Economical Challenges Faced by the City Group Company



1: Brief history of the organization. (When established, purpose, any major historical changes, number of employees, public or private sector, etc.)


City group Company (CGC) a flagship company of Boodai Corporation, a number one business house in Kuwait since 1950.City group Company (CGC) earlier referred to as Transport and deposit cluster (TWG) has started its enterprise since 1977, is one amongst the foremost successful and quickest growing business house in Kuwait.

A dynamic and innovative approach, designed on visionary strategic coming up with has driven the exceptional growth of the cluster since it absolutely was established.

CGC and its subsidiaries have with success served the requirements of its customers and shareholders and contributed to native, social, industrial and economic process of the earth science.


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Primary objective is to maximize the shareholders price by capitalizing on the prevailing chance to supply governments across the MENA region with conveyance solutions that may effectively address the region’s process want for safe, reliable, pleasant, environmentally friendly transportation alternatives.


There square measure 5 board of director WHO square measure running this organization,

  • Chairman of the organization is “ Yacoub Al Sharhan ” ,
  • Vice chairman is Nabil A.Al-Jeraisy
  • Three Board members square measure Suhail K.homsi, Mukund G. Korde, and Hany Shawky.

Many workers are activity during this organization. The cluster employs 2000 folks and runs around 800 buses.


CGC may be a public material possession company listed on the Kuwait exchange.


A replacement conception within the conveyance was established in Kuwait in 2002 with the introduction of City-Bus, the primary non-public in hand conveyance in Kuwait, 100 percent Public material possession Company determinedly took up the challenge of operating aboard major competitors to enhance the standard of service provided to the general public.

Innovative, snug and convenient, City Bus illustrates CGC’s commitment to enhance the standard of life for folks from all walks of life in Kuwait. For the past forty years, the general public transport sector in Kuwait was dominated by one company in hand by the govt. of Kuwait. On 08 March 2002, this noncompetitive trend came to historical finish once a replacement conception publicly transport came to life specifically City bus.

City bus has modified the whole phenomena of conveyance and is devoted to supply a top quality service to the passengers. Inside a span of six months of its introduction, City bus became a house name and has shown constant growth. City bus has modified the method the general public transport is perceived and left a deep impact on the general public.


The story began in 1984. A bunch of dedicated visionaries, with the thought of making a best, full service travel company, launched Boodai Aviation. Within the last 20 years, the exertions and determination have paid off. Today, Boodai Aviation Group is unquestionable one amongst the quickest growing aviation conglomerates in Near East.

TWREG (Transport and Warehousing Real Estate Group)

In 2009, town cluster reinforced its income generating capability to support planned growth initiatives although the acquisition of TWREG the deposit and assets cluster. Within the short time since its acquisition, the management team has exaggerated the profitableness by ninetieth compared to the previous year, taken steps to implement effective technology solutions across its deposit operations.

2: Purpose of the organization. If focusing on a particular department, office, etc. explain the function/purpose of each.

CGC has had a protracted and successful involvement within the development and growth of the general public transport sector in Kuwait. Company is a lot of focusing publicly transportation department. That aims to handle issues of congestion and supply Kuwait with transport infrastructure that reflects its standing as a regional tourer hub? The aim of a lot of that specializes in these departments is given below:

  • a reliable, safe and pleasant service to all or any its passengers,
  • a appreciated operating surroundings to its workers, additionally to
  • Effective, economical and environmentally-friendly conveyance Solutions to its governmental and personal sector shoppers.
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Richard Woods, CGC chief officer said: “CGC has had a protracted and successful involvement within the development and growth of the general public transport sector in Kuwait. Jointly of the leading conveyance suppliers, CGC is committed to maintaining glorious delivery records. We tend to aim to assist increase transport potency in Kuwait, yet as decreasing traffic and time period aiming to and from destinations around Kuwait."

City bus, a division of City group Co. KSC, has reworked the face of public transportation trade in Kuwait and Jordan by providing trendy, reliable, economical and safe nevertheless economical public transportation services to the riding public. So as to fulfill the growing expectations and wishes of the riding public and its Shareholders,

City-bus has dead the subsequent initiatives:

  • Introduction of latest fifty buses in Kuwait and 191 buses in Jordan as a part of town bus’s in progress fleet modernization program.
  • Implementation of well-tried technology solutions to drive efficiencies and reliableness.
  • Continued Investment in City bus’s management team, across numerous functions.
  • Choice as a ‘’Super brand’’ from among 1300 brands in Kuwait for the third successive year. City bus has conjointly begun associate bold program of increasing its conveyance business outside Kuwait and in alternative components of MENA region and has no inheritable fifty one stake in Comprehensive Multiple Transport Company, Jordan. Opportunities square measure being explored in alternative near countries yet.

3: Identify at least 2 challenges/issues the organization faced (challenges may also be presented from a departmental or interpersonal level)


The Kuwait Travel Market and specifically company travel remains plagued by the international money crisis so forcing corporate accounts to scale back their travel budgets whereas vacation market in Kuwait was badly affected owing to Ramadan falling in solstice holiday and also the tremendous increase in passengers’ exploitation on line building bookings. All higher than have junction rectifier and for the primary year when over a decade of surpassing net profit budgets that Boodai Aviation cluster failed to come through the set target of 2010.

In 2011 the aftershocks of the globe economic condition began to be felt in Kuwait despite its huge oil revenues. “CGC weather-beaten the impact of the world economic retardation that began in 2008, with when effects that continued well into 2010,” says Woods.

Towards the tip of that year, though, they tend to began to note a particular improvement in each the deposit and transportation sectors and CGC performed higher than at the other time in the history.


A bus operator faces variety of challenges, and hold up issues square measure severe, despite the nation’s trendy and well-maintained road system.

Speeding, lax social control of traffic laws and high density traffic results in frequent and infrequently fatal accidents on Kuwait's roads.

Kuwait has the very best per-capita rate of telephone possession within the world and exploitation them whereas driving continues to stay legal. Not amazingly, this is often found to be the explanation for several accidents.

  1. Utilize theories from organizational behavior to explain why the challenge may have existed.


Rational system perspective theory argues that there square measure 2 vital parts: specification of goals and formulization.

Goal specification provides tips for specific tasks to be completed alongside a regulated method for resources to be allotted. Rationalization may be thanks to standardize structure behavior.

In step with this theory if specification of goals and formulization isn't done well then such variety of challenges build up.

In step with this theory Taylor says that rent trained driver, produce a science for every individual’s responsibilities, and confirm work is finished on time/efficiently to resolve these structure problems.


Once paperwork is enforced, they will give irresponsibleness, responsibility, control, and consistency. The hiring of workers is associate impersonal and equal system. Town goal organization wasn't fulfilling the need of this theory that’s y crisis exists there.

  1. Did the organization utilize any type of assessment tool or activity to assist in resolving the challenge/issue? If so, please describe and was this tool/activity appropriate? Would you suggest any other type of methodology?
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Organization failed to utilize any assessment tool or activity in partitioning the money crisis problems. They just do struggle to enhance their transit, scale back the time of travel creating enhancements in their conveyance bus.

They believe coaching, developing and holding their workers and have recently introduced a graduate educational program for native and international students to return and knowledge life within the bus trade.

They struggle to resolve those issues that square measure long-faced by bus operator. They ought to conjointly adopt some activities to avoid from money economic condition.

I’ll focus 1st on the necessity to strengthen economic science policies and money systems in organization, yet because the desirability of up the standard of data provided to markets in reducing the likelihood of future crises.

To avoid crises, an organization desires each sound economic science policies and a robust national economy. A sound economic science policy framework is one that promotes growth by keeping inflation low, the deficit little, and also the accounting property.

The setting during which the corporate operates needs s to essentially shift their strategic approach not solely to resolve long-standing problems however a lot of significantly to effectively address current challenges and maximize new opportunities.

Changing demographics, shifting travel patterns and volatile economic conditions are increasing the pressure on company to develop effective campaigns and business methods.

The challenges facing the corporate are advanced and various. Addressing these challenges would require a high level of coordination and cooperation to marshal resources a lot of effectively. Does Comprehensive analysis to higher perceive the expectations of travelers? Adopt Human resource methods to draw and retain staff within the company. Adopt economical and integrated transportation systems; Broadening and adopting property best practices.

Continuing to upgrade and modernize traveler data services are necessary in providing guests with quality, easy and consistent year-around data. Having the ability to grasp and adapt to those changes are progressively necessary.

According to the 2004 Conference Board client web measuring system, common fraction of shoppers are currently mistreatment the net to form travel arrangements and therefore the level of satisfaction rumored among users is incredibly high. The economic expert observed on-line travel as being one amongst the foremost prospering sorts of e-commerce. Internet business solutions are progressively wont to improve traveler data services however their application to cut back prices and increase operational effectiveness and potency will have a considerable impact on business viability.

  1. Based upon theory, what would have been an appropriate way to resolve this challenge?

There square measure several acceptable thanks to resolve these crises. Like appoint trained driver, produce a science for every individual’s responsibilities, and confirm work is finished on time/efficiently to resolve these structure problems.

There ought to be standardized organization behavior. There ought to be correct irresponsibleness, responsibility, control, and consistency system.

They ought to strengthen economic science policies and money systems in organization to avoid such crisis. Data system ought to be affection.

Managers and employees ought to be driven to perform their duties in well manner. There ought to be outlined rules and regulation to run the corporate.

  1. Did the organization resolve the challenge/issue? How so or how not?

Of course company is making an attempt to resolve all the problems. Delivering safe and gratifying journey was terribly essential challenge for the bus operator. City group Company compete vital role to resolve this issue.

They are doing a lot of target development of conveyance sector in Kuwait. They’re within the position to create improvement in it. The corporate committed to take care of world category service delivery targets.

They employed well trained drivers and body workers. They build the aim to extend transport potency in Kuwait, yet as decreasing traffic and time period aiming to and from destinations around Kuwait.

  1. Identify any negative or positive long lasting outcomes that have resulted from the challenge/issue.

As we've mentioned that company was facing some economical and a few alternative problems associated with bus drivers. These problems resulted positive long lasting outcomes towards the organization success and recognition. When facing these problems the managers understand that they need some downside in their transit.

They create SWOT analysis. When analyzing it they feel that chance of success exists here if they're going to improve their public transit. They will utilize their strengths and core competencies so that they build enhancements in their transit and their administration workers yet as workers and obtain competitive edge.

Today, CGC has succeeded in establishing its position as Kuwait’s leading conveyance operator. It operates four hundred regular services across nineteen routes, carried over forty six million passengers in 2011, and has become the primary company within the Near East to achieve ISO 9001:2008 certifications.