V (Pvt) Ltd – Company at a glance
Country T has a nationalised railway system known as T Railways.
| T Railways (T$ 1291 Million) |
Products: | TCL | TFR | TPTS |
Revenue %: | T$ 680 Million. | T$ 516 Million. | T$ 95 Million. |
Offering: | services offered are between all towns and cities within Country T which are connected to the railway network and cross national borders | hauls freight right across the network within Country T and across national borders into other countries, some of which are situated within the eurozone | replaced T Railways Property and has responsibility for all other services including maintenance and upgrade of track and all of T Railways’ property. It ...view middle of the document...
The Government’s aim and the T Railways Board’s main financial objectives are that:
(i) T Railways should at least cover its operating costs from the revenue it earns;
(ii) T Railways should provide value for money.
SWOT ANALYSIS FOR T RAILWAYS
STRENGTHS 1. Globally operation 2. Good corporate governance 3. Good line authorities 4. Good financial position 5. SWOT
Strong GLC | WEAKNESSES 1. Lack of capital funding 2. Traditional accounting-led approach 3. Lose identity as corporate company |
OPPORTUNITIES 1. Government policy (Ministry of Tourism) 2. Ministry of Transport 3. Cross national boarders 4. E-marketing 5. Student promotion package | THREATS 1. Potential competitors 2. Uncertainty condition (earthquake, nature disaster, flood, weather) 3. Environmental consideration 4. Government policy 5. Customer safety 6. Currency exchange |
For T Railways, the implementation of SWOT analysis is suitable and currently been used by all other businesses. SWOT analysis is a structured planning method used to evaluate the strengths, weaknesses, opportunities, and threats involved in a business. SWOT analysis involves specifying the objective of the business venture or project and identifying the internal and external factors that are favourable and unfavourable to achieving that objective. Based on the case, SWOT analysis of T Railways businesses gives high expectation to outsider in order to know the external and internal aspects. Identification of SWOT analysis is important because they can inform later steps in planning to achieve the objectives.
Strengths refer to the characteristics of the business or project that give it an advantage over others. Refer to the case T Railways, there is several strengths can be identified. As mention in the case, T Railways has strong GLC (Government Link Company). This is because T Railways are fully supported by Government of its country. The Government of Country T invested T$100 million when it formed T Railways in 1975. This is the only “share” capital that has ever invested in T Railways. Due to this condition, it shows that any overall operating deficit T Railways incurs on an annual basis is recovered by the T Railways Board through additional Government revenue funding.
Other than that, the strengths arise in T Railways is that this railways system has globally/internationally operation. As mention in the case, there are three subsidiaries companies owned by T Railways which is T City-Link (TCL), T Freight Railways (TFR), and T Property and Truck Services (TPTS). Among these companies, some of the services provided are across national borders that enabling travel from country T to another country, some of which are in the eurozone. As a result, T Railways can expand their railways system upon European country and outside country as well.
Good corporate governance also one of the strength in T Railways. The Board...