Aspects of Business of Bike Renting Service - Coursework Example

A questionnaire survey about building a bike rental service in Scarborough Campus was answered by sixty-seven respondents, with three of therespondents completing an interview. This report utilizes these tools to investigate whether a bike rental service in Scarborough was reasonable and feasible, and what are the acceptable charges to its potential customers. Moreover, it makes a brief commentary on the research limitations. Keywords: bike renting service, student survey, Scarborough campus Background: The Hull University Scarborough Campus is located in a beautiful seaside town of North Yorkshire. Since the situation is on the hillside, most of the students feel it is not convenient to go to school or travel from school to the town center. At the same time, survey data in 2008 Olympic Scientific Congress showed that 65.68% University students lack of exercise (). Accompanied with the increasing environmental awareness and the economic crisis, biking has become more and more the preferred method of transportation. Even disregarding the savings potential, cycling also has many health benefits. As more oxygen is intake it speeds up blood circulation; this can also prevent of brain aging. Periodic aerobic exercise consumes many calories and can affect significant weight loss as well. Moreover, due to the improvements in one’s muscle, heart and lungs, cycling aids longevity. In a recent survey by the International Health Commission, postmen live longer than any other occupation. One of the major reasons is because they often deliver letters by bike. Following these reasons, it is useful to build a bike rental service in Scarborough campus. Not only can this make the traffic more convenient but it also can protect the environment and help students stay fit. Aims The purpose of this research was first to investigate whether the respondents would be interested in a bike renting service. Secondly, to try and find out a suitable price that could be accepted by the renters and what accessories should be afforded, to target future campaigns effectively. Furthermore, it will assess the limitations of the plan and the feasibility of the project. Methodology The purpose of this report was to carry out an independent investigation on a feasible and practical service or facility that you feel could be introduced to enhance life on Scarborough Campus. Most of the data used in this research report was primary data collected through on-line questionnaires and some interviews. The reason for this is that primary data is more suitable to research on campus service planning. Data can be collected from the target market, matching the project’s needs specific to the market. Moreover, primary data is current and it can better give a realistic view of the students’ considerations (). The sample size of the on-line questionnaire included 67 participants. The respondents were selected from a variety of gender and socio-economic backgrounds. Most of them were living outside of the campus. The participants chosen to interview lived in the town center far away from school while one lived near the school (about 1500 meters from campus). Two of them walked to school and the other one who lived in the town traveled by taxi. The questions were devised according to three aspects: 1) The analysis of the status quo 2) The preference for renting a bike and the consideration of accessories 3) The design of the form of charges Findings Findings regarding the status quo As what have been shown in Appendix I and II, sixty-two of the respondents (92.54%) were living outside the campus and most of them (77.61%, or 52 respondents) took walking as their common transportation to school. Since they lived relatively far from the school, the students had to spend significant money on travelling expenses (e.g. taxi, bus or gas). About half of the respondents (49.3%, or 33 respondents) spent 15 pounds - 50 pounds in travelling each month, even 17 respondents (25.4%) said they spent more than 50 pounds. Moreover, Zoe complained that because the campus was located on the hillside it took her more than 30 minutes to go to school on foot, when the other interviewees feel it was not convenient enough and cost too much to travel in Scarborough. Fifty-eight respondents (86.6%) feel they lack exercise at the same time. According to all of the research, there can be some improvement in school travelling, such as building a bike rental. Findings regarding preference and the consideration of accessories After examining the status quo, one should try to find out the preferences of the potential customers to build up a service organization. The most important aspect is are cost considerations. Forty-six respondents (68.66%) chose cost as the most important area if they were to rent a bike. Fourteen (20.90%) considered the property aspect the most important. Finally, appearance was most important for only 7 students (10.45%). This may be because since most of the respondents were students, they must consider cost first. Taking 4 pounds each time from town to school by taxi seems too expensive to them, not to mention the price of driving a car. On the other hand, 65.67% of respondents (44 respondents) thought helmets should be necessary to attach when renting a bike (significantly higher than any other accessories). As the project needs to be economical more consideration in this section seems important; this is not only because it can help managers save money for initial set up, but also to control the ongoing costs. According to the research results, in order to reduce the renting price, the first bikes provided by the service should be similar models with cheap costs and helmets should be attached for free. Furthermore, since it is often rainy in the United Kingdom, a simple kickstand may not be enough. The initial plan was used the open space next to the Management Center Office to build a canopy as a simple shop. Findings regarding charges Although the project does not necessarily need to be profitable, charges are still as a major part of service planning. According to the marketing research, it was found that if the department purchases similar simple mountain bikes in bulk, the estimated price may be about 70 pounds (); Nearly three-fourths of respondents (74.7%, or 50 respondents) spent more than 15 pounds a month in traffic to school. Moreover, it costs 3.5-4.5 pounds each time for a taxi from town to school. This constitute reasonable charges as follows: 1) 10 pounds for the membership, free for each first 48 hours then 0.8 pound/24 hours last (82.09% of respondents accepted this kind of charge) 2) 1 pound for 24 hours, 1.5 pounds for 48 hours, 2 pounds for 72 hours, 3 pounds for 5 days, 4 pounds for a week, 15 pounds for a month (46.27% of respondents accepted this kind of charge) 3) free for each first 12 hours then 1 pound for the next 24 hours and then 1.5 pounds/24 hours last (49.25% of respondents accepted this kind of charge) Almost all of the respondents regarded these prices as acceptable. Since most of the students thought the other accessories, not including a helmet, were not necessary one can attach a helmet as free and charge, while fenders and protection are additional. One of the original concepts of membership benefits were that was free to attend the bicycle trips. However, surprisingly not all of the respondents were interested in it (62.7% of respondents did not have an interest in a bicycle trip), so it was cancelled to ensure cost control. Conclusions Commentary and recommendations From what has been discussed above, it can safely be found that a bike rental service would be a feasible and popular business. Since the campus is located halfway up a mountain, and the dormitories are limited, most of the students living outside the campus feel inconvenienced when travelling in Scarborough. These students prefer cycling rather than walking to school. On the other side, most of the respondents thought they lack exercise. The bike renting service can meet this demand. The service tries its best to reduce the costs and almost all of the potential customers noted they were satisfied with the fees it plans to charge. However, all of these are still in the planning stages. The managers should ensure the implementation of the plan, establish a reasonable accessories system, such as free helmets, but and collate details through further research. Only by doing this, can it become a better project and become supported by the school. Limitations Accompanied with the above research results, this bike rental project also has some limitations and gaps in planning. For example, the project lacks research on opinions about travelling from school to town and the charge of additional accessories. Moreover, it did not confirm the rights of the open space’s usage and has not determined the amount of its initial capital. It should confirm the space using rights and develop a more specific plan about initial funding as soon as possible. Furthermore, in its follow-up work, it should make further enquiries on additional services and collect views among boarding students. Read More