First Cars PLC
Question 4 (36 Marks)
First Cars PLC plan on moving from the car rental business into the market of car clubs, which is the idea that people join them to allow people to access their car in times when they aren’t using them. In this report I will assess both the arguments for and against the car club proposal.
My first argument would be looking at appendix D and the diagram that shows the forecasts for the car club market between 2010 2014. It is clearly showing that for the proposal it is going in the correct direction. With the market expected to grow in terms of market volume, continuously year on year reaching its final point 110% increase above the base year in 2014 and showing the same trend however with a greater increase for the market value, expecting to grow by around 300% over the period shown. This data clearly backs up the idea of the proposal as it is suggesting that they are entering a market that is showing that it should be thriving in the forthcoming years and therefore suggesting that they should go into the new market earlier rather than later because as the car club market increases like the data suggested so will the competition that is in the market, therefore making it harder for them to enter the market the later they wait.
Secondly if they do decide to go ahead with the proposal, the data suggests that the company is likely to become more professional in the way it operates as they move into a prestigious office in London this will come with a more decentralised organisational structure. What this means for the company is the fact that the decision making process is spread out to include the more junior managers in the hierarchy, making the decisions made closer to the customer and therefore should hopefully mean that the end service is going to be closer to what those ...
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