CoachesTravel: A Strategic Evaluation of SouthTours Purchase

This case study analyzes CoachesTravel's potential acquisition of SouthTours, evaluating the value addition, impact of the UK government's Air Quality Plan, and potential risks. It examines how SouthTours can benefit CoachesTravel, considering factors like economies of scale and investment opportunities. The report assesses the challenges posed by the Air Quality Plan, particularly regarding Southampton's slow adoption of changes and the increased operational complexities. It identifies risks associated with the purchase, including legal compliance, market adaptation in Southampton, and increased competition. Ultimately, the report recommends against the acquisition, suggesting CoachesTravel focus on improving existing services and adapting to technological changes, emphasizing customer focus and efficient administration for sustainable growth. Desklib offers similar solved assignments and past papers for students.

ORGANISATIONAL STRATEGY
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Contents
INTRODUCTION......................................................................................................................3
1. How does SouthTours add value to CoachesTravel? How will it improve its success?........4
2. How will the UK government's Air Quality Plan help or hinder the value and success of
CoachesTravel? Why?...............................................................................................................6
3. What are the risks for CoachesTravel’s future? How should they be addressed?.................8
4. Should they proceed with the purchase? What do you recommend CoachesTravel prioritise
in their upcoming strategy?........................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11
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INTRODUCTION
This assignment is related to a case study. This case study helps to explain the operating
conditions of the Coaches Travel. Coaches travel is the organisation which provides bus
services to different local schools. After the successful business of the bus services to the
local schools and tour facilities to different cities, Coaches Travel provides its services to
neighboring cities like Bristol and Swindon. In today time tour and travel is the fastest
growing industry. After the great success of the Coaches Travel the management of the
organisation thinks to expand their business organisation in another city like Southampton for
this they decide to purchase the business of the South Tours. South Tour agency provides the
facilities to the local market and this agency uses the open- deck bus facilities to its client. In
this report, the analysis is done on the various factors of the South Tour and what are the
reasons due to that organisation need to the merger with any other organisation. This report
also helps to analyses the different concept of coaches Travel which make the organisation
successful with good operating facilities. In this report different strategy of the Coaches
Travel is also evaluated.
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1. How does SouthTours add value to CoachesTravel? How will it improve
its success?
When one company wants to purchase the business of other company then this defiantly
increases the value of the purchasing company along with this it also increases the work of
the organisation.
South Tour is the travel agency which provides the open deck buses in their local area. As
this is the good business concern but due to the financial problems they facing the problem to
continue their business (Xiang, 2017). As the Coaches Travel has the good management so it
is very easy for them to manage all the work and different costs of both the organisations.
As the South Tours are the organisation which serves the different services to its client. The
business of South Tour does not have the good accounting management. Management of this
organisation is not proper working for the benefit of the organisation.
Coaches Travel is also a bus company which provides the services to the local schools and
tours to the different cities. This is the continuous growing industry. So for expanding their
business more management of the Coaches Travel wants to purchase the business of South
Tour. When these both companies come in one company then they produce high profit and
provide the better services to its clients.
The following are the points which explain that how South Tours will improve the success of
Coaches Travel.
 When the two businesses come at the common platform then it definitely improves
the business of the organisation.
 This provides the great economy of scale as two companies are working together, this
helps to increase the different facilities provided by these organisations.
 Economic of scales means the improvement in the technical facilities, financial as
well as the organisational working.
 When both these companies come together then Coaches Travel has the huge chances
to protect the industry from chances of a windup.
 As both companies are related to the travel agency so it removes the conflict which
may occur due to different business units.
 Combination of both these organisations provides the various investment
opportunities. As different risk factors and the other profit analysis are done in
advance.
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It can be easily understood by the above report that when the South Tour combines with the
Coaches travel then this provides the good profit in the business organisation (Anthony,
2017). As Coaches Travel has the good management, who has the good managerial skills
then it also beneficial for the organisation when they merge with South Tour. It provides the
great success in the business of the Coaches Travel organisation.
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2. How will the UK government's Air Quality Plan help or hinder the value
and success of CoachesTravel? Why?
Air quality plan is developed for providing better quality life. This helps to reduce the level
of the air pollution in the city. As the buses create the pollution in the environment due to this
UK government develops the plan to remove this kind of the pollution from the environment
(Gupta, 2018).
(Figure – Air Quality Management Plan)
(Source- By Author, 2018)
The above figure shows the following steps which are required for maintaining the air quality
plan for the environment. Air Quality Plan is developed to provide safeguards to the people’s
health and the environment of the city.
Coaches Travel is the organisation which highly affected by the external environment of the
business. The government of the UK introduced the Air quality Plan to protect the life of the
people. The concept of the Air Quality Plan creates the challenges for the Coaches travel
related to the organisational strategies. Air quality Plan increase the work of the Coaches
Travel because of this plan organisation require more time for making proper decisions
related to the organisational strategy. These decisions are related to the investment and daily
operational working of the business organisation (Singh, 2018). Air Quality Plan is developed
for the safety of environment which is not for the benefit of the business of Coaches Travel.
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Coaches Travel is the growing business organisation now they want to expand their business
into Southampton. But the UK government introduce the Air Quality Plan which increases
the problems for the organisation. For proper implementation of this plan, organisation needs
to maintain all the certificates related to the buses that prove that these buses are air pollution
free and up to date till the time.
One of the major problems of this plan is as Coaches Travel wants to expand their business
into Southampton but the city does not expect changes more quickly. As Southampton
already has clean air zone for protecting the health of the general public. But this plan is not
so good predictable of the external environment. Because of this reason this plan is not
beneficial to the business organisation and creates the difficulties for the business of the
Coaches Travel.
The Air Quality Plan introduced by the UK government proves as the hinder the business of
the Coaches Travel. As this more complication and this also develops the different questions
upon the recent organisational strategies (Xiang, 2017). Another challenge is faced by the
organisation is related to the various services provided by the Coaches Travel to the local
school transportation. At the end basically, this plan affects the business of Coaches Travel
most and also affects the success of its business.
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3. What are the risks for CoachesTravel’s future? How should they be
addressed?
The Coaches travel is the organisation which affected the two things that are public sector
transport and tourism sector. The success of the Coaches Travels totally depends on the skills
of the management who identify the new opportunities for the business organisation.
Recently Coaches Travel has the good successful growth. The success of the organisation
reaches its peak because they only focus on the transportation to local schools.
Recently Coaches Travel thinks to purchase another company that is South Tour. Both these
organisation provides the travel and tourism services to its client (Price, 2016). These
organisations are set at different places. As the South Tour faces the financial problems due
to this the organisation faces heavy losses. At the same time, Coaches Travel is the
organisation which wants to expand their business to spread their business to different
locations of the country. For the expandable purpose, Coaches Travel increase their business
into the Southampton. But the government of UK introduces the new role related to the air
pollution that is Air Quality Plan. As the Coaches Travel has the good managerial team which
is very good in maintaining the different work of the business concern. This is one of the
most beneficial factors for the Coaches Travel while purchasing the business of the South
Tour. Through South Tour faces the financial problem but they provide the good facilities to
its customers. It helps to the other business to expand their business.
As Coaches Travel purchase the business of the South Tour it creates the some and another
kind of the problems for the Coaches Travel (Furrer, 2018). As the South Tour have the
problem of financial difficulties and also have the problem of poor management and that will
lead to the increase the competition among the different business concern.
There are some future risks which may happen to the Coaches Travel-
 If the purchase is done then the organisation needs to maintain all the legal formats as
per the new rule introduced by the government of the UK.
 As whilst is the city which does not adopt the changes immediately, so this is the
major drawback of expanding the business in Southampton.
 For expanding business in the Southampton organisation needs to increase the number
of employees and also have to improve their work.
 They need to understand the concept of the Air Quality Plan.
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 This purchase the lots of different challenges for the Coaches Travel like it leads to
taking more time in making appropriate decisions.
4. Should they proceed with the purchase? What do you recommend
CoachesTravel prioritise in their upcoming strategy?
As per the case study is given in the question it is not beneficial for the Coaches to Travel to
purchase the business of the South Tour. Coaches Travel is the organisation which has that
kind of external environment which changes in the very shorter period of the time it is the
very crucial problem of the travel and tourism sector (Little, 2018). One another major issue
is that UK government applied a new plan that is Air Quality Plan and B&NES local council
put this plan to the develop a Clean Air Zone. But Southampton is the city which is not very
flexible to adopt new changes in the business environment. This may occur the problems of
non-accepting the new changes happen in the environment. As there are different challenges
may occur in the business organisation. The problems are related to the face the different
operations of the transportation facilities provided in the local schools. The other main
challenge is this affects the new market expansion into Southampton. Basically, this purchase
is not beneficial for the Coaches Travel (Becker, 2016). So the idea for expanding the
business organisation into Southampton is not so good. If the organisation wants to expand
their business then they can provide the better services to its existing customers and maintain
them long-lasting.
Here are some recommendations which are helpful in making different strategies for Coaches
Travel business.
 Use proper administration functions of the business organisation.
 Coaches Travel needs to maintain the better working environment which creates the
healthy working environment in the business organisation.
 One major factor is that management needs to focus mainly on the customers as they
play the main role in every service industry.
 As there are various changes introduced in the technology so Coaches Travel needs to
adopt those changes and apply them in their operation of the organisation (Singh,
2018).
 As the Coaches Travel has the good management, which is very important in the
business. Good managerial skills provide the better growth opportunities to expand
the business and improve their business unit.
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Conclusion
The above business report helps to understand the concept of different organisational
strategy, which helps in improving the business organisation. The above report is related to
the two business organisations which are related to the tour and travel sector. Both these
companies provide the bus services to its customers. The one company is Coaches Travel and
another one is South Tour. Coaches Travel is the organisation which continues growing their
business by providing better services to its client. Coaches Travel increases their business
because they have the good manager which manages the work of the organisation very well.
Coaches Travel follow the different business strategies to develop their business, this proves
as an asset for the business organisation. This report also explains the Air Quality Plan and
how this creates the Clean Air Zone. In this report, the future plans are also discussed related
to the business of the Coaches travel after purchasing the business of the South Tour. A
different analysis is made to evaluate that is it beneficial for the business of Coaches travel to
purchase the business of South Tour. Here some recommendations are also made regarding
the purchase of other business in the business organisation is beneficial or not.
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References
 Anthony, M.U.G.O., 2017. EFFECTS OF MERGER AND ACQUISITION ON
FINANCIAL PERFORMANCE: CASE STUDY OF COMMERCIAL
BANKS. International Journal of Economics and Finance, 1(6), pp.93-105.
 Becker, E., 2016. Overbooked: The exploding business of travel and tourism. Simon
and Schuster.
 Furrer, M., 2018. Design and Launching of Redundant Truss Over Railroad Yard.
 Gupta, A., 2018. Quality Enhancement in Teacher Education (Doctoral dissertation,
Institute of Education).
 Little, J.I. ed., 2018. Fashioning the Canadian Landscape: Essays on Travel Writing,
Tourism, and National Identity in the Pre-automobile Era. University of Toronto
Press.
 Price, J., 2017. INVESTIGATION OF THE FEASIBILITY OF
RECONSTRUCTING A SCHOOL DISTRICT OWNED ATHLETIC FACILITY.
 Singh, A., 2018. Encouraging public transportation to increase active commutation in
Manhattan, KS.
 XIANG, M., 2017. The Valuation Research of Steel Industry Enterprise in Mergers
and Acquisitions. Management Science and Engineering, 11(1), pp.94-100.
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