Capital and the profit

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External Growth- this is the increase in the size of the business, outside which is achieved by taking over other companies. For Swift Transport Plc to achieve this it will need finance to fund its costs and marketing dept to increase its capital via sales revenue. For the marketing dept to increase its sales, it will have to promote, advertise and carry out market research. Finance will pay off the other company directors (if outvoted) with its capital and the profit made through marketing sales revenue. Human resources will need to recruit new staff, get them trained and ready to work in the other company if job losses are to be made. Also swift could externally grow through mergers of rival companies, this would make them a more powerful force with the combination of resources. Swift would benefit from the acquisitions.

Prestige- this is the image the company portrays in the eyes of other companies and the consumer. For Swift Transport Plc to gain better prestige, the marketing department will have to try and boost the name of Swift Transport Plc. This will have to be done through promoting and advertising cleverly, operations will have to get the service available everywhere and services will have to work to a much higher quality. This can be done through motivating the services team so the service is of better quality, as the workers wanted it to be. This will make not only Swift Transport Plc look good to the public but also the service it offers as well.

But as Swift Transport Plc has been an established company for many years since the 1960’s, it is likely that they have already achieved most or all of these goals already when looking at the period they have been operating for. It has certainly achieved profit and both internal and external growth but now it would probably set itself new targets on its new business ventures. So the main aims of Swift now are probably: 1. To carry on making a profit for its shareholders. 2. To expand by diversifying such as buying out other companies. 3. Capitalise on the Olympic games by promoting their service

For Swift Transport Plc to carry on making a profit for their shareholders, all they have to do is to carry on what was explained previously on hot to make a profit the more they make the more they will receive. But for the company to make even more profit they should try to achieve the following two aims as much as they can. For swift to diversify they will need more capital, this is for to take over other companies and pay off its shareholders.

Swift is a haulage service, and should look for companies in which would benefit their own service or would accompany it for some apparent reason. For swift to diversify they will need the capital available, this would have to come from the finance department who would have the task of fuelling the takeover and obtaining any extra surplus to cover it. The marketing department would have to advertise and promote the service more in order for the company to make an extra profit through higher sales revenue. This extra money could go towards the take over. Also operations and services would have to supply the demand as efficiently as possible. They should take over Keepsake Ltd as they could use them in future plans.

For swift to capitalise on the Olympic games they will again need to acquire more capital though not as much in order to diversify. They again would need finance to obtain this money through its own funds or from other sources of finance which would give them a large sum of money in a quick time. Also one that would allow them to pay it off with interest with the profit they can make with the Olympics. Also all the other functions will need to work as efficiently as possible to increase sales. But for them to totally capitalise on the Olympic games, road haulage would not be enough. First of all they should use Happy hols Ltd as a part in their plans.

They should inform Happy hols Ltd to hold special promotional package holidays to the Olympics in Australia. For this to happen, Happy hols Ltd will need its marketing department to promote these holidays through media so that the public are aware. Next Swift should try to make an agreement with the British National athletics team or all the teams competing in the U.K., to transport their equipment to Sydney. Also in return, they will need their logo with the other sponsors on the teams kits, equipment etc.

Finally for them to totally capitalise, they should try to take over Keepsake Ltd much faster even as a hostile take over, this then would allow Swift to try and strike a deal with the Olympic committee that Keepsake Ltd supply the games with such equipment such as cups, platforms, merchandise such as souvenirs, t – shirts etc. From all this, each company would hopefully make a profit. Swift would then get a part of each company profits, therefore capitalising on the Olympic games.

The way I researched this information is by looking it up in textbooks. Then once I had the basics done I was able to apply it to the more complex aims such as capitalise on the Olympic games. Also I used my own knowledge along with the teacher’s notes to show how the aims would affect the day to day running of the business. The strength of this is that it is quite detailed and covers all the main aims, the weakness of it, is that it is not very concise and does ten to be repetitive. If I could do it again, I would probably carry on explaining what the company wants to achieve in the future.

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