The management report aims at enhancing sustainable strategies from planning to implementation. Even if liabilities as compared to capital increased, during the previous financial year to 44 %, the company is within the transport industry's norms. Secondly, although the liquid assets cannot satisfy current liability obligations, the Profits that were realized are adequate to cater for the debts. According to the cash inflows recorded the company is effective as in comparison to others in that industry. By December 31 2011, the company had $205M as uncollected receivable (Doyle Et al. 2000).
Exceptional customer services
Software development experience
Production and Manufacturing experience
Understanding target market
Competitive product pricing
Implementing cost saving processes
Comprehending emerging technologies
Lack of a strong company history
Small customer base
Lack of influence with new relations
Go-Ahead Group PLC will have unlimited liability for the company. This means that if in case an individual sues the business owner individually, the entire business is at risk.
Go-Ahead Group PLC will have brand recognition and zero name entering the marketplace.
Economic recession and high rate of unemployment in the United Kingdom area might threaten the success of Go-Ahead Group PLC with limited demand.
Hiring new talent
New and improved services
Coming up with modern technology the industry
Creating a new image
New applications and innovations of modern technology
Market demand fluctuations
Effects of new legislation
Challenges in creating a talented team
Retaining chief staff members
Probability of competitors applying their technologies.
Retaining key staff members
With the commercial structure established for Go-Ahead Group PLC, the action plan falls into main three major categories that are: growth, retrenchment and stability. The extended goals and envisage for the corporate is compatible with acquiring stability in the local societies for several years. It will is satisfied to attain a humble profit margin annually without the necessities to grow or expand within the first ten years from now (Thomas (ed.) 2004).
In order to succeed, Go-Ahead Group PLC has to accomplish the following:
To attract the main target the customer into the corporate
Assure customers are amused once inside the company.
Create consciousness of unique services at Go-Ahead Group PLC.
Found Go-Ahead Group PLC as the first choice for the customer’s ages 15-45 years in the UK.
Differentiate Go-Ahead Group PLC from competitors like Wall-Mart throughout aggressive incorporated marketing plan.
Advertising/ Marketing Strategy
With a more of modern services, the corporate has made a chief welcome to the market rival effectively. The unique services have rejuvenated in recent times, with a heart on the healthier facet. There is an increase of 165% in providing services. As already highlighted, the company has an Executive Board of Directors. This is the top most organized part in this organization, which is carefully appointed by the shareholders. Their major role is to provide the organization with professional and experiential advice before making any major decision which affects the entire company. This is a noble idea, because it provides the organization with the ability to acquire the service of these experts cheaply. Engaging them as part-time workers enables the company to enjoy such services, which would otherwise be so expensive. The executive board works in conjunction with the non-executive board (Merchant 1985).
In the world nowadays many companies are struggling to get the green global policies as and boost their image, though environmental issues have not been concerned in the markets and chain stores industry in most cases. The name that entails green world ecological friendliness is Go-Ahead Group PLC (Gray 2000).
Figures show that, there were 14,143 transporters company in the United Kingdom in 2007, producing average revenue of about $349,537. The top 11% of all businesses have made an increase in service by 31% since 2003. Passenger banister and bus services in the UK has risen to about $25 billion in 2009, but dropped later. With respect to IBISWorld.com, in 2011 $8.9 billion in services and $1.4 billion profits were created in transport industries. Furthermore, expectations entails that, we should perceive 2.5% yearly growth in the coming five years. Operators and entrepreneurs in passenger banisters and bus services industries adjusted their values in order to maintain consumers more services. (Direct Gov., 2010).
Historically, passenger rail and bus services have endured an even growth during harsh economic situations. They succeeded through the subterranean depression especially after World War II market crash which occurred in 1929 and amalgamated its positions in the customs and traditions of the UK people. The executive director of the Go-Ahead Group PLC argued that many machinists have confessed that their sales have risen up twenty percent over the summer of 2008. Transport industry has grown has grown and there is hopes of further growth in the twenty first century (Clarke 2007).
BCG Growth Share Matrix
In the Go-Ahead Group PLC, shareholders are the top most decision-making parties. As the investors, they have a direct control in all the generations of the organization. Because of this, they have felt it better to co-operate with agents to act on their behalf. In the structure of the organization, there is the Board of Directors; the Chief Executive Officer (CEO) and regional and country directors. Under them, there are the departmental managers supervising the operations of the finance, legal, human resource, sales, marketing, purchasing, operations, and exploration departments (Doyle Et al. 2000). The stakeholders of this company are the shareholders, debtors, creditors, management, the Board of Director, suppliers, clients the government, and the general public. Each of these has a distinct role to play, as per the organization’s policies. Go-Ahead Group PLC Company is a profit-making organization whose primary goal is to maximize the wealth of the shareholders. Therefore, the shareholders have to ensure that they have met the company’s capital contribution requirements. In other words, a part from providing finances, they directly and indirectly participate in the management process of the company. This implies that they oversee the recruitment process for the executive and non-executive directors. At the same time, it is their responsibility to make effective and feasible decisions in the company (Graham 2010).
These are the professionals specialized in the areas in which they are attached. All of them are given a full time job, so as to get enough time to fully discharge their duties with less constraint. In order to insure the accountability and quality output, management has come up with strategies to transparently hire them on merit, supervise, monitor, and motivate them. Each of them is entitled to a good working conditions and attractive salary packages. Besides, they are involved in a lot of bureaucratic procedures to insure their boundaries are clearly outlined to make sure that there is harmony and cooperation in all the departments. This is a good motive because it has helped to motivate these executives. Hence, they have got satisfaction in serving this organization. This has motivated them to be focused on the accomplishment of the organization’s goals (Brassington & Pettitt 2006).
Go-Ahead Group PLC Company also relies on the Non-Executive Board. The decision to incorporate non-executive team has helped this company a great deal. It was the shareholder’s view that such a board would consist of eminent export from different fields after carefully being selected. They would steward the company towards achieving both its long and short-term goals. However, in order to do this, they would be expected to show their dedication and commitment in whatever activity they undertake. It was mindful decision because it has enabled the company realize a tremendous growth. The Non-executive Board advises and counsels the Executive Board. Moreover, in the association of this company, personalities like Welton have enabled it to rebuild its reputation. Thus, it has won the confidences (Becht et al. 2003).
At the same time, Go-Ahead Group PLC Company regards the interest of other players, as well. Although, the major objective is to maximize profit, it has become the company’s policy to safeguard the interest of all the other stakeholders. Therefore, in its governance, the company consults groups like the suppliers, customers, public, and government. Passenger rail and bus services trade is becoming very lucrative. Thus, it has attracted a lot of players making competition stiffer than ever. In this regard, the company’s management involves each of these in major decision-making. The suppliers are timely and effectively paid their dues; no clients are given quantity services as per their expectation. Meanwhile, government policies are implemented to avoid legal tussle (Larson et al., 1996).
This is the classification of the macro-environmental factors that affect the r4unning of a business. In this case we are considering the Go-Ahead Group PLC which operates in offering transportation services in UK. The factors that will affect it therefore are as follows:
Political factors are the occurrences that are resulted by the political stability or instability of the country. These include events such as tribal or racial violence on the ground of political aspirants. Economic factors include the things that affect the company as a result of economic fluctuations. These include inflation and balance of payment. Social factors are the factors such as population in which the company is located, the age of the population, and the distribution in gender that is male to female. Technological factors include the evolution in computerized office work and level of qualification and skills of management. Environment these include natural calamities such as earthquakes, Tsunami and floods. Legal factors are the law requirement procedures that the government demands from the company.
Evaluating strategy (SAFS Framework)
The enhancement of sustainable strategies from planning to implementation is evaluated using four success criteria: Suitability, Feasibility, Acceptability and Sustainability.
Suitability; the strategy applied in Go-Ahead Group PLC effectively address the company’s mission. The mission is to serve their customers and satisfy them. The strategy is suitable in achieving this mission. It reflects on company’s capabilities in achieving the mission and its economy makes sense. This is clearly indicated by the SWOT Analysis conducted above.
Feasibility of the strategy is concerned with the resources available in Go-Ahead Group PLC. The company has enough resources in implementing the strategy. There is enough capital, personnel, expertise, market access and time to implement the strategy. The cash flow and break even analysis indicate this. Resource deployment analysis also indicates feasibility of Go-Ahead Group PLC in implementing the strategy.
Acceptability of the strategy is determined by expectation of stakeholders of Go-Ahead Group PLC. In this case, customers, employees and shareholders have positive expectations as far as financial and non-financial results are concerned. Returns and risk acceptability of stakeholders indicate that the stakeholders have accepted the strategy.
Sustainability of the strategy is evident in Go-Ahead Group PLC. This is because the program is expected to be long term and serve the company for ever. Go-Ahead Group PLC aims to implement strategy that will not only benefit the current situation but also future plans.
Go-Ahead Group PLC is an energy company to reckon with. Its exemplary governance has expanded it from a mere public company to a multinational. The involvement of all the stakeholders in its affairs has enabled it to establish a good relationship with all of them. As a result, it has managed to tremendously grow, thus beating all the odds and ends up being one of the blue chip companies in UK. As per the ratios, the Go-Ahead Group PLC company can be said to be sound in its liquidity although is debtors ratios were negative. In terms of capital, it can also be said to be doing well. The company is in a good condition to invest in for the investors (Aswath 2007).
Acknowledging the successes of the corporate governance, it would be wise to try and implement the following recommendations.
i). The management should consider diversifying its activities. Specializing in passenger rail and bus services operation map jeopardizes the financial stability of the company. Instead, it should consider venturing in other services such as parcel delivery and communication. This would enable the company to handle the risks that would occur affecting specifically the transport industry.
ii). Go-Ahead Group PLC Company should not only focus on the shareholders as the only important players in its operation. Instead, there should be a shift from this altitude. The shareholders should not necessary play a dominant role through.
iii). The governance strategy of this company should be reviewed. It should not be only task-oriented. Instead, there should be a more human oriented approach, so as to give the workforce free space to express they creativity, novel language, and entrepreneurial skills.