Interrelationships and Interdependencies
Interrelationships are crucial to a business, especially one in the Travel and Tourism Industry.
Interrelationships are the way in which two or more things are related to each other. In business terms, they can be between departments in a company or between different businesses within that sector of industry.
SCENARIO:
If a school is organising a trip to an educational nature reserve, it might approach a tour operator (for example, a coach hire company) to put together a package for the group, which might include tickets for the nature reserve and the cost for access to facilities in service stations, as well as food provisions in a local restaurant, all as part of the experience. The coach company might approach various organisations for a price for each of their attractions, and add onto those figures the cost of diesel (for the coach) and the driver's wage. This price will then be divided by how many pupils are coming onto the trip, so that the school knows how much to charge each pupil.
The examples of interrelationships in that example are:
The SCHOOL approaching the COACH COMPANY for its services
The COACH COMPANY approaching the NATURE RESERVE STAFF for a price for tickets to the reserve for the pupils.
The COACH COMPANY approaching the SERVICE STATION STAFF for a price to use its facilities en route.
The COACH COMPANY approaching the RESTAURANT for a price for a group of children's meals.
These are all examples of Interrelationships.
Interrelationships are the way in which two or more things are related to each other. In business terms, they can be between departments in a company or between different businesses within that sector of industry.
SCENARIO:
If a school is organising a trip to an educational nature reserve, it might approach a tour operator (for example, a coach hire company) to put together a package for the group, which might include tickets for the nature reserve and the cost for access to facilities in service stations, as well as food provisions in a local restaurant, all as part of the experience. The coach company might approach various organisations for a price for each of their attractions, and add onto those figures the cost of diesel (for the coach) and the driver's wage. This price will then be divided by how many pupils are coming onto the trip, so that the school knows how much to charge each pupil.
The examples of interrelationships in that example are:
The SCHOOL approaching the COACH COMPANY for its services
The COACH COMPANY approaching the NATURE RESERVE STAFF for a price for tickets to the reserve for the pupils.
The COACH COMPANY approaching the SERVICE STATION STAFF for a price to use its facilities en route.
The COACH COMPANY approaching the RESTAURANT for a price for a group of children's meals.
These are all examples of Interrelationships.
Horizontal and Vertical Integration
Horizontal and Vertical Integration are complete opposites to one another.
Horizontal Integration occurs when one company purchases or merges with another similar company at the same stage of the Chain of Distribution.
Vertical Integration occurs when one company purchases or merges with another company at a different level of the Chain of Distribution.
Horizontal Integration occurs when one company purchases or merges with another similar company at the same stage of the Chain of Distribution.
Vertical Integration occurs when one company purchases or merges with another company at a different level of the Chain of Distribution.
Case Study: Organisation One: Hilton Hotels Group (Accommodation Provider)
Which sector is the organisation operating in?
The Hilton Hotel group operates a chain of 550 hotels in 80 countries. It is in the private sector. This sector of industry has the main aim of making profit; companies in the Private Sector can either be owned by a family, or a board of directors, or owned by shareholders on the stock exchange in the place that the company is based in. The Hilton’s aims are also to provide luxury serviced accommodation in a group format, hence why there are hundreds of Hilton Hotels around the world.
What products/services does the organisation provide?
The Hilton Hotel group primarily aims to provide accommodation for its customers, either by booking directly with the company or through a tour operator, as part of a package (for example, Thomson operate tours that use Hilton Hotels, due to their reputable brand and quality stay experience). Either way, guests are entitled to the same facilities in every hotel; these can include a swimming pool, spa, and gardens in some hotels. Also, Waldorf luxury hotels are part of the chain, as are Conrad Hotels, the luxury, contemporary arm of the chain, there is Doubletree, which is for business travellers, and Hilton Grand Vacations, which allow people to stay in a house in an exclusive location, without the costs associated with owning a second holiday home.
What regulations does your organisation have to comply with?
Hilton has to comply with the Health and Safety at Work (HASAW) regulations, which help to prevent serious workplace injuries, by having procedures in place that all employees have to follow whilst they are working. For example, if a chef in one of Hilton’s hotel kitchens cuts their finger whilst using a knife, then they must fill in an accident report form, which is held by the hotel’s first aider, treat the injury, using a plaster (or, if the injury is serious enough, going to hospital and then all food that is contaminated by the person’s blood must be disposed of. The Disability Discrimination Act (DDA) means that the Hilton Hotels in the UK have to be compliant to discrimination regulations laid down by the Government, this means that all doors, must be wide enough to accommodate a
wheelchair, there must be a lift installed in the building to make it easier for mobility-impaired people to get to the top floors, and there must be members of
staff on hand to assist disabled people at all times when they are staying at the hotel.
Who does the organisation provide products or services for?
The organisation provides services and products for its customers primarily, who are usually tourists, but it provides information for other people, especially
for business travellers, who normally look to stay in a chain hotel; and with competition from the budget sector, such as Travelodge and Holiday Inn, the
Hilton needs to promote it to people. They work with Wholesalers, Retailers and Consumers in the “Chain of Distribution”. Tour Operators and Mass Market
operators work with Hilton Hotels to ensure that the information that they provide to travel agents is correct. They work with Retailers, either in a
travel agent shop, online or in a call centre, to promote their hotels and make them stand out from the competition in terms of their price, so that, when a
travel agent is trying to sell a holiday to a family on a budget, for example, Hilton hotels stand out. They work with consumers to raise awareness of their
brand and build confidence in their business, so more people trust them as a larger provider and are tempted to use them when planning a holiday, or when
visiting friends/relatives, or business people.
Who is the organisation responsible to?
The Hilton is responsible to stakeholders; they could be people that have a share in the business, or customers, so that their visitor experience meets their
needs. They are also responsible to members of the local community, who, if there is a big hotel in their area, will need to be kept regularly informed of
changes that the hotel will undergo to see if their lives will be affected by it. They are responsible to their staff, to ensure that turnover is low, they
must make sure that their facilities are good and they must listen to their staff’s concerns and ideas, to make the business better as a whole, whilst
maintaining a high standard of customer service.
How is the organisation environmentally and ethically responsible?
The Hilton Hotel group does have an environmental and ethical responsibility programme, for example, it has an educational programme for its entire staff to partake in, and it wants to give staff from across its chain an equal opportunity to become the leaders and managing directors for the future. This
is known as the “Catch me at my best” programme. This is why it utilises training for them in a positive way. Hilton’s CSR report is an example of where its policies can be found, for example, it has reduced its carbon output by 12.8%, it has made a 24.9% reduction in waste output, it has made a 12.2% reduction in energy use, and a 10.2% reduction in water use.
How does the organisation contribute to the UK and world economy?
Hilton Hotel operates in over 80 countries, and employs over 70,000 people, but because it is a Private Limited Company (PLC), it does not have to disclose its
financial performance figures, as it is owned by Blackstone Group. However, Blackstone is looking to float part of the Hilton Hotel chain on the market,
for an estimated $1.25 billion. Blackstone is the Hilton’s holding company.
What interrelationships does the Hilton Hotel Group have with other organisations in the Travel and Tourism industry?
Hilton Hotels Group has a number of interrelationships ith other organisations within the T&T industry.
What is the Hilton Hotel Group's position within the Chain of Distribution?
The Hilton Hotel group operates a chain of 550 hotels in 80 countries. It is in the private sector. This sector of industry has the main aim of making profit; companies in the Private Sector can either be owned by a family, or a board of directors, or owned by shareholders on the stock exchange in the place that the company is based in. The Hilton’s aims are also to provide luxury serviced accommodation in a group format, hence why there are hundreds of Hilton Hotels around the world.
What products/services does the organisation provide?
The Hilton Hotel group primarily aims to provide accommodation for its customers, either by booking directly with the company or through a tour operator, as part of a package (for example, Thomson operate tours that use Hilton Hotels, due to their reputable brand and quality stay experience). Either way, guests are entitled to the same facilities in every hotel; these can include a swimming pool, spa, and gardens in some hotels. Also, Waldorf luxury hotels are part of the chain, as are Conrad Hotels, the luxury, contemporary arm of the chain, there is Doubletree, which is for business travellers, and Hilton Grand Vacations, which allow people to stay in a house in an exclusive location, without the costs associated with owning a second holiday home.
What regulations does your organisation have to comply with?
Hilton has to comply with the Health and Safety at Work (HASAW) regulations, which help to prevent serious workplace injuries, by having procedures in place that all employees have to follow whilst they are working. For example, if a chef in one of Hilton’s hotel kitchens cuts their finger whilst using a knife, then they must fill in an accident report form, which is held by the hotel’s first aider, treat the injury, using a plaster (or, if the injury is serious enough, going to hospital and then all food that is contaminated by the person’s blood must be disposed of. The Disability Discrimination Act (DDA) means that the Hilton Hotels in the UK have to be compliant to discrimination regulations laid down by the Government, this means that all doors, must be wide enough to accommodate a
wheelchair, there must be a lift installed in the building to make it easier for mobility-impaired people to get to the top floors, and there must be members of
staff on hand to assist disabled people at all times when they are staying at the hotel.
Who does the organisation provide products or services for?
The organisation provides services and products for its customers primarily, who are usually tourists, but it provides information for other people, especially
for business travellers, who normally look to stay in a chain hotel; and with competition from the budget sector, such as Travelodge and Holiday Inn, the
Hilton needs to promote it to people. They work with Wholesalers, Retailers and Consumers in the “Chain of Distribution”. Tour Operators and Mass Market
operators work with Hilton Hotels to ensure that the information that they provide to travel agents is correct. They work with Retailers, either in a
travel agent shop, online or in a call centre, to promote their hotels and make them stand out from the competition in terms of their price, so that, when a
travel agent is trying to sell a holiday to a family on a budget, for example, Hilton hotels stand out. They work with consumers to raise awareness of their
brand and build confidence in their business, so more people trust them as a larger provider and are tempted to use them when planning a holiday, or when
visiting friends/relatives, or business people.
Who is the organisation responsible to?
The Hilton is responsible to stakeholders; they could be people that have a share in the business, or customers, so that their visitor experience meets their
needs. They are also responsible to members of the local community, who, if there is a big hotel in their area, will need to be kept regularly informed of
changes that the hotel will undergo to see if their lives will be affected by it. They are responsible to their staff, to ensure that turnover is low, they
must make sure that their facilities are good and they must listen to their staff’s concerns and ideas, to make the business better as a whole, whilst
maintaining a high standard of customer service.
How is the organisation environmentally and ethically responsible?
The Hilton Hotel group does have an environmental and ethical responsibility programme, for example, it has an educational programme for its entire staff to partake in, and it wants to give staff from across its chain an equal opportunity to become the leaders and managing directors for the future. This
is known as the “Catch me at my best” programme. This is why it utilises training for them in a positive way. Hilton’s CSR report is an example of where its policies can be found, for example, it has reduced its carbon output by 12.8%, it has made a 24.9% reduction in waste output, it has made a 12.2% reduction in energy use, and a 10.2% reduction in water use.
How does the organisation contribute to the UK and world economy?
Hilton Hotel operates in over 80 countries, and employs over 70,000 people, but because it is a Private Limited Company (PLC), it does not have to disclose its
financial performance figures, as it is owned by Blackstone Group. However, Blackstone is looking to float part of the Hilton Hotel chain on the market,
for an estimated $1.25 billion. Blackstone is the Hilton’s holding company.
What interrelationships does the Hilton Hotel Group have with other organisations in the Travel and Tourism industry?
Hilton Hotels Group has a number of interrelationships ith other organisations within the T&T industry.
What is the Hilton Hotel Group's position within the Chain of Distribution?
Case Study: Organisation Two: Alton Towers Resort (Visitor Attraction)
What sector is the organisation operating in?
Alton Towers operates a theme park in Staffordshire. It is in the private sector. This sector of industry has the main aim of making profit; companies in the Private Sector can either be owned by a family, or a board of directors, or owned by shareholders on the stock exchange in the place that the company is based in. Alton Towers is owned by Merlin Entertainments, which, in turn, is 20% owned by Dubai International Capital. Alton Towers’ aim is to “make Britain happy” and they do this by providing entertainment for everybody, they also have an unusual policy of banning clocks from the site, so that people can literally forget about the outside world and have fun! Alton Towers is focusing particularly on thrill seekers for the 2013 season, demonstrated by the heavy promotion of the park’s newest ride, Smiler, on all its promotional materials.
What products/services does the organisation provide?
The Alton Towers resort primarily aims to provide leisure activities and accommodation for its customers, many people have commented in the past that the Alton Towers resort is too big to explore in just one day, so two hotels were added to the site in 1996 and 2003. As well as this, the rides on the site are aimed at different people, there are rides for families, such as the log flume, there are rides for thrill seekers, such as Smiler and Rita, and there are rides just for children, such as the Charlie and the Chocolate Factory ride. Alton Towers also has a duty to maintain and protect the Grade II listed Towers, which form part of the visitor experience, to ensure they are protected for the future.
What regulations does your organisation have to comply with?
Alton Towers has to comply with the Health and Safety at Work (HASAW regulations, which help to prevent serious workplace injuries, by having procedures in place that all employees have to follow whilst they are working. For example, if a ride operator injures in himself/herself whilst on duty, then they must fill in an accident report form, which is held by the park’s first aid team or HR department, treat the injury, (or, if the injury is serious enough, going to hospital) and then any areas that have been affected by the injury must be inspected to confirm their safety. The Disability Discrimination Act (DDA) means that the park has to be compliant to discrimination regulations laid down by the Government, this means that all doors, must be wide enough to accommodate a wheelchair, and there must be members of staff on hand to assist disabled people at all times when they are staying at the hotel. (This element of disability awareness/assistance ties in with the hotel’s policy of putting Customer Service first at all times, and improves its reputation and standing within the community).
Who does the organisation provide products or services for?
The organisation provides services and products for its customers primarily, who are usually tourists, but it provides information for other people, including
business and hospitality partners, who can lease a meeting venue on the complex, with a capacity for over 1000 people. The park also allows large companies to hire out the whole park for the day, for team building or recreational activities. They work with Wholesalers, Retailers and Consumers in the “Chain of
Distribution”. Tour Operators and Mass Market operators work with Alton Towers to ensure that the information that they provide to travel agents is correct.
They work with Retailers, either in a travel agent shop, online or in a call centre, to promote their venue and the short breaks that can be had in the
on-site hotels, and make them stand out from the competition in other parts of the country, so that, when a travel agent is trying to sell a holiday to a
family on a budget, for example, Alton Towers is one of the best choices, as it is part of the domestic tourism spectrum and much cheaper than holidaying
abroad. They work with consumers to raise awareness of their brand and build confidence in their business, so more people trust them as a larger provider
and are tempted to use them when planning a holiday, or when visiting friends/relatives, or business people.
Who is the organisation responsible to?
Alton Towers is responsible to stakeholders; they could be people that have a share in the business, or customers, so that their visitor experience meets their needs. They are also responsible to members of the local community in Alton, who, because of a large attraction in such a small village, will need to be kept
regularly informed of changes that the park will undergo to see if their lives will be affected by it. They might also be concerned about the volume of traffic
that is passing through the village, which might inconvenience them. They are responsible to their staff, to ensure that turnover is low; they must make sure
that their facilities are good and they must listen to their staff’s concerns and ideas, to make the business better as a whole, whilst maintaining a high
standard of customer service, which is very important at Alton Towers. (There is more of information on responsibilities the ethical section below).
How is the organisation environmentally and ethically responsible?
Alton Towers has a CSR document, which recognises that it has a huge impact on the nearby community (in Alton), and it makes steps to improve this
relationship in their CSR document. Some key facts are:
-The park’s medical and security team are available for use by the community, 24 hours a day, 365 days a year.
-Local communities and charities receive £50,000 worth of theme park tickets every year.
-They have recruited 1,200 skilled and unskilled employees from the local community over the last few years.
-They work with Staffordshire Moorlands District Council and County Council to promote Staffordshire. This is an example of vertical integration.
-They work with Parish Councils to hold area meetings so that, if residents are concerned about anything, they can ask about anything and raise concerns.
How does the organisation contribute to the UK and world economy?
Alton Towers’ contributions to the local economy include £38 million income in the local economy and £73 million in the regional economy. It is one of the
largest private sector employers in the area (directly and indirectly responsible for 2,900 jobs in the local area, and 3,520 jobs in the West Midlands region). 80% of the workforce lives in the local area and 50% live within the Staffordshire Moorlands District. It accounts for up to 50% for all visits to the Staffordshire Moorlands area. Their “Long Term Plan” is expected to increase income to the area by £12 million, and approximately 735 jobs would be created too, with 980 more in the local area. The Long Term Plan centres on a strategy of medium investment in the park and improving assets, whilst increasing admissions to 2.9 million. They had to choose this strategy from three other possible strategies, including no investment in the park, low investment in the park, and high investment in the park. This option was selected because it would be environmentally attractive and would allow Merlin Entertainments to invest in the park, but without causing major disruption to the operation of the park itself and the surrounding area.
Alton Towers operates a theme park in Staffordshire. It is in the private sector. This sector of industry has the main aim of making profit; companies in the Private Sector can either be owned by a family, or a board of directors, or owned by shareholders on the stock exchange in the place that the company is based in. Alton Towers is owned by Merlin Entertainments, which, in turn, is 20% owned by Dubai International Capital. Alton Towers’ aim is to “make Britain happy” and they do this by providing entertainment for everybody, they also have an unusual policy of banning clocks from the site, so that people can literally forget about the outside world and have fun! Alton Towers is focusing particularly on thrill seekers for the 2013 season, demonstrated by the heavy promotion of the park’s newest ride, Smiler, on all its promotional materials.
What products/services does the organisation provide?
The Alton Towers resort primarily aims to provide leisure activities and accommodation for its customers, many people have commented in the past that the Alton Towers resort is too big to explore in just one day, so two hotels were added to the site in 1996 and 2003. As well as this, the rides on the site are aimed at different people, there are rides for families, such as the log flume, there are rides for thrill seekers, such as Smiler and Rita, and there are rides just for children, such as the Charlie and the Chocolate Factory ride. Alton Towers also has a duty to maintain and protect the Grade II listed Towers, which form part of the visitor experience, to ensure they are protected for the future.
What regulations does your organisation have to comply with?
Alton Towers has to comply with the Health and Safety at Work (HASAW regulations, which help to prevent serious workplace injuries, by having procedures in place that all employees have to follow whilst they are working. For example, if a ride operator injures in himself/herself whilst on duty, then they must fill in an accident report form, which is held by the park’s first aid team or HR department, treat the injury, (or, if the injury is serious enough, going to hospital) and then any areas that have been affected by the injury must be inspected to confirm their safety. The Disability Discrimination Act (DDA) means that the park has to be compliant to discrimination regulations laid down by the Government, this means that all doors, must be wide enough to accommodate a wheelchair, and there must be members of staff on hand to assist disabled people at all times when they are staying at the hotel. (This element of disability awareness/assistance ties in with the hotel’s policy of putting Customer Service first at all times, and improves its reputation and standing within the community).
Who does the organisation provide products or services for?
The organisation provides services and products for its customers primarily, who are usually tourists, but it provides information for other people, including
business and hospitality partners, who can lease a meeting venue on the complex, with a capacity for over 1000 people. The park also allows large companies to hire out the whole park for the day, for team building or recreational activities. They work with Wholesalers, Retailers and Consumers in the “Chain of
Distribution”. Tour Operators and Mass Market operators work with Alton Towers to ensure that the information that they provide to travel agents is correct.
They work with Retailers, either in a travel agent shop, online or in a call centre, to promote their venue and the short breaks that can be had in the
on-site hotels, and make them stand out from the competition in other parts of the country, so that, when a travel agent is trying to sell a holiday to a
family on a budget, for example, Alton Towers is one of the best choices, as it is part of the domestic tourism spectrum and much cheaper than holidaying
abroad. They work with consumers to raise awareness of their brand and build confidence in their business, so more people trust them as a larger provider
and are tempted to use them when planning a holiday, or when visiting friends/relatives, or business people.
Who is the organisation responsible to?
Alton Towers is responsible to stakeholders; they could be people that have a share in the business, or customers, so that their visitor experience meets their needs. They are also responsible to members of the local community in Alton, who, because of a large attraction in such a small village, will need to be kept
regularly informed of changes that the park will undergo to see if their lives will be affected by it. They might also be concerned about the volume of traffic
that is passing through the village, which might inconvenience them. They are responsible to their staff, to ensure that turnover is low; they must make sure
that their facilities are good and they must listen to their staff’s concerns and ideas, to make the business better as a whole, whilst maintaining a high
standard of customer service, which is very important at Alton Towers. (There is more of information on responsibilities the ethical section below).
How is the organisation environmentally and ethically responsible?
Alton Towers has a CSR document, which recognises that it has a huge impact on the nearby community (in Alton), and it makes steps to improve this
relationship in their CSR document. Some key facts are:
-The park’s medical and security team are available for use by the community, 24 hours a day, 365 days a year.
-Local communities and charities receive £50,000 worth of theme park tickets every year.
-They have recruited 1,200 skilled and unskilled employees from the local community over the last few years.
-They work with Staffordshire Moorlands District Council and County Council to promote Staffordshire. This is an example of vertical integration.
-They work with Parish Councils to hold area meetings so that, if residents are concerned about anything, they can ask about anything and raise concerns.
How does the organisation contribute to the UK and world economy?
Alton Towers’ contributions to the local economy include £38 million income in the local economy and £73 million in the regional economy. It is one of the
largest private sector employers in the area (directly and indirectly responsible for 2,900 jobs in the local area, and 3,520 jobs in the West Midlands region). 80% of the workforce lives in the local area and 50% live within the Staffordshire Moorlands District. It accounts for up to 50% for all visits to the Staffordshire Moorlands area. Their “Long Term Plan” is expected to increase income to the area by £12 million, and approximately 735 jobs would be created too, with 980 more in the local area. The Long Term Plan centres on a strategy of medium investment in the park and improving assets, whilst increasing admissions to 2.9 million. They had to choose this strategy from three other possible strategies, including no investment in the park, low investment in the park, and high investment in the park. This option was selected because it would be environmentally attractive and would allow Merlin Entertainments to invest in the park, but without causing major disruption to the operation of the park itself and the surrounding area.
Case Study: Organisation Three: Virgin Trains (Transport Provider)
What sector is the organisation operating in?
Virgin Trains operates passenger rail services over the West Coast Main Line (WCML) and in Wales, between London Euston and Glasgow Central, via Birmingham, Manchester and Carlisle. It is a franchise, awarded to the Virgin Group (owned by Sir Richard Branson) in a joint venture with Stagecoach Plc., and let by the Department for Transport (DfT). It is in the private sector. This sector of industry has the main aim of making profit; companies in the Private Sector can either be owned by a family, or a board of directors, or owned by shareholders on the stock exchange in the place that the company is based in. As mentioned before, Virgin Trains is owned by Virgin Group, which was founded by Sir Richard Branson and is part of a much larger group of companies, all using the Virgin brand name. Virgin Trains’ aim is to move passengers between two of the major points within the United Kingdom, London and Glasgow, via a number of locations in between on the WCML, and, by developing the line and the trains used aims to make even bigger contributions to the local and national
economy.
What products/services does the organisation provide?
Virgin Trains primarily aims to provide railway services along the WCML between London and Glasgow that are reliable and convenient. On board the train, there is a mini-buffet, first class, standard class, quiet coaches, WiFi facilities and power sockets. At the major stations on the line, such as London Euston,
Birmingham New Street, Manchester Piccadilly, Liverpool Lime Street, Carlisle and Glasgow Central, Virgin Trains has installed executive lounges for first
class passengers to relax in, obtain food and drink, and use the free WiFi that is provided for them, aimed at the business traveller, before their journey commences.
What regulations does your organisation have to comply with?
Virgin Trains has to comply with the Health and Safety at Work (HASAW) regulations, which help to prevent serious workplace injuries, by having procedures in place that all employees have to follow whilst they are working. This is made all the more important because of the electrification of the WCML, the power runs at 25,000v dc. They have to comply with electrical safety regulations, such as not letting passengers or drivers getting onto the roof of the train, or letting platform staff onto the railway line itself, as electricity can “jump” and kill. The Disability Discrimination Act (DDA) means that the company has to be compliant to discrimination regulations laid down by the Government, this means that all train doors must be wide enough to accommodate a wheelchair, and there must be members of staff on hand to assist disabled people at all times when they are boarding the train. The train doors are also painted in a different colour to the rest of the train to allow disabled people, particularly those with visual impairments, to see where the doors are from a distance. (This element of disability awareness/assistance ties in with the company’s policy of putting Customer Service first at all times, and improves its reputation and
standing within the communities that it serves).
Who does the organisation provide products or services for?
The organisation provides services and products for its customers primarily, who are usually tourists or business travellers, but it provides information for
other people, including business partners, who can purchase a “season ticket”for all year round travel on Virgin Trains, for regular journeys targeted at those
that travel into the Capital regularly. They work with Wholesalers, Retailers and Consumers in the “Chain of Distribution”. Tour Operators and Mass Market
operators work with Virgin Trains to ensure that the information that they provide to travel agents about their services is correct. They work with Retailers, either in a travel agent shop, online or in a call centre, to promote their services along the WCML and the destinations that can be visited using their train services, and make them stand out from the competition in other parts of the country, such as on the East Coast Main Line (ECML), so that, when a travel agent is trying to sell a holiday to a family on a budget, for example, Virgin Trains is one of the best choices for travel, as it is part of the domestic tourism spectrum and much cheaper than holidaying abroad. They work with consumers to raise awareness of their brand and build confidence in their business, so more people trust them as a larger provider of railway services, and are tempted to use them when planning a holiday, or when visiting friends/relatives, or business people.
Who is the organisation responsible to?
Virgin Trains is responsible to stakeholders; they could be people that have a share in the business, or customers, so that their visitor experience meets their needs. They are also responsible to Network Rail, for paying access charges to the railway and to ensure that the strict rules/regulations set down by NR are met. They are responsible to their staff, to ensure that turnover is low; they must make sure that their facilities are good and they must listen to their staff’s concerns and ideas, to make the business better as a whole, whilst maintaining a high standard of customer service. (There is more of information on responsibilities the ethical section below).
How is the organisation environmentally and ethically responsible?
Virgin Trains has a CSR document, which recognises that rail travel has a big impact on the environment, and a lot of the CSR document is dedicated to setting out how Virgin Trains will overcome its environmental challenges. They are:
-Encouraging car-sharing between station staff when going to, and coming home from, work.
-Encouraging stakeholders to promote the use of the bus, bicycles, train or trams to commute to the station.
-They will continue to make improvements to their facilities for mobility impaired.
-They will improve lighting and signage for visually impaired people.
-They will reduce energy usage at all their offices and stations.
-Achieve a 2.5% reduction in C02 emissions for 2017.
-They will provide increased support to their charity, CLIC Sargent.
How does the organisation contribute to the UK and world economy?
Virgin Trains’ services connect nearly 18 million people between the major cities that the WCML passes through, and the upgrade of the WCML in 2005, trains can run at a full 125 mph on the line. This created thousands of jobs, up and down the line, as the track, stations, signalling, Overhead Line Equipment (OHLE) all needed updating. Despite this work being organised and carried out by Network Rail, it too place in conjunction with Virgin Trains, to keep disruption to services to a minimum. Virgin’s investment in new rolling stock for railway, such as Pendolino and Super Voyager trains, created hundreds of jobs at the Alstom factory in Derby, where they were built, and generated hundreds of millions of pounds worth of revenue for the business, as well as Derby’s local economy. Because of the travelling nature of the business, their recruitment process is not confined to one particular geographic area. It is spread across the WCML, from the south end at London, to the northern end in Glasgow.
Virgin Trains operates passenger rail services over the West Coast Main Line (WCML) and in Wales, between London Euston and Glasgow Central, via Birmingham, Manchester and Carlisle. It is a franchise, awarded to the Virgin Group (owned by Sir Richard Branson) in a joint venture with Stagecoach Plc., and let by the Department for Transport (DfT). It is in the private sector. This sector of industry has the main aim of making profit; companies in the Private Sector can either be owned by a family, or a board of directors, or owned by shareholders on the stock exchange in the place that the company is based in. As mentioned before, Virgin Trains is owned by Virgin Group, which was founded by Sir Richard Branson and is part of a much larger group of companies, all using the Virgin brand name. Virgin Trains’ aim is to move passengers between two of the major points within the United Kingdom, London and Glasgow, via a number of locations in between on the WCML, and, by developing the line and the trains used aims to make even bigger contributions to the local and national
economy.
What products/services does the organisation provide?
Virgin Trains primarily aims to provide railway services along the WCML between London and Glasgow that are reliable and convenient. On board the train, there is a mini-buffet, first class, standard class, quiet coaches, WiFi facilities and power sockets. At the major stations on the line, such as London Euston,
Birmingham New Street, Manchester Piccadilly, Liverpool Lime Street, Carlisle and Glasgow Central, Virgin Trains has installed executive lounges for first
class passengers to relax in, obtain food and drink, and use the free WiFi that is provided for them, aimed at the business traveller, before their journey commences.
What regulations does your organisation have to comply with?
Virgin Trains has to comply with the Health and Safety at Work (HASAW) regulations, which help to prevent serious workplace injuries, by having procedures in place that all employees have to follow whilst they are working. This is made all the more important because of the electrification of the WCML, the power runs at 25,000v dc. They have to comply with electrical safety regulations, such as not letting passengers or drivers getting onto the roof of the train, or letting platform staff onto the railway line itself, as electricity can “jump” and kill. The Disability Discrimination Act (DDA) means that the company has to be compliant to discrimination regulations laid down by the Government, this means that all train doors must be wide enough to accommodate a wheelchair, and there must be members of staff on hand to assist disabled people at all times when they are boarding the train. The train doors are also painted in a different colour to the rest of the train to allow disabled people, particularly those with visual impairments, to see where the doors are from a distance. (This element of disability awareness/assistance ties in with the company’s policy of putting Customer Service first at all times, and improves its reputation and
standing within the communities that it serves).
Who does the organisation provide products or services for?
The organisation provides services and products for its customers primarily, who are usually tourists or business travellers, but it provides information for
other people, including business partners, who can purchase a “season ticket”for all year round travel on Virgin Trains, for regular journeys targeted at those
that travel into the Capital regularly. They work with Wholesalers, Retailers and Consumers in the “Chain of Distribution”. Tour Operators and Mass Market
operators work with Virgin Trains to ensure that the information that they provide to travel agents about their services is correct. They work with Retailers, either in a travel agent shop, online or in a call centre, to promote their services along the WCML and the destinations that can be visited using their train services, and make them stand out from the competition in other parts of the country, such as on the East Coast Main Line (ECML), so that, when a travel agent is trying to sell a holiday to a family on a budget, for example, Virgin Trains is one of the best choices for travel, as it is part of the domestic tourism spectrum and much cheaper than holidaying abroad. They work with consumers to raise awareness of their brand and build confidence in their business, so more people trust them as a larger provider of railway services, and are tempted to use them when planning a holiday, or when visiting friends/relatives, or business people.
Who is the organisation responsible to?
Virgin Trains is responsible to stakeholders; they could be people that have a share in the business, or customers, so that their visitor experience meets their needs. They are also responsible to Network Rail, for paying access charges to the railway and to ensure that the strict rules/regulations set down by NR are met. They are responsible to their staff, to ensure that turnover is low; they must make sure that their facilities are good and they must listen to their staff’s concerns and ideas, to make the business better as a whole, whilst maintaining a high standard of customer service. (There is more of information on responsibilities the ethical section below).
How is the organisation environmentally and ethically responsible?
Virgin Trains has a CSR document, which recognises that rail travel has a big impact on the environment, and a lot of the CSR document is dedicated to setting out how Virgin Trains will overcome its environmental challenges. They are:
-Encouraging car-sharing between station staff when going to, and coming home from, work.
-Encouraging stakeholders to promote the use of the bus, bicycles, train or trams to commute to the station.
-They will continue to make improvements to their facilities for mobility impaired.
-They will improve lighting and signage for visually impaired people.
-They will reduce energy usage at all their offices and stations.
-Achieve a 2.5% reduction in C02 emissions for 2017.
-They will provide increased support to their charity, CLIC Sargent.
How does the organisation contribute to the UK and world economy?
Virgin Trains’ services connect nearly 18 million people between the major cities that the WCML passes through, and the upgrade of the WCML in 2005, trains can run at a full 125 mph on the line. This created thousands of jobs, up and down the line, as the track, stations, signalling, Overhead Line Equipment (OHLE) all needed updating. Despite this work being organised and carried out by Network Rail, it too place in conjunction with Virgin Trains, to keep disruption to services to a minimum. Virgin’s investment in new rolling stock for railway, such as Pendolino and Super Voyager trains, created hundreds of jobs at the Alstom factory in Derby, where they were built, and generated hundreds of millions of pounds worth of revenue for the business, as well as Derby’s local economy. Because of the travelling nature of the business, their recruitment process is not confined to one particular geographic area. It is spread across the WCML, from the south end at London, to the northern end in Glasgow.