Network Rail has a key objective to Earn and Retain a Mandate

getment raceway has a blusher objective to adopt and Retain a MandateUsing PESTLE/Porters 5 Forces / Scenario molding or either early(a) germane(predicate) identify the key strategical Macro challenges the Comp all(prenominal) faces.Using Financial depth psychology / Marketing combine / Core Competencies / Balanced Scorecard or any other relevant tools, s mountain Net clobber cart tracks inwrought / micro Environment to inentify the key Micro challenges the Company faces.Pull your conclusions attentivenessing images 1 and 2 together in the form of a organize digest. You could besides identify what options an ANSOFF hyaloplasm for lucre check would suggest atomic number 18 the most vi fitted.Given your analysis, what do you conclude about the relevance of the Key Objectives above (to earn and control a mandate etc.) andWhat should be the outline of mesh take in the coming 2-5 years? And what would be the vital few measures which would help to drop behind progress toward achieving your suggested strategy.IntroductionI have been employed in the UK Rail exertion for over 30 years, and am periodly based at Saltley Delivery Unit in Central Birmingham. My role is Infrastructure criminal maintenance Engineer, which interrupts me overall office for all of the maintenance carried out by Netwrok Rail on its main infrastructure, which is the tracks and Signalling system connected to them. My geographic bea of responsibility runs from capital of the United Kingdom Marylebone, through Banbury and Birmingham Snow Hill and onto Droitwich Spa. I have ccc+ provide reporting to me through a team of Engineers (3) and Section Managers (9), working out of two main depots, Saltley And Banbury, with smaller depots at Stourbridge, Whitacre, Leamington, Aylesbury, High Wycombe and London Marylebone.BackgroundNetwork vituperate has been in existence since October 2002 when they took over the streamlet of Britains Rail infrastructure from Railtrack . They periodly employ over 35,000 people in various aspects of this work, from day to day maintenance to study renewal projects. InUsing PESTLE/Porters 5 Forces / Scenario Modelling or any other relevant identify the key strategic Macro challenges the Company facesWhen you crumble the macro-environment, identification of the factors that might affect a human action of vital aspects that free influence the supply and demand and costs of the companionship is critically important. (Kotter and Schlesinger, 1991 Johnson and Scholes, 1993) variant checklists are in subroutine as ways of cataloguing the vast number of possible issues that might affect different industries. A PESTLE analysis is one of that is merely a framework that categorises environmental influences as political, economic, social, technological, level-headed and environmental. PESTLE examines the likely impact of each of these factors on the industry. The results are whence apply to take investigate and ena ble opportunities and to be aware of and to sack up contingency plans for threats when building air strategy (Byars, 1991 Cooper, 2000).In a modern study (1998), Kotler claims that PESTLE is a strategic tool that can be useful to help understand market growth and decline on base business position, in order to judge on potential and succeeding(a) directionThe use of PESTLE analysis reveals that the major orthogonal influences upon Network Rail arePOLITICAL The recent change in presidency could still have a far reaching effect upon Britains track industry, the recent Comprehensive Spending Review has made sure that the industry must change and in a big way.ECONOMIC The current economic climate of the United Kingdom is such that a pack of passengers will be thinking of alternative ways to travel, low cost coach and bus services will have their appeal increased, albeit the retentive term prospects for rail travel are easily, given the current manor hall against driveway transport by the green parties. In order to stay on an attractive alternative, the rail industry must compete economically with road transport.SOCIAL The major social concept in the UK Governments Sustainable festering Strategy (DEFRA, 2005) is noted as ensuring a strong, healthy and just society, unless this can be split into six main aspects Accommodating the assorted needs of the population both now and in the future promoting person-to-person surface-being encouraging social cohesion and inclusion maintaining equal opportunities for everyone promoting good governance and engaging the creativity, energy and diversity of the people of Great Britain.The Rail industry has a major part to play in the satisfaction of these socialgoals. Increasingly the industry will be judged on delivering the services, and eventide more so on the way they are delivered. The UK Railways run on base houses belonging to a vast array of the population, and it must be seen to engage correctly wi th all of its lineside neighbours. The industry must also be seen to be an employer that values its men and treats them correspondingly. Safety of the travelling public is a major social factor in the business, both those travelling by gear mechanism and the road user that use any of the hundred of level crossings on the network each day. The key causes of accidents on the railway infrastructure are trespass and the misuse of level crossings.TECHNOLOGICAL The incredible speed of design advances has a big effect on any transport industry. The likes of rapid and more reliable broadband connections will increase the amount of work done by teleconferences and reduce travel to meetings. Faster and more streamlined channelizes will effect upon the nature of Network inveigh infrastructure, and compel the troupe to look at new ways to maintain the infrastructure, and new forms of baroning the trains.sound Legally Network Rail is governed by many bodies with an influence, including The Office Of Rail Regulators, The Health Safety Executive, UK Government, Environment Agency.ENVIRONMENTAL Network Rail has a responsibility to maintain its infrastructure and the huge number of wildlife habitats alongside the railway. The follow also has to become as green as possible, ensuring timber that they use is from sustainable sources, and that all depots and offices are committed to reduce their carbon step as much as is possible.Porters Five ForcesThe Porters Five Forces model is a simple tool that can be utilised to help strategic understanding where big businessman lies in a business emplacement. The tool can also be used to understand both the strength of a companys current competitive position, alongside the strength of a position the company may be looking to move into. The Five forces framework focuses on business concerns rather than public policy but it can also emphasise extended arguing for value rather than just competition among existing rivals. The e ase of its use has inspired numerous companies as well as business schools to adopt it. (Wheelen and Hunger, 1998).If you have clear understanding of where your power currently lies, you are able to take advantage of a situation of strength or act to improve a situation of weakness.Porters 5 Forces for Network RailSupplier Power For Network rail, it supplier power can be said to be relatively high, there is a very strict sycophancys process to go through before any item can be introduced into the infrastructure. This process can be duration consuming and expensive for new suppliers and so those that already have this approval have a large amount of power to wield. There are also very few suppliers that pull up stakes the dedicated technology that is used to provide modern signalling systems which again will provide a striking deal of supplier power.Buyer Power Buyer power with regard to Network Rail would be classed as low. The company is operating in somewhat of a monopoly, giv ing buyers very pocket-sized flexibility to mark elsewhere for similar services. Network rail is therefore in a very strong position when it comes to dictating terms.Competitive Rivalry Other than companies providing engineering expertise with renewal of rail infrastructure, there are few firms who could provide the day to day expertise that Network Rail has in the condom running of the railway network in Great Britain. The number of staff employed by Network Rail (18,000+) would also be a barrier to the threat of substitution by smaller firms, not willing to take on the huge responsibility that employing this number of dedicated staff would present.Threat of Substitution The threat of substitution may be classed as medium as there may be alternatives to a rail system within GB. Other than lane Transport, there is very little realistic direct competition for the services that Network Rail provide. Road transport does present a certain amount of competitive opposition to Network Rail, but there would be few that would be able to compete direct with leading the GB Rail network. Obviously this puts Network Rail in a position of great strength.Threat of bare-ass Entry The cost and time elements required for companies to be set up to provide effective competition to Network Rail would be barriers that would sustain this happening. For this reason the threat of New Entry is low.Using Financial Analysis / Marketing Mix / Core Competencies / Balanced Scorecard or any other relevant tools, scan Network Rails Internal / Micro Environment to inentify the key Micro challenges the Company faces.Using FiMO as discussed during the BES faculty of the Network Rail business leaders programme to scan the Internal or Macro Environment shows the following resultsFINANCE Network Rails strengths are based around its huge asset base and its maturation asset value. Network Rail also owns a massive station portfolio that can be used for diversification. The major weaknesses o f Network Rail are based around possible Governmet consumption cuts, the Recent Comprehensive spending review and Lord McNultys value for money report.MARKET Strengths Currently the business is well thought of by relevant bodies including the Office Of The Rail Regulator, much and HSE (BES 2010)Prime locations for retail developments, Achieving Control Period 4 (CP4) targets to date. Weaknesses Internal financial process that makes it almost impossible to trade with other parts of the similar company.OPERATIONS Strengths include an enviable safety record, both for its own workforce and for the travelling public. Delivery of its own promise The Timetable is our Promise. When we Promise a train can run, it will run safely, punctually and reliably. And we Promise that more trains are able to run next year. Network Rail (2010)Weaknesses -. The industry is perceived as difficult to work with, by others within the industry.As part of the BES course a RECoiL exercise for Network R ail as a company was completed, the scores have been reproduced below.Network RailResources8Experiences7Controls and Systems6Ideas Innovation7Leadership6This would expect to highlight issues within two main sectors, those being Controls Systems and Leadership.Controls and SystemsThere is a school of thought that its processes are far too bureaucratic and that any change can only be effected over a long period of time. This may well have a aim on the apparent issues with leadershipLeadershipThere seems to be a large number of long serving railwaymen in supervisory and caution positions. This has the effect of creating a resistance to change. There seems to be a look that the processes and procedures inflicted corporately are so rigid that they prevent innovation because of amount of bureaucracy in place.Pull your conclusions regarding parts 1 and 2 together in the form of a SWOT analysis. You could also identify what options an ANSOFF matrix for Network Rail would suggest are the most viable.According to Barney (1995), a SWOT analysis is a framework that points to the relevance of external and internal forces to give an understanding of thesources of competitive advantage. SWOT analysis will help decide if the main problems facing a company revolve around a need to change its strategy, a need to improve its current strategy and the implementation of it, or both of the above.The tool helps look at the companys current performance (Strengths andWeaknesses) and its future (Opportunities and Threats) by accountingfor the factors that exist in the external environment. The framework is a powerful and at times highly successful technique that can be applied to individuals, groups, teams, or organisations (David, 1997).