P&O Ferry: A Case Study on Business and Economic Context Analysis

This case study provides an analysis of P&O Ferries, examining its business and economic environment within the tourism and travel industry. It explores the structure of the P&O Ferry industry, provides a company profile, and conducts a PESTLE analysis to identify key political, economic, social, technological, legal, and environmental factors impacting the business. The report discusses the business challenges faced by P&O, including the implications of outsourcing and staffing decisions, environmental imperatives, and the impact of technological advancements. The study concludes by summarizing the key findings and highlighting the importance of understanding the business and economic context for companies operating in the ferry transport sector.

Ferry transport
understanding the business
and economic context

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
The structure of the P & O Ferry industry...................................................................................2
Case study company/organisation’s profile.................................................................................2
PESTLE analysis.........................................................................................................................2
Business challenges and its implications.....................................................................................5
CONCLUSION............................................................................................................................5
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INTRODUCTION
Ferry transport is referring to the place where passengers, vehicles or freight are carried
by boat across the river, arm, lake and other part of water. Also, P & O ferries are worked with
more than 9 freight ferry over 350 weekly sailings in order to meet the need. Present report will
have discussed structure followed by chosen company and PESTLEs analysis so that it helps to
identify the business implications.
MAIN BODY
The structure of the P & O Ferry industry
The structure of sea transport industry is consisting of mainly 4 parts which are related to marine,
air, freight and rail. There are centralised around one individual or decentralised that help for
allowing several with same responsibility. (Manh Cuong and Hung, 2020) Chosen company
uses decentralised organisation structure which helps all the member to right for give their views
regarding decision making for the company.
Case study company/organisation’s profile
P & O Ferries is a British shipping company that helped ferries form UK to Ireland and also its
helps to continue to continental Europe which is including Belgium, France and Netherland.
Also, it is established in 2002 on the basis of Merger and Acquisition within P&O that is Dubai
based DP world since 2019. Chosen company worked with by providing excellent services to
customer in order to maintain the relation (Abdullah and et.al., 2022) . Best value provided to
customer from booking on board services also it helps for providing the guide service if
customer travel to Holland and France. It has been analysed that there are different challenges
faced by P& O which is affected by cancelled all services for few days on 17 March because of
restructuring its operation. In this situation company has fired more than 800 seafarers because
company was not sure about their services also it can have impacted on future visibility for
employees.
PESTLE analysis
Political factor- This factor played important role in order to determine different
condition that can impacted on ferry industry for maintaining the long term profitability for the
certain market (Sánchez-Cambronero and et.al., 2020). Chosen company work for outsourcing
and staffing services that impacted by political system risk. Majorly it influenced by political risk
that is related to military invasion and that is why it impacted on level of corruption. Trade
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regulation and tariffs related services are change Chosen company worked with by providing
excellent services to customer in order to maintain the relation.
Economic factor- According to the Macro environment it has been analysed that it is
necessary to identify the aggregate demand and investment ins economy which is help to
identified the norms of the company (Patil, 2018) . Also, for the transportation industry the
government intervention can be related to all the services which are helped in the exchange rate.
The rate of employment is affected due to Covid 19 and overall production impacted due to
pandemic and many coastal areas were blocked at that time. Due to globalisation it has been
impacted that mega container ship to small truck for entire distribution in production activities in
global market thus it also supported by development of modern transport which can be begin for
dynamic change. Also, at some time it can be said that’s it is necessary to develop the idea of
managing the transportation services in large quantity. Although, it is related to creating
flexibilities that influence positive in order to provide different route that can be help for
subtracting the capacity on demand also it comply with illustrated in North Europe in recent
month when traffic has changed due to Covid and Brexit.
Social factor- It has been analysed that Decision taken by UK company for P & O to
fires 800 staff without notice and also replace them with agency worker which is related to
current example of outsourcing and increasing by using this strategy in order to reduce the labour
cost and secure for flexibility companies that can be claimed in global economy. Labour
outsourcing can be depending on how company can manage the employment for chosen
organisation culture and business models (Kairuz and et.al., 2020) . Also, it has shifted towards
the singles stroke of long standing employment relationship. Apart from the contract it can be
said that there are no legal responsibilities are performed by company that impacted bad on the
culture of the organisation. Further, hire and policy are widespread uses the agency workers that
are increasingly for particular services such as transportation, construction and hospitality
services. Also, company offers the drive to cut and maximise the profit without considering any
social impact.
Technological factor- For P&O Ferry used the automated technology which help t
provide the high degree of freedom in order to makes key decision for business. This is also help
to connect with other ferries in order to communicate with them. Artificial intelligence helped to
worked on the basis of Internet (Wajid and Zafar, 2021) . Also, it has impacted positive on the
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seas transportation because it helps to uses the Digitals Cargo and bay arrangement optimisations
in order to makes the journey of container effectively by work on several ports across the globe.
This is also help for deliver the service on time that’s help to improve the reaching the container
on time. Sometimes it is possible that’s due to environmental factor it can be affected by not
completed the work on time. It is necessary to having the goods which is distributed on the basis
of vessel by terminating ports and reduce it accordingly (Kara, 2018) . Then P & O using the
internet on thing which help to control all the objective that’s is need any controls and such as
remote. By which it helps to provide the information of way and also turn all electrical system in
order to work by vessel operator and passenger which required for physical presence. This is
help to provide the all the information of how it can be completed by effective terms and then in
case of container ship it has been analysed that in case of massive change are help to manage it
accordingly. Then company focus on the digitals route management ship which is help for
journey and duration which is essential for considering the long period in order to remain at sea
On the other hand it can be impacted by spending huge amount for digital services and it is very
expensive in nature.
Legal factor- The legal framework helps to include by adopting the framed in order to
control the maritime transport o dangerous good. This is also helps to encompasses on the basis
of governing process which help to improve the performance by port state, flag state and coastal
state in order to fulfil the state’s obligations. On the basis of shipping law of UK, it can be stated
that it is related to complex body of customs, legislation, international treaties and court decision
in order to deal with responsibilities and role of ownership and operation of vessel which is
travel on high seas. It has been analysed that it can be possible that it is necessary to seaborne
commodity trade, size and operational efficiency. This is related to occurs the result for
corporation in order to work on international agreement and corporation which is also including
custom, law and international agreement (Abdullah and et.al., 2022) . This impacted positive in
order to deal with injuries and property damage which occur activities of corporations and
individuals in navigable water.
Environmental factor- On the basis of effective factor in the ratio of compound released
into the environment which is also including due to energy consumption in order to
corresponding natural release of all the compound. This is also performing effectively ins orders
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to managing the resources in better manner. Natural calamities cans be impacted by not
understanding the physical characteristics of the environment.
Business challenges and its implications
There are different challenges performed by marine industry in order to persistent demand
and supply imbalances, environmental imperatives and employment issues related to aging
the labour force by safety and shipbuilding industry. Another challenges can be related to
changes of environment which can be affected in negatives manners because sea route
impacted very badly (Pan, Chen and Zhan, 2019) . Then high rates of taxes and tariff and
taxes are increases so it affected by providing rising cost of the project.
CONCLUSION
It has been concluded that P & O ferries are worked with more than 9 freight ferry over
350 weekly sailings in order to meet the need. Present report will have discussed structure
followed by chosen company and PESTLE analysis so that it helps to identify the business
implications. Then also report identified the business implications which is impacted dues to
major reason such as increases in taxes.
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