Bus Building Company Essay Example

Bus Building Company Essay Example Bus Building Company Essay Bus Building Company Essay ? Introduction InnoBus Limited is a bus building company located in Toronto, Canada. The company produces and sells a variety of buses designated for public transport within cities. The main customers are in the United States and Canada. Five years ago (about in 1994), due to the bad financial situation, the company was bought by the Dutch entrepreneur , Mr Jan de Koning. He introduced several new techniques and designs to the production and management process of the company. He also changed the company structure from bureaucracy to more flexible and innovative the way together with job guarantee to employees(no loose job), 200 employees just work half year. The company was better now, but still lack of big orders. However, to be glad, the new technology of low-floor buses are improved. ? Marketing The company service public transport, school bus, company bus and airport bus. It also has city bus, suburban bus, inner-city bus. Besides, the low-floor bus is the new level service. The low-floor bus, the entrance and exit with no steps make it easy for elderly, the young and physically challenged to entry and exist bus. The wide opening doors and the low floor height help passenger get on and off quickly. However, the low-floor bus makes a lot of problem because of lacking technology. Through three Canadian people visited to Holland and the ministry of traffic management to learn how public transport technologies and system works well in Holland and also in Europe, Jans got a new technology, namely doing in European way that to build the bus with frames and pipes so no longer need to use truck chasis with that new concept, then he could build a the successful low-floor bus with integral design technology. Because of new technology, the company got more market shares not only in Canada and USA, also in Mexico,Saudi Arabia and China. The competing is very strong. ? Financial Problem When Mr Jan de Koning bought the company, it almost went bankrupt. Even though the company is better now, it is still not yet completely stable in regard to finance. The company is in serious trouble. As a primary company, the competition is so tough. In addition, the sales still not increase(from 1996 to 1998, production of buses declined by more than 30%. ) so that the market is declining. Therefore, the current financial position is rather weak; last 5 years, share capital and contributed surplus was positive, while current year it run into the red (about 4,500 dollar) . Between 1996 and 1997, the company recovered from the financial problem and had profit, while they lost about 15 million dollar this year. The company need the bank loan to cover the deficit. However, at this moment the bank is asking for immediate payment of all outstanding debts. Thus, it increases the payable, about 10% need to pay soon.