High speed rail also has the potential to play a central role in promoting long-term and sustainable economic growth. New high speed links would enable the UK’s key urban economies to improve their productivity, attract new business, and access more directly the economic strength of London and the South East. The first phase alone of a national network would support the creation of more than 40,000 jobs and contribute to major regeneration programs in Britain’s inner cities. The importance of high speed trains has been the subject of discussions in many places and its appropriateness enlightened.
ELPC give details the significance of the efficiency of high speed trains in terms of energy. Accordingly, rail travel will decrease dependence of foreign oil and consequently takes care of the environment. Walsh (2010) point to the speech of Pres Obama creating a high speed rail system in the US for economic productivity, green job creation and reduction of carbon emissions. Amanda (2009) compared the speed and technology of EU and US trains wherein EU trains travels at 200 km/h faster than 145 m/h of US.
High speed rails are found in Europe, China and Japan. This transportation becomes significant to China and Japan, and as shown, China owns the world’s largest high speed rail network. The Macro-Environment Scan For the past year, the government-backed company High Speed Two has been working on the above plans to develop a new high-speed rail network, initially between London and Birmingham. But before embarking on this plan, there are marketing issues to be considered in order to make decisions, there is a need to plan ahead and to understand the macro environment in which the company will operate.
In mapping out the macro-environment, the model of analysis to be used is the PESTLE and Porter’s Competitive Analysis. Pestle Analysis A PESTLE analysis provides the information that will make the company understand the big picture of the environment it is operating. In understanding the external environment the company will operate, a PESTLE becomes a useful tool for knowing the risks associated with the need for the railway system. This tool will provide the company a potential direction in its long range plan.
Key research in PESTLE analysis consists of political, economic, social, technological, legal and environment factors (Gillespie Foundation of Economics, n.d. ). Each key item research is presented in the following discussions.