City speed - There are 2 options that are currently available to you, the Board of Directors, the first is to purchase more vehicles in addition to the current fleet and the other is to expand to a new location from which to run the company.

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CitySpeed

Brief Introduction

There are 2 options that are currently available to you, the Board of Directors, the first is to purchase more vehicles in addition to the current fleet and the other is to expand to a new location from which to run the company.

New Vehicles

Advantages

The advantages of purchasing 15 low-floor easy-access buses are that it leads to a growth in the size of the current operating fleet. As can be seen from the benchmarking data although the current fleet size is bigger than our rivals, Destina, the average age of the fleet is double theirs. The introduction of new buses to the fleet will allow the customers to travel in more luxurious surroundings and so will increase the overall pleasure of the journey which is likely to lead to more people wanting to use our company’s buses on a regular basis. The fact that these new low-floor easy-access buses operate as a fifth of Destina’s fleet shows that they are a forward thinking company who are looking towards maintaining a greater market share by improving the level of customer satisfaction.

        By looking at our maintenance record over the previous years it can be ascertained that as the fleet has grown in age the amount of breakdowns and the cost of maintaining the fleet are beginning to rise. This can lead to unreliability in the transport network as buses may fail to arrive on time due to breakdowns. The introduction of modern buses will help to alleviate these problems and bring reliability back into our operating procedures.

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        Looking at the population trends it can be seen that within our operating boundaries in the forecasted future the number of people ages over 60 and under 11 will have increased so there will be increased demand for low-floor easy-access buses to ensure that these people have a safe and pleasant journey with minimal difficulties.

        The newer fleet offered by the company may also help to bring back up the number of passenger journeys as it has fell over recent years whilst our competitor has seen a dramatic increase in theirs. This may also lead to increased fare revenue per ...

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