Page 11 - CIMA May 18 - MCS Day 1 Tasks

Chapter 3

MENTA FAMILIARISATION

1 INTRODUCTION

It is absolutely crucial that you completely familiarise yourself with the pre‐seen information prior
to attempting the Case Study exam. Merely reading through the materials is unlikely to be
sufficient and it is also important that you consider which aspects of the three technical subjects
may be useful and relevant for the Case Study.
The exercises in the following three chapters will help you to gain a thorough understanding of
the Case Study scenario and ensure you are fully prepared to attempt the Practice Tasks later in
this Workbook.

Solutions to these exercises are provided but are not exhaustive. It is important that you attempt
the exercises yourself and makes notes of your answers before reviewing the solutions.

2 OVERVIEW OF PRE‐SEEN

Originally formed in the 1950’s by Andrew Whiteford as a road haulage garage for the
maintenance and repair of goods vehicles and buses, Menta grew steadily until 1980. At that time
and under the joint ownership (50% each) of Phil and Robert Whiteford, nephews of the original
owner, the deregulation of the bus industry presented an ideal opportunity to grow the business.
Using their existing skills of travel agency (Phil) and a trained mechanic (Robert) the two brothers
offered their first intercity route between the capital city and Marpool, a major city 400km to the
North of Centralia.

By 1985, the Centralian government had sold all, if its bus companies and changed the law so that
any bus operator could service any route without seeking a route licence. Menta competed
aggressively in every market primarily on a price basis often forcing many competitors out of
business and by 1990 had grown to 11 intercity routes, owning 7 local bus companies with a fleet
of 450 vehicles and 2500 staff. This growth continued organically and by acquisition in the home
and international marketplace.

Menta’s growth continued into the early 1990s by acquiring further subsidiaries, often breaking
up newly acquired companies in order to incorporate selected elements into the Menta Group
and selling others that were deemed surplus to requirements. A number of business assets have
been acquired through this approach, including park‐and‐ride facilities, bus depots, maintenance
facilities, and local minibus services. Menta maintains this approach in its publicised group
strategy and currently operates as a multinational public transportation company operating local
and inter‐city bus services with some 35,000 employees. Each of Menta’s operating units is
responsible for servicing specific bus services and each is staffed and equipped accordingly.

KAPLAN PUBLISHING 7