Green Cabs Case Study

1637 words 7 pages
MANT 303 – Entrepreneurship

Assignment One – Green Cabs case study

1. Green Cabs has many opportunities to grow their business into other locations and also diversify into other services (e.g. courier services, shuttles, vans). They have resisted these opportunities to date. Should Green Cabs be taking these growth opportunities? Why or why not?

I believe the decision to expand areas of Green Cabs opertaions is one that Callum Brown should offer more thought. Green Cabs currently possesses strong market positions in Auckland, Wellington and Christchurch and a distinct image with their bright green cabs. They have recently secured priority spaces at New Zealand’s three main airports and are increasing their exposure to consumers with a
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The case study does not stipulate if Green Cabs has business plans in place. A business plan will be crucial to the company if they plan to reach milestones and objectives and within a realistic timeframe. Chap4Pg308 of the Course Book states that lack of a business plan can have effects such as; “tend to lose focus and are too easily distracted from the right strategic course for the business.” (Frederick & Kuratko, 2010). This is an effect that Green Cabs cannot tolerate. Green Cabs prospective strategy is crucial to their success. They need to focus on the core values on which the business was founded otherwise it will lose the point of difference against competitors.

Green Cabs need adequate systems in place in to ensure new ventures are completed successfully; the business cannot rely on Callum Brown to direct. Chap9Pg308 of the Course Book states that “Many SMEs do not have operating systems in place and are overly dependent on the owners’ personal abilities. A lack of systems can cause differential standards and an inability to provide consistency within the business.” (Frederick & Kuratko, 2010) Strong internal controls are needed to ensure effective evaluation of performance.

3. What strategies could green cabs employ to ensure that a good balance between environmental and economic outcomes for the company?

Strategy is “establishing a differnece that a company can preserve” (Porter, M.E., 1996). During my research I found two common strategies


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