Abstract
This case “Easycar.com: Strategic service system design” describes a situation experienced in 2003 by EasyCar, which is a European company rental car, founded in 2000 by entrepreneur Stelios Haji-Ioannou. According to the Problem-based decision method, after the main character identified, when and where it occurred the case, the problems will be identified and analyzed. Furthermore, it is essential find the main causes of the problem, write the hypothesis and elaborate the solutions. For this, it is necessary to create the plan-action, with short-term and long-term recommendations, describing each plan detail. Finally, it is important to think about the risks, and the possible solutions, to write an alternative plan, a contingency
…show more content…
In addition to improving the quality of services provided, many measures had to be deployed to the ambitious objectives proposed for 2004 for the Easycar, could be achieved.
Introduction
EasyCar, the UK-based car rental company, was founded with the mission to provide customers with reliable service at the lowest possible price. EasyCar is an EasyGroup member, whose founder, the Greek entrepreneur Stelios Haji-Iannou, firstly, founded low-cost air carrier EasyJet.com in 1995. EasyJet was one of the early low cost, no frills air carriers in the European market. As all companies of the group, has as a principle offer the most cost-effective, in other words, provide services and products at affordable prices for offer them without facilities considered unnecessary. To accomplish this mission EasyCar took a very different approach than the traditional car rental companies in Europe. The main competitors of EasyCar were Avis Europe, Europcar, Hertz, and Sixt.
According to the author (Lawrence and Solis, 2005), EasyCar had just reached breakeven in 2002 on sales of 27 million pounds sterling, and had as its goals to reach sales of 100 million pounds sterling and profits of 10 million pounds sterling by the end of fiscal year 2004 in order to position itself for an initial public offering. To do this would require opening new locations at a rate of two per week and expanding its fleet of rental car from 7,000 to 24,000.
To achieve these goals, the company had made
It is important to examine Easyjet’s strategy due to the changing financial climate in the UK and Europe such as the 2008/9 recession and Brexit.
easyJet has always bought brand new aircrafts which are believed more reliable and need much less maintenance. Consequently, it allows high utilization, minimising the cost .per hour flown cheaper than using older ones. (Stellios Harji Ioannou, 2002)
EasyJet is a British airline based at London Luton Airport. Sir Stelios Haji-loannou founded EasyJet in 1995 with the vision of creating a customer-focused brand that would revolutionize the concept of air travel. More than fifteen years on, EasyJet is the Europe’s leading airline and the largest airline in the United Kingdom carrying over 50 million passengers a year and flyting to over 600 routes across 30 countries. EasyJet flies to 44 out of 50 Europe’s largest airports and holds a strong position in key markets such as London Gatwick, Milan and Geneva. November 1995 EasyJet’s inaugural flight flew from London Luton to Glasgow and Edinburgh with the wet leased Boeing 737-200 aircraft. April 1996, they launched their first
Capacity and forecasting is important operation decisions for easyJet as this creates and identifies activities within and outside the business to gain its greatest profitability .This approach allows easyJet to develop a cost per seat model comparison with competitor airlines. Seats are sold accordingly. Seat prices
If the company wants to solve its problems and become attractive for the potential investor, it should solve all its problems. The most important, company has to develop a business plan. In this plan, all the problems will be solved through stating company’s vision, mission, objectives, marketing, production and financial plan.
In order to decide the jobs/positions/people needed or no longer needed, GEICO determines the types of talent needed and their composition of the organization’s current workforce by first determining entry level positions needed based on projected call volumes. Coaching/supervisor staff is then determined based on the number of phone associates needed. GEICO has a specialized department within the organization known as the Competitive Advantage Leadership Group or CALG. This department will review processes, procedures and job codes to ensure that the organization is operating cost effectively and with high efficiency. This group operates based on the Lean Six Sigma
Cons: The is difficulty in carry out this approach. And it takes long time. The investors cannot see the good performance of Zipcar immediately. Then it will increase the difficulty of raising fund.
Affordable vehicles aims to expand by working hard as a small business and networking in the industry, connecting with mechanics for long term business on a regular basis contact tyre company, contact engine part manufactures and look to do business internationally in the future however local is a priority.
Paul worked for a company by the name of Kelecton. The small company kelecton has two hundred and forty workers/employees that manufacture software for utility companies. Based on the survey, Paul needs to concentrate on a few things such as safety, working conditions, work-load distribution as well as compensation. If Paul concentrate on the above issues, it will allow him to take the necessary steps in order to come up with needed changes to their present systems as well as policies. This strategic plan offers Paul some procedures as well as steps to follow while coming up with solutions to the concerns of his employees without spending too much money.
There are two (2) parts to the assignment. In Part I, you will answer general questions in order to help you focus on planning, strategic management, and decision-making. In Part II, you will write a paper that is two pages in length. This will help you build effective decision-making skills by thinking like an entrepreneur. This assignment is to be completed in a step-by-step manner. You will be instructed on what to include in each part of your essay, beginning with the introduction, then the body paragraphs, and, finally, the
The aim of the report is to discuss the development of a service innovation in a hospital care setting. Therefore the innovation being introduced in the report will focus on the pain management tool for assessing chronic conditions in service users with dementia in hospital settings. As pain is a very subjective experience it is important that the tool is specifically based on the individual’s own way of expressing and communicating their pain in relation to their chronic conditions.
Addressing problems with many variables can be quite challenging if you are not equipped to handle the decision making process. In this case study, my company will be analyzing all of the given parameters in order to come to a properly analyzed decision based upon a number of steps. The steps will embrace the problem question including the objectives which address what the business owner really wants and or needs, and the alternatives to solution which moves beyond the original business location. Next, there will be an examination of the consequences and tradeoffs which are connected with each alternative, which controls the end result. Also in this study, there will be an identification of the most important criteria used in arriving at
To fully quantify the implications of BREXIT on easyJet, there is need to forecast the company’s free cash flows in the next five years. Free cash flow forecasting requires an estimation of some key Income Statement and Balance Sheet variables. As already mentioned in previous sections, the UK is the main geographic segment of easyJet, contributing to about 50% of the total revenue on average. Second on the list is Southern Europe which accounts for about 29% of the revenues on average, followed by Northern Europe at an average of about 19% and lastly Other at an average of just under 2%. For all estimates explained on the basis of the weakening pound, we acknowledge that easyJet hedges its fuel and currency exposures on a rolling basis over
EasyCar's approach, built on the easyJet model, was quite different than the approaches used by the traditional rental car companies. EasyCar rented only a single vehicle type at each location it operated, while most of its competitors rented a wide variety of vehicle types. EasyCar did not work with agents--over 95% of its bookings were made through the company's website, with the remainder of bookings being made directly through the company's phone reservation system (at a cost to the customer of 0.95 [euro]/minute for the call). Most rental car companies worked with a variety of intermediaries, with their own websites accounting for less than 10% of their total booking (Click to fly, 2004). And like easyJet, easyCar managed prices in an attempt to have its fleet rented out 100% of the time and to generate the maximum revenue from its rentals. EasyCar's information system constantly evaluated projected demand and expected utilization at each site, and adjusted price accordingly. Because of its aggressive pricing, easyCar was able to achieve a fleet utilization rate in excess of 90% (Simpkins, 2002)--much higher than other major rental car companies. Industry leader Avis Europe, for example, had a fleet utilization rate of 68% (Avis Europe plc, 2002).
UBS Group is a worldwide financial advice and solutions provider. One of the main reasons why UBS Group is standing in the leading position in the global financial market is that it embraces the concept of service design and as a result improves its organization’s performance.