You are a bus operator providing services in both urban and rural areas. In the present economic climate, business is static and indeed the number of passengers being carried is showing signs of declining steeply. Costs, such as fuel, insurance and maintenance are rising. The local authorities cannot support services to the extent they previously did. Thus, almost all services must be provided commercially and be paid for by the fares collected.

a) Analyse the current state of the business with a view to formulating a plan to ‘rise to the challenge’ of declining passenger numbers and increased costs.

b) Outline the key points of an action plan to refresh the business and explain the rationale for each.

c) Illustrate this, using ‘real life’ examples as the evidence, to support your plan and give a user’s point of view.

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