Reviewing Airtex Aviation, An Operation Out Of San Miguel Airport Essay
2555 Words11 Pages
In this case analysis, we will be reviewing AirTex Aviation, which was an operation out of San Miguel Airport in dire need of restructuring. We will briefly discuss the strategic issues the new acquirers of AirTex, Ted and Frank, faced in the early stages. Following this, we will explore the need for a new control system at AirTex and evaluate the system that was implemented. We will also dissect the cash management system, as well as provide a more in-depth explanation of the types of control systems the acquirers put in place. Lastly, we will address the issue of Sarah Arthurs, the company’s accountant, and the issue of how flight school should be handled.
Strategic Issues Prior to New Management
• Centralization and retention of information and power (Sarah Arthur).
• Lack of accounting system, lack of accountant. Unclear financials.
• Departments were given no information about their departments and performance.
• Lack of staff motivation since they were not involved in anything.
• The overall lack of control systems in place.
The Need for a New Control System
When AirTex was purchased by Ted and Frank it was in need of a new control system. There were several issues with the control system that was in place that was causing the business to run inefficiently. One the biggest problems was the centralization of all information and power to Sarah Arthur. Sarah was the only person able to make decisions and handle all information, even though she was actually