Mark and Todd agree that a ratio analysis can provide a measureof the company’s performance....

Mark and Todd agree that a ratio analysis can provide a measure of the company’s performance. They have chosen Boeing as an aspirant company. Would you choose Boeing as an aspirant company? Why or why not? There are other aircraft manufacturers S&S Air could use as aspirant companies. Discuss whether it is appropriate to use any of the following companies: Bombardier, Embraer, Cirrus Aircraft Corporation, and Cessna Aircraft Company.

Solutions

Expert Solution

No, I would not choose the Boeing as my the aspirant company simply for the reason that they both work in different domains within the same industry, and Boeing is a one of the largest manufacturer of commercial airplanes, while on the another hand, S&S air is involved in the manufacturing of light and small planes. Therefore, it would not be financially and strategically viable for a small company like S&S Airlines to consider Boeing as accompany to look up to as an aspirant company. It should look for a company that is a market leader in the the domain operates in.

If S&S considers the Bombardier as an aspirant, it will not be realistic because Bombardier is involved in the production of short-range airliners and fire-fighting amphibious aircraft business jets, and fire-fighting aircraft. Besides, it provides defense-related services to the countries. Therefore, it should look for a company within its market where it can specialize. Similarly, Embraer also deals in the manufacturing of large commercial aircraft, and it will not be realistic and ideal for S&S to follow them, as they have a global presence and it not only operates in commercial aviation but also executive jets, defense security, agriculture aviation, and other systems.

However, Cirrus Design Corporation and Cessna Aircraft Company, both operate in a similar market and are operating for a long period, and have experience in providing innovation, safety, and quality to their customers; therefore, it can use any of these two companies as an aspirant company to build its business strategy for the future.

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

Financial statement ratio analysis can reveal important insights about the position and performance of a firm....

Financial statement ratio analysis can reveal important insights about the position and performance of a firm. Provided below are key financial ratios for BlueScope Steel Ltd and United States Steel Corporation. Both firms are manufacturers of steel products with operations spanning a number of countries. Ratio BlueScope Steel Ltd United States Steel Corporation 2015 2014 2013 2015 2014 2013 Current Ratio 1.59 1.62 1.76 1.82 1.63 1.87 Quick/Acid Test Ratio 0.8 0.79 0.88 0.85 0.92 0.85 Total Debt/Equity 0.19 0.18...

Respond to the following statement: Compensation does not affect a company’s performance. Do you agree or...

Respond to the following statement: Compensation does not affect a company’s performance. Do you agree or disagree? What is the rationale for your perspective?

Ratio analysis is considered a method of performing an in-depth assessment of the financial performance of...

Ratio analysis is considered a method of performing an in-depth assessment of the financial performance of an organization. -Identify the four categories of ratios used to evaluate health care organizations. -List examples of each category of ratio. Provide at least one reference

3. Explain how ratio analysis is used to analyze financial performance.

how you would use the strategic profit model to analyze the company’s performance ratio.

Mark Sexton and Todd Story, the owners of S&S Air, have been in discussions with a...

Mark Sexton and Todd Story, the owners of S&S Air, have been in discussions with a light aircraft dealer in Monaco about selling the company’s planes in Europe. Jarek Jachowicz, the dealer, wants to add S&S Air to his current retail line. Jarek has told Mark and Todd that he feels the retail sales will be approximately €5.7 million per month. All sales will be made in euros, and Jarek will retain 5 percent of retail sales as a commission,...

Describe and illustrate the use of horizontal analysis in evaluating a company’s performance and financial condition.

Analyzing ratios One of the most important applications of ratio analysis is to compare a company’s...

Analyzing ratios One of the most important applications of ratio analysis is to compare a company’s performance with that of other players in the industry or to compare its own performance over a period of time. Such analyses are referred to as comparative analysis and trend analysis, respectively. Common size analysis requires the representation of financial statements in relation to a single financial statement item or base. What is the most commonly used base item for a common size balance...

Mark Sexton and Todd Story, the owners of S&S Air, Inc., were impressed by the work...

Mark Sexton and Todd Story, the owners of S&S Air, Inc., were impressed by the work Chris had done on financial planning. Using Chris’s analysis, and looking at the demand for light aircraft, they have decided that their existing fabrication equipment is sufficient, but it is time to acquire a bigger manufacturing facility. Mark and Todd have identified a suitable structure that is currently for sale, and they believe they can buy and refurbish it for about $68 million. Mark,...

Mark Sexton and Todd Story, the owners of S&S Air, have decided to expand their operations....

Mark Sexton and Todd Story, the owners of S&S Air, have decided to expand their operations. They instructed their newly hired financial analyst, Chris Guthrie, to enlist an underwriter to help sell $20 million in new 10-year bonds to finance construction. Chris has entered into discussions with Renata Harper, an underwriter from the firm of Crowe & Mallard, about which bond features S&S Air should consider and what coupon rate the issue will likely have. Although Chris is aware of...

Subjects