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Module Title: Business Strategy in Transport

Module Code: LT 3010N

Module Booklet

Semester B

Year 2012

Contents:

Staff DetailsModule SummaryModule AimsLearning OutcomesLearning Time, Teaching and Learning MethodsWeekly ProgrammeReadingAssessment RequirementsAssessment Completion Deadlines

Appendix: Standardization of assignment presentation

Module Code: LT 3010N

Module Title: Business Strategy in Transport

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Semester B, Year 2011/12

Level: Undergraduate Honours

Prerequisites: none

Staff Steve Shaw (Module Leader)Janet Rangeley

Room: SH 3.20Email: s.shaw@londonmet.ac.ukOffice hour: Thursdays (teaching weeks) 17.30-18.30

MODULE SUMMARY

Code: LT 3010N Business Strategy in Transport

BRIEF DESCRIPTION This module enables students to apply theories ofbusiness strategy to the management of airlines, high speed rail and othermodes of transport in the context of increasing global competition. Theemphasis is on critical application of principles of business strategy topractice through live examples, the relationships between business andgovernment, and the implications for consumers, employees and otherstakeholders.

SEMESTER: SpringPREREQUISITE:

ASSESSMENT: Two Courseworks: Two essays requiring critical applicationof theory to practice, approximately 2000 words total (40%) and a furtherwritten assignment based on desk research on an original case study,approximately 2500 words (60%)

SUMMARY AND DESCRIPTION OF ASSESSMENT ITEMS

Assessmenttype

Description of item %Weighti

ng

Week

dueCWK Two essays 40% 9

CWK Written assignmenton case study

60% 12

1. MODULE AIMS

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To provide a through understanding of the principles of strategic

management as they apply to transport and travel.

To examine the formulation of business strategy and decision making

by transport and travel undertakings, with particular reference tobusiness ethics.

To assess the control and influence of the state and other agencies

that regulate transport and travel undertakings at national andinternational level

2 LEARNING OUTCOMES AND ATTRIBUTES

On successful completion of this module students will be able to:

identify the key external and internal influences on the strategies of

carriers (A2)

critically examine the formulation of strategy and performance oftransport and travel undertakings in relation to theories and models ofcompetitive behaviour (A2)

provide an informed discussion of the control and influence of the state

and other agencies which regulate transport undertakings at national

and international level

understand the ethical dimension of strategic decision making bytransport and travel undertakings in a competitive environment,critically assessing alternative positions which may be adopted bytransport managers (A3)

critically assess the validity of alternative theories and models of

business strategy in the specific context of transport undertakings asbusiness organisations (A3)

3. LEARNING TIME, TEACHING AND LEARNING METHODS

The module consists of 150 student learning hours initially comprising:

Staff/student contact: 30 hoursDirected learning: 45 hours

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Self managed learning: 75 hours

The formal staff/student contact will consist of a series of sessions which willbe made up from tutor input/lectures, large and small group seminardiscussions and exercises, student presentations, analysis of case studies,

and individual tutorials to discuss progress and provide guidance on theassessment. The directed learning will be used primarily to prepare forseminar sessions and assessment.

WEEKLY PROGRAMME (2010), SEMESTER B, WEEKS:

1. Introduction to Business Strategy in Transport (09/2) SSSeminar: briefing for assignments 1 and 2

2. Owners and Entrepreneurs (16/2) SSSeminar: questions from Reader (A: new entrant)Please indentify one or two routes that you could use asyour case study (assign. 2)

3. Public Intervention and collaboration (23/2) SSSeminar: study Reader (B: owners) before the seminar and answerq. 1Please bring your essay plan to answer q. 1 (p. 7 below)

4. Reading week (01/3): No lecture or seminar this week

please work up your essay

5. Generic Strategies for Carriers (08/3) JRSeminar: study Reader (C: public intervention) and answer q. 3Please bring your essay plan to answer q. 3 (p. 7 below)

6. Liberalisation of international airline services (15/3) SSSeminar: study Reader (D: generic strategies) and answer q. 2Please bring your essay plan to answer q. 2 (p. 7 below)

7. Alternative Styles of Management (1) (22/3) SS

Seminar: progress with courseworks 1 and 2 (please bringcompleted getting started sheet, page 14) to discussyour chosen route in class

8. Alternative Styles of Management (2) (29/3) JR

Seminar: study Reader (F: machine organizations) and answer q. 4Please bring your essay plan to answer q. 4 (p. 7 below)

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9. Final questions and answers on your two essays assignment(19/4) JR

Seminar: please bring your revised essay plans and latest versionof the two essays

10 Submit (two essays) coursework (1) to Undergraduateoffice (26/4)

No lectures/seminars

11. No lecture: Final seminar sessions to discuss coursework (2)(03/5) JR

Submit (case study) coursework (2) to Undergraduate office (nolectures/seminars) (10/5)

READING

a) Reading (please see LT 3010N Module Reader on Weblearn forrelevant extracts):

Johnson, G., Scholes, K. and Whittington R. (2007) Exploring CorporateStrategy, Prentice Hall Financial Times

Lynch, R. (2006) Corporate Strategy, Pitman

Morgan, G. (1997) Images of Organisation, Sage

Prideaux, B. (1999) Tracks to Tourism: Queensland Rail Joins the TouristIndustry, International Journal of Tourism Research, 1, pp 73-86

Pender, S. (2005) Is it a tram? Is it a bus? No, its ftr, CILT Focus, July, pp. 18-21

Shaw, S. (2002) Transport: Strategy and Policy, especially chapters 5, 9, 11,14, 16, Blackwell

Background Reading:

Barrett, S. (1999) Peripheral market entry, product differentiation, supplierrents and sustainability in the deregulated European aviation market - a casestudy,Journal of Air Transport Management, 5, pp 21-30

Doganis, R. (2006) The Airline Industry in the 21stCentury, Routledge

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Holloway, J. C. (2004) Marketing for Tourism, Pearson

Page, S. (2009) Transport and Tourism, Global Perspectives, Pearson PrenticeHall

Pender, L. and Baum, T (2000) Have the Frills Really Left the EuropeanAirline Industry? International Journal of Tourism Research, 2, pp 423-436

Journals: Airline Business; CILT Focus; Harvard Business Review;International Journal of Tourism Research; Journal of Air TransportManagement; Local Transport Today; Modern Railways; TourismManagement; Transport Policy

ASSESSMENT REQUIREMENTSCOURSEWORK 1: Two essays

From the following, please choose any TWO essay questions. Eachanswer will require critical application of theory to practice, drawing from themodule literature, especially from the seminar readings and questions, forwhich you will be expected to prepare in advance each week. Each essayanswer should be 1000 words in lenth (plus or minus no more than 10%),with a total weighting of 40% of the marks for this module (20% for eachquestion).

Question 1:

a) Compare and contrast the concept of a 'sole trader' with other types ofprivate ownership. Choosing one or more country as an example,explain why many sole traders can be found in particular modes and types oftransport and not in others.

b) What are the main disadvantages of being a sole trader with respect tofinance, human resource management and marketing? Choosing ONE mode

or type of transport undertaking, critically discuss a business strategytoovercome these disadvantages and trade successfully, even in a severeeconomic recession.

Question 2:

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a) Explain Michael Porter's principle of 'cost leadership' as a generic businessstrategy.

b) Critically assess the concept of cost leadership and its relevance tobusiness strategywith reference to ONE mode or type of transport.

Question 3:

a) Illustrating your answer with reference to examples from around theworld, explain the concept of 'light rail'. To what particular marketsegments might a light service be marketed in medium to large citiessuch as Manchester, Birmingham, Nottingham, Edinburgh and Dublin?

b) From the perspective of the city authorities, what are the advantages anddisadvantages of further extending their light rail system on routes

where passenger demand is strong?

Question 4:

a) Explain Gareth Morgans concept of a 'machine' organisation? Why, in thenineteenth century, did this offer an attractive model for organisingcommercial businesses for transport modes such as shipping, railways,and in the twentieth century for airlines?

b) With reference to the transport industry in the twenty-first century, assess

the shortcomings of machine organisations from a business strategyperspective.

DEADLINE

Submit Coursework 1 to Undergraduate Office by Thursday 19thApril 2012

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ASSESSMENT REQUIREMENTS

COURSEWORK 2: written assignment on case studyStormy skies over Europe

The second written assignment will be based on desk research and anoriginal case study. This should be written as an essay 2500 words in length(plus or minus no more than 10%), with a total weighting of 60% of themarks for this module:

1.0 INTRODUCTION

The skies of the EU have been fully deregulated for 15 years. The fullabolition of restrictive Air Service Agreements has encouragedcompetition on scheduled routes, many of which were previouslyoperated by national flag carriers to the exclusion of new entrants.Deregulation lowered the barriers to market entry, allowing newplayers to enter the field. Initially at least, most new entrants hadsubstantially lower operating costs than the more established full-service airlines, but the latter retaliated by cutting their costs too, andby adopting many aspects of the cost leadership business model.

The deregulated open skies over the expanded European Union with27 Member States has provided business opportunities for newcarriers. However, since 2008/9 the economic downturn has createdgreat uncertainty in the airline industry, fuel prices have fluctuated,credit has been squeezed. In 2010, many full-service airlines inEurope suffered further losses due to unexpected climatic andenvironmental conditions that grounded operations and strandedpassengers: ash clouds in the spring, and snow and ice at many

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airports in northern and central Europe in the winter. In 2011, someairlines withdrew routes and/or cut schedules (e.g. BMI, Olympic). Thecontinuing financial turbulence in many European countries brings littlecause for optimism in 2012.

Some established flag carriers are now in serious financial difficulty,but easyJet and Ryan Air - Europes largest low-cost airlines - haveproduced significant profits for their shareholders. Optimists believethat the demand for business as well as leisure travel will improve onsome routes where economies are beginning to climb out of therecession. Might this situation create opportunities for risk-taking newlow-cost operators who are brave enough to enter the market oncertain routes?

2.0 BRIEF

The assignment will take the form of an essay with two main sections.Firstly, you will research and critically examine the prospects for animaginary entrepreneur: an optimist who wants to use his/her ownwealth (not borrowed money) set up a new low cost scheduled airlinewithin the EU, starting with just the one route. You will research themarket and consider the opportunities for the entrepreneur, taking intoaccount both supply and demand factors on the route you havechosen. Secondly, you will analyse the business environment usingMichael Porters Five Forces model, and assess the significance of

barriers that may still inhibit market entry to that particular route.

3.0 STRUCTURE AND CONTENT

3.1 The introduction and conclusion are important features of the essay.The introduction should interpret the main questions, and explain thecontext and scope of the essay as a whole. The conclusion shouldsummarise the market opportunities and potential problems for thenew entrant with regard to your chosen route. (The introduction/conclusion is worth 20% of total marks)

3.2 In the first part of your essay you will select one route between any citypair (pair of cities) within the EU that the new entrant might fly. Thismay be a route that crosses national borders (e.g. London -Copenhagen) or a domestic route (e.g. Frankfurt - Berlin). You maychoose a route that is already being operated with a direct service byone or more established carriers. Alternatively, you may identify aroute between two cities where no direct flights are currently offered

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and passengers are obliged to change (if so please identify the airportwhere they change planes). For your chosen route, you will considerthe market opportunities for the new low-cost scheduled airline service,set up by the (imaginary) optimistic entrepreneur.

Please identify the two airports (i.e. the one at either end of the route).In each case, what distance is the airport from the main centres ofpassenger demand (i.e. cities, resorts, etc)? Please show this on amap. From your own experience as a passenger, what is good or badabout the surface transport between the airports and these centres:how easy, quick and convenient (or not!) it is to get to the airport byroad (car, bus, taxi) and/or rail, as the case may be? Identify all thecompetitors (if there are any) that the passengers for this route mightuse: other airlines, high speed rail, and fast roads (for shorter routesonly)?

On thisparticularroute, what type of passenger demand is there likelyto be (identify the market segments that are characteristic ofyourcasestudy route, e.g. (cultural tourists taking city breaks, spa and healthtourism, conference-goers)? What are theprospects for growth on thisroute, i.e. in the foreseeable future: is this a growth market, flat andunchanging or in decline? Are there anypronounced peaks andtroughs in passenger demand (seasonal, weekly or daily, e.g. businessmeetings returning the same day)? Is most demand generated at oneend of the route, or else fairly balanced between the two cities served?(This first part of your essay is worth 30% of total marks)

3.3 In the second part, you will analyse the business environmentinfluencing the commercial prospects for all airlines on this particularroute. In your own words, interpret the following forces included inPorters Five Forces model, and apply them to the route you havechosen as the subject of your essay. Discuss the relative significance(strength) of each force on this particular route with regard to the:

Industry competitors: the intensity of competition between(any) existing or incumbent airlines

Power of new entrants: prospective start-up airlines, such

as the imaginary scenario in the first part of your essay

Power of suppliers (you must work out who or what thesemight be)

Power of buyers (you must work out who or what these

might be)

Power of substitutes (you must work out who or what thesemight be).

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Now, from the point of view of the prospective new entrant you discussedin part one of your essay, critically assess the importance of any barriersto entrythat remain, despite the freedom allowed through deregulation.Please use the following framework of potential entry barriers as a

checklist with reference to your chosen route. In each case you mustexplain what the term means and apply it criticallyto air transport on yourcase study route:

a) economies of scaleb) capital requirements of entryc) access to supply or distribution channelsd) differentiation by incumbents (airlines already established on the

route) that distinguish them from the new entrant, and which meanthat customers remain loyal to them

e) experience (which incumbents have and which the new entrant hasnt

got)f) expected retaliation from incumbentsg) legislation or government action likely to affect the new entrant more

than the incumbents

Use these headings as a check list, and critically assess their relevanceto your case study route. You may decide that some of these will besignificant problems for the new low cost airline service. Others maybe less important in the context of the route you have chosen.Please make reference to the module literature, especially Johnson,Scholes, and Whittington (2007) and Lynch, R. (2006), key extracts

from which are in your Reader. (This second part is worth 50% of totalmarks)

MORE GUIDANCE ON LENGTH, APPENDICES, REFERENCING

The essay should be 2500 words in length (plus or minus 10%), and may besupplemented by appendices and any illustrative material (e.g.maps/diagrams), which you consider appropriate. All sources must beacknowledged in the text using standard international Harvard system ofreferencing. Please see details in Appendix 2.

Full details of the sources that you have cited in the text of the essayshould also be given in the List of References at the end of the essay.Likewise, any data used in tables must also be referenced to indicate thesource. As with published sources, all website reference MUST BEREFERENCED IN THE TEXT OF YOUR ESSAY AS WELL AS AT THE END.

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REQUIRED READING FOR SEMINARS AND FORMATIVE FEEDBACK

It is essential that all students taking this module study the chapters andarticles provided on Weblearn in the Reader every week, as instructed in

the WEEKLY PROGRAMME (p. 5 above). In most of the seminarsyou will be discussing questions arising from the lecture that youattended the weekbefore, and readings from Weblearn asdirected.

Please note that tutors are not able to read draft work for assignments onthis module.So, please bring your outline work to the seminars in weeks 3, 4, 5,6, 7, 8 and 10 as per the weekly programme to receive feedback andadvise on a regular basis as your work progresses.

Please note these dates for seminar discussion on your work in your diarydo not leave it all to the last few weeks!

Submit Coursework 2 to Undergraduate Office by Thursday 10th May

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5.0 ASSESSMENT CRITERIA

5.1 Please note the breakdown of marks (20/40/40) for each aspect ofthe coursework. As a guide, assessment of your coursework willtake account of:

Relevance, Breadth, Depth, Accuracy, Ethical Evaluation

$ Did the essay the answer questions raised in the brief?$ Did it demonstrate sufficient breadth and understanding of

the relevant management theories and models?$ Did it demonstrate sufficient depth of understanding,

particularly of problems/issues, including the ethicalconsiderations?

$ Was the description accurate within the limits of the availableinformation?

Quality of Research and Critical Thinking to Produce Solutions

$ Was the case study researched thoroughly, making intelligentuse of available source material?

$ Were the principles applied to practice (i.e the case study)with evidence of critical thinking to produce solutions

Clarity, Style and Structure

$ Were the issues and problems clearly explained?$ Was the coursework written in an appropriate essay style?$ Was it logically structured and well set out?

GETTING STARTED: Your chosen route for coursework 2

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PLAGIARISM AND REFERENCING

Students are strongly advised to be aware of the University's regulations

concerning PLAGIARISM, where the work of other people is (consciously orotherwise) presented by the student as his/her own work. Penalties forplagiarism are severe, and may lead not merely to failing the module, butto failing the entire course.

This means that if you copy from any source (for example, books, articlesor the internet) you are likely to fail the examination and might fail theentire course. For further information seehttp://www.londonmet.ac.uk/academic-regulations/misconduct-1.cfm. Allcoursework submitted must be properly referenced according to academicconvention and accompanied by a bibliography using the Harvard system.

For further information and guidance:

http://www.londonmet.ac.uk/services/sas/library-services/referencing/what.cfm

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Appendix 1: London Metropolitan Business SchoolThe standardisation of assignment presentation

Subject Group Policy DescriptionPresentation Coursework assignments must be presented in

typed format on white A4 paper. Courseworkmust be compiled and submitted with acoursework cover sheet. All papers should beaffixed with a SINGLE staple to the LEFT HANDCORNER. (It would help if you put your id no.and page no. on each page in case they fall outof order at any point).Coursework must NOT be presented in a folderof any kind.Note: The above does not apply to postgraduateand honours level dissertations. There isseparate guidance on the binding ofdissertations.

Page layout Students may choose to use ARIAL, CALLABRI orVERDANA fonts for their course work. The point

size should be 11 point.Line spacing should be 1.5 lines. Single linespacing must not be used.Document text should be justified across thepage, unless the student has a dyslexiadiagnosis, when left justification is acceptable.Paragraph indentations can only be used ifsubheadings, bullet points or long quotes areused. Do not indent normal paragraphs.

Format Depending on the instructions contained withineach assessment brief, students shouldstructure coursework as an academic paper,essay or report. Check with your tutor if you areunsure.

Referencing Students MUST use the Harvard ReferencingSystem (HRS).

Further guidance on succeeding in coursework assessment can be gainedfrom:

http://learning.north.londonmet.ac.uk/bssmstudy/

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Appendix 2. How to do your Referencing (Referencing printedsources)

See also: http://www.londonmet.ac.uk/services/sas/library-services/referencing/what.cfm

An Introduction to the Harvard SystemThis help sheet provides basic guidance on how to reference the booksand journal articles which you have used in your essays or reports. TheHarvard System is one of several methods available and is the preferredchoice of most departments in the University. You should check if yourcourse requires you to use it before you do your first assignment.

What is a Reference?A Reference is a detailed description of any document from which you

have takenInformation. It can relate to a complete book or just a chapter from it, oran article from a journal or newspaper.

What is CitingCiting a reference is the act of recording it. This is done in two ways: 1.By putting a brief entry for each source in the text of your work. 2. Bylisting all your sources in full, at the end of your work.

Why do I need to do it?It is required academic practice to provide references to guide your reader

to the sources you have used for your research, to support the argumentsyou are making, and to credit the established work of others.

What happens if I dont?Failure to acknowledge your sources will lead to a suspicion ofPLAGIARISM i.e. trying to pass off someone elses work as your own.Please see the academic regulations for more detail on the implicationsand penalties of plagiarism.

Putting References and Quotes into the Text of your Essay/Report

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For each reference you make in the text of your essay, you need toprovide the surname (family name) of the author(s) and the date it waspublished.If the authors name is part of the sentence statement, only the dateneeds to be in brackets. Example: Hartley (1999) declared that

If you do not use the authors name in part of the sentence, then both thename and the year must be in brackets at the end of the sentence,separated by a comma. Example although other authors havedenied this (Hartley, 1999)

The page number(s) can be added if a specific part needs to be identified,or (ideally) you are using a direct quote, in which you copy a small part ofthe authors work word for word and place that quote in quotation marks.Example: Jackson (2004) declared that this is the finest example ofpostmodernism (Jackson 2004, p.575).

If you use a particularly long quote, it is clearer to indent the quote andseparate it from the main bulk of your text. Example: Sinclair describesthe role of tourism in the North West as: so significant to a regionaleconomy in decline, from which many of the core manufacturingindustries have departed, and where farming can no longer offset thoselosses alone. It is essential to maintain the industry with governmentalsupport and private sector investment wherever possible. It would beremiss to do otherwise (Sinclair, 1999, p.250 )

However, be warned, dont use quotes too often or their impact isreduced. Only repeat very significant points verbatim. An essay or reportcomprising of too many direct quotes will end up reading as a mishmash, it will not flow, and will be confusing to the reader (it may evenconfuse you!).

Listing Your References at the End of your Work

Your reference list (to be titled References) should only contain thedetails of documents or sources of the quotes you have referred to withinthe text of your work. The list must be in alphabetical order, listed A

to Z, according to author(s) surname.

Where do I find the full details that I need?You should always take the details of the author, title, etc. from the titlepage of a book (NOT the front cover). The date, edition, publisher, etc.may be on the back of the title page. Do not confuse an edition with areprint. The date that you enter next to the author is the date of

publication, which is located by the copyright symbol . If the book statesthat it is a 2nd edition, then you must also note this by inserting 2nd

edition, after you have listed the title. Generally, if you are not used to

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this procedure, look and see how published authors, especially inacademic textbooks, cite their references.The Harvard system gives you the option to use italics or underlining toemphasise the title. Whatever you decide, you must be consistentthroughout. Use lower case for all title words after the first unless there is

a proper name (as per the library catalogue).The preferred order of presentation is: Surname of author(s), preferably in capital letters, comma, initial(s), fullstop. Year of publication (in brackets) Title (underlined), including the edition (if other than the first), full stop. Place of publication (city or town) (followed by a colon) Publishers name, (full stop)

A book by a single author: ExampleATKINS, P.W. (1998) Physical chemistry6 th ed. Oxford: OUPIf there are two authors: Example:McCARTHY, P. and HATCHER, C. (2002) Presentation skills: the essentialguide forstudents. London: Sage Publications.If there are three authors or more, indicate this by giving the name ofthe first author only followed by the Latin phrase et al (meaning andothers). Example:ENG, M et al. (1998) Global finance. 2 nd ed. Reading (Mass.):AddisonWesley.If the book is edited:

Use the name of the editor(s) followed by (ed.) or (eds.) in place of theauthor. Example:EZRA, E. (ed.) (2004) European Cinema. Oxford: OUP.A chapter from an edited book:If you refer to a chapter in a book edited by someone other than theauthor of the chapter, you need to make this clear by using In(in italicsand followed by a colon). The book title is in italics, NOT the title of thechapter. Example:GASKELL, G. (2003) Attitudes, social representations and beyond In :DEAUX, K. and PHILOGENE, G. Representations of the social. Oxford:Blackwell.

Corporate authorWhen something is published by an organization or a company there willprobably be no individual author whom you can identify. Example:BRITISH BROADCASTING CORPORATION (2004) Building public value:renewing the BBC for a digital world. London: BBC.

Government Publication (Reports, Consultation Papers, etc.)

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The relevant government department should be given as the author. Thepublisher is usually the Stationery Office (TSO) (formerly HMSO).Example:DEPARTMENT OF HEALTH (2004) Choosing health: making healthy choiceseasier.

London: The Stationery Office.

An article from a journal: Surname of the author(s) in capital letters, comma, initial(s), full stop. Year of publication in brackets Title of the ARTICLE, full stop. Title of the JOURNAL (in italics), comma. Volume number (in bold type) Issue or part number (in brackets), comma. First and last pages of the article separated by a hyphen and indicatedby theabbreviation pp. Example:SMITH, A. and JACK, K. (2005) Reflective practice: a meaningful task forstudents. Nursing Standard, 19 (26), pp. 3337

An article from a newspaper:The same rules apply as for a journal reference, but details of volume andissue numbers are not required. You do need to indicate if your referenceis from any particular section of the paper, however. Example:CURTIS, P. (2005) Ruth Kelly was here. The Guardian (EducationGuardian)

20 September 2005: p.5.Taken and amended from: London South Bank University (2006) HelpSheet 30, How to do your referencing (1) An introduction to the HarvardSystem, http://www.lisa.lsbu.ac.uk/helpsheets/hs30.pdf, accessed on25/07/2006

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