A CASE STUDY ON FIRST PUBLIC

TRANSPORT COMPANY

Presented to the
Dr. kinjal Ahir
Tolani Institute of Management Studies

On
27th August, 2009

By
Group number: 4
Roll numbers: 73, 80, 87, 115, 117, 148.
Division B
Batch 2009-2011

Roll Student
no. name
73 Chirag
padaliya
80 Rajkumar
patel
87 Chetan
pujara
115 Pintu

TOLANI INSTITUTE OF MANAGEMENT STUDIES (TIMS) 1

 Vaishnav
117 Anil
Vekriya
148 Milan
Thacker

1. What do the letters PESTEL stand for? Can you identify any
links between some of these factors, for example between
political & legal factors affecting a business? What other
links can you make?
 Meaning of word “PESTEL”: -
lette Factors
rs
P Political
E Economic
S Social
T Technologi
cal
E Environme
ntal
L Legal

 Relationship between them: -

Relationshi Explanation
p
Environmen Highly efficient engine will produce less CO2 than
tal & older one.
Technologic
al
Political & In 1980 A.D. Government started to privatize bus
Economical service, so private firm would keep prices low & try
hard & provide more efficient, innovative,
sustainable bus service.
If there is high taxation on fuel, People will prefer
public transport than private transport (car).
Social & The number of old age people in UK is rising,
Technologic Simultaneously First improve its technology &
al facility, so it is convenient & safe. (Low floor bus)
Social & Now a day, people are more aware about
Economical importance of environment, so they are “Green
customer”, They prefer services which are
environmentally friendly. So they prefer to travel by
bus than large car.
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 Social & Parents of students want more safe & efficient bus,
Environmen so First start “Yellow bus service” which is effective
tal to environment also.
Legal & Government make legal the concept of “Carbon
Environmen credit & Kyoto protocol” so it directly affect CO2
tal emission.

2. How does it benefit first to work closely with government in

designing its transport service strategy? In your answer,
show why it is important to work with local government.
 Benefit to work with government: -
o Before 1980, bus service was operated by government, so
people are already aware about it, so company has also
benefited from it that no any marketing or advertisement is
required, only requirement is to improve facilities &
technologies.
 Importance of local government: -
o Public transport is generally a local business, so it deals
with local people, so dealing problem should be local,
solution is also come from local authority, so company deals
with local government.
o There is less chance of communication gap between
company & local government than central government.
o With local government, it is easy to take quick decision.
o So, ultimately it saves the cost & time.

3. Analyze how effective first has been in responding to

changes in demand for bus services.
 Parents of students want more safe & effective bus, so to
complete this need company start a new bus named as “Yellow
bus service”, in which drivers are trained to work with students.
Each day students step on to the same bus, can take the same
seat.
 The number of old age people in UK is rising, simultaneously First
improve its technology & facility, so it is convenient & safe. (Low
floor bus)
 Company use high tech technology for convenience of customer &
low maintenance. It uses smart card, ground breaking altering
services for passengers.

4. Evaluate the effectiveness of the Way that First is meeting

the challenge of providing sustainable solution to transport
needs.
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  Company provide following sustainable solution: -
Solution Positive points Negative points
Yellow bus Safe, Student friendly, Same bus & More investment,
service same seat for student, Corruption.
Environmentally friendly.
Low floor bus Convenient service, Social Misuses of passes,
& Free pass responsibility. Increase cost due to
free pass.
Use of new Security, CO2 emission, Fuel Increase cost, Training
technologies saving, Low maintenance, Time to employees for new
saving. technology.

5. Can public transport replace private transport?

 Yes, because case itself says that,
 Use of national rail journey raise of 8% on the previous year.
 Passenger journey on local buses rose by 4% in the year.
 Passenger journey on light rail systems increase by 9%.
 Average local bus fares fell by 3%.

6. Is it important for first to prepare for new carbon credit

related regulation, if yes how is it preparing? What further
can be done?
 Yes, Company may shift to use of alternative fuels like Biodiesel
& CNG. This will help to reduce carbon dioxide emission.
 Company may arrange training program for drivers, for efficient
use of fuel.
 A new infrastructure like fuel efficient road will help to reduce
carbon dioxide emission.
 Company decides to reduce CO2 emission 25% from bus division
& 20% from rail division.

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7. Why should a company worry about environment, people,
and government?
 Environment: -
o It is a social responsibility of company.
o Government has make legal carbon credit & Kyoto protocol,
so company has to reduce pollution by it.
o If company is very aware about environmental problem, and
its effort to solve it automatically improve the reputation of
company.
 People: -
o Because people are only customer for company.
o Company wants to improve customer satisfaction &
relationship.
 Government: -
o Company has to obey government rules & regulation.
o Government is also external factor that affect the
transportation business.

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