Summary:
This article explains how the UK introduces a new eco-friendly luxury car hand wash in Glasglow. This new car washing system was designed to attract customers by boasting about its new technology compared to the old car washing method where an automated brush is used. The new method is also better because it says it recycles and retains the traffic film, and helps better protect the surface from acid rain. Since its environmental friendly, the new system includes a filter system to cleanse the used water left over from the car wash, which removes contaminants from the water. The filtered out and unwanted waste is removed safely. It also reuses 75% of its water.
Connection:
The article is connected to transaction analysis because when the company makes money by washing a customers car it’s an operating activity. Since this company focuses on doing car washes by hand, it must pay wages to the multiple employees that works there, which is also considered an operating acitivity. Some of the financial activities for this company could be to pay the water bill, electricity used for the filter system that’s used to clean the water and possibly loaning money from the bank for new investments. The cash that the company earns is recorded into the cash flow statements.
Response:
I think that this new method could turn out to be a great success to the company if they could lower the costs of their services. Sure the new system may be eco-friendly, but a lot of people care more about saving money than the environment. So if management gets around the idea of lowering costs, they could most likely earn more proft and increase environmental awareness. If I were to give suggestions to a company using this car wash method, I would recommend them to charge less, but still earn some profit. By doing this, it would be more appealing to consumers which would increase the demand for the company’s services.
