Business Strategy in Transport Essay Example | Topics and Well Written Essays - 1500 words - 1

Business Strategy in Transport - Essay Example In the running of any business, there is a necessity to have a strategic plan that defines the company, its market and the services and/or products it offers. Strategic planning, that is discussed in the essay involves making clear-cut decisions in terms of direction and resource aimed at pursuing the organisation’s strategy. One of the first strategies explained in the essay is the cost of leadership principle, that is a strategy in which the organisation cuts down on the costs of production with the aim of being the most affordable service provider. Second question focuses on the concept of cost leadership and its relevance to business strategy with reference to one of the modes or types of transport. The airline industry was specially discussed in this essay as an example, also Gareth Morgan’s concept of a 'machine' organisation was explained as well as an attractive model for organising commercial businesses for transport modes such as shipping, railways and in the twentieth century for airlines. It also refers to the transport industry in the twenty-first century to the transport industry in the nineteenth century and assess the shortcomings of machine organisations from a business strategy perspective. Investigations in the causes of crashes of airplanes, in the 19th century showed that human error was a contributing factor, especially exhaustion. From such events, the machine organisation approach cannot be used in all sectors and the approach is largely losing its popularity.