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Better Buses & Coaches is operating on regular local Bus services, school and private

hire coaches. The family owns business and enjoys customer loyalty base. The
company is facing the concerns in areas, as for example, decreasing profit margins,
increasing competition, inefficient time tables, staffing and old fleet. However, the
opportunities and strengths are available like for instance, funds, experience, goodwill
and prospective customer base. To solve the company’s concerns, the careful
numerical analysis, accounting calculations and geographical assumptions were made
to reshuffle the route maps and bus time tables. As a result, one of the Buses has taken
off from the route 1 and similarly one bus has been saved from route 2 & 3. Where as
route 2 & 3 are connected on point C & D, and due to the junction created on the mid
of route A to B, it will facilitate more customers and increase potential base. The
marketing strategies, if applied, can play vital role to increase profit margins.
There are three major proposed strategies as under;
1. Buses; Combined routes, increased company’s efficiency and to upgrade fleet.
2. School coaches; to replace old fleet, employ part time drivers. Presently, the
calculations for expected profit margins for remaining 173 days have not been
done. The profits can be increased after analysis on complete available data.
3. Luxury Coaches; buying one coach and accepting offer.
The major and profitable route 1 has been rearranged and saved one of the busses and
sold out. Therefore, profit rose from £227,405 to £486,241. Whereas the route 2 & 3
were in huge losses but after efficient timetabling, increasing fare to £1.10 and
combining route, 2& 3 together could get company out of losses of £51,529 to a profit
level of £111,318. The profitability for school coaches has increased from £22,975 to
£87,525. After considering available alternatives on the offer of luxury coaches, it has
been decided to go with offer and buy one new coach. According to the careful
calculations it has revealed that profit margin could have been increased from £27,997
to £90,828 in the 1st year and up to £103,072 in the 2nd year. The current Profit and
Loss Account shows the profit margin of £226,847 and in first year it rises to
£775912 whereas, in second year it goes to 936,018. Hence, it is concluded that
surrounding environment, internal and external factors and potential customer base,
have strong margin available for the success of company and its growth in times to
come. The attached documents are the Accounting calculations, proposed time tables,
assumed route maps, pie charts and graphical exhibits that supply clear understanding
of implementing strategy on the ground reality.

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