Strategic and Operation Objectives for Exclusive Limousine Ltd.

Case Study
Case Synopsis
Exclusive Limousine Ltd (ELL) is facing a challenge in its operations. For over 20 years, ELL has established itself as a leading upscale transportation option for high-end customers. Part of ELL’s growth stems from its consistency both with the customers and with the staff. The majority of the company’s employees were part of the entity at the beginning. The consistency shows how ELL has operated with a low turnover rate in a highly competitive industry. However, the fluctuating costs of fuel are affecting ELL’s operations adversely. The company has the liberty of changing its costs to match the changing fuel costs. However, that would render them demoted into a cab company, a tag that the organization tends to ignore. In its motivation to stay competitive, ELL is seeking a strategic plan to reduce its operational costs while maintaining its image as a leading transportation option for dignitaries.
Problems
Primary Problem
The primary problem that ELL is facing is the volatile fluctuation of fuel expenses weekly.
Secondary Problems
The increase in fuel prices triggers a range of problems for ELL. Firstly, the organization is forced to adapt to the changes. An adaptation by altering the transportation prices weekly will likely change the organization’s mission, thereby rendering it into high-end cab operations. Secondly, the current operational strategy is unsustainable because the company cannot withstand the costs for a long time. The above problems lead to the challenge of formulating a new strategic plan that should anchor the organization’s operations despite increasing fuel prices. Finally, the organization is exploring the possibility of using liquefied natural gas on their fleet as opposed to the presently preferred gasoline and diesel options.
Analysis
Liquefied natural gas (LNG) is a natural gas that has been cooled down to -2600F liquid state. In a liquid state, natural gas volume decreases by 600 times (Mokhatab, 2014). As such, it becomes easier to store, less bulky, and safer. The applications of LNG are extensive, ranging from generating electricity and manufacturing, fuel for vehicles, cooking, and heating. Adopting LNG in its fleet would mean that ELL changes part of or the entirety of its fleet to accommodate the changes. Other factors that must be considered include cost, reliability, and operational efficiency. The analysis of the strategic option that ELL uses can be assessed through the two lenses of impacts and SWOT analysis.
SWOT Analysis
The use of LNG should be subjected to SWOT analysis to ascertain its viability for ELL. LNG manifests some strengths that s...