Vision, values and their influence on business strategy

Strategy

Introduction To remain competitive an organisation can choose

specific strategies, for example:
If you have travelled by road recently it is highly
likely that you will have seen the familiar sight of a • Cost leadership – becoming the lowest cost
National Express coach. As the UK’s largest producer in the market
scheduled coach operator, National Express has • Differentiation – offering something different,
more than 520 vehicles, covering around 84 million extra or special that customers perceive to be
miles to reach nearly 1,000 destinations across better than competitor products or services
England, Scotland and Wales each year. • Focus – achieving dominance in a niche market.

As well as providing regular, scheduled coach The overall strategy for National Express Groups is
services. National Express is the official transport to deliver long term value for its shareholders and to
provider for Wembley Stadium, with services to all deliver safe, punctual and frequent services at
major music festivals and different sporting events excellent prices for its customers worldwide.For
across the UK. Taking around a quarter of all National Express Coach, differentiating itself from its
Glastonbury Festival ticket holders to the site in competitors takes many forms.
2015.

As part of the wider National Express Group, its

ALSA brand is also Spain's leading operator of
coach and bus services. Every day, students across
the US and Canada go to school on the iconic
yellow school buses, operating in 36 US states and
four Canadian provinces. There are also rail and
bus operations in Germany, Morocco, Bahrain and
elsewhere in England and Scotland. Founded in
1974, National Express is a major player in the
international market, employing over 42,000 people
worldwide.

This case study explores National Express’ overall

business strategy and shows how its Youth Promise
initiative supports the companies vision and values.

Business Strategy
Business strategy refers to the overall plan for a
business. The strategy sets out the direction for the
company and what it wants to achieve in the long
term for business success. The strategy defines
which markets the business needs to compete in, Vision & Values
which activities will give it a competitive edge and A business such as National Express Coach needs
how its resources will be used to achieve the overall a core vision that remains constant while its
plan.

Curriculum Topics: Business Strategy - Vision and Mission

Values - Growth
business strategies and practices continuously and brochures. It has its own brand for use at
adapt to a changing world. In an increasingly internal events and training programmes. Every
competitive global environment, without a clear member of staff pledges to follow the golden rules’
vision a business will lack direction and may not of safety. There are role specific golden rules for
survive. A vision should be both aspirational and different jobs. For example, the golden rules for bus
inspirational for stakeholders. and coach drivers include putting the safety of
passengers first,checking of vehicles to ensure they
The Vision and Values were launched in 2011 as a are safe to drive as well as driving safely.
fundamental statement of who National Express are
as a business and how they operate. In 2014 National Express Coach achieved a 5 Star
Occupational Health & Safety accreditation from the
It originates from the conviction of the Company that British Safety Council. The company also the
National Express wants to be. Rather than the European Foundation of Quality Management
potential 'gloss' of Corporate Social Responsibility, (EFQM) for how they manage, plan and refine their
the way National Express acts as a business business.
embodies these Vision and Values. In National
Express' view being a good and successful Under the Community Value and following the
company should be - and are - synonymous. success of its Military Covenant work which National
Express was selected as the first company to sign.
The Vision is: to earn the lifetime loyalty of our The coach business wanted to explore other
customers by consistently delivering frequent, high important and current issues. Its Youth Promise
performing public transport services which offer initiative recognises the challenges facing the 16-26
excellent value. age range in terms of education, unemployment and
social engagement. The company has always had a
Underpinning the Vision are a common set of strong focus on young people but with a strong
Values, an organisation's values are the guiding emphasis on students, so the Youth Promise was
principles that influence its activities across the developed to ‘make a difference to a whole age
business. Values show how the company expects group, which has such enormous potential and
everyone within the business to behave. talent’.
The Values are: The Military Covenant is a ground-breaking pledge
to support the Armed Forces, their families and
Excellence – We constantly strive to be excellent in veterans. As part of its Military Covenant, National
all that we do Express Coach has promised to offer guaranteed
job interviews for people leaving the forces with
Safety – We only do what is safe and stop any
professional PCV licence for its driving vacancies.
unsafe behaviour. Safety is our priority
Recently this commitment was extended to cover all
Customers – We place them at the heart of our roles for those with the relevant qualifications. In
business and relentlessly meet their expectations partnership with the Ministry of Defence's Discount
Service, National Express Coach also offers the
People – We develop the talents, reward the UK’s largest travel discount for serving personnel,
exceptional performance and respect the rights of family members and veterans. The company also
all our employees recognises the huge commitment made by the
Reserve Forces and offers extra annual leave for
Community – We are active in the communities we any of its staff in the Territorial Army to help them
serve to generate economic, social and fulfill their important duties without sacrificing all of
environmental value. their holidays.
For example, under the Safety Value the National
Express ‘Driving Out Harm’ programme encourages ‘The Minister of State for the Armed Forces said: ‘I
staff to make sure that their workplace is safe and am grateful to National Express for being the first
ensures that the safety of customers and colleagues
company to sign up to the Corporate Covenant. It is
is put first at all times.
a great British company recognising the significant
The programme has been running since 2011 and is contribution and sacrifice of our Armed Forces and
supported by training and internal marketing activity their families.’
including posters, pledge cards, training booklets
National Express Coach strives to provide its electrical, maintenance and refurbishment. In the
customers with the best possible customer final two years apprentices will choose a speciality
experience that is unique in the industry. The Youth and perfect their skills to become experts in their
Promise enables National Express to turn its vision fields.
into reality by having a positive, responsible and
meaningful influence on young people. Examples of
the projects in the Youth Promise, which also ‘Values
includes 8-14 year olds, are competitions,
partnerships with national youth organisations such An organisation’s values are the guiding principles
as the Prince’s Trust, the Scouts Association, Whizz that influence its activities across the business.
Kidz and the British Youth Council plus engagement Values show how the company expects everyone
pieces with local colleges and universities to find within the business to behave.
innovative business solutions. The Youth Promise The National Express’ values guide staff on how the
will also promote art, design and creativity by young Company strives to operate as a business:
people, as well as ad-hoc sponsorship and support
of young photographers, musicians and athletes.
The five commitments in the National Express Youth Excellence – We constantly strive to be excellent
Promise are: in all that we do
Safety – Nothing is more important
1 We will offer great value travel for young people Customers – We place them at the heart of our
business and relentlessly meet their expectations
2 We will work with the young people in the People – We develop the talents, reward the
communities we serve
exceptional performance and respect the rights of
3 We will help young people into work and all our employees
education Community – We are active in the communities we
serve to generate economic, social and
4 We will deliver the most accessible public environmental value.
transport network for young people
5 We will showcase youth talent. For example, the National Express ‘Driving Out
Harm’ programme encourages staff to make sure
The partnership with the charity Whizz Kidz is one that their workplace is safe and ensures that the
of the ways National Express ensures the business safety of customers and colleagues is put first at all
is actively serving and engaging with the times.
communities it serves. With an estimated 70,000
disabled children and young people in the UK The programme has been running since 2011 and
waiting for a wheelchair, Whizz-Kidz is a charity that
is supported by training and internal marketing
provides disabled children the essential wheelchairs
and other mobility equipment they need to lead fun activity including posters, pledge cards, training
and active childhoods. booklets and brochures. It has its own brand for use
at internal events and training programmes. Every
Through the Youth Promise National Express, which member of staff pledges to follow the golden rules’
has a 100% wheelchair-accessible fleet, will provide of safety. There are role specific golden rules for
Whizz Kidz work placements, wheelchair skills different jobs. For example, the golden rules for bus
training, and will get involved in community events. and coach drivers include putting the safety of
passengers first,checking of vehicles to ensure they
National Express has also committed to widening are safe to drive as well as driving safely.
employment opportunities for young people. As a
major employer in the West Midlands, the coach
business has started an apprenticeship scheme and In 2014 National Express Coach achieved a 5 Star
will seek to steadily grow the number of apprentices Occupational Health & Safety accreditation from the
entering it each year. Apprenticeships are currently British Safety Council. The company also the
available in Customer Service, Engineering and European Foundation of Quality Management
Business Administration, running ½ years (EFQM) for how they manage, plan and refine their
depending on the subject chosen. In addition, the business.
bus division of National Express (National Express
West Midlands) has apprentices who undertake a Part of the National Express Youth Promise is a
four year programme that provides skills in a full partnership with the charity Whizz Kidz. This
range of engineering disciplines including bodywork, ensures the business is actively serving and
engaging with the communities it serves. With an As a public transport company National Express is
estimated 70,000 disabled children and young constantly looking at reducing its emissions through
people in the UK waiting for a wheelchair, a series of low carbon sustainable, innovative
Whizz-Kidz is a charity that provides disabled transport improvement plans whilst delivering a
children the essential wheelchairs and other mobility high-quality on-board experience. To achieve this
equipment they need to lead fun and active the company continually invests in its fleet,
childhoods. Through the Youth Promise National replacing vehicles every seven years. Most coaches
Express, which has a 100% wheelchair-accessible have leather reclining seats, working power sockets,
fleet, will provide Whizz Kidz work placements, wi-fi and air conditioning.
wheelchair skills training, and will get involved in ‘Our services make an important contribution in
community events. reducing carbon emissions from travel because
buses, coaches and trains produce fewer emissions
Through its people values, National Express has per passenger kilometre than other forms of
committed to widening employment opportunities for transport such as car or air travel. The CO2
young people. As a major employer in the West emissions per passenger kilometre in coach travel
Midlands, National Express Coach is starting an are around 80% less than those of the average new
apprenticeship scheme and will seek to steadily car. Emissions from our vehicles constitute around
grow the number of apprentices entering the 93% of our carbon footprint. ’
business each year. Apprenticeships will be
available in engineering, customer service and
business administration. In addition, the bus division
of National Express (National Express West
Conclusion
Midlands) has apprentices who undertake a four
year programme that provides skills in a full range of Business strategy is derived from the overriding
engineering disciplines including bodywork, vision and values of an organisation. These steer
the company in the direction it wants to take for
electrical, maintenance and refurbishment. In the
future business growth. A company is not always
final two years apprentices will choose a speciality
simply driven by profits. Having a strong set of
and perfect their skills to become experts in their
values and a culture that puts the customer first
fields. enables a business to explore different business
opportunities that allow it to grow, while continually
Growth providing excellent customer service. The company
recognises that providing customers with safe,
An aspirational vision and an ambitious strategy are reliable and convenient transport helps to
all tools for business growth. Most companies need differentiate it from the competition. By introducing
to grow to stay in business and having the right initiatives such as the Youth Promise, and aligning
strategy is a way that enables a business to achieve ‘Golden Rules’ to their values, National Express is
growth. Business growth can be realised by further distinguished from its competition and
increasing market share, new product or service ensures that its customers are served with pride.
development as well as diversifying into different
markets, all of which can improve profitability.
1 Explain the purpose of
The way National Express acts as a business business strategy (2 marks)
Exam Style Questions

embodies their Vision and Value and has a positive

impact on its consumers, communities and the 2 Describe three different
environment. By implementing its Youth Promise, strategies a business can
National Express Coach is able to grow in the develop to achieve competitive
following ways: advantage (4 marks)
• Increased perception as a responsible business
3 Analyse the impact of the
• Potential new revenue stream National Express vision and
• New business opportunities as a result of all the values on its strategy (6 marks)
• Exposure to new customers’. 4 Evaluate how effective the
With its premier position in the market, National National Express Youth
Express Coach needs to ensure that as the Promise will be in serving
business grows its services remain relevant, different communities (8 marks)
respected and appealing to consumers.