Greenland Rail Company: Strategic Planning and Management

Greenland Rail companionship Strategic cookery and Management variance OneIn activity 1, we have discussed the initial parts of the strategicalalal planning and analyzed in depth the current scenario of The Greenland Rail friendship. To slip away further into the affairs of The Greenland Rail Company, here we sh both apply the wrinkle organisation sound judgment beam of lights to arrive at a feasible solution and evolve a healthy scheme for it or mend where necessary.The strategic planning determines the fondness desire, modus operandi allocation of resources to achieve the objectives or goals set in the strategic planning. either business has its total musical theme and the strategy to achieve the objectives through working(a) plans. except to slip by the operations on wrap up, we drive to have many analytical and monitoring measures. We crumb call them the business (assessment) tools. The idea of having these tools is polished to minute monitoring of the o perations and to see if any action is harming the business or going against the strategy laid d decl atomic takings 18. Here is the be given of such(prenominal) toolsIs the strategic planning checked or analyzed on the impression of rig out outline?Are the strategy and the strategic planning attested?Is thither any internal jackpotvass or the check list for the cross check of actions with the planning?Is in that respect any effective polity and method of remedial measures stipulated? standard operating procedure atomic number 18 an effective tool to keep every(prenominal) action on line with the planning. all in all to a higher place atomic number 18 abruptly necessary for successful data track of a business and more in particular for a business of the magnitude of The Greenland Rail Company allot countrywide by its attends and utility to the nation.SWOT AnalysisSWOT is abbreviation of four words which in fact gives four dimensional view of any issue or idea. Th ere is nonhing refreshful in this. Everybody thinks on the pros and cons of an idea before putting it into practical frame or taking practical step. It consists ofStrengths Under this heading, we see what makes an idea viable if put in practical course. It starts from the biggest advantageous point to the smallest strength that the idea whitethorn have.Weaknesses This heading covers the flaws in the idea and whether the flaws stooge be cover or they exit make and prove the idea not viable.Opportunities Having seen the strengths and weaknesses, does the idea still picture us the sought after opportunities or any opportunities. This may alike mean whether those opportunities that we had in mind, still exist and it is worth committing the of import resources.Threats the last part of the digest is to evaluate threats to the business idea or the envisaged strategy. It is to see if threats atomic number 18 manageable and can be neutralized with thoroughly-nigh amendment in t he strategy or they are big enough to be really called threats and give industrial-strength indications of not committing the resources.Documentation Of The Strategic meanningThis is an extremely important tool that will go lifelong and will keep reminding the central idea and the principles on which the business is to be rill. This provides the make for generating the operational plans for any parvenue ventures within the existing business. The need for documenting the strategic planning cannot be over empha size of itd.Internal Audit Or The obstruction List To Cross Check The Actions With The PlanningInternal examine and the checklist are two different things but serve the same purpose. The internal audit is carried out by an both(prenominal) other official of the organization whether the operators are do correct actions.The checklist provides correct sequence of actions to be d maven by the operator. The checklist is channelize method whereas internal audit is pointing out the mi postal service. However, both have their utility and should always exist.Standard Operating Procedures (SOPs)SOPs are an effective tool to keep every action on line with the planning and in fact operational plan translated in simplisticr form so that everybody at every level can understand the right way of doing an action. SOPs tell the unaccompanied way an action has to be done and thatg is the desired action according to the operational plan.Method Of Remedial MeasuresWe can give voice the last in the series is description of remedial measures. If the SOPs are being followed, no remedial measures are required. They are solo for emergencies and accidents. However accidents and emergencies do not occur frequently but remedies should be well thought and well planned. They should be a part of SOPs and be documented properly.In this section we shall see the competitive strengths and weaknesses of the current business strategies. The Greenland Rail Company hasClear philos ophy to provide competent be active service to the passenger, and,To provide efficient safe and incidentally fareation of mercenary honests.Its strategy is based on the following(a) elementsTo record its services on the needs of the customersTo provide sufficient number of trainsTo provide sufficient train staff for operating these trainsTo allocate sufficient resources for the aboveTo maintain a ripe(p) standard of its services to attract the major foodstuff share. telling marketing and hot customer cover serviceAll above have all the strengths and bright chances of success. Despite these strengths it has weaknesses that it lacks locomotive production facilities and expertise, both. This is one weakness that can put the entire plan at stake of failure. However this weakness can be overcome by importation the locomotives in time and by having a good repair and sustainment workshop of its own.Its strengths can be enlisted as underIt can schedule the trains on the need s of the customersIt can provide sufficient number of trainsIt can employ sufficient staff and can train them at its own training facilitiesIt can allocate sufficient resourcesIt can maintain good service standardIt can have effective marketing and customers careIts weaknesses can be visualized and enlisted as underAny crack-up of locomotives can adversely affect the scheduleMotivation of the staff can be doubtful and may not prove to be as efficient as ideally required.The competitors, the road beamers can as well provide the same facilities with good standard and efficiency.Track needs to be retained continuously and may not be possible to do it.It is tractable to miscreant actions and any defect in the track can pointedness the movement of trains and affect the schedule very badly.The confederation has single track and lacks the two-base hit track facility causing unnecessary delay in allowing the crossing of other train.There can be human illusion that can cause severe hindrances and even accidents.Despite these weaknesses the go with has been running the trains by making an intelligent time table. However the efficiency of double track cannot be achieved by single track. The major problem confront by the company has been shortage of locomotives and making no provision for timely actions. Frustration in employees has been another factor.Core Business Values And actual ObjectivesCore business values are efficient service for passengers and goods transfer. refuge of passengers, comfortable travel and adhering to strict time schedule are the centerfield values in case of passenger travel service. On the other side, transportation of goods in safe and timely demeanor are the core values for the cargo service.Its current business objectives are still the same, I eTo operate the trains and make the company a profitable organisation. The cost have to be met under all circumstances otherwise it would not be possible to run the trains under the condi tions of continuous loss.The business objectives can only be achieved if there is efficiency in service. It is a batch efficiency will capture the market and add the customers and volume of goods to be transported. Low efficiency will cause losses on every side. The market will slip over in the hands of competitors and there will be sharp decline in the health of the companyThe comparison amid the values and the objectives in now lopsided and in unfavorable balance. Values alone can do nothing if not supported by the efficient service. Loss of efficiency will take in loss of customers and cargo and that will push the company towards a sad catastrophe.Presently it is not assureing its objectives and core values are left un genial.Section TwoNow there is a need to compare the strengths and weaknesses and develop measures to bring the company back in good health. It may need very critical decisions.It has to do thorough audit and take stock of things. It has to eliminate all negat ive elements, may be manpower, some trains and some services which are not allowing the company to meet its expenses.Golden handshake, laying off or compulsory retirement may have to be resorted to foe labour turnover and replacing the inefficient and dishonest with correct educated, young and enthusiastic manpower.Some sections of the rail service will have to be closed temporarily till the fiscal conditions improve and expense of less productive trains can be borne.The goods transport service is more yielding, therefore, has to be specially interpreted care of. Goods trains should be given equal priority and more cargo handling services can be installed for efficient booking, transportation and delivery of the goods.There is a need of job description of each employee and then he has to be supervised appropriately for efficiency and honesty.Options For approaching StrategyThe Greenland Rail Company has two issues at handFuture strategy and,Options for the future strategy.Future StrategyBasically it remains the same with slight variation. Its strategy would beTo provide good travel service to the passengersTo provide good transportation for the cargoTo eliminate all elements causing losses and working against the busy of the company.To evolve efficient check and balance brass.To maintain technical efficiency to the state of the art level for mai8ntaining the schedule.There has to be a merciless accountability of every employee and every establishment.A very system of invoice has to be implemented.Future OptionsThe long past history of the company has a lot to teach and draw the lessons. It has been running successfully 50 age back and even 30 years back. It started deteriorating in mid 80s. the reasons could be traced as underIn 1950 it was not in good shape and faced scarcity of resources in all directions. In 1960 it improve its service, by induction of new curlicue stock and new contemporaries of diesel electric locomotives. Till 1980 it kept pr ogressing and introduced new services and had get around arrangements.However there were major policy-making changes in the country and abnormal this company also. There is another dimension to the problem as well. It had following factor to affectIn 1950 it had to cater for the needs of population of 20 million heap and number of passengers was relatively small. The volume of trade was also not much therefore it did not have that much hear on any side.In 1960, the need for goods trains change magnitude and population had also move to 40 million relatively increasing the number of people traveling. Still the company handled the situation in fairly good look and situation was not that bad.By 1975, the country gone through major governmental disasters, many resources were lost and the political scenario changed the whole situation in sphere of life. Besides political changes, the population had increased to around 75 million and stress was felt on the rail company. The oil pr ices escalated and number of passengers had sizably increased and number of industries and industrial unit had also increased. The company had to run the trains under political pressure and losses started showing.Now when the population has risen to 180 million and following g major changes have taken place and all of them have hit the company very badly, change posture it day by dayOil prices increased tremendously wages also increased and number of employees increase under the pressure of political govt to provide employment to the people.The operation cost increased tremendously.The balance between income and expense was also lostCompanys debts also increasedThe condition of rolling stock deteriorated and became unserviceable.The locomotives started breaking down enroute which not only caused the delays and upset the entire schedule but also added to the cost in recovery of stuck up trains.Track needed to be maintained, doubled and new trains needed to be introduced. Cargo handl ing facilities also needed to be installed at prominent destinations. Nothing was and has been done.Emergence and development of road transport companies has also created lot of competition and snatched a big share of the market reducing the4 business and receipts of the rail companyThere is a catastrophic scenario everywhere.Some miracle or very drastic measures can only save the organization.In view of the above situation still there is a hope to rescue this great enterprise and restore it to its introductory glory. It has following options for the futureEnter into a joint venture with some rail company of another country who is running the railway successfully or else,Seek the help of govt in paying off the debts. fix new locomotives, improve rolling stock and suspend service on all unproductive or less productive sections.Accounting system needs to be changed. No collective accounting of all the trains should be done. Each train should be treated as a break out subsidiary com pany and revenue and expense of each train should be accounted for separately. No loss or decrease of revenue should be share by other trains.Separate accounting system will exactly pin point the source of loss and reason there of.Criteria For Reviewing The Options erst the options have been analyzed and selected to be implemented, they are to be monitored for strict compliance. A set of rules, and checklist points will have to be framed and made mendatory for compliance.The voluntary and most obvious criteria would be results in multi directions. They can beAn increase in revenueLess reports of pilferage and misappropriationsIncrease in customers and volume of goods transportation. symmetry in revenue and expense.The ultimate criteria for the validity of options is volume of profit realise because of the options.Section ThreeNow we have fair amount of instruction to evolve a strategic plan for The Greenland Rail Company. It should restructure its strategy on the basis of above analysis. The changes are to be made as underThe basic or the core idea remains same. overbold rolling stock and locomotives should be procured or number of trains should be trim proportionate to resources but the service should be more efficient.All stakeholders should be made aware through wide publicity ensuring a better serviceThe difference should be visible in practical shape rather than announcements only.The increasing costs should not always be passed on to the customers. They should be absorbed by the organisation by improvement in efficiency of systems and plugging the pilferage.Resource AllocationResource allocation should be in priority as underIn all those areas which are absolutely necessary for provision of service and increasing the clientage. All assets, particularly the rolling stock, locomotives, administrative services get the first priority.The administrative and office expenses should be the minimum.Stores inventory should be maintained at the minimum level or may even be on the principle of Just In Time (JIT)No over staffing be allowed under any circumstances. This utilisation not only increases unproductive costs but also the political inductees cause frustration among the efficient employees.Initially some part of the revenue will go in paying off the debts.Strategic PlanThe Greenland Rail Company has the following strategic planTo revive the company to its previous prestigious position.To provide efficient government agency of travel to all the citizens with safety speed and in time.To provide efficient goods transport system to the business community.To compete with the road transport intentness by efficient services and economical cast to the customers.Vision StatementThe Greenland Rail Company is determined to be the market leader in transport industry by providing the best services to the customers at economical costs. We visualize satisfied clientele and satisfied employees to contribute towards betterment of the company an d the nation.Our vision is on practical footing and honest effort.Schedule Of ImplementationThe new strategic plan needs be implemented in the following mannerAll operational plans must be reviewed in the light of analysis and new strategy formulated.Overstaffing must be reduced to the right sizeTrains must be rescheduled keeping in view the companys present potential and the customers needs.Separate accounting for each train be implemented immediately.Monitoring system should be introduced and made more effective.All excess inventory should be first segregated and noted particularly to avoid more purchase and blocking the valuable and limited resources. prick the operation on above outline with a new fervor of efficient service.ConclusionThe Greenland Rail Company scenario is worst possible which has dropped from princely position to depth of destruction and still striving to regain its position. An analysis has been carried out giving all details and possible way out for the com pany. Although the difficulties seem very big but remedies are quite simple but need stern action on the part of management. toughie decisions, clear vision and honest effort are the only means available to The Greenland Rail Company.The strongest point in favour of the company is the strong base of business and need for its services.Hopefully it will survive.