Examine the Proposal to Purchase Vehicles for the Organization

2021-05-05 11:04:03
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The following interoffice memo recommends the purchase of vehicles for the organizations staff especially the marketers who are always on the move to market the organizations products and services. The cost of transportation has been very high throughout the past years owing to the fact that the company has depended on public transportation. The research conducted on the organizations expenses annually reveals that a lot has been spent on transportation alone. The public transportation used by the marketers and the other staff of the organization was identified as the most expensive cost consumption sector of the company. The organization has hence opted to reduce the transportation costs through alternative means of transportation that might be cheaper. This attempt would reduce the organizations costs hence more profits would be realized within the organization due to the reduced costs.

The symptoms of the transportation problem were realized from the constant complaints from the marketers and other staff on the timeliness of their various activities due to transportation inconveniences. There were regular instances of lateness among the staff especially the marketers who should always be timely in their operations. The public transportation proved to be very unreliable when one has to compete with time. The public transport often relies on the number of passengers rather than their time of movement (Simon, 2013). Therefore, while using public transportation other swift modes of transportation such as motorbikes would be used additionally for swift movements to the various destinations. As a result, the company operations have been trailing since most operations are not timely resulting into various loses and in profit and more expenses on transportation.

Most of the organizations problems and loses realized are purely resultant from the transportation problem because the organizational operations depended on transportation especially marketing and sales. The movement of the organizations goods was not safe as various damages were realized due to carelessness and improper handling of the goods by the public means of transportation (Simon, 2013). The adequate solutions to the transportation problem within the organization could be the purchase of vehicles to enhance the transportation system within the organization. The vehicles would be relatively cheap and convenient, as they would probably use less fuel as compared to the public transportation system. The vehicles would as well be convenient because the organization staff would use them conveniently at will. The vehicles would be used anytime without considering other factors like the availability of adequate passengers. The use of the vehicles would be very helpful to the company since its products would be distributed efficiently.

The other alternative would be the purchase of motor bikes for the organization especially to the marketers and other staff members who move often. The motor bikes are advantageous in that it does not experience traffic congestion and that it uses less fuel compared to the vehicles. The other fact about the motor bikes is that it would be very easy to maintain than the vehicles (Cooper, & Schindler, 2015). Therefore, the organization could consider the purchase of the motor bikes as well because they are very convenient. The other transportation alternative could be that the organization hires vehicles from the various motor vehicles hiring institutions. The hired vehicles have also been realized to be swift enough to enable the required movements within the organization and outside the organization especially marketing and sales of the organization (Ferrell, & Gresham, 2011). The hired vehicles unlike other means of transportation are timelier as the organizations provide drivers and the fuel for the vehicles. Some instances like less fuel or abrupt dry out of fuel that might interfere with the smooth flow of operations are minimized.

The criteria necessary for the evaluation of the solutions proposed to the problem of transportation within the organization would include the effectiveness of the method chosen. Would the method be timely enough to facilitate the organizations operations effectively? Therefore, while choosing the mode of transportation to use the organization should as well ensure that the method would be safe for the movement of the company staff across their destination and would be timely in the process of marketing f the products and services of the company (Cooper, & Schindler, 2015). The most effective mode of transportation should therefore be considered for implementation. The other important criteria to consider also would be the cost of operation and maintenance of the method chosen. The chosen method should be cost effective. The method chosen should not be too expensive that the organization would not realize ample profits by using that specific method of transportation. A method might be convenient but expensive hence the company would realize minimal profits. The mode chosen should therefore be convenient and cost effective at the same time (Simon, 2013).

The methods proposed have their various strengths and weaknesses that should be considered before implementation. The strengths and weaknesses of the proposes methods are explained in the tables below;

Advantages:

- vehicle Purchasing Motor Bike Purchasing Hiring Motor Vehicle;

- remains an organizational asset afterwards Becomes an organizational asset afterwards While on hire is handled as an organizational asset;

- would be very timely since the company controls its operations Is also timely because it is handled by the organization When on hire is managed by the organization and therefore very timely;

- is very effective since the organization controls all the vehicle operations The motor bike operations are controlled by the organization making it very swift and effective The hiring company ensures that its services are effective enough by providing relevant and effective services;

- relatively cheap since the destination and fuel consumption are controlled by the organization The fuel consumption and the mileage are controlled by the organization making the services relatively cheap. Is purely controlled by the hiring organization and hence the hiring organization does not incur fuel charges and other charges but only pays the fixed charge allocated;

- the resultant benefit to the organization is more profits Results into more organizational profits Leads to more profits to the organization unlike the public transportation system.

Disadvantages:

- Motor Vehicle Purchasing Motor Bike Purchasing Motor Vehicle Hiring;

- the Vehicle Maintenance might be very expensive The motor bikes are easy to maintain but may break down or develop technical complications in areas where it would not be easy to tackle The terms of hiring may mean that the organization becomes responsible for damages and any mechanical problems developed by the vehicle while on hire;

- the vehicle purchase would mean that the company hires or employs drivers which would be expensive Not all the staff may know how to ride the motor bikes yet employing or hiring the riders would be expensive Generally, hiring of motor vehicles is relatively expensive as compared to other means of transportation;

- the cost of the vehicle would also be quite expensive depending on the number of vehicles to be bought The cost of the motor bikes might be fair enough but the amount of bikes bought determines the final cost of the bikes, which is expensive Vehicle hiring is one big liability to the company that consumes a lot of funds.

The most appropriate method to solve the transportation problem at the organization is by examining the proposed methods outlined to realize the most convenient and cost effective method to use (Ferrell, & Gresham, 2011). The three alternatives to the transportation problem at the organization should be examined based on their strengths and weaknesses and their impact to the operations within the organization. The method opted for should be one that generates more income to the organization by reducing the costs of transportation while maximizing the profits realized from the means of transportation (Simon, 2013). The organization therefore requires a sound mind in determining the best means through which it would come up with the most appropriate means of transportation within the company. Therefore, these means of transportation suggested should be thoroughly discussed within the organization across all staff and sectors in order to borrow various ideas across the organization so that the best mode of transportation would be implemented afterwards.

The solution preferred having examined the proposals therefore is to purchase vehicles for the organization. Purchasing the vehicles for the organization first adds to the organizational assets. Secondly, the vehicles controlled by the company would be convenient and timely and in order to the organizations targets (Ferrell, & Gresham, 2011). The organization has authority of when and how to transport its goods and services without depending on other external factors (Cooper, & Schindler, 2015). The vehicles might be expensive to purchase but in the end, the company benefits from their services due to their convenience and timeliness. The transportation of company goods and services is also safe while using transportation means that belongs to the organization. The goods are handled carefully with caution since the persons handling them are aware of their conditions. The delivery of the goods would also be timely because the company vehicles are destined to specific locations unlike public transportation.

Purchasing vehicles for an organization is also helpful in that it enables the staff movement to various regions comfortably without the extra costs that might be incurred while using other means of transportation especially public transportation. The vehicles also have certain advantages over other means of transportation such as the purchase of motor bikes in that, the vehicles would carry more than one person at a time (Cooper, & Schindler, 2015). The staff members also may drive the organizational vehicle and not necessarily, the hired or employed drivers hence, are relatively cheaper than hiring vehicles. While purchasing the vehicles, they would be purchased to specifically suit certain purposes that hired or public vehicles might not suit sufficiently. Therefore, purchasing vehicles is the best idea of all the proposed ideas to curb the transportation problems within the organization (Simon, 2013). The vehicles are a good deal since the company when needed would access them easily at any time. Therefore, the organization should consider the purchase of adequate vehicles so that the transportation problem within the organization is solved completely.

References

Cooper, D. R., & Schindler, P. S. (2015). Business research methods.

Ferrell, O. C., & Gresham, L. G. (2011). A contingency framework for understanding ethical decision making in marketing. The Journal of Marketing, 87-96.

Simon, H. A. (2013). Rational decision making in business organizations. The American economic review, 493-513.

 

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