Train Transportation Brightline and Amtrak Merger

Train Transportation Brightline and Amtrak Merger

What sector/industry would you invest in?

Transport services are among the critical services in business and people’s lives. Therefore, I would invest in the transport industry. According to Hayes (1), the transport industry is broad and includes various sectors such as rail, road, marine, and airline transportation. These industries are further subdivided into smaller industries, including railroads, airport services, marine services, and ports and rail tracks. I would invest in the train transportation sector by offering rail transport services across various railroads to create a network serving many customers in interconnected regions. The choice to invest in train transportation is inspired by the need to leverage the opportunities in train transportation, such as the demand for train transportation of non-perishable goods and the preference for rail transportation for people traveling in areas with high traffic congestion. Therefore, investing in train transportation will enable me to expand the business’ revenue streams by transporting people and goods to different destinations. Hire our assignment writing services if your assignment is devastating you.

What region/geography would you focus on?

I would focus on South Florida because the region has high rail transport growth prospects and good rail infrastructure. According to Sneider (1), South Florida’s Tri-Rail daily ridership by 2014 was 15,000. This indicates that many people in South Florida use trains. The ridership has increased over the past nine years, creating an opportunity to generate a lot of revenue by investing in train transportation in the region. South Florida is also among the areas in the United States with high population growth. Population growth increases economic activity, thus increasing the demand for transportation services.

South Florida faces traffic congestion issues, forcing travelers to look for an alternative mode of transportation, such as rail transport. Therefore, the train transport business is likely to be successful in the region because of the constant flow of people moving from one place to another. The region’s good rail infrastructure also supports the growth of the train transportation business. According to the Department of Transportation (1), Florida has a 32-mile rail, the SunRile, with 12 stations and a Metrorail extension that serves the Miami International Airport. Therefore, trains can maximize profit by transporting people and goods in all the commuter rail stations.

Would you invest alone or with a partner?

I would invest in the train transportation business with a partner. I would use a general partnership that includes sharing responsibility equally and involving every partner in business management. The train transport business is complex and requires constantly improving services to maintain a competitive advantage. Therefore, a partner would help me generate more ideas on how we can improve the business and the new opportunities that can be leveraged to increase revenue and maintain a competitive advantage. A partnership is essential in accessing a wide range of knowledge, experiences, and contacts to increase business success. Every partner will share their contacts, expertise, and experience relevant to the business to grow our revenue and increase the chances of securing a competitive advantage. Another benefit of investing as a partnership is sharing responsibility with every partner specializing in their area of expertise. For example, one of the partners can handle strategic management while the other handles the business financial records. A partnership will also be essential in making effective decisions about the business without bias because every partner’s suggestions will be considered and evaluated to determine how they can be applied in the business. The train transportation industry is also growing rapidly in Florida, hence the need for partners who can introduce new perspectives on how to conduct business to maintain profitability and adjust appropriately to the changes in the business environment.

How do you believe you will realize returns from the investment?

Every business aims to generate revenue and create profit, which can be achieved by increasing the return on investment. According to Zamfir et al., 2016 (2), return on investment is the benefit an investor gets in relation to the cost of the investment. One of the things I will do to realize returns from the investment is embrace the use of technology to offer quality services to customers so that the business can grow a large market base that will result in high revenue and profit maximization. For example, I will create a mobile application that customers can use to book a train and reserve a seat. I will also introduce unique services such as point accumulation on every trip and the option to redeem the points to pay for a trip so that I can encourage many customers to use our services.

Another thing that I will consider to increase the return on investment is reducing costs. I will encourage customers to book their tickets online to reduce the staff required to issue tickets at the station, thus reducing operating costs. I will also introduce a dress code for all the employees instead of providing uniforms for the employees to cut expenses. Return on investment will also be realized by re-evaluating the business’ expectations to avoid wasting resources on ideas that do not benefit the business. I will conduct a quarterly review of the business to determine the intangible benefits that should be pursued and the investments that should be reconsidered based on their impact on the business’ success. I will also monitor risk-taking within the business to avoid taking risks that could have a major negative impact on business operations.

Works Cited

Department of Transportation. “SunRail Phase 2 South Orlando, FL.” Federal Transit Administration, 2015, www.transit.dot.gov/sites/fta.dot.gov/files/docs/fl_orlando_sunrail_phase_2_south__FFGA_profile.pdf.

Hayes, A. “Transportation sector definition.” Investopedia, 4 July 2021, www.investopedia.com/terms/t/transportation_sector.asp.

Sneider, J. “Passenger rail grows in Florida, as the state grapples with congested roads.” Progressive Railroading, 2019, www.progressiverailroading.com/passenger_rail/article/Passenger-rail-grows-in-Florida-as-the-state-grapples-with-congested-roads–57722.

Zamfir, M., et al. “Return on investment – Indicator for measuring the profitability of invested capital.” Valahian Journal of Economic Studies, vol. 7, no. 2, 2016, pp. 79-86, https://doi.org/10.1515/vjes-2016-0010.

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Train Transportation Brightline and Amtrak Merger

Your rich uncle is willing to fund your strategy for mergers and acquisitions (M&A), whereby you will split returns with the rich uncle, who will invest all the funds. Prepare a 2-3 page paper that details the strategy you will use to invest, including addressing each of the following and explaining your reasoning to convince your rich uncle to invest:
1. What sector/industry would you invest in?
2. What region/geography would you focus on?
3. Would you invest alone or with a partner?
4. How do you believe you will realize returns from the investment?

Project Suggestions
• One of the main objectives of the class is to challenge the students to think analytically, especially as it relates to the M&A market. The individual case study is a chance to do so and demonstrate a grasp of the overall concepts from the course.
• I would suggest several proof readings before submission, including potentially a peer review by another classmate.
• This paper is not simply developing an investment strategy or investing in a stock but rather developing an investment strategy that is driven by an M&A focus.