This website uses cookies to ensure you have the best experience. Learn more

Deregulation Of Motor Carrier Industry Essay

2192 words - 9 pages

- -Deregulation of the Motor Carrier Industry:A Study of LTL Management Size, Structure, and OrganizationCongress passed the Motor Carrier Act(MCA) of 1980, to introduce greater competitionin the motor carrier industry through significant reductions in entry barriers and price restrictions.While there has been lots of research into the impacts of motor carrier deregulation, little attentionhas been given to the effects of deregulation on management characteristics and structure. Somerecent work, however, looked at changes in size, structure, and organization of railroadmanagement, in response to the resulting deregulation from the passage of the Staggers Rail Actof 1980. That work documented some very specific changes in railroad management, in responseto the new environment. Some of the changes were: a decrease in the size of top executivemanagement teams and greater decentralization of responsibilities; more emphasis placed onmarketing and sales, with less on traditional operations orientation; and more reliance on younger,more educated managers, with less industry experience.Due to the implications of the rail research, there was reason to believe that similarimpacts may have been imposed during the deregulation of the motor carrier industry. To analyzethis effect on motor carrier management characteristics and structure, would be very extensive, soI will focus on the less-than-truckload(LTL) segment of the industry. The LTL segment is anappropriate area because the MCA led to a significant environmental change and upheaval withinthis segment. 1) Before deregulation, the government-sanctioned rate bureaus formed by LTLcarriers, in conjunction with the Interstate Commerce Commissions(ICC) restrictive entry(2)policies, resulted in the absence of effective competition among LTL carriers. Furthermore,LTL, customers, whose shipments ranged from 70 to 10,000 pounds had no feasible alternativesto LTL service. Private carriage was not an option, because many LTL dependent shippers hadshipments that were considered too small and they did not move at regular intervals. The U.S.Postal Service and UPS were not viable competitors, since their shipment size range was toonarrow for the full range of needs required by the LTL. Therefore, the new regulatory regimeprovided LTL carriers with substantial protection from competitive forces.A comprehensive review of the effects of surface freight deregulation confirmed thesignificant impact of deregulation on LTL carriers. This report will examine LTL managementteams, in both the pre- and post- MCA periods, in an attempt to assess changes since theregulatory reform. It will also look at the extent to which management changes influenced theperformance of firms. The highly regulated pre-MCA environment protected carriers fromcompetitive threats by new market entrants, (by virtue of highly restrictive entry policies imposedby the ICC). Furthermore, most pricing decisions were made collectively in rate bureaus...

Find Another Essay On Deregulation of Motor Carrier Industry

The Impact of Taylorism and Fordism on the US Motor Vehicle Industry

2160 words - 9 pages Scientific Management Intro : This paper takes a look at the ways in which the ideas of Fordism and Taylorism helped the success of the U.S motor vehicle industry. The motor vehicle industry has changed the fundamental ideas on the process of manufacturing and probably more expressively on how humans work together to create value. In my essay we will take a look at Frederick Taylors principles of scientific management and his contribution

Discuss The Factors Affecting The Present Day Location Of The Motor Industry

1454 words - 6 pages Discuss The Factors Affecting The Present Day Location Of The Motor Vehicle Industry The global car industry is made up of many transnational companies that trade throughout the world, often locating head offices in one part of the world and having many manufacturers around the globe. There are many factors that lead to the location of the different manufacturing sites, that all contribute to the overall selling price of the finished product


872 words - 4 pages Banks exist all over the world and are usually heavily regulated by the government in order to prevent corruption and to protect the money of the general public. The banking industry is an enormous sector of business and finance that has existed for thousands of years. The banking industry plays a large part in financial dealing and a popular means for investing, borrowing and sorting money. Deregulation is one of the solutions to the problem

Geography & Aviation

977 words - 4 pages from the privatization and deregulation of the airline industry. Since the 1970s, many formerly state-owned carriers, such as Singapore Airlines and Australia's Qantas, have been at least partially privatized, and governments have loosened regulations that once limited the number of airlines on particular routes, the capacity they offered, and the airfares and air cargo rates they levied. Geographers have analyzed the consequences of these

Ryder Systems

1479 words - 6 pages expanded its Full Service Leasing division to include both Canada and Germany. (About) Following its 50th anniversary, Ryder Systems, Inc. continued to grow and expand. The 1980’s began a new era in the trucking industry with the passage of the 1980 Motor Carrier Act. The Motor Carrier Act allowed for the deregulation of rates, opened up transportation routes, and allowed for greater competition within the industry. (Moore) Revenue for the

Southwest Airlines Case Study

1119 words - 4 pages flights would be directed to a central hub city and passengers would either continue their trip on the same plane or transfer to another plane and continue their trip.Major carriers found themselves in a price-cost predicament within five years of the deregulation. The airlines had to decide whether to not match fair and lose customers or match fairs and lose money. This continued through the 1980s.Then in the 1990s carrier bankruptcy and

Fedex Corp. vs. United Parcel Service, Inc

1164 words - 5 pages , but also helped to keep the firm largely free of unions. FedEx’s growth occurred within the context of fundamental change in the business environment. Deregulation of the domestic airline industry permitted larger planes to replace smaller ones, thereby permitting FedEx to purchase several Boeing 727s, which helped reduce its unit costs. Trucking industry deregulation also permitted FedEx to establish an integrated regional trucking system

Strategic Analysis of EasyJet

8135 words - 33 pages \B820_Strategy\TMA\TMA01\TMA01_B820rf.doc Druck: 20.11.13, 22:42 Executive Summary Deregulation has seriously changed the environment and structure of airline industry. Out of STEP analysis I have identified the following ain issues: Deregulation will stimulate competition, but also market growth Lower prices will cause focus on costs Focus on security measures will increase costs There is no need for added values in connection with prestige Analysing

Willis Carrier: The Father of Cool, Inventor of the modern-day Air Conditioner

1303 words - 5 pages and temperatures in printing factories, Willis Carrier made four-line colour printing possible. This lead to further developments in the printing industry. When Willis Carrier formed his own air conditioning company in 1915 (Carrier Corporation), he would have never thought that it would revolutionize the way most of us live today. His company has become the world leader in manufacturing and selling heating, ventilating, and air conditioning

Airline Deregulation: Success or Failure?

1284 words - 5 pages burdened by over-bureaucracy. The CAB also agreed and found that the industry was naturally competitive without government regulation. These decisions led to the Airline Deregulation Act of 1978. With the Airline Deregulation Act of 1978, airlines could finally expand into new routes and markets. They could also further compete in the market by setting their own fares, turning the industry away from a government driven industry into that of a market

Wall Street Journal Article - Amy Chozick, "Discount Airlines Hit Latin America," The Wall Street Journal, June 8, 2005, p. D1 & D12

787 words - 3 pages larger carrier the price is almost double than the discount flight. Consumers will be much more willing to save money and sacrifice a warm meal and plush seats. The second determinant is government regulations. When the discount flights started to increase the government made sure that it charged at least a certain amount. A recent wave of deregulation has helped the prices of some flights cost $20 one way. With prices that low, more and more people

Similar Essays

Deregulation Of The Airline Industry A Complete Study Of The Changing Trends Of The Airline Industry And The Deregulation Affects

2301 words - 9 pages would gain air service and some would lose it. Prices would go up in some markets and down in others. Those predictions proved correct, but by any measure, deregulation has been a success. Lower fares. Measured in a variety of ways, airfares have consistently fallen under deregulation. Some economists have found that fares are 22 percent lower today than they would have been if the industry had stayed under government control. The free market has

Australian Dairy Industry Analysis. Includes The Effect Of Deregulation Of The Industry

2327 words - 9 pages , 1974, 244).In the past few years, deregulation has been highly debated as to whether it has had positive effects or negative influences on the dairy market. The areas listed above will be analysed alongside specific sectors of this analysis which will establish facts and draw conclusions as to whether a deregulated, highly competitive dairy industry is more appropriate than a controlled, secure industry.2 Structure2.1 Size of IndustryThe dairy

Sucesses And Damages Of Mergers In The Motor Industry

1818 words - 8 pages Over the past decade, the motor industry has faced many of mergers between companies in the bid to get more clients and internationalize their market share. The well planned mergers have arguably led to relative success while those that might have omitted some vital factor have had to contend with the pain of getting into damaging losses. A merger happens when two companies decide to combine into one entity or when one company acquires

Regulation Deregulation Of The Transportation Industry

613 words - 3 pages regulations necessary at all? Transportation regulations cannot be viewed alone. Approaches and policies are influenced by a wide variety of factors. These factors include helping the country’s cohesiveness, stimulating the economy, and boosting the commerce. Often, the transportation industry has been a major game player in the development of such regulations. The transportation industry plays a significant part in the economy. The intermediate