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Hr Officer

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Task Two:
Introduction

We are all knew that most of organizations have gone through many changes in recent years. But what causes these changes? Surveys of a wide range of organizations show that most changes are the result of factors in the external environment, particularly the far environment.
In this report, I will briefly talk about one of the largest transportation company in Kuwait “The Transport and Warehousing Group Co. (TWG) – Citybus, and this is followed by a brief analysis of the main groups of external factors through the six headings of Political, Economical, Social, Technological, Environmental and Legal Factors (PESTEL). Finally, I will identify five of the important stakeholders and their interest in the activities of the company.

Company Profile | | | | | | | Transportation companies play an important role in our life. It is one of the most overlooked activities within modern society. One of the largest transportation companies in Kuwait is The Transport & Warehousing Group Co. (TWG) , which providing safe transportation means that are designed to meet the client's requirements. TWG is a public limited company listed on Kuwait Stock Exchange with a paid up capital of K.D 9,826,773, with the current market capitalization of over KD 140 million. The profit for the year 2007 was at KD 3.56 million. One of most important divisions of TWG is Citybus.For the past 40 years, the public transport sector in Kuwait was dominated by one operator - a company fully owned by the Government of Kuwait. On 08 March 2002, this monopolistic trend came to historical end when a new concept in public transport came to life namely Citybus. The first phase of the Citybus operations effectively started in March 2002 in accordance with predetermined and organized schedules. The buses deployed are modern, air-conditioned and equipped with entertainment facilities (video, TV) as well as a State of the Art ticketing System and modern wireless communication systems to ensure the required communications between headquarters and the operating buses.Citybus obtained International Quality Certificate (ISO 9001 - 9002) in respect of organization and services of passenger public transportation and adherence to the required technical specifications based standards (Kuwait Info Guide, 2002). Citybus managed by the Parent Company along with its fully owned subsidiaries, registered in Kuwait, Boodai Aviation Co WLL . | | (Word count ) | B202 - Understanding Business Functions ____________________________________________________________

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Task Two:
b. Citybus has experienced changes over the past few years . The specific causes of these are likely to include movement in interest rates, government polices, new regulations, changes in customer’s behavior, the introduction of new technology , and so on. Although the impact maybe felt through changes in “micro-environment” (e.g competitors, customers’ need and the relationship with suppliers) but these are likely to be in response to external “Macro environment” which include political, economic, social, technological, environmental & legal factors (PESTEL).

Political Factor
Kuwait Government believed that allowing private firms to compete to run bus services would let companies to try harder to meet the customers’ needs as well as keep prices low which result a more efficient and sustainable bus services.
For Example; Citybus concentrates on working closely with the government through providing the highest standards of public transport to all passengers in reasonable prices. In addition, It has even served at Kuwait International Airport on the airside, transporting passengers to and from the aircraft in an emergency situation. it also undertook several contracts for the Private Sector in Kuwait .
Economic Factor
Business need to make money to continue to exist. It is extremely important for business to respond to changes in demand from customers.
For example; Citybus tries to meet and exceed the needs and expectations of its customers through developing a highly advanced network of public transport in Kuwait aimed at covering and connecting all the residential areas and at the same time providing a high quality services of public transport to nationals and expatriates. Citybus obtained International Quality Certificate (ISO 9001 - 9002 Certified) Safety - Comfort – Timeliness.

Social Factor
Social changes may have a major

Social and Technological Factors

Social
Social changes have a major impact on business for the following reasons:

Technological
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Economic and Political factors

Economic

Political

Transportation services plays an important role of the Kuwait economy.
For the past 40 years, the public transport sector in Kuwait was dominated by one operator - a company fully owned by the Government of Kuwait. On 08 March 2002, this monopolistic trend came to historical end when a new concept in public transport came to life namely Citybus. The Government believed that allowing private firms to compete to run bus services would let companies to try harder to meet the customers needs as well as keep prices low which result a more efficient and sustainable bus services.
Citybus concentrate on working more closely with local government by providing its local solutions. For example, Citybus has increased the number of its operation to 12 routes. At the same time, in parallel with it's public transportation services, Citybus also began charter services for which purpose 170 coaches were added. These buses are of different classes. Besides these Citybus undertook several contracts for the Private Sector in Kuwait. They have reached a total fleet of 350 buses within a short span of 2 years, which is a remarkable achievement in the field of public transport.
A key government policy affecting all transport services relates to the reduction of Co2 emissions, therefore, the government starts to encourage more children to use bus services rather than go to school by car which will help to reduce carbon emission as well as reducing the traffic jam. Citybus is actively encouraging people their bus in stead of their cars through providing comfortable and safe environment for passengers.

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Economic

Task Three:
a. Identify five of the important stakeholders of the company identified in Task Two, (these should be groups or categories of people rather than individuals).
Customer
Government
Employee
Owners
Supplier
Competitors

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Task Three:
b. For each stakeholder, think of up to 3 ways in which they might judge the company to be a success (or a failure, if their experience is negative) in terms of their particular interests.

Conclusion

It is possible to see STEP factors as threats. However, Citybus prefers to see them as opportunities. Social trends are creating increasing numbers of older passengers seeking comfortable easy to access buses. Government pressure is encouraging more and more individuals (particularly on school runs) to use public transport. Many people are seeking a ‘greener’ form of transport. A detailed PESTEL analysis helps Citybus to make appropriate plans to rise to the challenges of a changing environment.

Citybus is able to move forward with confidence and grow its business.

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Referencing

1. Kuwait Information Guide (2002). [online] Kuwait, Away Group Corporation Available form: http://www.ekwt.com/kuwait_transportation_bus.html [accessed 28 October 2009]

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