Managing External Influences on Local Bus Company - Essay Example

Empirical and theoretical studies have found evidence that the organization has an estimated seven thousand buses inside the United Kingdom alone. Arriva enjoys thirty percent share of London’s public transportation services. It provides efficient and effective services inside the city. It also connects London with other major cities like Liverpool and Manchester. Arriva even provides passenger services from London to remote areas in Wales. The success of the organization has been due to its focus on customer satisfaction and operational excellence.

It seeks to provide an exhilarating experience for passengers. Customer desires and aspirations are at the forefront of Arriva’s business and marketing strategy. The overall aim of the organization is to transform the public transportation industry to serve customer interests. Finally the organization seeks to become the catalyst for revolution in the public transportation industry. External factors have been defined as the rapid changes in the business environment that impact organizational performance (Kotler, 2001: Pg 73).

These factors can either have a positive or negative impact on the performance of business organizations. Firms need to carry out extensive audit and analysis of the business environment. They need to utilize a goal oriented approach in order to respond to external challenges. Arriva plc has been influenced by a number of external factors. The Transport Act passed in 1985 ensured the deregulation of the British transport industry. Deregulation has been a major external factor on the performance of Arriva plc.

The benefits of deregulation have been the transformation of the organization into the fifth largest bus operator in the United Kingdom. It has also provided efficiency and effectiveness in bus services. The organization registered “contract mileage in London up 5%” in the year 2008 (Arriva, 2009: Pg 12). Also fuel