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Swift Transport Plc is a Plc; a medium sized business, which specialised in road haulage services within the U.K. since the early 1960's.

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Introduction

Introduction Swift Transport Plc is a Plc; a medium sized business, which specialised in road haulage services within the U.K. since the early 1960's. For many years it concentrated on road haulage within the United Kingdom until Gisele Marionnaud was appointed as the new director in charge of transport and extended the freight carriage into Europe. After the recession in the early 1990's, Swift Transport Plc decided that they wanted to diversify. Jack Hunter, the marketing director, a very influential man, persuaded the board of directors that there would be excellent marketing opportunities associated with the Olympic Games to be held at Sydney in the year 2000. Following this, the board decided to look at possible companies to take over. In 1996, Swift Transport Plc successfully took over Happy Hols Ltd. Happy Hols Ltd was a small chain of travel agents specialising in adventure and activity holidays in Europe, and recently had been experience some liquidity problems. The directors of Sift transport decided that the business should carry on trading under the same name. This was probably because Happy Hols Ltd had built up a brand loyalty, and an if the company changed, it would have to be built up again and survival would be a priority. The directors of Happy Hols Ltd continued to make decisions about the running of the company, Kate McGreggor, the personnel director of swift was in charge of the restructuring of Happy Hols Ltd, which was necessary after the take-over. Swift Transport Plc was also interested in another company to take over, this was Keepsake Ltd. Keepsake Ltd was a small wholesale business which specialised in supplying merchandise for businesses such as theme parks, football clubs and for special events such as pop concerts. Early in 1999, Keepsake Ltd were considering an expansion of the firms activities Probably because of motives such as survival, increasing market share and being able to compete with rivals, and the director of Swift Transport Plc thought this was a good time to make a transport bid. ...read more.

Middle

But when the market is in recession, this would cause people to spend less and swift's sales revenue would fall due to less money. This would make them lose money, which they could invest. Environment - Swift as a road haulage business i9s bound to cause some pollution due to all the exhausts of the lorries, vans etc. Environmental groups such as Greenpeace would campaign against swift and would possibly cause disruption. This would cause swift to slow down, as they would not be able to work as efficiently due to pressure from these groups. This would cause them to loose money and to try and satisfy these groups. Media - The media can be very damaging to companies with their damaging reviews and reports, especially if the company is facing legal action. Therefore swift will need to be careful what it does in the public eye and maintain good public relations. Advertising standards authority - The ASA is a board of authority, which monitors all, advertising except that on T.V. and radio. The British codes of advertising and sales promotion state that advertising must be legal, decent and truthful, and must not cause offence. If Swift Transport Plc broke these codes, the ASA would make it uncomfortable for Swift until they withdraw the advert. Also the ASA could report Swift to the office of fair-trading, which can prevent certain claims in future adverts. Swift must then try not to break these codes and design adverts, which are suitable to all the public. I used textbooks to find all the constraints and also my own knowledge when applying them. The strengths of this are that I mention a lot of the internal and the external constraints that would affect Swift. The weakness of it is that I do not explain how it prevents the business to follow a certain course of action very well. ...read more.

Conclusion

In the future as Swift would have expanded even more, with Keepsake Ltd under its wing, and so would carry on growing internally. But instead of growing by taking over companies in the U.K., they would take over companies in Europe. This would make it easier for swift to transport goods into Europe but also let it grow much bigger. It should carry taking over other companies that it can, also it might consider merging with a rival company. This would make it a very big company especially in its market; this would help it to a larger market share, profits, market growth etc. In the future Swift should think about setting up in Europe so that it is much easier for them to transport goods, but also for them to carry on growing. From there Swift can try and provide its service further in other continents such as North America and Asia. This would make it a multi national, along with its subsidiaries in other countries. This would make Swift a very powerful force and very successful. But for Swift Transport Plc to grow, it must follow the acts passed by the government, especially when merging, that they follow the mergers act. When Swift does become multinational, they will have to implement changes in the organisation. They will have to organise their structure to that of a regional structure, so that they have their service in different continents. From all this Swift would become a very successful company, and perhaps one of the largest road haulage companies in the world, and due to their name being publicised during the Olympic games, people would recognise them giving them a great advantage. This is because they would not have to build up a brand loyalty, as people would recognise them. Keepsake Ltd would make profits after the Olympics and would carry on its usual business, while Happy Hols Ltd would get its camping holidays. This would increase the sales of the business, and so they will make a profit as well. Page 1 of 24 Karim Jagvani 11t6 ...read more.

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