Corporate Strategy and Industry Life Cycle - Transport For London

Background of company

Transport for London (TFL) is a local government body which is responsible for managing and controlling transportation system in Greater London, England. The head office is 55 Broadway in the city of Westminster. TFL has responsibility to manage the network of principal road routes for London for different types of rail networks including London Over ground, London Underground, Docklands Light Railways and TFL Rails for London taxis and buses, river services and for cycling provision. TFL is jointly with department of transport and responsible for commissioning the construction of new Cross rail line and also will be the franchisee after completion of this operation. TFL had a large budget of 11.5 billion in 2015-16 in which 40% come from fares (Ferlie and Ongaro, 2015). Rest of the amount comes from government funding (23%), other income and congestion charge (9%), Borrowings (20%) and (8%) from cross rail funding. It is controlled and managed by a board in which the members are appointed by mayor of London.

The body is organised in three major corporate services and directorates with each responsibility for director’s aspects and modes of transport. The first one is London transport which is responsible for managing underground rail network (Ibrahim, 2016). Second is London Rail which is responsible for making coordination with operators which helps to provide national rail services. The last one is surface transport consisting of London buses, river services, streets, public carriage office, delivering planning, special projects team, etc. Surface transport and traffic operation centre of TLF was officially opened by Prince Andrew, Duke of York in 2009. During 2000, TLF introduced the 'Connect' project for radio communication which helps to improve radio connection for staff working in underground for emergency services in London.Want to get Assignment Samples?Talk to our Experts!

It can be said that each of the transport unit has its own corporate identity which is formed in various colour versions of the standard logo appropriate lettering across the horizontal bar. Transport for London is vastly mounted towards advertisement campaigns in order to motivate and encourage use of the underground. An 18 months program of activities was launched in 2015 in partnership with London Transport Museum sponsored by Exterior media which is known as Transported by Design (Wilmsmeier and Sanchez, 2017). Main intention of this program is to showcase the importance of both service design and physical across transport network in London (Grant-Muller and Usher, 2014).

Review of issues

Transport for London (TFL) is a local government body responsible for managing and controlling transportation system in Greater London, England. There are some corporate government and strategic issues faced by TFL in various sectors and departments. It is analysed that it is a large venture managed by local government in order to provide services to people living in London. Issues such as equality and inclusion, disability schemes, e-government, health and safety, monitoring and performance, financial issues and employment skills. These are some major factors required to run all the operational activities divided in three parts by Transport for London which should be managed and controlled by local government in order to achieve goals and objectives of making such operations effectively. In equality and inclusion, the workforce report is overall good but equality impact assessment and how to do them is creating some issues. The gender equality scheme is working well along with sexual orientations. Implementing electronic government is helpful for the operations but management of network to deliver e-government is little tough.

One of the most important issue faced by TFL if funding which is creating financial issues. The local government funding is not enough as the sector is large in nature and requires a lot of money to carry operational activities effectively and on time. In addition to this, auditing of accounts is also a major issue for TFL in terms of managing the financial information for each department and to guide to Competitive Selection of Designer. The health and safety report was combined in 2011 with the environmental report in order to improve and develop effectiveness of performance towards focusing on health and safety issues as well as environment objectives as well as outcomes.

In addition to this, health and safety can be ensured by effective monitoring at workplace which also helps to acquire performance of workers and management involved in operational activities (Baumgartner and Rauter, 2017). The role of PPP arbiter and lessons for future monitoring is now improving along with skills and employment strategies. The transport strategy is formulated by mayor Sadiq Khan to create a city for all Londoners full of opportunities and jobs. In order to achieve this vision, mayor wants everyone to encourage more people to use cycle, walk and public transport which is also an issue for them as a challenge.Ask for assignment help from our experts!

LITERATURE REVIEW

Corporate strategy and industry life cycle of Transport for London

According to van den Berg, (2017) the life cycle of TFL is to form information of transport in London to keep moving towards premises of development. Transport for London is a large venture managed and controlled by the local government body in order to provide different overground and underground services to people that help to make London even smarter in the future. Apart from this, Keay and Zhao, (2017) says that the redevelopment of any site is likely to generate vehicular activities during the life cycle of the scheme or plan made by the government, from demolition to constructions and occupation effectively. In addition to this, streetscape guidance, cycle infrastructure and also accessible bus stops to make safety and security which is well designed streets will help to enhance the quality of life.

Corporate strategy vision is very clear to deliver the biggest investment programme in history to improve and develop journey and support for customers as well as people of London to produce employment growth effectively. It is analysed that there are more than 700000 consumers using the Piccadilly line every day. The long term investment will support this growing population in London which is set to 10.08 million by 2041. This will help towards new jobs, growth and development as well as beneficial for the whole UK economy. In addition to this, London underground has also outlined the overall direction and intent for effective environment as well as health and safety with the help of different strategies and supporting plans effectively. The strategy is towards future development of London to deliver quality and effective services, never seen before.

Bátiz-Lazo and Smith, (2016) says that mayor transport strategy 2018 for the future of transport in London will help to develop and improve operations. This will be done by investing billions that help to transform the capital transport network. The proposals include development and improvement of suburban railways and he cycles infrastructure along with tackling vehicle emission. Healthy streets planning will put the health of London people at the heart of strategies. The government is also extending the over ground to barking riverside. The mayor also wants to support aviation but not at the expense of environments. He also wants to improve station information to provide extra information on the engaged times on the network effectively and efficiently. In addition to this, extending the Baker-loo lines towards south east will also help and support new opportunities for jobs and new homes for people living in London. Rail network development is the main key or a responsibility for government for London's inner-suburban rail service.

In the east London there is a river that local government is planning to make a new river crossing so that it will help to make journey easy within the city. Corporate strategies are providing consultations and surveys on a range of products available for customers in the market, business and other sectors. This will help to improve quality and effectiveness of business which will provide significant benefits to consumers in the market. Cross rail 2 can be considered as a key long term project managed by government which is required to extent rapid growth and development of London. Strategic transport and land use models will also help to make an effective use of lands as well as to reinvest in transportation business.

Board’s corporate governance structure and effectiveness

Under the Greater London Authority (GLA) Act, 1999 Transport for London (TFL) is created as a statutory body. To promote and encourage safe, efficient and low cost transport facilities and services within London, the Mayor of London has general duties to make policies and develop the TFL under the Law. According to Oberhofer and Dieplinger, (2014) the standing orders of TFL lays down the corporate structure and its proceeding through the scheme of delegation. How the board establishes committee and delegates some of its functions to an officer of TFL are set by the GLA Act. The corporate governance of TFL acts accordingly with the Nolan principles of public life, which includes selflessness, integrity, objectivity, accountability, honesty, openness and leadership. The structures of corporate governance of TFL include Board members, Chief Officers, subsidiary companies, Independent Investment Programme Advisory Group (IIPAG) and Mayoral Directions. Board of the TFL consists of 16 members who are been headed by a Chairperson and a Deputy Chairperson. Their main purpose is to observe the highest standards of impartiality, integrity and to attain the objectives, vision and mission of the TFL. To act on behalf of the shareholders, determine company's policies and goals to achieve.

Board crisis action plan for a natural disaster of unforeseen event of catastrophic proportion

Chapman, Howden-Chapman and Capon, (2016) says that emergency and board crisis action plan is needed for a natural disaster of unforeseen event of catastrophic proportion which will help to reduce the chances of getting losses to people as well as in London. Disaster and emergency planning involves cooperative and coordinated procedure of preparing to match urgent needs with available resources. There are different phases such as writing, research, dissemination, updating and testing. Plans and strategies are required not only to respond the negative impact of disaster but also to manage business continuity while controlling the crisis and to direct reconstruction and recovery effectively. In addition to this, disaster is a natural thing that to deal with such kind of situations support from public is required to plan initiatives and also participation by a wide variety of technical experts and responders as well as citizens. There are many types of natural disasters such as population growth, climate change, challenges posed by non-renewable resource utilisation and imbalance of wealth effectively. Resource managers and experts are one of the key aspect for managing modern disasters which required sustainable professionalization of the related field.

According to Baker and Ruming, (2015) emergency planning can be defined as a process of preparing systematically for future contingencies which includes major incidents and disasters. An effective plan towards such incidents is required to prepare by government in order to remain safe so that people can also trust the local government. There are number of disasters and contingencies can be occurred at any time that the government should make plans and strategies with the help of experts and management team. The experts and management teams will help to provide better suggestions and guidance to local government as well as people living in London to be prepare for such kind of incidents that can be happen in any time. Social organisation, civil defence and concepts will also help to face conditions which can be occurred in any time and any place.

There must be an organisation established by the local government to face such kind of issues especially that will help to conduct various kind of trainings. Apart from this, terrorism, armed conflicts, strikes, political issues, currency crises and other events in nation can also take place for disasters that a brutal planning is needed to solve and to be prepare for them effectively. In addition to this, Disasters has multiple and changing definition that the essential and common elements of this definition is that disaster is unusual public health event that overwhelm the coping capacities of the affected communities. This concept precludes the universal adoption of a threshold number of casualty or victim. Apart from this, there are many risk factors involved in such kind of disasters which should be managed and controlled by local government. This is all because that public supports' government in such kind of difficult situations and they also belief that local government will also help them to manage their difficult terms and conditions. The main impact of such kind of natural disasters is on economy level of that particular country which reduces the efforts of government towards local public. This will have a loss for both people and government in terms of deceasing effectiveness of local market, reducing tourism and employment opportunities. Thus, there should be some effective plans and strategies are required to manage damages done by natural disaster things.

Corporate governance

According to Heinelt, (2018) corporate governance is a multi-faceted subject. There is a crucial theme of corporate governance which is to ensure the accountability of certain individuals through mechanism that helps to support and try to reduce issues. A related but separate thing of discussion will focus on impact on the corporate governance in effectiveness and efficiency of economic. There are many factors which has an impact on corporate governance such as:

Ownership structure: A structure of ownership of a firm identifies a considerable context in which it is determined that how a firm is managing and controlling its operational activities. The structure of ownership can be dispersed among institutional and individual shareholders as in the UK. The pattern of shareholding is not as simple as the statement above seeks to convey. The shares are held by the term lending institutions, investors, comprising government, owned mutual funds, corporate bodies, directors as well as their relatives and foreign investors.

Structure of company boards: the company board structure has also a considerable impact on the way business is managing and controlling along with the structure of ownership. In addition to this, the board of directors are responsible for managing and establishing corporate objectives and developing policies that are broad in nature and also selecting executives from top levels in order to carry policies and objectives managed by business effectively and efficiently.

Financial structure: The financial structure of business also has a great impact on corporate governance along with ownership and structure of firm. The proposition between equity and debt has implication for the quality of governance managed by them effectively.

Institutional environment: The legal regularities and political environment in which the business is operating helps to evaluate and determine in large measure with the quality of corporate governance. For an example, extents from which the firms managed shareholders can control management which is depended on their voting rights as defined by the business laws.

According to Stead, (2016) there are six mechanism to ensure corporate governance in particular country which is described below:

Companies act: Companies are regulated under the companies act, 1956. It is one of the biggest legislation with 14 schedules and 658 sections. The act provides legal rights to shareholders such as vote for every resolution, removal of directors, take active part in general meetings organised by the business annually etc.

Capital market discipline: Capital market has an impact on corporate governance that number of initiatives towards protection of investors should be managed by business effectively. Certain information standards and self-mandates disclosure.

Company boards nominees: Company board nominees such as banks which holds large block of company shares. These are also considered as big debt holders. They all have their nominees in the board of business. This will also block resolutions. The role of such nominee directors is passive.

Statutory audits: Statutory audits are also a good way from which the businesses are able to ensure that they have a good and effective corporate governance. Auditor is the conscious-keeper of shareholder, lender and other who have financial stake in company effectively.

RESEARCH METHODOLOGY

There are different types of research tools and elements required to present the quality and best information about the topic (Samset and Volden, 2016). In order to conduct an effective research, various types of research methods are used. Research methodology is a concept which is used to determine issues and methods which helps to determine problem of corporate strategy and governance.

Research philosophy

The philosophy theory is one of the most significant design used by the researcher to achieve evaluation of corporate governance and strategy of Transport for London. It can be said that valuable and suitable instrument is necessary to acquire better results from the analysis. Positivism and interpretivism are the two main research philosophies can be used by researcher to conduct the research effectively. Positivism philosophy is a strategy or plan that helps to deliver valuable considerations of effectiveness of research study. Interpretivism philosophy is used for this research (Engwall, 2014).

Research approach

A research can be conducted through many ways such as, descriptive, perspective, explorative, predictive and explanatory approach. Explorative research method is been used or conducted within the area for subjects or topics which have very less information available related to it. For collecting information regarding the corporate strategy and governance of Transport for London, the explorative research method is been used.

Research Strategies

Researcher can adopt various research strategies for conducting a research, which includes using either qualitative and quantitative research strategy or both the strategies. For collecting data or information for the present report regarding the employees of the TFL the combination of both the qualitative and quantitative research strategies have been adopted. For gaining knowledge about the corporate strategy and governance of the TFL, a questionnaire is been framed for the employees.

Data sources

Primary and secondary sources are the two of the sources which are been used for gathering information for the research project. To collect the most reliable and accurate data for the research project information from the employees of TFL are been taken as primary source of data by gathering information through conducting surveys and filling questionnaires.

Sampling

Sampling is a statistical analysis process through which from large group of population a pre-determine number of sample is been taken for observation (Yoshikawa, Zhu and Wang, 2014). Samples of 10 employees of TFL have been taken for the research study and are given questionnaire to fill, for gathering their information on the corporate strategy and governance within their organisation.

Ethical consideration

Ethical considerations should be followed by researcher while conducting the research there are various types of codes and ethics should be considered such as social responsibility, honesty, confidentiality and non-discrimination. Researcher should ensure that all the ethical codes should be taken into considerations while making effective research (Voß and Kemp, 2015). The permission to make research has been taken to the managers in order to form research before conducting interview process as well. This will help to achieve better results over research for the case study of corporate strategy and governance of Transport for London.

Sources of error

It can be said that there are maximum chances of getting errors while conducting the research and collecting information. The researcher should analyse such errors as soon as possible to avoid them easily and effectively. There are different things in which errors can be occurred such as while processing, interpretation and inference. There is a possibility of measuring errors while collecting data and information through the process of surveys and interviews (Huston, Rahimzad and Parsa, 2015). Deep revision of questionnaire will help to avoid such kind of errors or while making interpretation to make effective research over the topic. For the present vase study of corporate strategy and governance of Transport for London. Researcher has used case study technique which is the oldest and common technique of research methodology. This will help to make a deep study of topic with more individuals’ aids in revealing things that are real effectively.

RESULTS OF RESEARCH

Theme 1: Corporate governance and strategy necessary for TFL in achieving organisational goal.

Analysis:

It is very much essential that company is been laying down or including corporate governance and strategies that is necessary for TFL which will be helping in achievement of goal. So in this context about 4 which are the highest included that they think corporate governance is essential for achievement of goal of TFL. While 4 of them also included that they do not think corporate governance will be required for goal or target achievement. Rest 2 out of 10 were not sure about the topic that whether it is necessary or not.

So it could be concluded that employees are having knowledge about corporate strategy and governance and this is the reason for goal attainment of TFL.

Theme 2: Employee retention is the source of implementation of effective corporate strategy for TFL

Analysis:

Corporate strategy implementation could not be easy task for company so for this they will be requiring resources that is helping them in implementation within TFL as well. For this context maximum that is 5 out of 10 employees of TFL included that employee retention is the most vital factor for implementation of corporate strategy. While 3 of them included that with help of training and development company could be easily implementing effective corporate strategy for TFL. 2 of them said that with help of leadership development program corporate strategy could be implemented effectively. Rest only one of them included that internal recruitment is that sources of implementation of effective corporate strategy for TFL.Get online coursework help from our experts!

Theme 3: Benefits to employee should be the area of focus for management.

Analysis:

In order to implement the corporate strategy and governance there are some areas of development which TFL should be focusing on. For this 5 which are maximum of them said that benefit to employee is that area which management of TFL should be focusing on. While 3 of them said that if company is giving leave without pay to all employees then this will be motivating factor which they must be focusing on. 2 of them also included that motivating the existing employees of company is that area which TFL should be focusing on.

This is due to there is lack of motivation within employees of TFL which is not allowing company to included corporate strategy and governance within organisation.

Theme 4: Corporate strategy is helping in avoiding issue of conflict resolution among employees

Analysis:

Corporate strategy will also be helping in avoiding issues and conflicts resolution between all employees of organisation as this is having it as most important area of study. So 4 employees said yes in this matter that yes corporate strategy is helping to avoid issues that of conflict resolution among all employees of TFL. While 3 of them said no for they think that corporate strategy will not be avoiding issue related to conflict resolution among all employees of company. 3 of the participants said that they were having no idea about this topic of whether corporate strategy will be helping in avoiding any kind of issue related to conflict resolution among all employees of TFL or not.

Theme 5: It is not necessary to connect business and corporate strategy with HR of TFL

Analysis:

All the strategies of business and corporate will be essential to connect with the human resource of TFL so that employees and organisation both are working in same direction of goal achievement. So in this context about 3 of respondents included that they think it is necessary to connect corporate strategy with that of business into HR of TFL. 5 of them also said that it is not required to link both the strategies with HR of company as it will be separate part from HR. while 2 of them were not having any kind of idea about the topic so they did not included much into this context.

Theme 6: TFL need to improve policy related to employment

Analysis:

Then respondents were asked about whether TFL need to improve their policy related to employment. In this context maximum of them which is about 5 included that they yes they think TFL should be improving policy which is related to employment. While 3 of them included that they do not think like this and company would not be requiring any improvement of policy related to employment. Then 2 of respondents were having no idea whether TFL should improving policy related to employment or not.

Theme 7: TFL will be able to achieve competitive advantages with link through HR of company

Analysis:

As maximum, included that company should be linking HR with corporate strategy of TFL so about 4 of them also said yes about TFL will be able to achieve their competitive advantage. This will be possible only if they are been able to link their HR with corporate strategy. While 2 of them said no that TFL will not be able to achieve competitive advantage with link through HR policy of company. Rest 4 of them were not having any idea related to whether company will be gaining competitive advantage with link through HR of company or not.

Theme 8: Strategy of HR is been followed by TFL

Analysis:

Strategic HRM is the procedure which will be followed by company to form policies according to corporate governance of TFL. So in this point about 3 of them said yes that they think strategic HRM is been followed by TFL while 3 of them said no about it that they do not think company is following strategic HRM. Rest majority of respondents which is 4 of them were not sure about whether TFL is following Strategic HRM or not.

Theme 9: At the time of crisis policy formation is helpful in fighting with that crisis

Analysis:

Most of the employees or participants which is about 6 of questionnaire included that policy which TFL is formulating during time of economic crisis is helpful for them to flight with crisis. While 2 of them included no about this concept that policy which company is formulating will not be required to be good or effective for company during time of crisis of TFL. While 2 of them were not completely sure about whether at time of economic crisis policy formation will be helpful for TFL in fighting with crisis.

Theme 10: TFL is following significant policy linked to strategy and HR management.

Analysis:

The above theme was developed in order to identify the either TFL is following policy linked to strategy and Human resource management. The researcher asked 10 respondents that do they think TFL is following important policies linked to strategy and HR management. 3 out of 10 respondents agreed that it is follows the policies, 4 out of 10 respondents disagreed and 3 were neutral. Therefore, the above theme concluded that TFL considers and follows effective policies with regard to strategic and human resource management in the organisation. The company needs to operate its functions with respect to each and every policy developed by the strategic management as well as human resource management so that it can operate its business functions properly. Policies related to both the areas of TFL are very essential as strategies are the key to success and goals and human resources are main elements of each and every business.

RECOMMENDATION

From the above analysis of topic of corporate strategy and governance of TFL it could be recommended that company must be focusing on their strategies and policies so that they are achieving their goal. So it is required that Transport for London which is the most reputed transportation company of London so they should be following corporate strategy. There are certain recommendations that are made following within this context like that of:

From the above research it can be recommended that there are some strategies could be followed by business in order to make their business more effective and efficient. These strategies are described below:

Training of workers: There are so many workers are working for TFL that the need of training and development program is necessary for them which should be organised by the local government. This will help to increase skills and knowledge of workers so that they are able to complete the work effectively and efficiently (Dunning, 2015).

Performance Monitoring: Monitoring of performance will also help to determine weaknesses and strength of workers so that the right man can be used at right time and right place. Monitoring is a major factor required to run all the operational activities divided in three parts by Transport for London which should be managed and controlled by local government in order to achieve goals and objectives of making such operations effectively. In addition to this, the role of PPP arbiter and lessons for future monitoring is now improving along with skills and employment strategies.

Health and safety: Health and safety can be ensured by effective monitoring at workplace which also helps to acquire performance of workers and management involved in operational activities. This will help to ensure workers that they are working in a safe environment and place which will help to do work more effectively.

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Improving relationship: The local government should provide some extra benefits to employees who are working well which will also help to establish a good relationship with workers so that they can work with more passion (Gebba, 2015). Relationship management is important for the business in order to satisfy employees with overall work they are doing which will help to increase motivation in them and encourage working hard and effectively.

Policy formation at time of economic crisis- it is included that company must be following all correct and accurate formation of policy and rules especially at time of crisis in terms of economy of company. These crisis could be defined to as that related to lack of capital, resources and labour work forces which is leading company to not work in proper manner. So it is required that company is beforehand only ready with their policy which will be helping them to flight with this situation.

Strategic HRM: it is required that TFL is formulating policy related strategic HRM which is enabling company to include regulating about conflict resolution for employees. Strategic HRM is hiring and compensating human resource of company and then including their motivation so that they are ben retained within organisation for longer duration of time.

Monitory benefits: There are certain set of expectations that workers have. Some people prefer get satisfied when they get proper salary, for some it will be regarding healthy work environment, etc. Management are required to make sure that they understand the preferences of workers and take up initiative so that employees can be satisfied. In this context, basic aspects like salary monitory benefits like incentives, etc. should be provided. This will be helpful in order to boost up the moral and in making them to perform with their full efficiency. Further, main focus by the firm should be done on determining the issues that are face by workers. When immediate steps are taken to solve them, then it helps to develop positive perception within the mind of workers.

Improving policy of employment: for company it is also required that they are improving their overall policy which is related to employment and employees like their hiring, retention, payroll, compensation and cultural difference as well. All these things will be helping company to collaborate their policy with employee at time of their planning and implementation.

Use of better techniques: it is required that researchers are using better tools, techniques, methods and methodology in finding out conclusion and results for corporate strategies and governance of TFL. The use of methods within this research is having some limitations which are not allowing researchers to include their own thinking and ideas. Like use of primary source will be limiting them to conclude opinion related to corporate strategies.

Apart from this, the business is also able to reduce its corporate governance and strategically issues with some effective management. There is a crucial theme of corporate governance which is to ensure the accountability of certain individuals through mechanism that helps to support and try to reduce this issues. Management of board of directors, shareholders, equity holders and other members holding shares of business should be managed in corporate social responsibility to enhance effectiveness of corporate strategy and governance. Apart from this, there are many types of natural disasters such as population growth, climate change, challenges posed by non-renewable resource utilisation and imbalance of wealth which should be considered by business that they have a big impact on resources. In addition to this, resource managers and experts are one of the key aspect for managing modern disasters which required sustainable professionalization of the related field (Coaffee, 2016). This will help to manage and control situations occurred from natural disasters or to be prepared for them.

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