Question B2

Oxford Bus Ltd provides a passenger bus service between two major cities in the Europe: Liverpool and Lille. The buses run frequently and travel the distance between the two cities in 15 hours. Apart from passenger transportation, Oxford Bus Ltd also provides transportation of goods between the cities.

Besides Oxford Bus Ltd, there are other bus operators that provide transportation services between these two locations. Both Liverpool and Lille are economically booming and witness a lot of passenger traffic. The road network between the two cities has been well maintained by the authorities.

Required

a. What is the strategic information required by Oxford Bus Ltd management regarding customer demand, competition and finance that will be instrumental in planning its future business operations?

(8 marks)

b. Discuss how the strategic information available to Oxford Bus Ltd management could be presented in a balanced scorecard format by management accountant to aid Oxford Bus Ltd senior management in operational and strategic planning.