a)The named organization that is being discussed in this case study is FirstGroup PLC which is a transport company based in the UK. It generates revenues of approximately 5 billion pounds every year and employs staff of over 137,000 over the UK and North America. The estimated amount of passengers that this company transports is about 2.5 billion per annum. That was a brief overview of the organization that is being dealt in the case study. Moving onto PESTEL which is the brief analysis of any organization’s political, economic, social, technological, environmental, and legal factors. Basically, these factors are taken into consideration by managers to manipulate their decisions of their organization in the macro environment. After conducting a PESTEL analysis, the conclusion is:-
Political Factors –
•Government policy states that school children must be encouraged to use buses rather than cars to travel to school which can reduce a great deal of CO2 (Carbon Dioxide) emissions which is one of the main causes of global warming. •Government started to privatize bus services in the UK in during the 1980s to keep prices low and ensure that customers are satisfied with their transportation services. •The standard for bus transportation emissions was a law that was implemented by government and satisfied its policy. Economic Factors –
•High tax on fuel has supported customers to change from using cars to a more economical and inexpensive alternatives which are the buses and rail transport. Social Factors –
•The numbers of older people are increasing in the UK which calls for more bus passes that are with many individuals than ever before. These passes are effective for older people as they are free and helps the older people travel safely and conveniently. •Society’s habits are getting altered and people’s outlook on environment awareness has been introduced which has made them become ‘green consumers’ who basically prefer any goods and services that are environmentally friendly.
Technological Factors –
•State of the art communicative vehicles were introduced called ‘ftr’ in 2006 which had the capability and flexibility of carrying more passengers per journey and cutting down bus journeys which in turn saved fuel and was environmentally effective by cutting down CO2 emissions. •First Scot Rail has set up ground breaking alerting services that made passengers aware of 2 things, which are Journey check and Journey alerts. Passengers could receive updated information of train arrival, departure and delay timings via text or email, which could help passengers effectively plan their journeys accordingly and conveniently. Environmental Factors-
•Customers prefer environmentally friendly services, and thus the organization need to satisfy its green consumers. •The organization needs to adhere to a law which is called standards for bus transport emissions which pertains to the management of waste. •It needs to join and follow an initiative called the Carbon Reduction Commitment, and purchase carbon credits in order to obtain permission to release a substantial amount of CO2 which wont impact the environment harshly. •Future state of the art articulated vehicles will help reduce the amount of fuel consumed and thus reduce the amount of CO2 emitted into the environment. Legal Factors-
•This organization needs to legally follow an initiative called Carbon Reduction Commitment and purchase Carbon Credits in order to generate a specific amount of CO2. •Law of waste management must be followed which is basically the standards for bus transport emissions.
b)SWOT which stands for Strengths, Weaknesses, Opportunities and Threats. It is basically a scan of the internal and external environment which Is an essential part of the strategic planning process. Opportunities and threats are classified into the external environment whereas strengths and weaknesses are classified into the internal...