Managing In A Mixed Economy - Assignment Example

? MANAGING IN A MIXED ECONOMY Introduction The transport industry in a global observance has had numerous challenges. One of the main problems affecting this industry is the management and the development of good strategies that are meant to improve service delivery to the clients and citizens of the nations involved. It is in this bid that private and public partnerships of governments and private developers have come in to save the crumble of a lucrative economy. This paper focuses on the development of the private partnership between the United Kingdom government and private sector in the railway transport. A greater scrutiny into the functioning of the partnership, the different strategies and innovation packages that the two have developed will also form part of the analysis of this essay. There is an analysis of the nature of partnerships, the expected returns and the different strategies that have been developed over time for the realization of the objectives of the partnership programme. This paper therefore acknowledges the role that the country plays as a public entrepreneur and its partnership with the private partners in the rail industry. Context and background Partnership of governments and other private entities in the world result to greater functionality and developmental stimulations in companies rather than when the latter are left to grapple on their own (Bell & Shea 1999). The case of the United Kingdom does not fall far from the same speculations observed by the scholars. The government has for a long time now incorporated the partnership spirit with its private stakeholders in the railway sector. This as Nash (2012) notes has been more fruitful in the rural and urbanite populations of the country. The partnership between the government and the local community in the provision of transport to the larger majority in the community has for a good period been in existence. The partnership which started in 2007 with an aim of adopting rail transport in areas where there was poor transportation in the local communities has highly become successful in its implementation. The government has since helped support the programme with most of its activities being in collaboration with private stakeholders. The government has therefore entered into partnership with the ACORP (Association of Rail Community Partnerships). United Kingdom Freight Transport Report (2012) notes that the visit paid by the minister for the department of transport to the many projects involved have led to an increased developmental partnership and drawing of strategies together. The partnership between the two entities is thus projected towards the provision of better rail transport and supply of the rail systems to various cities in the region. There is also a projection towards the leadership in the management of the local community rail stations so as to improve the delivery of services. United Kingdom Freight Transport Report (2012) notes that one of the principle roles of the partnership with the government is to serve as a watchdog and yardstick upon which the decisions are made so as to benefit the local person. Therefore, local decisions in the country are made in bid to ensure that the budget of the rail management falls under the rightful specifications and with uttermost accountability. It therefore serves as the public watchdog besides the oversight of proper penetration of the rail systems to the remote parts of the community. Analysis of the partnership’s strategies The approach taken by the ACoRP and the UK government seeks to develop differentiated approaches for both infrastructure and operations. There is also bench marking of routes and also bring the power of management and decision making to the local people in the areas of operation. The partnership between the government and the ACoRP also adopts that a budget be drawn which will link the two entities in a mutually benefitting partnership programme. This will therefore ensure that there is responsible, proper and efficient functioning of the two. RRUK-A (2012) advances that the partnership programmes are drawn in accordance to the requirements of the society and following the factors of market operation. Just as Keenan and Wilson (2006) argues, the market conditions and the needs of the larger majority are very influential in determining the level at which the members operate. The private sector partnership with the government has therefore laid down quick procedures that have to be met. The other side of the government also stipulates that the partnership which includes private entrepreneurs and stakeholders must first of all satisfy the public’s needs through a better and technologically advanced network. The services have to be fulfilling and the, management must produce positive results, of which the returns will be shared between the entities as a dividend of the overall sun (Winter 2011). David Teece notes that ‘imitabilty’ and complimentary assets determine whether a product is copied or easily wrestled down by the rivals in the market (Winter 2011). The partnership has therefore taken into consideration the factor of ‘imitability’ by ensuring that the products and services developed are not easily duplicated by rival companies in operation. This includes the proposition that the rail systems be harnessed and extended to the entirety of the community villages. This as Winter (2011) asserts will ensure that there is maximum penetration and access to the greater majority of the country thus offsetting the needs of the people. Complimentary effects on the other hand have been mitigated through the quick advancement in the implementation of the project and partnership before rival companies and other stakeholders flood the market with the same partnership inclination. This will therefore ensure that the first entrants into the partnership reap the harvest before the rivals set foot into the market. Keenan and Wilson (2006) argue that increased globalisation and technological advancement of global economies have led to spirited efforts in the development of innovative spirits in governments and other multinational companies. To follow the same bid and save the economy of the country from self-inflicted annihilation, the partnership has taken into cognizance the spirit of innovation. This has therefore led to sponsorships from the corporate world and private developers and universities to come up with the best rail systems in the communities of operation. This includes the change in management and oversight in of the operations of the whole railway transport system. For instance RRUK-A (Rail Research UK Association) holds that the private partnership between the government and the private stakeholders have the capacity of enhancing the development of the rail industry through adoption of multiple design factors interdependence in the provision of funds, technical expertise, consultation and the development of the relevant ruling policies of the partnership. There are also adoption of more community-minded approaches in the governance and management of the train systems and substations in the region. This means that the partnership takes into cognizance the fact that partnership linkage with the customers and suppliers in a fast paced world plays a major role in stimulating exponential growth (Winter 2011). The UK government and the private entities in the country have had a good and cordial relationship in as far as the management of the railway systems are concerned. RRUK-A (2012) holds that there have been various legislations by the UK parliament that guide the different roles that each of the partners is speculated to follow. This therefore has led to an adoption of different management systems and styles by both the parties. However it is quick to note that the governance and management of the resources and the facilities are harmonized by the same deliberations that have been put in place, thus offsetting the pressures of management wrangles. United Kingdom Freight Transport Report (201) notes that the PPP (private-public partnerships) should be focussed in ensuring that there is proper service delivery through the sharing of different duties and responsibilities of the enterprise. In this case, the UK government’s partnership with private enterprisers, companies and universities in the management and functioning of the railway transport in the local communities has led to a number of issues. Changes anticipated as a result of the strategies adopted RRUK-A (2012) argues that the strategies adopted by a company in the management and introduction of changes must be wary of the repercussions and changes that the new improvements will have in the larger market space. Therefore the change in the partnership, recommendations and development of the different roles of individual stakeholders in the running of the railway system will be projected to lead to the following re-adjustments. Railway Gazette International (2007) reports the entry into partnership in the management of the railway transport in the country will lead to an increased awareness and vigilance in the management and administration of the railway systems. This will be as a result of increased interest in the maximization in of the optimum operation of the railway transport. RRUK-A (2012) asserts that the development of interest in a business entity leads to more curiosity and better management of the business. This will therefore lead to better management and profitability in the overall governance of the project. An increased productivity is essential in ensuring that the majority public receive better services in the rail transport. The government will also experience more returns which may be invested in the expansion of the railway transport to the places that the rail lines have not been expanded to. ACoRP reports that one of the major results of the research which was undertaken by the team indicated that an adoption of the partnership strategies of incorporating private entities in the management would lead to additional rail use and a reduction in the number of people using the cars and other private modes of transport. This will therefore reduce the traffic congestions in the major cities and therefore reduce the number of hours and resources wasted through the traffic jams. The increment in the revenue collected from the railway transport will lead to more efforts made by the private and community organization in ensuring that the rail transport in their areas of jurisprudence are well maintained and developed through increased funding and oversight. The development of the partnership spirit and adoption of the different strategies in ensuring equal sharing of the dividends may result in a divergent overview in the management of the resources. Nash (2012) in the management of organisations in mixed economies, points out that it is the role of the government and the private partnership teams to strictly follow the underpinning that were initially held in the memorandum of understanding in resolving any issues that may arise. Therefore the advent of management wrangles and the laxity of performance of duties by the different members will lead to a negative trajectory in the overall development and functioning of the organization. This will lead to failure to realize the projections that are held in the partnership agreement. Another possible consequence as noted by the ACoRP is the creation of jobs and ease access of the area. The expansion in the region will lead to access by different people in the region, through the expansion of the rail systems to the local villages and communities who have not yet reached the development level .This will create jobs for the local community members thus increasing the social cohesion in the region. Keenan and Wilson (2006) call this a regeneration activity which will have impeccable changes in the development and advancement of the economy of the region. Tourism attraction and improved quality of transport will therefore increase the investment capacity of individuals towards the areas that were once inaccessible. The ideal partnership-how it should be Adopting a greater scrutiny into the perspectives of innovation and entrepreneurial adjustments of partnerships, the current partnership between the government and the private local communities in the region should in addition to the focus adopted adopt some of the proposition as discussed in the following exposition There are various duties that are associated with the management of the railway institution in the country. For instance Railway Gazette International (2007) notes that the cargo handling and rail penetration into different parts of the country is a major challenge. This therefore is an issue that both the government and the private stakeholders have to put in place for the full realization of company proceeds. Nash (2012) argues that the public investor and partners in such a case are responsible for maintaining the environmental and social tranquillity of the investment adopted. The financial muscles of the private sector and its proper management are meant to augur well with the advantageous social angling of the public sector in bringing greater investment and better service delivery to the people. Therefore the partnership should aspire to achieve equality and equity of service to the people they are serving with. This means that every stakeholder and entity holder of the partnership programme should adopt a stand that does not injure the cordial relationships of the factors of relations. Nash (2012) defines the factors o relation as the public entity and the consumers of the products that are being developed. This therefore means that both the government and the private developers must give priority to the enhancement of the quality of the rail transport services. There should be expansion of new rail lines and adoption of better maintenance procedures by both entities. This will head to a better trail transport use thus leading to greater returns. The economic efficiency of any enterprise of a company is very essential in determining whether the project undertaken will be successful or will slump under the harsh operational activities underlying its introduction (Casson 2009). Therefore the partnership that the government and the railway management boards have taken will look into the economic advantages of entering into the partnership. If the economic advantages of entering into partnership with the local community do not lead to any substantive returns and benefits for both parties, then the project should be disbanded. However, the partnership between the local communities in providing leadership in the rail transport and other transport amenities has had a large impact in the ground breaking of the processes of opening up the country into economic stimulations. The partnership should therefore asses the reliability and efficiency that is projected to be experienced as a result of the indulgence adopted. This will lead to greater management and better administration ability from the partnerships that are in full gear to oversee the production improvement in the new business venture. Innovation and expansion efforts should also form part of the factors to be considered in entering the partnership. McGrath (2005) points out that innovation efforts adopted by companies should be based on the natural understanding of the environments of operation. This therefore means that a greater market analysis of the conditions prevailing in the area should form part of the considerations. Keenan and Wilson (2006) note that the organizational culture and the entire internal environment should be well understood. Understanding the organizational culture of the railway transport in the areas where the changes and partnership should be adopted will enhance the quality of the entrance behaviour of the partnering entities. This will lead them to form concrete decisions while at the same time avoiding witch-hunt in the management of the resources. Performance measurement and evaluation Broadbent and Laughlin (2004) assert that any partnering entity should be able to measure up the functional level of the business of the project success at certain levels of development. This is the only way in which they can be able to gain a greater understanding and insight into the success or failure of the projects undertaken. Casson (2009) asserts that for a partnership to be successful, the parties involved should focus their expectations in one package that should be adopted as the expected outcome or objectives of the partnership. This will form the foundation upon which the members will indulge in. There are various methods which have been identified as the best in trying to determine the success of a partnership in accompany or organization. There are four key stages which are used in this process. This include; structuring, observing analysing and judging. During the design stage, it is expected that the entities involved design the expected returns or the objectives with which the partnership is aspiring to fulfil. This will therefore ensure that there are different typologies, scales and indicators of the functioning of the partnership project (Casson 2009). The UK government and the local community which is involved in the maintenance, repair and management of the railway stations have their own expectations that they are targeting to meet in each financial year. The indicators of success include the percentage increase in the number of people using the rail transport. There are also public systems whether the individual’s give their own report on the success and efficiency in the functioning of the rail system. This therefore gives the partners reports on the functioning of the whole process. Observations also form part of the measurement of the functionality of a partnership. This includes a thorough report analysis in the way the customers and clients of the partnership are handled. Observing the level of activity and the demand levels by the population will also form part of the functions that are responsible for establishing the level to which the partnerships is holding to success. ACoRP and the government have carried out surveys in the neighbourhood villages and communities where the partnership programmes have been initiated, for instance, survey on community rail partnerships indicated that passenger satisfaction of the partnerships was at 84% in the community regional areas. The overall national statistics indicated that the national levels had reached 81% (Nash 2012). This was greater than the other transport systems. The road and water systems indicate low customer satisfaction. This highlighted that the partnership between the government and the local communities in handling the rail transport and its management was on good performance. Evaluations like this one are responsible for the increased activity in the management and greater service delivery as the public is seen to appreciate the efforts of the government and the private partners The third process of measurement involves analysis of the whole project issues. This will include an insightful approach into the issues surrounding the success or failure of the project. Bell and Shea (1999) notes that it is during this phase that the companies involved should adopt a thorough approach into the scrutiny of the factors, causes of the current scenario. This therefore means that the effects of the whole partnership are utilized and maximally used in determining the areas of improvement of potential extra-investment. The final process involves judging and implementation of changes that will help reappraise and change the situation on the ground. This process involves putting a critical observation into the factors of success or failure whereupon new ways and methods of mitigating the effects are suggested. It is from this level that the partnership will pick another approach after a thorough observation and implementation of the changes. The measurement of the success of a partnership helps determine the developmental level and achievement of that the different entities make in a specified period of time. This helps determine its success or failure and hence the partnership may be disbanded or new ways of making it better adopted. This forms the basis of good leadership and innovative thinking in management of partnerships (Broadbent & Laughlin 2004). Conclusion Partnership between different entities in the governance and management of projects has in most cases led to better performance and service delivery. The UK-ACoRP partnership in the railway transport systems in the local communities has had its success through the revitalized management schemes where the community is involved in the proper running and management of then facilities. This has led to better service delivery and increased trail transport usage in the country. However, the innovations and service delivery changes in the industry have had to be instituted after understanding of the internal and external environments of operation. Evaluation and assessment of the functionality of the project is mandatory in establishing the success thus helps in instituting change in areas where it is possible. It is this association that has led to the success of the project as discussed in this essay. Bibliography ACoRP, 2012. The Value of Community Rail Partnerships. Retrieved from http://www.acorp.uk.com/Values%20of%20CPR%27s%20project.html Bell, C.R. & Shea, H. 1999, "Managing partnership pain", Management review, vol. 88, no. 7, pp. 35-40 Broadbent, J. & Laughlin, R. 2004, "Perils of partnership", In the black, vol. 74, no. 4, pp. 56-58. Casson, M. 2009, "The Efficiency of the Victorian British Railway Network: A Counterfactual Analysis", Networks and Spatial Economics, vol. 9, no. 3, pp. 339-378. "Europe’s private freight operators under siege", 2007, Railway Gazette International, vol. 163, no. 7, pp. 418-418 Keenan, J.R. & Wilson, C. 2006, "Managing the Interplay between a Partnership and Its Partners Statutes of Limitations", The Tax Adviser, vol. 37, no. 1, pp. 55-58. Managing Partnerships is a Strategic Imperative for eLogistic Service Providers, According to IDC 2001, New York, United States, New York McGrath, E. 2005, "Mixed economy of policing Proving the concept"", Management Services, vol. 49, no. 4, pp. 45-47. 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