BUSINESS POLICY
CASE STUDY
Maryam Latif (1303)
Zonash Ghaffar (1413)
Anam Farooq (1414)
M.Fahad Tariq (1427)
INTRODUCTION
Greyhound Lines Inc. is the nation's largest intercity bus company, and
the only long-haul, nationwide provider of bus service in the United
States.
The company serves more than 2,600 urban and rural destinations in
the 48 contiguous states and Mexico.
The company maintains a fleet of 2,400 buses, which cover 60,000
route miles.
The focus of Greyhound's business is scheduled passenger
transportation, but it also offers limited charter passenger service. In
addition, the company operates express package delivery and food
service at some locations.
HISTORY
1913:
Carl Wickman started Hibbing Transportation, bussing miners
from the city to the mine.
1925:
Wickman leaves Hibbing and purchases White Bus Line.
1926:
White Bus merges with several other lines to form Motor
Transit Corporation, nicknamed Greyhound.
1930:
Motor Transit becomes Greyhound Corporation.
1946:
Cont…..
1962:
Greyhound purchases Booth Leasing and becomes the largest
industrial leasing company in the world.
1970:
Greyhound acquires Armour Foods, keeping only its meat
packing business.
1987:
Trail ways, Greyhound's last remaining rival, is bought out.
1997:
Greyhound acquires Valley Transit and 49 percent of Crucero,
a Mexican bus line.
VISION
Greyhound believes in complete and through
provision of services so that we can survive in long
run as well by building and growing in order to
MISSION
“Our mission is to provide complete
costumer satisfaction through the superior
quality services that can better reflect our
aim to maximize the benefits of our
stakeholders so that we can better facilitate
our internal costumer as well.”
SERVICE CATEGORIES
PASSENGER SERVICE
FOOD SERVICE
PACKAGER EXPRESS SERVICE
CHARTER
OUR COMPETITORS
TRIALWAYS
AMTRAK
STAGE 1(Input Stage)
Internal Factor Evaluation (IFE)
External Factor Evaluation (EFE)
Key Internal factors
Key Internal factors
Weight
Weight
Rating
Rating
Weighted
Weighted
Score
Score
Strengths
Good will
Brand name & icons
Affordable and travelling
Safe and reliable
Increasing profit
Advertising
Service quality
Market share
0.1
0.1
0.1
0.1
0.05
0.05
0.1
0.1
4
4
4
3
3
3
3
3
0.40
0.40
0.40
0.30
0.15
0.15
0.30
0.30
Weaknesses
Discourtesy towards customer
Management team
Bad IT system
training
0.1
0.1
0.05
0.05
1
1
1
2
0.10
0.10
0.05
0.10
Total
1.00
2.75
Key External factors
Key External factors
Weight
Weight
Rating
Rating
Weighted Score
Weighted Score
Opportunities
•Partnership Mexican bus line)
0.10
4
0.40
•Baby boomer
0.10
3
0. 30
•New Asian and Mexican immigration
•Alliance to provide mix mode transportation
0.10
0.15
2
3
0.20
0.45
Threats
•Rapidly changing trend
0.15
4
0.60
•Changing customer prefrences
0.10
3
0.30
•No entry barries
•Airline & railway service
•Increase in bank loan
0.10
0.10
0.10
3
3
3
0.30
0.30
0.30
Total
1.00
3.15
Critical
success factor
weight
Greyhound
Amtrak
Rating
Score
Rating
Score
Good will
0.15
3
0.45
4
0.60
Brand name &
icons
0.10
3
0.30
3
0.30
Service Quality
0.10
3
0.30
3
0.30
Management
0.15
1
0.15
3
0.45
Advertising
0.05
3
0.15
2
0.10
Financial
Position
0.20
2
0.40
3
0.60
Customer
Loyalty
0.10
2
0.20
4
0.40
Market share
0.15
1
0.15
4
0.60
Total
1.00
2.10
3.35
STAGE 2 (The Matching Stage)
SWOT Matrix
SPACE Matrix
BCG Matrix
IE Matrix
SWOT MATRIX Strengths - S 1. Good will 2. Brand name 3. Affordable travelling 4. Safe & Reliable 5. Ads
6. Service quality
7. Increase in profit & market share
Weakness – W
1. Discourtesy towards customer 2. Management team 3. Bad IT system 4. training Opportunities – O 1. Partnership 2. Baby boomer
3. New Asian & Mexican
immigration.
4. Alliance of mix mode
transportation.
SO - strategies
(S1, S5,O2,O3)
(Market Development)
WO – strategies
By improving management team and proper training can provide mix mode of transportation(W2, W4,O4)
(Conglomerate Diversification)
Threats - T
1. Rapidly changing trend. 2. Change customer preferences. 3. No entry barriers.
4. Airline & Railways service. 5. Increase in automobile due to
bank loan. ST – strategies (S1, S2,S6 T3) (Market Penetration) WT – strategies (T1, T2, W2) (Product Development)
Internal Strategic Position
External Strategic position
Financial Strengths (FS)
Environmental Stability (ES)
Return on Investment
leverage
Working Capital
Liquidity
Total
average
+4
+5
+3
+4
+16
4
Technological changes
Rate of Inflation
Price range of Competing aervice
Barriers to entry
Competitive pressure
Risk involved in business
Demand variability
Price elasticity of demand
Total
Average
-4
-4
-6
-2
-6
-2
-2
-3
-29
-3.62
Competitive Advantage (CA)
Industry Strength (IS)
Market Share
Service Quality
Customer Loyalty
Service life cycle
Technological know-how
Total
Average
-4
-1
-2
-2
-3
-12
-2.4
Growth Potential
Profit Potential
Financial Stability
Resource Utilization
Capacity utilization
Technological know-how
Total
Average
+5
+4
+3
+5
+5
+4
+26
+4.34
-6 -5 -4 -3 -2 -1
+1 +2 +3 +5 +6
+6
+5
+4
+3
+2
+1
-1
-2
-3
-4
-5
-6
Aggressive
Aggressive
Conservative
Conservative
Competitive
Competitive
Defensive
Defensive
IS
IS
CA
CA
X-axis =CA + IS
-2.4+4.34=1.94
Y-axis = FS + ES
4+(-3.67)=0.33
Boston Consulting Group Matrix
(BCG)
MARKET SHARE POSITION
HIGH
LOW
STAR
QUESTION MARKS
GREYHOUND
M
AR
KE
T
GR
O
W
TH
CASH COW
DOGS
Lady Greyhound
AMEGOS
i
ii
GREYHOUND
iii
iv
V
Vi
vii
viii
ix
Strong 3.0 – 4.0
Average 2.0 – 2.99
Weak 1.0 – 1.99
2.0
3.0
4.0
IFE Total Weighted Score 2.70
1.0
2.0
3.0
Low
1.0 – 1.99
Medium
2.0 – 2.99
High
3.0 – 4.0
E
F
E
T
O
T
A
L
W
E
IG
H
T
E
D
S
C
O
R
E
2
.6
5
Quadrant ii
Quadrant i
Quadrant iii
GREYHOUND
Quadrant iv
Slow market growth
Rapid market growth
St
ro
n
g
c
om
pe
ti
ti
ve
p
os
it
io
n
W
ea
k
co
m
p
et
it
iv
e
p
os
it
io
n
Stage 3 (The Decision Stage)
Quantitative Strategic Planning
Strategic alternatives
Key Internal Factors Concentric
Diversification Conglomerate Diversification
Strengths Weight AS TAS AS TAS
Good will 0.10 4 0.40 4 0.40
Brand name & icons 0.10 4 0.40 3 0.30
Affordable travelling 0.10 4 0.40 4 0.40
safe and reliable 0.10 3 0.30 4 0.40
Increase in profit 0.05 3 0.15 1 0.05
Advertising 0.05 2 0.15 3 0.15
Service quality 0.10 3 0.30 4 0.40
Market share 0.10 2 0.20 3 0.30
Weaknesses
Discourtesy towards customers 0.10 2 0.20 3 0.30
Management team 0.10 1 0.10 3 0.30
Bad IT system 0.05 2 0.10 2 0.10
training 0.05 2 0.10 3 0.15
Strategic alternatives
Key External Factors Market Penetration Concentric Diversification
Opportunities weight AS TAS AS TAS
Partnership 0.10 - - -
-Baby boomer 0.10 3 0.45 3 0.45
New asian and mexican 0.10 2 0.30 3 0.45
Alliance for mix mode of transportation 0.15 2 0.30 4 0.60
Threats
Changing customer prefences 0.15 2 0.30 4 0.60
Rapidly changing trend 0.10 2 0.20 3 0.30
No entry barries 0.10 - - -
-Increase in bank loan 0.10 4 0.40 4 0.40
Airline and railway service 0.10 4 0.40 4 0.40
Total Attractive Score 1.00 2.35 3.2 Sum Total Attractive Score 5.15 6.45
