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FIRST Choice plc is the UKs Surface transportation company holding revenues of over 5 billion Euro a year. Over 135,000 staff working throughout the UK and North America and moves more than 2.5 billion passengers a year. Its one of the largest UK rail operator carrying almost 270m passengers and
FIRST is the leader in providing consistent, secure, pioneering and transport services. This report will discuss about behaviors, culture, and SWOT analysis for the relations between the company and environment. Organization cultures in terms of shared values are taken for granted assumptions in FIRST.
Give Example of Political, legal, economical, social and technological factors which have affected the way FIRST CHOICE has behaved.
Factors which have affected the way FIRST CHOICE has behaved can be analyzed using PESTL factors.
Political factor - Political factors are the policies and laws stated by the government of the concerned country, which includes to what extent government and its system supports and contributes resources to the country.
FIRST Plc holding its operations in UK and North America is a global company with strong relations with other countries. FIRST is serving employment in North American parts helping local people to survive and also supports the economy of that country. It is helping in employment planning and maintains healthy relationship between the government of other nations and FIRST management.
Economic Factors - Every country has to consider trading short and long terms; factors like interest rates, the level of inflation employment, per capita and economic growth can be considered.
Factors affecting FIRSTs' business is taxation, high tax on fuel, congestion charges in cities also encourage drivers switch to other forms of transport. The Future vehicles that FIRST are going to introduce a technique which reduces the amount of fuel used which in turn will help in reducing CO2 emissions. This strategy targets to reduce CO2 emissions in the short and long term along with plans to achieve these targets.
Training and development is important as a part of Human resource strategy enabling employees in skills, interests and academic qualifications at FIRST. The revenues of FIRST is 5 billion Euro per annum employing over 135,000 staff thought the UK and North America which is very good for UK and North America.
Social factor - includes health, cultural, population growth rate, and career with the market growing wide people recognize the advantage of surroundings. Social factors influence demand for company's products and operations.
FIRST provides contented safe traveling services based on the demand as people with bus passes in this country are high than ever before. FIRST provides service for many elder people as they prefer to travel by bus as it is safe, people are more conscious of the situation so they prefer to travel by bus or train than by air.
Technological Factors - Technology is the development of the products or services of the company helping to improve services. It is very important to understand level of applicable technology in the institutional context. Helpful for an assessment to include a consideration of the process by which new technology comes into use.
FIRST introduced services of buses which provide better accessibility for the disable, elderly people. The introduce Future - these are state-of-the-art articulated vehicle looks like trams which are capable of carrying more people per journey. FIRST has also started alerting services for passengers these services enable passengers to get date train information by text or email helping customers in planning for their journeys.
Legal factor - includes discrimination, consumer, employment laws which affects how a organization operates with cost and demand for products. FIRST has the importance to meet future legal changes from 2010, FIRST and many other companies will have to buy carbon credits which will allow companies to generate carbon emission. Budget is fixed by FIRST to clear plans for anticipating how much CO2 it will produce after 2010 this will encourage the people to use the bus transport than cars.
Use a SWOT analysis to explain the relationship between FIRST COICE and the environment
FIRST has developed lots of partnership deals with the local authorities in developed infrastructure such as new road , bus shelters ,etc
FIRST is management approach could result in the building up their weakness as it difficult to implement such a strategy with huge operations. FIRST anticipates meeting the future legal change and from 2010, will have to abide by the Carbon Reduction Commitment.
FIRST plan to adhere the government rule in reduction of co2 emission for its bus and rail service by 2020
FIRST has to anticipate and prepare to meet future legal change Carbon reduction commitment initiative from the government is a threat for the company in the long run
Strengths: The strength could be specialist marketing expertise, a new innovative product or service, location of business, quality processes and procedures and any other aspect of business that adds value to product or service. By aiming for the top in everything and helping each other can deliver the highest levels of safety and service and give greater customer and employee satisfaction and can seed they have developed strict operating practices based on the latest industry standards, which they adhere to and regularly review. The strength of FIRST Choice is they are enjoying monopoly by providing reliable and sustainable transport services in the country. FIRST is global business aiming to be local in its approach means local issues are handled ensuring clearer understanding of what needs to happen and more prompt response.
Weakness: A weakness in FIRST choice plc they aims for the top in every thing they do for the highest level of safety and service in general greater customers satisfaction and employee satisfaction this can be healed as a major strengths for the company. It could be lack of marketing expertise, undifferentiated products or services (i.e. in relation to your competitors), location of your business, poor quality goods or services and damaged reputation. For example from case study FIRST has to anticipate and prepare to meet future legal changes. From 2010, as part of an initiative called Carbon Reduction Commitment .FIRST and other companies will need to buy carbon credits.
Opportunities: An opportunity could be a rising market such as the Internet, mergers, joint ventures or strategic alliances, moving into new market segments that offer improved profits, a new international market and finally it could be a market vacated by an ineffective competitor. For example from the SWOT psychoanalysis Opportunities to take over, merge with, or form strategic alliances with other global retailers, focusing on specific markets such as Europe or the Greater Chine Region. For example from case study FIRST aims to reduce it's CO2 emission by 25% for it's bus division and 20% for rail, both by 2020.Another factor affecting First's business is taxation and some changes may have a major impact on business like the number of older people in the UK is rising, by aiming for the top in everything we do and helping each other we can deliver the highest levels of safety and service and give greater customer and employee satisfaction.
Threat: A threat could be anew competitor in your home market, price wars with competitors, a competitor has anew, innovative product or service, competitors have superior access to channels of distribution and finally it could be taxation is introduced on your product or service. For example from SWOT analysis a threat being number one means that you are the target of competition, locally and globally.
For example from case study no major found by the company but shall be serious in handling competitions and have been looking the change of customer tastes for preferences. Another factor affecting FIRST business is taxation and some changes may have a major impact on business like the number of older people in the UK is rising, by aiming for the top in everything and helping each other can deliver the highest levels of safety and service and give greater customer and employee satisfaction.
A SWOT Analysis is a planned planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a business project.
Strengths and Weaknesses are internal to an organization and are attributes that measure your internal capability.
Opportunities and Threats create from outside the organization and refer to how the external environment affects your business.
During a SWOT analysis the FIRST choice plc would look into these aspects.
Strengths: The strength of the business over the other competitors in the market that would help the business to grow and sustain in the long run, which may include specialist marketing expertise, novelty that can be incorporated, business locations, quality of the standard procedures, etc.
Define areas you excel in, such as the company's core competency and resource analysis:
- What does your company do well, How strong is your company in the market, Does your company have a dear strategic direction and Does your company's culture produce a positive work environment?
Weaknesses: Any weak areas that would hinder the growth of the business would be considered as weakness for the business. In the case of FIRST, inability to operate any specific type of buses, inability to compete with the competitors due to rude planning and structuring, etc.
Evaluate your liabilities
- What could be improved at your company, what does your company do poorly, what should be avoided, is your company unable to finance needed technology and Do you have poor debt or cash flow?
Opportunities: The system and policy laid by the government can be used as an opportunity for the business development. Also the need of the public in the future can be well assessed in the present and possible business development can be thought of to enhance the business in the future. Increase safety concern of passengers, parents, high cost of maintaining personal vehicles, etc can be transformed as opportunities for FIRST. Also moving into a different segment of the market or even into the international market could also bring opportunities for FIRST.
Analyze your customers and market magnetism:
-What favorable circumstances are you facing, what are the interesting trends, is your company positioned to take on those trends, is your company entering new markets and is your company advanced in technology?
Threats: This include trait hinders that could affect the business. Future government rules could be a factor to be worried off; becoming number one in the market will attract more competitors both locally and globally; also high cost for fuel in the long run.
Check out what your competitors are doing and access other possible challenges
- What obstacles do you face, What is your competition doing , Are the required specifications for your products or services changing, Is changing technology threatening your position , What policies are local and federal lawmakers backing and Do they affect your industry?
Managerial culture can loosely be defined as the shared assumptions ,attitude ,and "normal behaviors"(norms) of a group .these are influential influences on the way people live and act, and they define what is "usual" and how to sanction those who are not "normal". For example from case study we have a portfolio of schemes that recognize our employee's commitment to the company.
The SWOT analysis used for evaluations and supports planning process and plays a crucial role during the drafting of any strategy. The Management of FIRST Choice has to take the benefits from conducting a SWOT analysis:
To recognize probable planned approach to expand their transportation business in other regions and destinations.
Shaping external opportunities and threats like FIRST can use latest environmental laws by governments in UK and North America.
FIRST can identify employee abilities, training and development strategies and the company can find the areas of SWOT and implement for them.
SWOT analysis helps in budget spending and how strengths of their financial source.
Shared Values: implicit fundamental beliefs, concepts, and principles that underlie the culture of an organization, and which guide decisions and behavior of its employees, management, and members. Exposed values are those which are developed within a group when decisions are made by the groups and found to succeed.
For example from case study we have a portfolio of schemes that recognize our employees' commitment to the company. And if you want to give example of the relationship with value you can seed it the focus in on making decisions that improve customer service. The team is central to delivering good customer service.
Assumptions: Accepted cause and effect relationships, or estimates of the existence of a fact from the known existence of other fact. Although useful in providing basis for action and in creating 'what if' scenarios to simulate different realities or likely situations, assumptions are unsafe when usual as realism without thorough examination. See also critical thinking and thumb. Assumptions are those comatose, taken for granted beliefs, perceptions, thoughts, underlying shared convictions that guide behavior and are the ultimate sources of value and action.
For example from case study the focus is on making decisions that improve customer service and when employees are empowered to make decisions, this increase their sense of worth and self-esteem. It also helps them to use original skills within their role and motivates them to perform better.
Responding to demand is in the provision of high quality Yellow School Bus transport. Market research showed that parents and students wanted safer buses, so FIRST intended special pilot services with the student in mind, based on the lessons learned from US operations .vehicle safety features include padded seating, integrated seat belts, additional escape hatches and CCTV.
At FIRST, employees are offering outstanding journey for customers by providing services to clients. FIRST employees have a track on what the customers want and are trying to provide it in a way to customer satisfaction which helps in holding a good relationship between the customers and the employees. FIRST celebrates both personal and business events by giving all employees a holiday for their birthday, family picnic tour etc. And also employee's partners and families are invited to the staff Christmas festivity.
FIRST values at togetherness and they fuse the organization with a unique culture. FIRST is transparent in dealing with others and are clear what they are determined to achieve. With this strategy they are providing extraordinary customer service. FIRST is also aiming to achieve most progressive public transport providers.
Deal and Kennedy's Model Culture - Deal and Kennedy's model of culture is based on four types of organization and how swiftly feedback can be received. FIRST is a based on Deal and Kennedy model of culture. Feedback and reward can be considered as important driver in companies. If the feedback takes longer time then the errors can be left uncorrected. The firm locates high value on teamwork and open communication between employees at levels.
FIRST gives a collection of plans that recognize their employees' commitment to the company by providing employees with quick rewards such as incentives, shares, bonus etc.
Supply finance & Reward: How quickly are supply finance and rewards provided (through which the people are told they are doing a good or bad job), quick feedback means an instant response.
For example from case study both private and business events are famous in the firm with great eagerness .with regard to high family values, all employees are given the day off for their birthday .family picnic tours are held, should where you work family days are held each year, and festivals such as Christmas and Easter are celebrated throughout the organization .Employees partners are invested to the staff Christmas celebrations, where a thoughtful exchange of gifts the family culture.
Feedback and reward
Uncertainty and risk are something that some people hate and some people thrive on but still it can be considered as a motivating factor guides people to focus on managing it. If the risk is low, people may be willing to take risks up and if they are high, the risks need to be managed or accepted. Risk as represents the degree of uncertainty in the organization's activities.
For example from case study in 2007, FIRST set out its Climate Change Strategy. The strategy sets targets to reduce CO2 emissions in the short and long term along with plans to achieve these targets. The strategy identified some of the risk of climate change. These included the vulnerability of road and rail infrastructure to flooding and storm surges along the cost. It identified ways of managing these risks, for example, by working with transport network providers to monitor and monitor roads and rail.
At FIRST, their employees are providing an excellent journey for customers. They provide services to clients in simple, distinctive and accessible way. The risk is low as the focus is on improving and providing exception customer service at FIRST. The company is based on the Work Hard/Play Hard Culture is characterized by few risks being taken, all with rapid feedback. Risk is high in large organizations which strive for high quality customer service and can be characterized by team meetings.
Organizational culture defined as "collection of values and norms shared by people in an organization and control the way to interact with each outside the organization" and explains about the psychology, attitudes, experiences, beliefs and values of an organization.
At FIRST, the organization culture and behavior are consistently given same importance by providing employee safety, which is a component of organization culture and therefore this culture of safety is in link with the organization behavior.
Organization behavior - is the study and application of knowledge concerning how people, individuals, and groups act in organizations.
As the FIRST is based on deal-and-kennedy model behavioural and cultural aspects are based on quality customer services. Culture and organizational behavior were not always two topics that were considered side by side of one another. In fact, this concept which may seem common place, and even common sense now, first gathered steam only a little over twenty years ago. Many experts started arguing that developing a strong organizational culture was essential for maximum success. Most people agree that a solid connection is there, although there remains some degree of argument as to how influential it really is.
The behavior found within a successful organization will in part be due to, and continually nourished by, a healthy organizational culture. It's extremely important to know what type of behavior culture has the greatest impact and how culture works to control the behavior of members of that particular organization. The culture will affect the organization, just as the opposite is true. Behavior is a learned habit, and the process of socialization that teaches new employees the habits of those workers already there is one of the major parts of organizational culture.
7. Another culture that FIRST can adopt:
FIRST implemented a work hard play hard culture as it is based on Fast Feedback and Rewards and Low Risk. FIRST is aiming to offer quality customer service held in the company in order to motivate and encourage the employee with quick rewards. And if the company is adopts process culture then it will be based on slow feedback and low risk.
If FIRST adopts this kind of culture then the feedback and rewards within the firm will be slow and the risk faced by it will also be low. There will be low stress and work and will have comfort and security in the business. Stress may come from internal politics and stupidity of system. FIRST Choice Plc can adopt Process culture as an alternative culture. Process culture is based on slow feedback and rewards and low risk. In the Process Culture there is less stress, comfort and security in the working of the firm. It focuses on details and process excellence. Stress level is low but even if it occurs it may be due to the internal politics or stupidity of system. FIRST has low risk as it is mostly customer service based. It is trying its level best to live up to its customers demands and satisfy their wants and needs. FIRST will have to reduce the amount of meeting from weekly to monthly and reduce the duration of the meeting in order to reduce time wastage. If FIRST adopts this culture, the management will have to deal with de-motivation due to slow feedback and stress due to the internal politics. Management will have to deal with inaccuracies and mistakes which will be repeated over and over again.
FIRST provides good service for customers by serving and delivering the journey for the people to attain FIRST is hiring qualified employees to offer the best services for the people. FIRST is aiming not only satisfying customers but also staff. An analysis of FIRST's external and it environment has been made and its organization culture has been analyzed. Therefore, FIRST choice Plc is work outing strategies taking environment into reflection by upholding the organizational behavior consistent with the culture.