Case Study:P & O Ferries Controversies
P & O Ferries is one of the UK’s leading ferry operators, carrying more than 10
million passengers a year before the pandemic and about 15% of all freight
cargo in and out of the UK.
In 2019, the company was acquired by DP World, the multi–national ports and
logistics company based in Dubai. It sparked outrage recently after sacking 800 staff
with plans to replace them with cheaper agency workers. However, P & O Ferries
paid a £270m dividend to shareholders in 2020.
As a shipping company it is registered in other countries and operates routes from
UK ports to Europe. P & O Ferries can pay below the minimum wage because they
are exempt from UK employment law. Peter Hebblethwaite told MPs: “On the routes
that are international routes, that are governed by ITF (International Transport
Workers’ Federation) standards, we are paying above ITF minimum wages”
(Sparrow, 2022).
With regards to the above case study, select any two drivers for change discussed in the module materials, critically evaluate P & O Ferries business environment, how P & O Ferries are currently impacting upon strategic decision–making and other activities (commercial or operational) of P & O Ferries, and assess the ethical implication on the company’s business operations as a result.
Students would be expected to drivers of change discussed in the module lessons are globalisation, sustainability, ethics, corporate social responsibility, innovation, social change, changing stakeholder needs and corporate leadership and demographic change.
Your discussion should include:
With suitable sources of information, what are the drivers of change that might have informed P & O Ferries strategic decision making. (30 marks)
Evaluate the implications of such strategic decision on P & O Ferries commercial and operations going forward. (25 marks)
Suggest alternative avenues they could have explored considering the nature of the pressures for change/drivers of change. (25 marks)
Make relevant recommendations that recognises ethical and sustainability considerations for the company. (20 marks)
