Greenland Rail Company: Strategic Planning and Management

Greenland rails Comp both Strategic Planning and ManagementSection OneIn activeness 1, we have discussed the initial parts of the strategical seening and analyzed in depth the current scenario of The Greenland Rail Company. To continue further into the affairs of The Greenland Rail Company, here(predicate) we sh totally apply the military control assessment tools to arrive at a feasible solution and evolve a healthy dodging for it or mend where necessary.The strategic planning determines the core idea, modus operandi allocation of resources to achieve the objectives or goals set in the strategic planning. Every business has its core idea and the strategy to achieve the objectives by opines of operational plans. even so to keep the operations on track, we need to have some analytical and monitoring measures. We brook call them the business (assessment) tools. The idea of having these tools is thin to minute monitoring of the operations and to see if any action is harming the business or going against the strategy laid down. Here is the list of such toolsIs the strategic planning checked or analyzed on the concept of overdress analysis?Are the strategy and the strategic planning documented?Is thither any internal canvass or the check list for the cross check of actions with the planning?Is there any effective policy and manner of remedial measures stipulated? example procedure atomic number 18 an effective tool to keep every action on line with the planning.All above are suddenly necessary for successful raceway of a business and more particularly for a business of the magnitude of The Greenland Rail Company spread countrywide by its point and utility to the nation.SWOT AnalysisSWOT is abbreviation of four words which in fact gives four dimensional view of any issue or idea. in that respect is aught new in this. Everybody thinks on the pros and cons of an idea before putting it into practical shape or taking practical step. It consists ofS trengths Under this heading, we see what makes an idea viable if put in practical shape. It starts from the biggest advantageous point to the smallest strength that the idea may have.Weaknesses This heading covers the flaws in the idea and whether the flaws can be covered or they will make and prove the idea non viable.Opportunities Having seen the strengths and weaknesses, does the idea still provide us the desired opportunities or any opportunities. This may withal mean whether those opportunities that we had in mind, still exist and it is worth committing the valuable resources.Threats the last part of the analysis is to evaluate threats to the business idea or the envisaged strategy. It is to see if threats are docile and can be neutralized with some amendment in the strategy or they are big enough to be really called threats and give strong indications of not committing the resources.Documentation Of The Strategic PlanningThis is an extremely important tool that will go life long and will keep reminding the central idea and the principles on which the business is to be run. This provides the base for generating the operational plans for any new ventures within the existing business. The need for documenting the strategic planning cannot be over emphasized.Internal Audit Or The Check List To Cross Check The Actions With The PlanningInternal audit and the checklist are two different things alone serve the same purpose. The internal audit is carried out by another official of the organization whether the operators are performing correct actions.The checklist provides correct sequence of actions to be done by the operator. The checklist is guiding method whereas internal audit is pointing out the mistakes. However, both have their utility and should always exist.Standard Operating Procedures ( sop)SOPs are an effective tool to keep every action on line with the planning and in fact operational plan translated in wider form so that everybody at every leve l can netherstand the right way of doing an action. SOPs tell the only way an action has to be done and thatg is the desired action according to the operational plan. manner Of Remedial MeasuresWe can say the last in the series is description of remedial measures. If the SOPs are being followed, no remedial measures are required. They are only 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 philosophy to provide in effect(p) live on service to the passenger, and,To provide cost-efficient safe and timely transportation of commercial considerablys.Its strategy is based on the sideline elementsTo schedule its services on the need of the customersTo provide sufficient number of trainsTo provi de sufficient trained staff for operating these trainsTo allocate sufficient resources for the aboveTo maintain a good standard of its services to attract the major market circumstances.Effective marketing and good customer fright serviceAll above have all the strengths and glaring chances of success. patronage 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 importing the locomotives in time and by having a good repair and maintenance workshop of its own.Its strengths can be enlisted as to a lower mastermindIt can schedule the trains on the needs 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 weakness es can be visualized and enlisted as underAny breakdown of locomotives can adversely impact the scheduleMotivation of the staff can be doubtful and may not prove to be as efficient as ideally required.The competitors, the road transporters can also provide the same facilities with good standard and cleverness.Track needs to be maintained continuously and may not be possible to do it.It is susceptible to miscreant actions and any stain in the track can stop the movement of trains and affect the schedule very badly.The company has single track and lacks the double track facility causation unnecessary delay in allowing the crossing of other train.There can be human error that can cause severe hindrances and even accidents.Despite these weaknesses the company 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 fuss faced by the company has been shortage of locomotives and making no pro vision for timely actions. Frustration in employees has been another factor.Core Business Values And authorized ObjectivesCore business determine are efficient service for passengers and goods transportation. Safety of passengers, comfortable travel and adhering to strict time schedule are the core values in case of passenger travel service. On the other side, transportation of goods in safe and timely manner are the core values for the warhead service.Its current business objectives are still the same, I eTo operate the trains and make the company a profitable organisation. The costs have to be met under all circumstances otherwise it would not be possible to run the trains under the conditions of continuous loss.The business objectives can only be achieved if there is efficiency in service. It is a circle efficiency will capture the market and increase 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 between 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 result in loss of customers and cargo and that will push the company towards a drear catastrophe.Presently it is not meeting its objectives and core values are left un fulfil.Section TwoNow there is a need to compare the strengths and weaknesses and unwrap 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 rid of all negative 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 better educated, young and enthusiastic manpower. somewhat sections of the rail service will have to be closed temporarily till the financial conditions improve and expense of less productive trains can be borne.The goods transport service is more yielding, consequently, has to be specially taken 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 oversee appropriately for efficiency and honesty.Options For Future StrategyThe Greenland Rail Company has two issues at handFuture strategy and,Options for the future strategy.Future Strategy basically 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 interest of the company.To evolve efficient check and b alance system.To maintain technical efficiency to the state of the art level for mai8ntaining the schedule.There has to be a ruthless accountability of every employee and every system.A very system of accounting has to be implemented.Future OptionsThe long past tale of the company has a lot to teach and draw the lessons. It has been running successfully 50 years back and even 30 years back. It started deteriorating in middle 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 ameliorate its service, by induction of new rolling stock and new generation of diesel electric locomotives. Till 1980 it kept progressing and introduced new services and had better arrangements.However there were major political changes in the country and affected 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 mi llion people and number of passengers was comparatively small. The volume of trade was also not much therefore it did not have that much stress on any side.In 1960, the need for goods trains change magnitude and population had also risen to 40 million relatively increasing the number of people traveling. Still the company handled the situation in fairly good manner and situation was not that bad.By 1975, the country asleep(p) through major political disasters, many resources were confused and the political scenario changed the whole situation in sphere of life. Besides political changes, the population had increased to just about 75 million and stress was felt on the rail company. The oil prices 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 h ave taken place and all of them have hit the company very badly, sinking it day by dayOil prices increased tremendouslyWages 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 handling 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 revenue of the rail companyThere is a catastr ophic 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 previous 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, look for the help of govt in paying off the debts.Procure 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 do by as a separate subsidiary company and revenue and expense of each train should be accounted for separately. No loss or decrease of revenue should be shared by other trains. dissolve accounting system will exactly pin point the source of loss and reason there of.Criteria For Reviewing The OptionsOnce 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.Balance in revenue and expense.The ultimate criteria for the validity of options is volume of profit earned because of the options.Section ThreeNow we have fair amount of information 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.New rolling stock and locomotives should be procured or number of trains should be reduced proportionate to resources but the service should be more efficient.All stakeholders should be made aware through wide publicity ens uring 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 approach 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 low priority.The administrative and office expenses should be the minimum.Stores take stock 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 practice 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.Strategi c PlanThe Greenland Rail Company has the following strategic planTo revive the company to its previous prestigious position.To provide efficient means 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 industry 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 and 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.Start the operation on above outline with a new zeal of efficient service.ConclusionThe Greenland Rail Company scenario is worst possible which has dropped from magnificent position to depth of destruction and still striving to detect its position. An analysis has been carried out giving all details and possible way out for the company. Although the difficulties seem very big but remedies are quite simple but need stern action on the part of management. Tough decisions, clear vision and honest effort are the only means lendable to The Greenland Rail Company.The strongest point in favour of the company is the strong base of business and need for its services.H opefully it will survive.