Friday, 13 October 2017

Reader Response Draft 3



In the article, “Dubbed ‘the best in class’: 6 things about Hong Kong’s MTR rail system,” Khaw (as quoted in Lee, 2015) claims that Hong Kong’s Mass Transit Railway (MTR) is considered the best railway operator in the industry, and it is being used as a benchmark for railway operators from other countries. Lee states that Hong Kong’s government allows private companies to operate public utilities, allowing for MTR to be one of the world’s most profitable rail systems. Lee mentions that the MTR has more than 100 stations, carrying millions of passengers daily and stretching over 200km. He also comments that the MTR is very consistent in the frequency of train arrival times. Lee implies that the reason why MTR’s operations are running smoothly is because of spending more than one third of MTR Corporation’s (MTRC) revenue on maintenance, and it has a large workforce to maintain the railway system. Lee remarks that MTRC has an efficient communication system in place to relay critical information to all its stations when a problem arises. With the commendations of MTRC’s operations, it is good practice for organisations to benchmark their performance against other corporations that are successful in their business model.

Benchmarking allows for an organisation to evaluate on the success of their operations and business model to identify areas to improve on. By doing so, the organisation will be able to keep up with upcoming trends in the industry, closing the gap between the services the organisation provides and what the customer wants, which results in attaining the capability to meet the demands of its consumers. Recently in Singapore, there have been numerous disruptions in Singapore Mass Rapid Transit (SMRT)’s railway services, causing delays that could exceed an hour in the commuters’ travel time. Whereas MTRC have perpetually provided an “on-time rate of 99.9%” that delays commuters’ travel time by at least 5 minutes, according to Lee (2015). Passengers do not want to be set back by the railway operators and MTRC minimises its delays, providing a service closer to the needs of its consumers.

Another benefit to benchmarking is that it also analyses the performance of competitors in the same industry, which gives the organisation a competitive edge over its competitors. Having competitors in the same industry serves as an incentive for an organisation to differentiate itself from others, inducing a competitive environment where the different organisations will have to continuously upgrade themselves. As MTRC is a private listed company, it has to provide better services as opposed to its competitors according to TLS (2015). However, being a public listed company, SMRT holds monopoly in the railway operations in Singapore and will focus on maximising on its revenue to keep the interest of its stakeholders as mentioned by TLS (2015). As there are no private listed companies competing against SMRT, there is little incentive for it to better services for its consumers. Rather, SMRT’s main objective is just to meet the customers’ needs.

In conclusion, benchmarking can help any organisation in improving their performance by conducting an analysis of its own business model against its competitors. SMRT can conduct a benchmarking exercise to identify the strengths of MTRC, that contributes to MTRC’s success. Doing so will definitely aid in bettering SMRT’s services and maximising its revenue.
References:

How does our MRT compare with the subways of other cities. (n.d.). National Library Education & Outreach. Retrieved, September 27, 2017 from

Lee, M.K. Dubbed ‘the best in class’: 6 things about Hong Kong’s MTR rail system. (2015, October 29). The Straits Times. Retrieved, September 26, 2017 from

Li, X.Y. HK rail’s ‘always improving’ ethos. (2015, October 25). The Straits Times. Retrieved, September 26, 2017 from

Nayab, N. Pros and cons of benchmarking. (2010, August 14). Bright Hub. Retrieved, October 1, 2017 from

Why HK’s MTR system more reliable as compared with SMRT?. (2015, July 14). The Local Society. Retrieved, September 26, 2017 from

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