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Sustainable Business

KMB
by

kaman wai

on 20 November 2013

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Transcript of Sustainable Business

S
ustainable
B
usiness

G
roup
P
roject

SOLOMON
HUNG Cheuk Ting, Natalie
IP Hong Ting, Gerard
TAM Hoi Ching, Xanis
WAI Ka Man, Kelsey
B
ackground
K
owloon
M
otor
B
us
Company Limited
Established at
1933
Largest public bus
operator
in Hong Kong
Wholly-owned subsidiary of
Transport International Holding Limited
About
12,000 employees
More than
2.5 million passenger
/day
Mission
To contribute to the economic and social development of Hong Kong by providing residents and visitors with an efficient,
reliable and user-friendly bus service
that gives excellent value for money.
Vision
Be the best public bus operator in the world.
Motto
Moving forward every day
1975
2012
2000
1949
1933
Air-conditioned
buses were
introduced
All buses
were equipped
with Octopus
Card Readers
All non-air-
conditioned buses
were withdrawn
from service
KMB was
established

Double-deck buses
were imported
from England
Social Performance
Employees
Passengers
Community
P
eople
Code of conduct
New job title
for bus captains
Consistent
selection
criteria
opportunity
Policy
Equal
Employment
Long working hour
16 hours
However...
Affect
the health of the
employees

and also
the safety
of the passengers
Hourly paid
bus captains
No employee welfare
Hire
more and more
hourly paid bus captains
Environmental Performance
P
lanet
P
rofit
Conclusion...
References
http://csrassn.com/Default.aspx?pageId=538048
http://programme.rthk.hk/channel/radio/programme.php?name=radio2/KnowledgeCo&d=2013-10-12&p=1886&e=235797&m=episode
http://hk.apple.nextmedia.com/news/art/20111230/15938292
http://news.stheadline.com/dailynews/content_hk/2012/11/20/215505.asp
http://www2.news.sina.com.hk/news/20121031/-2-2811750/1.html
http://news.hk.msn.com/local/article.aspx?cp-documentid=5700142
http://news.now.com/home/local/player?newsId=78858
http://orientaldaily.on.cc/cnt/news/20110616/00176_075.html

Economic Performance

Corporate Responsibility Considerations
” for major projects
e.g. purchase of new buses

Business
Continuity Plan
part of the
risk management process
safeguard stakeholder value
in a crisis

Transport Advisory Committee has received
825 complaints about KMB
in the second quarter(2012) ,
increased 55%
from previous quarter
Increase in Complaints
Mainly because of the
delay problem
(60%)
Passengers cannot afford the fares
Not reasonable
by an average rate of
4.9%
(2013 March)
recall the
collective memory
launched various events to
Display of KMB Vintage Buses
and New Generation Bus
Hong Kong Bus Story Exhibition
Support of sporting and
cultural events
Outward Bound Hong Kong
Corporate Challenge
Green Power Hike
Devoted to improving the Hong Kong Community
Friends of KMB
KMB’s volunteer team
Promote
social responsibility
in community
Connects closely with community
sponsors various sporting
and cultural events

Dislike MTR,
KMB
does not initiate
any similar events itself
Concerns needs of different groups of passengers
HKD$2
per ride discount offered to elderly
Free rides
offered to
disabled
and
elderly
in specific dates
Provide minorities with job opportunities
Offered around
30 jobs
to disabled responsible for cleaning buses
Social services
Environmental protection
Civic education

However...
Safety
Putting
passengers' safety
as
top priority
Training
Regular bus maintenance
Safety promotion campaign
Improvement of design
Upgrade facilities: bus shelters, trilingual electronic bus stop announcement system
Work closely with manufactures
to improve the bus design
Pollution-free LED lighting enables passengers to read at the night.
Initiate two-way communications
Passenger Liaison Group
Meetings
KMB holds
several meetings
with
passengers
every year
Ineffective Communication
The
participation
of passengers
is not satisfactory
Last year’s meeting
only
100 passengers
had attended
some of the
communication means
are
not effective
KMBuddy Programme
Supports the
recycling of reusable materials
Recycling & Waste Management
Alleviate pollution
Energy saving
Follows strictly
the European emission standards
standards of European Council of Environmental Ministers

Euro V Diesel

Applies the
Green Office concept

e.g. using pre-set timers to switch
off lighting when not needed
Introduced the “
Enhanced Air-conditioning System
” in 2005

Reduce fuel consumption
Equipped
air-conditioned
buses
with
electrostatic filters
Meets the standards laid down by the Montreal Protocol
All in all...
2011 profit

HK$51.4 million
The End
Q&A
Thank You!
WONG Yee Kei, Emily
KMB is the
first listed public transport organization
to receive the
Green Mark Certification
from the Federation of Hong Kong Industries.
All in all...
CHAN Po Yee, Bonnie
Unable歡to retain
young employees
All in all...
MTR
utilizes the
radio media
to collect passengers’ response. KMB could take this as reference.

KMB need to
或improve the communication with both employees and passengers
Both employees and passengers are
not satisfied
KMB seems really care about the employees, passengers and community
Carried out several plans to manage their suppliers and contractors
The public may
not fully understand
the sustainable development
of KMB’s economic aspects.
Lack of information
Reduce
amount of
paper
used
Developed the
Electronic Terminus Management System
Chemical waste and waste oil are
treated and disposed
according to
international standards before disposal
Donates unused bus components
to institutions, and lets students
design innovative products
Recently,
KMB introduced the
first electronic bus
in Hong Kong
Increased bus fares in 2013
2010 profit

HK$411.1 million
2012 loss HK$51.5 million
Passengers trip per day has decreased 0.3 million in these three years
Experiences a decreasing profit
2010

2.58 million
2011

2.56 million
2012

2.5 million
Environmental sustainability
KMB’s products are well-qualified
Product is only a part of the whole business process
Ought not to focus only on its products
Continuously improves its bus
to fulfill international standards
Should striving to gain
approvement
and
satisfaction
from its
stakeholders
for long-term business relationship
Service hotlines &
Customer service centres
The services don't deserve such as high price
More improvements in social and economic aspects are needed
while KMB should continue to keep up their good performance in environmental aspect.

KMB should be proactive
to market changes

Large-scale route reorganisation
Making better use
of its
resources
to
earn revenue
Cater
for
the needs
of the presently unpleasant customers
火Some fare discounts are introduced
Reduces part of the revenue
A higher operating cost
About 70% of the bus routes are not profitable
Higher price for labor, fuel and tunnel fee
Applied for a raise in bus fare
in March 2013
Decreasing profits
Full transcript