ComfortDelGro is one of the largest multinational transportation companies inaugurated in 29 March 2003 through the “merger of two land transport companies - Comfort Group and DelGro Corporation”, (ComfortDelGro, n.d.) both of which were founded in the 1970s. It is the market leader in Singapore’s transportation industry and “has a global fleet of 45,335 vehicles”, (ComfortDelGro, 2017) (Appendix _) with its core services that include “bus, taxi, rail, car rental and leasing, automotive engineering services, inspection and testing services, driving centre, insurance broking services and outdoor advertising”. (ComfortDelGro, n.d.) Furthermore, it has an extensive presence in overseas markets that span across the “United Kingdom, Ireland, Australia, Vietnam, Malaysia, as well as 11 cities in China that include Beijing, Shanghai, Guangzhou, Shenyang and Chengdu”. (ComfortDelGro, n.d.) (Appendix _)
The following four macroeconomic factors will affect the transportation industry.
(1) Petroleum Prices
The Organisation of the Petroleum Exporting Countries (OPEC) aims to coordinate and unify the petroleum policies of its Member Countries and ensure the …show more content…
Competitors in the public buses industry includes GoAhead, Tower Transit and SMRT, all of which operates under the Bus Contracting Model whereby the Land Transport Authority (LTA) determines the bus routes that these buses operate, pays them a fixed fee to do so and retains the fare revenue. As such, SBS Transit will receive a smaller portion of the total fees given that they will be running lesser bus routes as compared to before due to the increased competition. They also ought to continue offering exceptional services to their passengers to stay ahead of the competition and prove to the LTA that they are able to take on more bus routes in
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They formed the Organization of the Petroleum Exporting Countries, or OPEC. Since the OPEC was instated to protect the interests of oil producers, it could be seen as an example of regional integration. The OPEC is widely considered, throughout the world, as a cartel. This would be an intellectual misconception. The concept of cartel would consider oligarchies limiting competition and monopolies increasing prices. Oppositely, many international oil producers are not members of the OPEC. These non-members saw a fourfold increase in the oil prices, during the 1973 oil embargo. In A history of the modern Middle East, William L. Cleveland and Martin Bunton stated that the immediate objective of the OPEC was “to utilize the collective bargaining power of its member states to pressure the Western oil companies to increase oil prices.”. However, the birth of the OPEC did not occur, overnight. In 1947, the Venezuelan and Iranian delegations held talks in Washington, to coordinate their oil policies. In OPEC: Past and Present, Abdul Amir Q. Kubbah stated that the Arab league had a project of creating an “association of Arab oil-producing countries.”, since 1945. The first OPEC-type grouping occurred in 1953, when Iraqi and Saudi delegates joined forces. The agreement between these two states was the first to involve cooperation from both governments. The Arab League held a summit in Cairo, in 1959. During that summit, “views have been exchanged concerning the
Most firms in the public transportation management market are aware of the transition away from traditional transit models. Tow of First Transit’s largest competitors, MV Transportation and TransDev, have invested millions of dollars in research to create the technology to broker delivery of this non-traditional mobility service. Both firms are well financed and have hired top industry personnel to lead these
The Middle East is one of the birthplaces of human kind’s civilization. Since the Ancient Egypt, Sumer, the Arab Empire, Turkey Empire, or even to present day, the Middle East has always been a valuable strategic point for not only because of its geographic location but also it full of petroleum and nature gas. According the OPEC (Organization of the Petroleum Exporting Countries) that 66% of the global oil reserves are in the Middle East and only 6% in North America, this makes a lot of powerful countries want to share a pieces of the Middle East, Stephen mentions “Much of the world 's oil wealth exists along the Persian Gulf, with particularly large reserves in Saudi Arabia, Kuwait
Several oil-countries have been facing economic and political turbulence as a result of the crash in oil prices, and there is disagreement among OPEC as how to handle the situation. (Krauss) While this is happening, America’s oil production continues to rise, as it inches closer to becoming an energy superpower in production and consumption; and countries that depend on their oil exports face recession.
With a well-recognized brand that is also lawfully abiding, the potential threat of a new entrant will be significantly reduced. The main focus for SMRT Corporation Ltd is in the MRT system. SBS is a main competitor in the category of bus service. These are the only two large firms that dominate the transport industry in Singapore. Even so, this does not substantially affect the SMRT business. The people are given the choice of travelling to their convenience on various travel routes depending on their
Short-term: Cleary OPEC policy is to maintain the price down to crumble down the America production especially because of the hydraulic fracking boom. Thus, its goal is to increase production maintaining the oil price low.
Why should we worry about OPEC? Why do we need to get away from foreign oil? OPEC controls the oil prices on the world market. They can raise oil prices to benefit their bottom line. Last November crude oil prices went up 48 cents because Nigerian militants attacked a pipeline affecting oil production (“Oil Prices Find Floor”, n.d). It 's hard on Americans when the oil prices rise and it would be even harder if our foreign oil producers decided to stop trade with us. Not only would we be in danger of not being able to satisfy our wants, but our basic needs such as driving to work could be in danger. That is why this issue is a current geopolitical challenge for the United States.
The United States imported 9,163,000 barrels of oil per day in 2010. Of that amount 4,885,000 barrels are imported from countries that belong to the OPEC oil cartel. (Petroleum Statistics) The Organization of Petroleum Exporting Countries (OPEC) is an organization consisting of twelve countries that have formally agreed to fix prices and dictates sales rules involving the export of oil to non-member countries. In order to lessen our dependence on OPEC oil, the United States should begin drilling for oil in the Arctic National Wildlife Refuge (ANWR) in Alaska. The oil reserves in ANWR are estimated to contain more than twice as much oil as the state of Texas. (Energy) Drilling for these resources will help the United States by
Our world economy depends upon petroleum; petroleum, in fact, has shaped the modern world. It has dictated production technologies and methods. It has facilitated the emergence of a worldwide transportation network. It has allowed cites to grow and expand, and determined the spatial landscape of regions. Due to our great need for petroleum, the scope of OPEC¡¦s power surpasses our prowess as an economic superpower, considering OPEC regulates the output and the price of oil from their reserves.
Environment opportunities: The European transport market was expected to grow, on the back of demand from Asia and South American countries. Also, the push for green movement with government support provided a long term growth opportunity in Europe.
The Organization of the Petroleum Exporting Countries (OPEC) was formed in 1960 to unify the policies of oil exporting countries in the Middle East (About Us). During the 1973 Arab-Israeli War, the United States and Netherlands helped Israel in this war with supplies. This angered OPEC countries and acted as a catalyst for the 1973 oil embargo (Reid). Many countries in OPEC and most notably Saudi Arabia, wanted Israel to retreat from territories they gained during the war (Reid). The embargo that resulted caught many Western countries flat footed and sparked a global recession.
Not enough effective and reliable of transportation system is one of the reason discourage investment by companies in any means. in future resource development rely on it. Economic development and transportation issue is pretty much like chicken or egg witch one first.
The management team has concluded that a new location in Shanghai would make the organization more competitive in the long run. The move would allow the company better access to key logistic networks and increase its distribution capacity throughout Asia and Europe. Therefore, a new Shanghai location project
Saudi Arabia has an economy that is largely dependent on oil, with the government maintaining the biggest control over the country 's significant economic activities. Saudi Arabia owns about 16% of the global oil reserves and is the number one exporter of oil (Saudi Arabia, 2013). In addition, the Kingdom of Saudi Arabia was instrumental in the formation of the OPEC (Organization of the Petroleum Exporting Countries) group, which initially comprised Iraq, Venezuela, Iran, Kuwait and Venezuela (Energy indicators, 2004). Currently, the petroleum industry constitutes about 80% of the country 's budgetary incomes; about 40% of the country 's GDP and 87% of Saudi 's export earnings. Agriculture, in addition to petroleum products, has been a major contributor to the kingdom’s economy since 1970s (Saudi Arabia, 2013). The country has been able to produce enough agricultural products for their consumption as well as surplus for exportation to the GCC member countries.
According to the Economic Survey of Singapore, published in the third quarter of 2003 by the Ministry for Trade and Industry, businesses in retail shops and food establishments decline by as much as 50 per cent in the months of March to May 2003. Even taxi companies are not spared, Comfort Taxi, the largest taxi operator in Singapore reported that daily bookings