Background
Stagecoach was set up in Perth, Scotland in
1980. From its small start with just 2 buses,
Stagecoach now has a fleet of 10,000 buses and
coaches. Stagecoach expanded into many major
towns and cities across the UK and the world. This growth was aided by Stagecoach
becoming a PLC in 1993.
As well as buses and coaches, Stagecoach has also been a leading player in other public
transport services. These have included a 3-year period as owner of Glasgow Prestwick
Airport. Other services, which it is still currently involved in, are trains and trams.
This includes a 49% share in Virgin Rail Group whereby they work in partnership to
operate train lines across the UK.
Over the last 10 years Stagecoach has put a lot of their time, effort and money into
expanding its budget travel scheme—megabus.com.
The Objective
Stagecoach is now a leading international company that operates some of the most
recognised brands. It has the main objective of growth based on quality service and
innovation.
In order to manage the organisation effectively, Stagecoach is split into 3 core
divisions—UK Bus, UK Rail and North America. To achieve its main objective of
growth, Stagecoach uses a decentralised management structure with short chains of
command.
A recent newspaper article indicated that there is a revival of public bus transport in the
USA. This is due to rising fuel costs and more UK-owned discount operators in highly
populated areas of the country. This makes taking the bus more cost-effective than
driving. Also people’s perception of bus travel has changed with the introduction of
modern, air-conditioned coaches. Many have free Wi-Fi and charging points for mobile
phones and laptops.
The Vision
As well as the objective of growth, Stagecoach has a main vision “to deliver greener,
smarter travel” for its customers. This has been the focus for many developments
within Stagecoach since it introduced an advertising campaign to get drivers out of their
cars and into public transport in the year 2000.
Stagecoach has often led the field by testing and introducing different fuel types all
based on saving energy and cutting emissions into the environment. As well as this,
Stagecoach prides itself in keeping its fleet of buses and coaches up to date in order to
comply with European Standards regarding emissions. This has involved a continual programme of investment into new, greener buses.
As well as greener buses and coaches, Stagecoach has also looked to find ways of
making other parts of its operation sustainable and invested heavily in renewable
sources of electricity for its UK bases. All of this time and effort was rewarded in
2010 by the company gaining the prestigious Carbon Trust Standard. It was the first
Scottish-based transport company to achieve this award.

1. Option 1 is for Stagecoach to invest in new buses.
Identify and describe 2 sources of finance that a company could use to achieve this
objective.
2. Stagecoach prides itself on offering a quality service.
Describe 3 quality measures an organisation could use.
3. Stagecoach made the strategic decision to grow.
Distinguish between tactical and operational decisions.
4. Stagecoach has a decentralised decision making structure.
Describe advantages and disadvantages of decentralised decision making.
5. Stagecoach will carry out staff appraisal on a regular basis.
Outline 3 reasons for carrying out staff appraisal.
6. Stagecoach will carry out market research in order to find out what its customers
want.
(a) Explain the benefits to an organisation of market research.
(b) Identify 3 different types of ICT that could be used by a Marketing
department.
(c) Describe ways that the Marketing department could use each type of ICT
identified in 6(b) above. (A different use must be given for each type.)

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