Business plan for new brighton council bus service nbcb
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Business Plan for New Brighton Council Bus Service (NBCB) PowerPoint PPT Presentation


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Business Plan for New Brighton Council Bus Service (NBCB). Business Plan Overview. This plan will highlight the business plan of the New Brighton Council Bus Service (NBCB ). Brighton Local Council has decided to suspend the Brighton Council bus operations.

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Business Plan for New Brighton Council Bus Service (NBCB)

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Business plan for new brighton council bus service nbcb

Business Plan for New Brighton Council Bus Service (NBCB)

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Business plan overview

Business Plan Overview

  • This plan will highlight the business plan of the New Brighton Council Bus Service (NBCB).

  • Brighton Local Council has decided to suspend the Brighton Council bus operations.

    • Therefore, there is a market for local bus services.

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Macro environmental analysis

Macro Environmental Analysis

  • Political factors

    • Kick-start funding to help subsidise bus services where commercial routes were not viable was reduced to 15 million pounds (Butcher, 2013).

    • Rural Bus challenge where local authorities bid for funding for schemes based on innovation was completely scrapped (Department for Transport, 2012).

    • Better Bus Areas Fund was launched to foster partnerships between local authorities and bus operators aimed at reducing congestion and providing better information to passengers. The funding would be increased to 5 million GBP in 2014, giving local transport authorities up to 5 million to spend in 2014-15 (Department for Transport, 2012).

    • Possible lack of support from the council to launch bus services.

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Macro environmental analysis1

Macro Environmental Analysis

  • Economic factors

    • The Department of Transport presents a new National Bus Model which will promote a 20% reduction in subsidy (Department for Transport, 2012).

    • The reduction in subsidy will impact services in Brighton’s urban areas by -1% and rural areas by -2% (Butcher, 2013).

    • There is an increase in fares in the urban and rural areas by 2%, leading to a reduction in patronage by 1-3%, which will impact income of NBCB (Butcher, 2013).

    • Operating revenue of buses in metropolitan areas of the UK increased by 2% in 2012 and only by 0.8% in 2013, indicating a possible reduction in overall income (Keynote, 2014).

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Macro environmental analysis2

Macro Environmental Analysis

  • Social and technological factors

    • More than one third of the families in Brighton do not own a private vehicle, which may translate to more people using NBCB.

    • BHLIS (2014a) reports that many people prefer to walk or cycle to work as they are conscious of ecological impact. These people can be targeted.

    • Monitoring of bus routes and real time update of bus locations will help improve efficacy of operations(BIS, 2012).

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Swot analysis

SWOT Analysis

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Customer segmentation

Customer Segmentation

  • More than a third of the households in Brighton are one person households (36.4%).

  • One in five people is from the BME (Black and Minority Community) (BHLIS, 2014).

  • When compared to South East regions (60.8%), only 37.2% of people travel to work by private transport.

  • 38.2% of households do not have a car or a van.

  • 13.6% of residents use buses (BHLIS, 2014a).

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Value proposition

Value Proposition

  • Technology provisions

    • Increase in number of services during the office hours (mornings 8-10am and evenings 5-7pm) (BHLIS, 2014a).

    • Providing Wi-Fi services on certain routes.

  • Student concessions

    • Provide monthly pass for students.

  • Service for the elderly

    • Provide special services which will have a greater number of stops for senior citizens.

  • Optimal modal mix

    • Provide cycle stands in specific NBCB bus stops to help increase the number of people who may prefer to travel part way using bicycles (Redman et al., 2013).

  • Increasing non-fare revenue

    • Use the bus as an advertising medium to generate additional revenue streams.

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Channels

Channels

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Revenue streams

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Revenue Streams

Government support for public transport has reduced significantly over the last five years (Keynote, 2014).


Revenue streams1

Revenue Streams

  • Fare paying passengers

    • 60% of the income generated is from fare paying passengers who directly contribute to the success of the business.

  • Government reimbursements

    • Government policy clearly identifies that the members who are of pensionable age are allowed travel for free on the local bus services in England (Massey, 2014).

    • This will contribute10% of the total income.

  • Tendered contracts

    • The organisation will operate commercial contracts for universities and schools. Some of the rural routes and school buses which are not commercially viable are tendered by the government (CFBT, 2014).

    • This will contribute 20% of the total income.

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Customer relationships

Customer Relationships

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Operations management

Operations Management

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Human resource management

Human Resource Management

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Pricing management

Pricing Management

  • The prices of the NBCB will be the same as the ones previously promoted in the region (BCB, 2014).

  • The tickets can be bought using mobile phones, smart cards or by using cash.

  • The mobile phone/internet tickets can be purchased using the website and the smart cards are topped up at the depots and select locations around the city.

  • Apart from the tickets which are issued for regular buses, special buses fares are also developed.

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Start up costs

Start Up Costs

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Operational costs

Operational Costs

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Projected profit and loss for six months

Projected Profit and Loss for Six Months

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Capital budgeting for new projects

Capital Budgeting for New Projects

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References

References

  • BHB 2014. Bus fares. [online] Available at:  http://www.buses.co.uk/[Accessed: 31 March, 2014].

  • BHLIS 2014. CENSUS BRIEFINGS- City Profile .  [online] Available at:  http://www.bhlis.org/census2011[Accessed: 31 March, 2014].

  • BHLIS 2014a. CENSUS BRIEFINGS- Transport . [online] Available at:  http://www.bhlis.org/census2011[Accessed: 1 April, 2014].

  • BIS 2012. Government Response to the Competition Commission’s report “Local bus services market investigation. [online] Available at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/31883/12-689-government-response-competition-commission-local-bus-services-investigation.pdf[Accessed: 2 April, 2014].

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References1

References

  • Butcher 2013. Buses: grants and subsidies. Business and Transport. London. HMSO

  • Campaign for Better Transport 2013. Buses in crisis A report on bus funding across England and Wales . [online] Available at: http://www.bettertransport.org.uk/files/Buses_In_Crisis_Report_AW_PDF_09.12.13.pdf[Accessed: 1 April, 2014].

  • CFBT 2014. Understand the processes How buses are funded. [online] Available at: http://www.bettertransport.org.uk/local_campaigning/online_guides/better_buses/understand_processes/bus_funding[Accessed: 2 April , 2014].

  • Department for Transport 2012. Reforming bus subsidy in England. [online] Available at:  https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/9110/impact-assessment.pdf[Accessed: 31 March, 2014].

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References2

References

  • Keynote 2014. Bus Operators in UK. 12th ed. London.

  • Massey 2014. Boom in free bus passes... but no buses: Pensioner perk so popular councils forced to axe services to pay for it. [online] Available at: http://www.dailymail.co.uk/news/article-2570718/Boom-free-bus-passes-no-buses-Pensioner-perk-popular-councils-forced-axe-services-pay-it.html[Accessed: 30 March, 2014].

  • Redman, L., Friman, M., Gärling, T. and Hartig, T. 2013. Quality attributes of public transport that attract car users: A research review. Transport Policy, 25, pp.119-127.

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