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V (Pvt) Ltd – Company at a glance
Country T has a nationalised railway system known as T Railways. | T Railways (T$ 1291 Million) | Products: | TCL | TFR | TPTS | Revenue %: | T$ 680 Million. | T$ 516 Million. | T$ 95 Million. | Offering: | services offered are between all towns and cities within Country T which are connected to the railway network and cross national borders | hauls freight right across the network within Country T and across national borders into other countries, some of which are situated within the eurozone | replaced T Railways Property and has responsibility for all other services including maintenance and upgrade of track and all of T Railways’ property. It operates 200 railway stations, rents space out within the stations for retail purposes as well as running some of its own cafes. TPTS also operates 11 maintenance depots. | TargetCustomer: | all passenger rail services within Country T and operates on average 1,800 passenger train services per day | not offer any passenger services. Goods transported in bulk service. | |

The role of the Rail Regulator: * To ensure that the railway service is delivered in Country T in a safe and efficient manner. * To help the T Railways Board meet future challenges in the provision of an efficient railway service which provides high levels of satisfaction to all rail users and the improvement of safety for staff and passengers. * provides an independent review of T Railways’ activities.

The T Railways Board has set two strategic objectives, following consultation with its stakeholder groups which are: * To deliver reliable, safe and punctual rail services to customers efficiently and cost effectively thereby helping to achieve economic growth in Country T by reducing congestion on its roads; * To continually reduce its level of carbon emissions to help provide an environmentally friendly transport infrastructure.

Financial objectives
The Government’s aim and the T Railways Board’s main financial objectives are that:
(i) T Railways should at least cover its operating costs from the revenue it earns;
(ii) T Railways should provide value for money.

SWOT ANALYSIS FOR T RAILWAYS STRENGTHS 1. Globally operation 2. Good corporate governance 3. Good line authorities 4. Good financial position 5. SWOT
Strong GLC | WEAKNESSES 1. Lack of capital funding 2. Traditional accounting-led approach 3. Lose identity as corporate company | OPPORTUNITIES 1. Government policy (Ministry of Tourism) 2. Ministry of Transport 3. Cross national boarders 4. E-marketing 5. Student promotion package | THREATS 1. Potential competitors 2. Uncertainty condition (earthquake, nature disaster, flood, weather) 3. Environmental consideration 4. Government policy 5. Customer safety 6. Currency exchange |

For T Railways, the implementation of SWOT analysis is suitable and currently been used by all other businesses. SWOT analysis is a structured planning method used to evaluate the strengths, weaknesses, opportunities, and threats involved in a business. SWOT analysis involves specifying the objective of the business venture or project and identifying the internal and external factors that are favourable and unfavourable to achieving that objective. Based on the case, SWOT analysis of T Railways businesses gives high expectation to outsider in order to know the external and internal aspects. Identification of SWOT analysis is important because they can inform later steps in planning to achieve the objectives.

STRENGTHS
Strengths refer to the characteristics of the business or project that give it an advantage over others. Refer to the case T Railways, there is several strengths can be identified. As mention in the case, T Railways has strong GLC (Government Link Company). This is because T Railways are fully supported by Government of its country. The Government of Country T invested T$100 million when it formed T Railways in 1975. This is the only “share” capital that has ever invested in T Railways. Due to this condition, it shows that any overall operating deficit T Railways incurs on an annual basis is recovered by the T Railways Board through additional Government revenue funding. Other than that, the strengths arise in T Railways is that this railways system has globally/internationally operation. As mention in the case, there are three subsidiaries companies owned by T Railways which is T City-Link (TCL), T Freight Railways (TFR), and T Property and Truck Services (TPTS). Among these companies, some of the services provided are across national borders that enabling travel from country T to another country, some of which are in the eurozone. As a result, T Railways can expand their railways system upon European country and outside country as well. Good corporate governance also one of the strength in T Railways. The Board of T Railways formed wholly owned subsidiaries which operated at arm’s lengths from board. T Railways Board retained a number of functions itself such as responsibility for the T Railways Transport Police Service and T Railways Property. In 2008, T Railways adopted a new management structure with T Railways as the holding company for three subsidiary companies. As a result, this structure still exists today with T Railways corporate governance undertaken by the T Railways Board. Other than that, T Railways also have good financial position. It is shown in the revenue earned and operating costs of the three subsidiaries company for year ended 31 December 2012. The operating costs of these three subsidiaries company can be covered by their revenues earned each year.

WEAKNESSES
Weaknesses is one of the internal factors arise in the business after strengths. Weaknesses refer to characteristics that place the team at a disadvantage relative to others. Based on T Railways case, there are several weaknesses that have been identified. Some of the weaknesses arise because of this railways system condition. T Railways are lack of capital funding. It is mention in the case that the government of country T initially provided loans to cover capital expenditure in order for T Railways to upgrade its infrastructure. Currently, T Railways fully depending in government funding. This is because government loans were the only source of capital funding for T Railways at its formation. After getting an approval from government, T Railways Board now is seeking to widen its source of finance by obtaining loans from bank and commercial sectors. T Railways depends only to government of Country T and they find difficulties in order to seek for investors/loans from outsider. Other than that, T Railways Subsidiaries Company operates a traditional accounting-led approach to strategic planning and management in order to meet their strategic objective/goals. This traditional approach is one of the key performance indicators (KPI) that are not really suitable for this railways system nowadays. This is because the feedback they got from customer might be not appropriate and take long time eventhough many companies implementing this approach too. T Railways should designed and implement a system which can evaluate their customer satisfaction on time.

OPPORTUNITIES
Opportunities is one of the external factors arise in the business. Opportunities refer to an element that the projects could exploit to its advantages. Based on T Railways case, there is several opportunities could be undertaken by T Railways in order to maintain in European market. T railways get fully Government support from Ministry of Transport and Ministry of Tourism. This is because if government policy want to introduce “Visit European”, T Railways can grab this opportunities to promote their public transport to tourist that come to their country. As a result, T Railways can expand their services and increase their financial position as well. The European economy can be in stable condition too. Other than that, T Railways have been cross national borders, some of which is in eurozone. Due to this situation, T Railways can expand their railways system to much more places. T Railways also upgrading to better quality of train and railways. As mention in the case, when the transport infrastructure developed, diesel trains gradually replaced stream trains and electric powered trains are now replacing the diesel trains as T Railways carries out electrification of its network. With electric trains, the services can be run smoothly and these opportunities can make T Railways have their own competitive advantages in order to compete with potential competitor that offer same services as T Railways.

THREATS
Most of the company faced with high level of threat. Threats are one of the elements in the external factors. Threats cannot be controlled. Threats usually refer to the elements in the environment that could cause trouble for the business or project. Based on the case, there are several condition could be categorized as threats for T Railways. Government policy is one of the threats. This is because government of country T can change their policy by giving 50% funding to any corporate companies including T Railways. Due to this situation, T Railways will face with financial distress because government is the main funding for them. As a result, these railways systems need to find an alternative to obtain loans from bank or outsider. Other than that, uncertainty condition can be one of the threats arise. The condition includes flood, natural disaster, earthquake, weather, and others. Due to this phenomenon, T Railways road schedule would be delayed and T Railways need to facing with customers that want their money back. The possibility that customer want their money is very high because they think that T Railways could not find any suitable alternatives when this uncertainty condition happened. Environmental consideration would be most important. As mention in the case, the transport industry’s carbon emissions are responsible for between 20% and 25% of all carbon emission in country T. In response to initiatives developed by the Rail Regulatory, T Railways is increasing its effort to reduce its levels of carbon emission. All three subsidiaries are keen to reduce waste and to increase the amount of waste they recycle.
In additional, potential competitors also one of the threats arises in T Railways. The increasing number of passengers wanting to travel rail make many railways companies to compete by upgrading and introducing their system. Due to this condition, T Railways need to have their own competitive advantages and value added in order to compete in the railways industries.

STAKEHOLDER’S ANALYSIS.
The stakeholder that being identify in T Railways as follows: * Chairman of T Railways Board * Passengers * Senior Civil Servant in T Government’s Ministry of transport * Members of T Railways Board * Government Official * Country T Government’s Ministry of transport * Country T Parliament * Interest
Rail Regulatory

Low
High

Low
Minimal Effort | Keep Informed | Power | * Chairman of T Railways Board * Passengers * Senior Civil Servant in T Government’s Ministry of transport * Members of T Railways Board | Keep satisfied | Key Players | * Government OfficialHigh | * Country T Government’s Ministry of transport * Country T Parliament * Rail Regulatory |

According to table above, the analysis that being made onto stakeholder in the case is they being classified into several class. For the first one is the keep informed whereas there are Chairman of T Railways Board, Passengers, Senior Civil Servant in T Government’s Ministry of transport, Members of T Railways Board. All of these stakeholders are participate actively in the company decision and direction. For Chairman of the T Railways Board, he has high interest and low power because they have significant influence to the company because he need to reports to the Ministry of transport. He needs to keep company in a well situation where he needs to improve the performance of the company.

The main players would contribute into this is passengers. They have high interest to know about company product offering whether they providing an excellent services and have a better customer services. Senior Civil Servant in T Government’s Ministry of transport and also Members of T Railways Board have high interest in order them to know what is going on the company and they also have high power to influence the company in order to make any strategic decision which will affect the future of the company.

This same for board of directors of T Railways Company, they have high power and interest, they have significant influence to make decision regarding to management decision. And they have interest in order to know the direction of the company at current condition. Members of T Railways Board are the person who hold share in the company and could make any decision regarding to their position in the company. Based on the company key objectives it is to at least cover its operating costs from revenue its earned.. So they are to be said have high interest because they interested to know the condition of the company.

For the second factors, the keep satisfied group of stakeholder is consisting of Government Official. For them, they really have low interest and high power because they are actually have high influences to the company direction because they need to report the information on what T Railways currently doing to the Parliament but they doesn’t have interest to benefit from it, it is because their action and information are benefited to the company.

Country T Government’s Ministry of transport, Country T Parliament, Rail Regulatory are as the key player as they have high interest and also high power.All of these stakeholder in this group are really have authority to influences to the decision made for a better future of the company. It is also because they does have directly benefited toward the company, but they have high power to influence T Railways company in making a new policy which directly affect the company decision making.

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