Page 11 - CIMA May 18 - MCS Day 2 Suggested Solutions

CIMA MAY 2018 – MANAGEMENT CASE STUDY

customer‐centred transport services that deliver excellent customer experience at a competitive
rate” which are key messages from our overall strategy.

It is worth noting that this apparent lack of support from Head Office may have resulted in a lack
of motivation and effectiveness on the part of the local regional manager.

We also need to consider the location of the depots and routes in Country X, whether they are
accessible to prospective customers or indeed whether the chosen routes and mix of single and
double decker buses locations present the right image. A key priority of our city business model is
safe, functional, maximisation of passenger numbers. The right mix of buses and routes will be
essential and location will be a significant factor in fulfilling these priorities.

Communication between the depots and our Head Office systems to react to customer
preferences is critical. Menta is not renowned for the interaction between the operating units as
most serve a designated geographical area. With international expansion however this interaction
and communication becomes vital. There should be access to email; telephone etc. and we must
ensure that the increased reliance on IT in which Menta has invested heavily can measure the
effects of changes to the pricing and frequency of its services. International expansion
necessitates support from robust IT systems to facilitate responses to these measures. The
perception our service creates to prospective customers is fundamental to our success in a highly
competitive marketplace.

Demand in Country X will also have suffered if the manager has concentrated on the wrong or
misunderstood goals. For example, we will need to carry out a thorough analysis on costs incurred
for the expansion into Country X. We have no detail at this stage if the local manager is paying
lower wages to attempt to control costs and hit profitability targets. If so, this may be affecting
one of our key company strategic goals of excellent customer experience.

We will also need to consider the recruitment and training processes in Country X. It may be that
as a result of underpaying, the local manager is attracting poorer quality staff. Our core values are
to provide a customer centred transport, safe and reliable service. The quality of staff will be
critical in achieving this.

This will be a significant problem for MENTA, if established, given that our success is built on the
achievement of these goals and objectives. Any unnecessary saving in this context could have a
serious detrimental effect, calling into question the local manager’s management skills.

Financial Manager

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