Business Case Studies & Business Publications

Naval Air Station Kodiak

Sack, Robert J., M...

Case

Naval Air Station Kodiak

Sack, Robert J.; McCarthy, J. D.; Pottinger, Jeff

C-2321 | Published May 4, 2011 | 9 pages Case

Collection: Darden School of Business

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CAPT Scott "Rattler" Smithson, weeks away from being relieved of duty at an air station that had achieved a performance record of virtual perfection, has received a surprise message from his Regional Commander that he fears will disrupt everything he'd worked so hard to achieve. The message indicates that the Commander Navy Installations Command (CNIC) headquarters had just issued a directive to all Regional Commanders to propose adjustments to reduce their annual operating budgets by 3% (i.e., reduce their total annual authorized funding level by 3%) without sacrificing required performance levels. Smithson wonders how he will run an air station with 3% fewer funds than his annual budget allows when it's already four months into the fiscal year.

Examine controllable/uncontrollable costs and cost drivers. Take an enterprise view of cost efficiency.