Driving change through values and culture
An Enterprise Rent-A-Car case study

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Page 2: Drivers for change

Enterprise Rent A Car 20 5A business needs to be able to respond flexibly and creatively to the changing internal and external environments in which it operates. These are referred to as drivers for change.

External drivers can be political, economic, social and technological as well as environmental factors.

Internal drivers can be:

Change of leadership or owners of the business

  • Business performance
  • Growth – organic or through acquisition
  • One of the ways a business can grow is to acquire another business. An acquisition is where one business takes over another.

There are many reasons a company may acquire another business:

  • Diversification – this is when a business branches out into new products or markets
  • To reduce competition – acquiring a business that operates in the same markets can help reduce the number of competitors
  • To extend the market – expanding the business geographically by starting to trade in international markets
  • Increase economies of scale – by expanding its scale, for example of production, a business can reduce costs in the long term which gives it a competitive advantage  

For Enterprise, the acquisition of Burnt Tree Vehicle Rental was part of its overall growth strategy. A key strategic aim in the Enterprise journey is “to become the UK and Ireland’s principal mobility provider.

Up until this acquisition, Enterprise UK and Ireland had grown organically through the expansion of the business across the UK. It was not simply about increasing the breadth of vehicles and services that Enterprise could provide to its customers, but creating value through a combination of unique offerings from each company. Following the acquisition, Enterprise stated:

We could immediately see the potential of Burnt Tree to give our customers access to skills and services that are particularly suited to the needs of commercial vehicle customers. Burnt Tree has some unique expertise that it can bring to Enterprise and it will also benefit from becoming part of a truly global organisation. The combined business post-acquisition will be far stronger with greater economies of scale and better technology, while the transfer of knowledge will allow us to better serve our customers”, Enterprise stated following the acquisition.

The acquisition of Burnt Tree was also seen as an opportunity for employees to benefit both personally and professionally from the newly formed business.

Enterprise Rent-A-Car | Driving change through values and culture