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    TRANSPORT IN BUSINESS PLANNING Tabu2

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    mugenyi Dixon
    This document discusses different modes of transport used in business planning including road, railway, water, air, and pipeline transport. It describes the key characteristics of each mode and factors to consider when choosing a mode such as availability, cost, nature of goods, size and distance of load, value and urgency of goods, and flexibility. Finally, it outlines the importance of transport in business planning by bridging producers and customers, facilitating material and employee movement, linking entrepreneurs to markets, availing variety to customers, exploiting new resources, and facilitating communication.

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    TRANSPORT IN BUSINESS PLANNING Tabu2

    Uploaded by

    mugenyi Dixon
    10 views3 pages
    This document discusses different modes of transport used in business planning including road, railway, water, air, and pipeline transport. It describes the key characteristics of each mode and factors to consider when choosing a mode such as availability, cost, nature of goods, size and distance of load, value and urgency of goods, and flexibility. Finally, it outlines the importance of transport in business planning by bridging producers and customers, facilitating material and employee movement, linking entrepreneurs to markets, availing variety to customers, exploiting new resources, and facilitating communication.

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    transportation notes

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    TRANSPORT IN BUSINESS PLANNING tabu2[1]

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    This document discusses different modes of transport used in business planning including road, railway, water, air, and pipeline transport. It describes the key characteristics of each mode and factors to consider when choosing a mode such as availability, cost, nature of goods, size and distance of load, value and urgency of goods, and flexibility. Finally, it outlines the importance of transport in business planning by bridging producers and customers, facilitating material and employee movement, linking entrepreneurs to markets, availing variety to customers, exploiting new resources, and facilitating communication.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    10 views3 pages

    TRANSPORT IN BUSINESS PLANNING Tabu2

    Uploaded by

    mugenyi Dixon
    This document discusses different modes of transport used in business planning including road, railway, water, air, and pipeline transport. It describes the key characteristics of each mode and factors to consider when choosing a mode such as availability, cost, nature of goods, size and distance of load, value and urgency of goods, and flexibility. Finally, it outlines the importance of transport in business planning by bridging producers and customers, facilitating material and employee movement, linking entrepreneurs to markets, availing variety to customers, exploiting new resources, and facilitating communication.

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    TRANSPORT IN BUSINESS PLANNING

    Transport refers to the physical movement of people on goods from one place to
    another.

    TYPES / MODES OF TRANSPORT USED BY DIFFERENT BUSINESS

    (a) Road transport


    It consists of Lorries, pickups, cars, wheelbarrows (carts), buses, motorcycles,
    bicycles, etc that move on roads.
    (b) Railway transport
    It involves the use of a train and basically carries bulky goods.

    (c) Water transport


    It deals with the movement of goods over water bodies like rivers, lakes and
    oceans. Water vessels include; canoes, boats, ships, oil tanks, ferries, etc.
    Water transport is mainly used to transport bulky goods between continents as
    well as in countries that have large inland water bodies and rivers.
    (d) Air transport
    It involves the use of air crafts to carry passengers from one place to another. It
    is a fast, convenient and comfortable mode of transport. This mode of transport
    is very expensive and is normally used for transporting goods of high value,
    those that are light and perishables and also urgently needed goods like drugs,
    flowers, newspapers, etc.
    (e) Pipeline transport
    Pipelines are used to carry liquid and gaseous. Products like fuel, water and
    gas from one place to another.
    FACTORS TO CONSIDER WHEN CHOOSING A MODE OF TRANSPORT
    1. Availability and safety of the mode.
    An entrepreneur should choose a mode of transport that is easily available, to
    be used whenever need arises. The mode chosen should also be safe for
    transporting the goods.
    2. Cost of transport
    The cost of transport should be relatively cheap compared to the value of goods
    to be carried to avoid the goods becoming too expensive.

    3. Nature of goods
    Perishable and urgently needed goods require a fast means of transport. In
    such cases, a faster means of transport e.g. road or air would be preferable.
    4. Size of load
    Bulky goods may be transported by rail and lorries. If the goods are crossing
    continents and oceans, water transport would be used. If the goods are light,
    they could be transported by Air or road.
    5. Distance to cover
    Long distances can easily be covered by rail or air while roads would be
    preferable for short distances.
    6. Value of goods
    Valuable goods like precious minerals (gold, diamond and mercury),
    computers, watches, televisions, etc. may be transported easily by Air.
    7. Flexibility
    If the goods are to be sold en-route, road transport would be the most
    preferable means because it is entirely controllable by the entrepreneur e.g.
    bakeries, milk dealers, matooke, etc.
    8. Speed and urgency
    When goods are required urgently, a fast mode like air transport is preferable.
    IMPORTANCE OF TRANSPORT IN PLANNING A BUSINESS
    1. Transport bridges the gap between a producer and a customer. It brings
    goods produced to customers.
    2. It facilitates the movement of raw materials from their sources to
    manufacturing firms for processing into finished or semi-finished goods
    with an added value.
    3. It helps to transport employees to their place of work in time.
    4. It helps in moving goods from areas of plenty to areas of scarcity thereby
    eliminating “black markets” and overcharging by ensuring that goods
    needed by customers are available.
    5. Transport links entrepreneurs to markets wherever they may be.
    6. Movement of goods from various places avails customers with a choice
    and variety. This can create customer loyalty due to ability to purchase
    all he/she needs at one-stopping / shop.
    7. With good transport system, entrepreneurs are able to get rid of surplus
    stocks of areas with high demand for it.
    8. Transport also encourages development of enterprises anywhere since
    entrepreneurs are motivated to locate their ventures in areas with good
    transport system.
    9. It makes it easy to exploit new and distant resources.
    10. It facilities communication e.g. movement of letters

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