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Professional Orientation and Practice - Case Study Example

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This paper "Professional Orientation and Practice" focuses on the fact that the UK Railway industry is considered one of the oldest in the world. Since the establishment of the locomotive rail network in the 19th century, many changes have been made on the sector in a bid to increase efficiency. …
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Professional Orientation and Practice
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Download file to see previous pages To help manage the train services, the government appoints train-operating companies (TOCs). TOCs are awarded the franchise to offer train commuter services depending on the validity of the license given. This means that a given TOC can only operate within a certain time limit as dictated by the licenses awarded. Now, TOC that provide that are licensed to offer these services is many in number (Tobin 2012). Nevertheless, the increasing cost of trail fares has been a major concern within the sector, within many opting to use other alternatives (“Britain Has Worlds Highest Rail Prices – Survey 1997”). Competition brought about by the many TOCs has brought the need by individual businesses involved to put in place measures to ensure stability and profitability. On this matter, many TOCs franchised to offer their services are seeking ways of reducing costs in order to appeal and attract more customers. In order to maintain sustainability, TOCs operating within the United Kingdom believe that the best way is to maintain the existing fleet. A major part of the revenue is used in maintaining the fleets and carrying out an inspection of infrastructures like rail tracks. Therefore, much train operating companies hold on to the fact that maintain ace is a priority in the sector. Presently, rail infrastructure has greatly been improved as is evident by the increase in speed train (Tobin 2012). Just as mentioned above, the major challenge lies with the need for each company to come up with measures to improve service delivery. For this reason, each of the companies is in the process of finding the best decisions that would offer a competitive edge over the rest (Chaudhuri & Suresh 1995). TOC- London Midland Background London Midland is one of UK’s train operating companies, having an 867.4 kilometres of rail to cover. The main train operations of the company are carried out within the West Coast Mainline. It is also important to note that its franchise expires in June 2017 after it was extended from the initial date of September 2015. According to the information available in the company’s website, London Midlands Express and London Midland City are the main brands that are used in operations. London Midland makes its money from the sales of tickets to passengers. Now, customers are charged £25 for every 100 miles of travel. According to the plans by the company, 60,000,000 passenger miles should be served per year, something that translates to 600,000 passengers per year. However, achieving this is guaranteed, as many potential customers prefer other means of transport because of uncertain economic times brought about by the recession. The company needs to make a decision on whether to raise or lower the tickets by 5. In order to bring the issue into perspective, it would important to note that London Midland company has numerous competitors like Cross Country, Euro star, East Coast, First Hull Trains, and Scot Rail, among others, and must thus make decisions that stand to boost its chances to survive in the market. Lowering the price by £2 would lead to 50% an increase of customers per pound, whereas an increase in fare by £1 would lead to a 70% decline in passengers per pound. This is an indication that the company must make appropriate decisions. This is the reason a comprehensive maintenance plan would be appropriate to attach more customers.    ...Download file to see next pages Read More
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