Two bus companies are competing for passengers on the most popular routes in a major city. The long-established company has strong customer loyalty, provides weekend and evening services as well as frequent daytime services and covers the cost of unprofitable routes from the profits on popular routes. The incoming company has larger resources from which to support a price war and can be selective in running only at peak times on the most popular routes. There are fears that if the incomer wins the bus war, the quality of service provision will diminish in the evenings and at weekends and on unprofitable routes.

As a group allocate the roles of: 

(a). Passenger representatives 

(b). The financial controller’s department of the long-established company 

(c). Members of the city council’s transport committee

(d). Representatives of the police force. In the separate roles discuss the areas where cost savings might be achieved by the long-established company to make it competitive on price. Then come together and negotiate a support package for the company which focuses on improving the financial performance of the company.