Roda King Trucks Case

1) How much importance should be given to the energy cost situation?

The company is considering an expansion of its current product line to include transit buses. Mr. Livingston feels that due to high gasoline prices, commuters will be more willing to consider using mass transit instead of using their cars to commute to work. Rising fuel prices change how Americans use public transportation systems. Our current energy cost situation weighs heavily on all aspects of life and business. If we examine our economy has a whole, jobs are down while the current cost of fuel is up and seems to be continuing in that direction. The global oil market is incredibly volatile. Unpredictable events like political unrest and natural disasters can spike the price of a barrel, translating into higher gasoline prices. Investment criteria that includes fuel savings when judging plans, programs and projects, holds true in the usage of public transportation. Consumers deserve more vehicle and mobility choices and public transportation gives us an option to seek. It brings and fulfills a desired need to provide affordable options. According to the American Public Transportation Association, finds that $4 per-gallon gas prices could result in an additional 670 million public transit passenger trips. If pump prices jump to $5 a gallon, the report predicts an additional 1.5 billion passenger trips can be expected. This would provide a much greater need for Americans to seek other transportation options, thus providing an importance for the energy cost situation to be thoroughly examined and factored into all of our options.