Texaco Aviation Transport Services (B)
9 Pages Posted: 21 Oct 2008
The B case relates some of the problems that Don Baldwin experienced once he signed the contract with NetJet®, as well as some of the negatives that should have been discussed after reading the A case. It is likely that some problems he encountered would not have been brought up in the A-case discussion (e.g., the insurance problem). The B case also introduces the concept of partnering as a means of making new situations work. Part of managing is finding ways to work with and influence people who are not under one's direct control. Don Baldwin successfully met this challenge by making the NetJet operation comply with the standards of Texaco's Aviation Transport Services Department. See also the C case (G-0541).
Keywords: aircraft justification, capital budgeting, capital investment, outsourcing
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