TFL Challenge: Transport for London & Economic Conditions

TRANSPORT FOR LONDON
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TRANSPORT FOR LONDON
Thirty percent of the total costs of running the TfL activities comes from the government support. With this support the TfL is able to spent over 65% in the networks and 35% in improving customer services CITATION Tra06 \l 1033 (Transport for London (TFL), 2006). With the removal of government funding several activities shall be affected. The TfL on the other hand has to work extra hard in order to meet all its planned operations and the services that they deliver to the customers. There should be another source of money to cater for the over 30% government funding. There are two proposals that can be made in order to achieve efficiency in its operations.
The first proposal that should be considered is the increment of a bus fares. The bus fare forms the largest contributor of money to the TfL. In order for the organization to run all its activities as usual the organization should consider increasing the bus fares so that it caters for the 30% of the government funding.
The second option that should be considered is increasing the borrowing from the money lenders. Money borrowing makes up 20% of the financial resources of the TfL CITATION TfL \l 1033 \m Tra06 (TfL, n.d.; Transport for London (TFL), 2006). If the borrowing can be increased by 30% then it shall be at 50%. However with such an increased rate of borrowing the organization may not manage to keep up with debts CITATION Rou10 \l 1033 (Rouse, 2010). They shall require extra finances to cover up their debts.
The third option is to decrease the activities and rate of spending by the organization. This means that the organization shall cut down on the fundin...