domestic airline that has received approval for 5 international routes but lacks the capital and experience for international expansion. It is negotiating an investment deal with a UAE airline that could provide funding and expertise to transform Set Airways into an international carrier through a detailed balance scorecard approach.

Uploaded by

baskarbaju1
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Strategic Cost and Performance Management Assignment

Background: Set Airways Ltd. is a 10-year old airline, currently having only domestic operation in India. It is armed with a fleet of 22 aircrafts and 2600 employees. It operates in 27 domestic routes covering 52 destinations including code sharing partners. Recently the company has obtained international licenses for 5 routes from DGCA. The company has reported healthy operating profit in recent years, but yet to break even on their initial investment. Challenges: The company has to consolidate its domestic presence before venturing out into international operation. Service level, although satisfactory, needs to be more consistent and yet to be tested on international grounds. But more pressing need is of capital, in the tune of 6000 crores of Indian rupees, which will be required to set up the international operation. Opportunities: The company is negotiating with a major UAE based internationally reputed airline, for investment and expertise. The investment is fortunately welcome in the new FDI regime as announced by the Government of India. The discussion is still in preliminary stage and needs to be worked out with details.

Your Task: 1. Discuss possible business transformation from the current strategic positioning of the company. 2. Prepare a detailed Balance Score Card for the journey towards the transformed self.

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