Subject category:
Strategy and General Management
Published by:
Cranfield School of Management
Version: 24-Aug-2018
Length: 10 pages
Data source: Generalised experience
Abstract
Increasing pressure to cut air pollution and reduce CO2 output is having a significant long-term impact on commercial truck design. Tougher legislation at a local, national and supranational level are prompting more fleet operators to switch to battery-powered or diesel/electric hybrid vans, assuming that they can do so without compromising operational efficiency. Flying Buffet is one such company, looking to exploit the twin benefits of low fuel costs and the environmentally conscious image inferred by the use of electric vehicles. Their van fleet is up for renewal and this is an opportune time to review the van fleet mix with regard to diesel and/or electric options. The case provides an opportunity for students to review the operational advantages/disadvantages of a switch to electric away from diesel and to undertake an investment appraisal (Equivalent Annual) under a number of scenarios and to test the sensitivity of their recommendations with respect to changing costs and/or assumptions.
Location:
Industry:
Size:
UK contract catering market is valued at USD9.3bn (2017)
Other setting(s):
2018
About
Abstract
Increasing pressure to cut air pollution and reduce CO2 output is having a significant long-term impact on commercial truck design. Tougher legislation at a local, national and supranational level are prompting more fleet operators to switch to battery-powered or diesel/electric hybrid vans, assuming that they can do so without compromising operational efficiency. Flying Buffet is one such company, looking to exploit the twin benefits of low fuel costs and the environmentally conscious image inferred by the use of electric vehicles. Their van fleet is up for renewal and this is an opportune time to review the van fleet mix with regard to diesel and/or electric options. The case provides an opportunity for students to review the operational advantages/disadvantages of a switch to electric away from diesel and to undertake an investment appraisal (Equivalent Annual) under a number of scenarios and to test the sensitivity of their recommendations with respect to changing costs and/or assumptions.
Settings
Location:
Industry:
Size:
UK contract catering market is valued at USD9.3bn (2017)
Other setting(s):
2018