Project Feasibility Study for ABC Rental Cars Company - Essay Example

? Project Feasibility Study SECTION A ABC rental Cars Company The ABC rental cars Company leads in the car hire industry. For the past thirty years, the organization has lead in competition and continues to set a pace for other rental agencies. The company offers outstanding customer service at exceptionally low prices. The company offers a wide range of services from passenger vans to compact cars, and free local client pick-up. Since 1989, the company continues to offer excellent services that are both efficient and proficient. Despite having a remarkable growth, there is a need to evaluate alternative fuel vehicles or more hybrid vehicles that align with consumer interests for the company to set the pace in the competitive world and dominate a position in the market place. Currently, gasoline prices have been so high thus affecting the Company’s earnings. Following this, hybrid vehicles are a significant approach to augment a positive change in the organization. The benefit of introducing hybrid cars is that, it will attribute technical and economical benefits. It is worth noting that, hybrid cars will benefit the company and the country that from gasoline saving not affected by high prices of oil. This advantage will also benefit clients as the government gives reductions to taxes attributed by gasoline savings thus overcome much crisis related to oil prices. With this in mind, the future of ABC car hire looks brighter with rapid developments of the hybrid vehicles that will improve the company’s earnings, economical benefit that in turn, benefits consumers. For the past years, the company utilizes gasoline that tends to be a high cost. Baearing this in mind, the United State’s dependency on the foreign oil is extremely high, and with ever shifting concern of the Middle Eastern climate teetering at impulsive level, there is a need to consider hybrid vehicles. Although hybrid cars currently lag behind the conventional cars, a market research estimates the benefits associated with such a change as discussed in this paper. According to business experts, only one idea out of many has a chance of long-term success. Introducing hybrid car falls within that one idea that will save resources and augment growth. The ultimate need of this project is that, gasoline has major effects on the health, environment, and the economic change that hybrid vehicles might dissipate if used. In consideration, a hybrid vehicle is the automobile with two or more sources of propulsion power. The hybrid power sources include coal, electricity, radio waves, electromagnetic, liquefied natural gas, solar, and air engine. With no doubt, there are advantages of using different power sources such as, eradicating oil politics. Globally, the Middle East has an extreme authority due to the oil deposits in that region. In this regard, some of the wars in that region have largely affected the oil prices. Following this, if the company has domestic power source for cars, this strong effect on oil prices would not affect the company. As gas prices continues to go up all the time and as climate change becomes more serious, there is a strong need of introducing hybrid cars that use two or more different power sources. Such combination makes these cars lower emissions and increase fuel efficiency compared to traditional gas cars. At these tentative economic times, when fuel efficiency matters, hybrid cars have many benefits over traditional cars that the company has used over years. Section B This section provides an outline of the proposed change and describes how this should be undertaken. To evaluate the viability of the hybrid vehicles; the management will assess the available types of fuel in the company. While there are various options of alternative fuels available, most are impractical. For instance, after carrying a thorough research, I found out that, the most popular power used is gasoline, which tends to be more expensive compared to other power sources. Ultimately, the only economical, practical, and accessible fuels include methanol, natural gas, methanol, electricity, biodiesel, and fischer-tropsch that in turn, has environmental, economical, and health benefits. At this point, purchasing hybrid car will enhance benefits such as reducing emissions and improving mileage. Following this, introducing hybrid cars will create a platform to take care of the environment by reducing carbon dioxide. Therefore, the first benefit of using hybrid vehicle is that, one gets much saving since there is no need to purchase much gasoline. Studies document that, hybrid cars enhance better mileage than those powered by gasoline only1. To prove this point, the Toyota Prius that is the best hybrid car can go over 51 miles per gallon in the highway driving and almost 60 miles per gallon in the city driving. At that rate, the car can travel for over 566 miles before refilling the gas tank. This implies that, the advantage of introducing hybrid cars in the company is that it will enhance economical and environmental advantages. Recently, there have been many discussions concerning the future of the company. For years, the discussion has been about global warming, dependency upon non-renewable oil, and pollution. After investigating this subject, the global industries indicate where the future of cars is right now and going. Following this, it seems that, hybrid cars are the solution to the problem of environmental, economical, and health impacts. The hybrid car is the advanced piece of machinery with computers that control every detail in propulsion systems as indicated below2. A number of benefits emerge from introducing the hybrid cars. As mentioned earlier, hybrid car utilizes two or more energy sources for its movement. In market era, they manufactured in such a way that, they generate the benefits of internal combustion and electrical motor engine. In this case, the benefit of hybrid car is that, it can rectify complains in both systems by balancing electrical and gasoline engine in optimum level. The conspicuous technological aspect of the hybrid car is that it minimizes energy loss and does not require extra energy for battery charging. Still, these cars enhance economical benefits attributed by gasoline saving as oil prices shoot high. In turn, hybrid cars will stabilize the country’s economy, which is a great benefit to the customer due to tax reductions. This follows that, if ABC rental cars purchase hybrid cars, it will augment economical benefits because of gasoline savings, which in turn benefit consumers from tax reductions. The environmental advantage of using hybrid cars is of consideration in that; it increases health for the nature and people. It is obvious that, oil products releases air pollution, and in turn, increases risk of cancers and lung diseases. The pollution produced by cars might increases health problems for nature and planted crops. Therefore, by using hybrid cars, not only does it favor the nature but also human beings. At this point, one should note that, hybrid cars combine power energy of electrical motor and gas powered engine that lower emission. Hybrids are cleaner cars compared to the normal vehicles with lesser carbon dioxide with other greenhouse gas emissions. Lastly, the unique benefit of hybrid car is the sole basis of recognition in the market. The most reasons why hybrid is the basis of recognition is; it is cheap to own. With gas prices shifting, a good deal to switch over to cheaper alternative power sources will increase economical privileges. The main disadvantage with hybrid cars is that they run on electricity, which one cannot dictate its price in the future. The future production of electricity can directly affect the production of hybrid cars thus, increasing its buying price. The cost estimates for purchasing hybrid cars is $2, 000 per car. In estimation, the company will spend $20, 000 for this project in 10 cars. Still, the Company will require computer software for data management and production planning of hybrid vehicles. There will be the need to introduce site possibilities for hybrid vehicles to move to and from the wharf. In estimation, the cost of the site will be $10, 000, centrally located in the Company. While comparing the current and proposed systems, a lot come in place. First, the traditional car pollutes the environment through carbon dioxide and greenhouse gas emissions. The worst problem of the traditional cars is that, they pollute the environment thus, causing health risk factors such as heart problems and cancer. However, the hybrid car is environmentally friendly making it a perfect vehicle to use in the city. These are the potential strengths during the implementation of the change program. First, the company will establish indirect and direct competition as it concerns the target markets. In this case, the company will list all barriers associated with hybrid cars entry and evaluate whether they would suit the target market. Additionally, the company will describe the uniqueness of hybrid vehicles making sure this is consistent with the ultimate need of the target market. It will be worth to evaluate whether the project will enhance growth in the company by increasing customers, increasing earnings, and benefiting the country at large. In turn, this will create a platform to understand the market era of the company and how it meets the consumers’ needs. Secondly, the company will have a chance to evaluate the larger forces, which drive the market such as cultural change, regulations, and innovation and establish whether hybrid vehicles fall into that category. The potential pitfalls include uniqueness and investment. First, the company will spend many resources purchasing hybrid cars that are expensive to purchase compared to the standard cars. Secondly, the company will encounter challenges of maintaining uniqueness considering that the 21st Century keeps on advancing in technology. Therefore, this creates the need for the company introducing projects and products that would attract a wide coverage. For the completion of this project, the project team will be meeting throughout to discuss various issues of the project. The management team will have an operations team to work on the implementation aspects such as purchasing hybrid cars. The management team will modify and review many of the standardized and operational forms to stay ahead of other competitors 3 In conclusion, as mentioned in this essay, this project will enhance various viabilities such as market, technical, economic, and environment. Indeed, the project will enhance market viability in that, although hybrid vehicles are expensive to purchase they are cheaper to maintain compared to other standardized cars. As discussed in the essay, hybrid cars minimize energy loss and require less energy for battery charging. As a result, it attracts many to use considering that it is cheaper to maintain compared to other cars that use a lot of gasoline fuel and much energy for battery charging. Still, the striking technological benefit of these vehicles is that it does not require extra energy for battery charging. Despite the company and the client, the country as well benefits from the gasoline saving that has effect on the country’s whole economy. In turn, the government lowers taxes thus, increasing customer’s will to purchase goods and services, which in this case are car-lending services. This follows that, ABC rental Cars Company’s future will look brighter with the introduction of hybrid vehicles that will improve the company’s earnings and benefit the country in whole. Therefore, the market research estimates the benefits associated with such a change as discussed in this paper. Bibliography Gofton, L., 1997. Business Market Research. London: Kogan Page. Hoagland, H. and Williamson, L., 2000. Feasibilty Sudies. Kentucky, University of Kentucky Phys Org., Junuary 19, 2006. Hybrid cars-Pros and Cons. Retrieved from: http://phys.org/news10031.html Read More