2/5/2017 TIA Note Assignment Transportation & Logistics Abhishek Patel
INTRODUCTION PESTLE Analysis is a defined framework or a tool of measuring the business conditions and environment by which it is surrounded. It is generally carried out to deal with the macro- environment by which business can get affected or can have impact on the business. PESTLE Analysis stands for: P Political E Environmental S Social T Technological L Legal E Economical In the TIA note assignment, there is a PESTLE analysis for the transportation industry of Canada. The transport industry of Canada is divided into six major parts. For an effective performance, all these services and how their businesses affected due to these factors are discussed in the further case. [Pro] RAILWAY Rail Transportation is mode of moving goods and passengers from one place to another. The Railway runs through the power provided by locomotives or electricity. Canada has a wide railway network with three major players in the rail market. Those players are Canadian National Railway, Canadian Pacific Railway and VIA Rail Canada. [Wik1] Political Canadian National Railways and Canadian Pacific railways are government which are facing a heavy competition from the private company from VIA rail. [Rup07] Passenger Railways are dominated by VIA rail. Though, goods transport railways are still relied on government. Recently there was a conflict between farmers and railway services of not getting desired wages on the basis of expected yield and hard work. Many of the needs are not fulfilled and problems of delay in delivery is the matter of concern. [Ben17] Economical Railways require high amount of operating cost which is becoming an overburdened debt to handle due to global recession. The share prices of CN and CP are down by 4.7 per cent in last half a decade. [Owr16] Increase in efficiency of vehicles and weakening of some European economies. This led to significant decrease in the demand of crude oil prices. This resulted into global recession and unemployment. [Tra15]
Social Low population in Canada compared to its size of land. According to the records of year 2013 Canada’s over population was 3.56 billion. [Wor16] A wide area covered by forests and hunters. Thus, 21 million owned guns are to be found in Canada which can become a problem for people travelling through remote areas. [JJs17] Technological Though, the science has advanced and new technologies can be adapted to operate the railways. Still, there are many troubles for finances to carry out. Moreover, Railway business is being in debt which causes a problem in adapting those technologies. Legal According to Railway regulations act 1985, there are lots restrictions of carrying or transporting harmful chemicals with special penalties. These restrictions prohibit businesses to transport through railway services. [Gov] Environmental Approximately Eight months a year Canada goes through severe winters. Such, climatic conditions unable the usage of huge transport facilities.
- Fall '12
- Business, Rail transport, Canada., Intermodal freight transport, Canadian National Railway