...DHL: MORE GLOBAL THAN LOCAL Since the early 1970s, DHL has been the leading (or often only) overnight carrier in many markets around the world. Founded in 1969 by Adrian Dalsey, Larry Hillblom, and Robert Lynn (hence, the D, H, and L) to transport letters of credit across the Pacific, DHL expanded rapidly in Asia and Europe (the early 1970s), the Middle East (1976), Latin America (1977), Africa (1978), Eastern Europe (early 1980s), China (1986), and Albania and the Baltic States (1992). Today, DHL has more than 53,000 employees, 209 aircraft, 2,381 stations, 12,203 vehicles, and 32 hubs and subhubs serving more than 675,000 destinations in 227 countries. In one year, it handles 95 million shipments—not bad for a company approaching its thirtieth birthday! To handle all these shipments, DHL uses a worldwide hub and spoke system. It collects packages, documents, and letters from individual local business offices and sends them to the nearest service center. The service center then sends the parcels to a hub that serves a larger geographic area (such as Australia or the Middle East). There, the items are sorted by destination and shipped to service centers in each country, where they are resorted for the last leg of the journey to a local destination. The Brussels hub is typical. Each night, starting at 10:30 P.M., the first of more than 120,000 documents and packages begin arriving at the hub. As they are unloaded, workers throw them onto $15 million worth of sorting machines...
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...Introduction DHL Worldwide Express headquartered in Bonn, Germany, a privately held worldwide delivery service comprised of DHL Airways and DHL International, is the world’s oldest and largest international air-express company. They begins by operating door-to-door express delivery express, transporting documents only between San Fransisco, California, and Honolulu, Hawaii. DHL was founded by three young shipping executives; Adrian Dalsey, Larry Hillblom, and Robert Lynn who were casting about for a way to increase turnaround speed for ships at ports. On 25 September 1969 they incorporate DHL. In 1998, Deutsche Post began to acquire shares in DHL. It finally reached majority in 2001 and completed the purchase in 2002. Finally, by 2003 this company status is under the business group of Deutsche Post World Net (DPWN) Germany. Deutsche Post then effectively absorbed DHL into its Express division, business units and subsidiaries. Currently they delivering to over 70,000 destinations in 227 countries with 6,500 offices around the world, the company had over 150,000 employees globally. Belgium-based DHL International (DHL), in collaboration with its Chinese partner; Sinotrans which was also known as the China National Foreign Trade Transportation (Group) Corporation, launched an international express service, in China. Its core business was transporting documents and packages, which was a door-to-door delivery service particularly targeting parcels and freight items. The service...
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...Thinking Globally – DHL Case Study 1. It is universally assumed in today’s business world that speed is good and desirable. This assumption is strongly connected to concept of the first mover advantage. The company that leads the way into a new market as a first mover has definitely some important top-line benefits and competitive advantages that might ensure superior sales and profits on a long-term perspective. Furthermore, first movers tend to create a large and lasting impression on customers and develop strong brand recognition (Boulding & Christen, 2001). On the one side, services are generally characterized as being higher in experience and credence qualities than products, which increases the risk in their purchase. Therefore, customers rely more on word of mouth rather than advertising. While customers that purchase goods get something tangible in exchange of their money, service purchases do usually not result in ownership of something physical. Because of that intangibility, services do generally not attract customer’s attention that easily and the appreciation of the services is harder to evaluate for the customer than in the case of purchasing goods (Kotler & Keller, 2012). For that reason, I would argue that service companies have a lesser advantage of being the first mover in a market compared to manufacturing companies, since the customer appreciation of purchasing goods is easier than in the case of purchasing services. This makes services generally less recognizable...
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...Dhl Financial Case Analysis CHAPTER 1 - COMPANY DESCRIPTION NATURE OF ORGANIZATION’S BUSINESS DHL global delivery network is known as the “undisputed international market leader of international express and logistic industry globally, with almost 45% of the total market”, (DHL Company Overview, n.d. para 1). DHL is over 34 years old and is known for its focus on product quality, achieved thorough a technical and meticulous quality control system that offers customers new ways of transporting solutions for customers. DHL has system in place that integrates quality control, efficient customer services, and robust transportation systems to ensure that the global transportation and delivery service reaches the customer is of the highest standard. The marketing challenge for the company is to position its product and services as a high-quality, high value alternative to other transportation and international express and logistic brands that exists. Figure #1 below outlines the process and highlights the major activities at each stage. Figure 1: Overview of DHL Service delivery’s Production Process [pic] DHL has the largest logistics and infrastructure of any international express delivery company in the market. Essentially – they dominate the market. Their customer base has spanned over thirty million (30,000,000) customers annually and the service lines span over 220 direct destinations via direct service over thirty-two (32) continents. DHL has...
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...DESCRIPTION NATURE OF ORGANIZATION’S BUSINESS DHL global delivery network is known as the “undisputed international market leader of international express and logistic industry globally, with almost 45% of the total market”, (DHL Company Overview, n.d. para 1). DHL is over 34 years old and is known for its focus on product quality, achieved thorough a technical and meticulous quality control system that offers customers new ways of transporting solutions for customers. DHL has system in place that integrates quality control, efficient customer services, and robust transportation systems to ensure that the global transportation and delivery service reaches the customer is of the highest standard. The marketing challenge for the company is to position its product and services as a high-quality, high value alternative to other transportation and international express and logistic brands that exists. Figure #1 below outlines the process and highlights the major activities at each stage. Figure 1: Overview of DHL Service delivery’s Production Process [pic] DHL has the largest logistics and infrastructure of any international express delivery company in the market. Essentially – they dominate the market. Their customer base has spanned over thirty million (30,000,000) customers annually and the service lines span over 220 direct destinations via direct service over thirty-two (32) continents. DHL has some unique product and service lines – that allow...
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...Master TEW International Business cases - Van Hoof Q 186 uickprinter Koningstraat 13 2000 Antwerpen www.quickprinter.be 2.90 EUR International Business: Cases Case 1: Whirlpool Whirlpool’s Dramatic Turnaround through Internationalization Whirlpool exemplifies how internationalization can rejuvenate declining sales and optimize cost structures. Background Headquartered in Benton Harbor, Michigan, Whirlpool Corporation makes washers, dryers, refrigerators, dishwashers, freezers, and microwave ovens in 13 countries and sells them in 170 others, under brands names such as Whirlpool, Maytag, Magic Chef, Jenn Air, Amana, KitchenAid, Kenmore, Brastemp, and Bauknecht. In 2006, Whirlpool acquired competitor Maytag (horizontal integration) and its brands (Amana, Jenn Air, Magic Chef, and Maytag). Whirlpool generated over $19 billion in 2006 annual sales: 60 percent from North America, 25 percent from Europe, 15 percent from Latin America, and 2 percent from Asia. Operate with 60 manufacturing and technology centers worldwide and 80,000 employees. International Expansion Domestically: (1) The U.S. appliance market matured in the 1990s, and Whirlpool faced low profit margins, intense competition, and more demanding buyers, pressuring management to consider international markets. Internationally: (1) Trade barriers fell, consumer affluence grew, and capitalism flourished. (2) A “global” approach would yield economies of scale in manufacturing, assembly, appliance technology...
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...Introduction The world is standing at the threshold of a new millennium. We expect it to be full of successes, discoveries, developments and happiness and this will be possible due to globalization, technological advancements (changes) and the dramatic economic changes. Whenever we talk about economy, we mean financial performance of a country, company or a firm. So in this case the most used and the important term is technology. The term technology is the most crucial part of the business world as it helps us to give logistic supports on time. Origin of the report The report titled as, “Marketing Activities of DHL”, is to be submitted on 18th August 2008 to the course instructor Nazia Nabi (Lecturer, School of Business) who authorized and assigned us to do this report. Background of the report The report titled as, “Marketing Activities of DHL”, is originated from the partial requirement of the course Services Marketing. It is actually a joint student – faculty learning experience, where the students learn the Marketing Activities of several business service organizations or firms. Objective of the report This report seeks overall information about marketing activities. By this report we tried to represent the actual relevant use of marketing activities in business. Basically there are two objectives behind doing this report, and they are as follows: * The first and the foremost objective of the report is to fulfill the partial requirement of the course Services...
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...ecological trends suggest a strategy which combines different transportation modes in a smart way. Intermodal transportation by DHL Freight bundles competences to provide the very best transportation solutions for your shipments. The DHL INTERMODAL organisation combines various different modes of transport – known as modalities – to get your shipment from A to B in the most efficient manner. Intermodal concept. Our concept creates value using several modes of transportation at different points of the journey to provide customerfriendly all-in-one solutions from a single source. Intermodal transport solutions for long distances. A strategy for future’s demands. One single loading unit. The shipment is loaded onto one single loading unit, where it remains throughout each stage of its journey. This unit can be a container, a swap-body or semi-trailer. Safe and secure. The loading unit itself is compatible with all modalities, ensuring the safe and secure packaging of your goods throughout the journey. Leave it up to us to decide the best way to transport your valuable shipments and to bring them to their final destination on time. DHL INTERMODAL CREATING THE IDEAL COMBINATION OF MODES Product Portfolio DHL Freight DHL Intermodal Intermodal transportation concentrates high payloads into loading units compatible with the various modalities. DHL plans the most efficient route for your shipment, taking environmental and financial aspects into account. Environmentally...
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...Adrain Dalsey, Larry Hillbom and Robert Lynn founded DHL in 1969 for shipping bill of lading between San Francisco and Honolulu. The company grew quickly due to the high need for the documents to reach destination before sea containers arrive to expedite clearance process and in few years initiated service to Philippines, Japan, Singapore, Hong-Kong and Australia, in which by this DHL created international express door-to-door service in the Pacific Basin. Expansion continued as the company initiated service to Europe in 1974, Middle East in 1976, Latin America in 1977, Africa in 1978 also DHL was the first to bring the express air service to the Eastern community countries in 1983 and to China in 1986. DHL added express parcel delivery in 1979 as before this it was only for document business. In 2002 DHL became a fully owned subsidiary of Deutsche Post, which has a history going back to 1490. In 2003 rebranding started and for the strong brand of DHL worldwide, the group choose the name of DPDHL to brand its four divisions (Express; Global Forwarding, Freight; Supply Chain; Mail). DHL now reaches 120,000 destinations in 225 countries, total facilities amounting to 4,700, 72,000 vehicles; 285,000 employees, a base of 4.2 million customers, moving 1.8 billion shipments annually and 66 billion € yearly revenue for the whole group. With its ‘2015’ strategy, DP-DHL aims to be the provider, employer and investment of choice. DHL Express (DHLE) division simplified these goals to...
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...logistics corporation, DHL has a diversified pricing strategy, which based on the branches and subsidiaries in each market. Normally, the director of each nations’ SBUs decide their price, for example, according to the price data published by DHL 2014, their price for EU is €3.95 for the first kilo, while the price for international rise to €4.50, in compare with its competitors such as FedEx, UPS, DHL’s price level is about 20%~40% higher. However, they are all based on a standard covers the nature of service rendered, weight and destinations. Beyond the ordinary services, customers could also choose to add insurances to cargos. There are some pricing challenges confront DHL: - Increasingly cost pressures The country manager has power in independent pricing in different districts, thus price is higher than those of his competitors for about 20-40%. What’s more, Sales leader have a greater flexibility of pricing negotiation while managers only give a general guidance. Managers little participation also leads to higher possibility of cost problem. Global network operating is one of the basic features of Global Express business. Therefore its profit centers is not the individual profit centers in their respective districts or national institutions. It should not take the decentralization of the price system, which will make the cost of operation higher. - Increasingly competitive pressure Global Express industry is a typical oligopolistic market structure. DHL as a leader of...
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...Entry Strategies for MNEs in China: The Case of Danone and DHL International Business Winter 2014/2015 Table of contents 1. Introduction 3 1.1. FDIs and Entry in China 3 1.2. Research Contribution 3 1.3. Research Method 3 2. Literature review 4 2.1. FDIs 4 2.2. Macro Environment 5 2.3. Timing of entry 6 3. Discussion 6 3.1. Introduction of Cases 6 3.2. Motives of Entering China 7 3.3. Joint Venture in China 8 4. Conclusion 9 4.1. Implications 9 4.2. Limitations 9 4.3. Research Outlook 9 5. References 9 1. Introduction 2.1. FDIs and Entry in China How should MNEs enter China? MNEs are usually presented with multiple entry choices, namely export, licensing agreements, franchising and FDIs. While each mode presents advantages and disadvantages, FDIs cause MNEs to make direct investments and be directly present in foreign countries, as opposed to indirect investments and presence through other modes of entry, hence the name “foreign direct investment”. But with direct presence in a foreign country MNEs are subject to both formal and informal institutions, and those institutions will directly influence a company’s decisions and it’s mode of entry (Ingram, Silverman 2002). MNEs have to decide whether to go as a first or late mover and due to what kind of motivation they decide to do FDIs in China. In countries with a weak institutional framework, Meyer et al. (2009) find that MNEs should choose the Joint Venture...
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...With these developments, it is obvious that conflicts between parties of different nationalities occur and liability to tax on income of foreigners especially among those engaging in trading venture. Whilst the laws affecting domicile and residence may be sufficiently settled, it is paramount for courts to pursue a detailed analysis to ascertain specific preliminary issues so as to avoid controversial rulings. Courts often handle numerous financial cases that involve what can be best described as foreign or international elements. In such cases, court must decide whether it has the jurisdiction under the Family Law Act 1975 to make a decision on such cases. In the event that it is determined that the court is invested with the jurisdiction to determine the case, the court has to consider whether there is a system of law in foreign country that also has the jurisdiction to handle the case. As it was addressed in the case Attorney General of New Zealand v Ortiz [1984] AC 1, these benefits and costs to either party if the case resolution is made in foreign country as compared with the apparent country should also be a subject of concern. [1] Legal systems in most countries around the world adopt community property regime, which takes effect at the inception of marriage or at the time of divorce. For instance, California and Massachusetts in the United States have adopted community property regimes that support equal division of assets upon divorce. However, this provision...
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...Adapted from Bernhardt & Kinnear (1988). Cases in marketing management, pp. 6-16. Plano, TX: Business Publications, Inc. Pay careful attention to the following points. They are often used by instructors to evaluate either a written or oral analysis. 1. Be complete. Each area of the situation analysis must be discussed, problems and opportunities identified, alternative presented and evaluated using the situation analysis and relevant financial analysis, and a decision must be made. An analysis that omits part of the situation analysis or only recognizes one alternative is not a good analysis. Second, each area must be covered in-depth and within insight. 2. Avoid rehashing case facts. Every case has a lot of factual information. A good analysis uses facts that are relevant to the situation at hand to make summary points of analysis. A poor analysis just restates or rehashes theses facts without making relevant summary comments. 3. Make reasonable assumptions. Every case is incomplete in terms of some piece of information that you would like to have. A good case analysis must make realistic assumptions to fill in the gaps of information in the case. For example, the case may not describe the purchase decision process for the product of interest. A poor analysis would either omit mentioning this or just state that no information is available. A good analysis would attempt to present this purchase decision process by classifying the product and drawing upon real life...
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...are given. It is understandable then that we should seek out more opportunities to apply our skills and make more positive impacts within our jurisdictions. It is this general attitude that led us to get involved in investigating cold cases. How We Got Started Mark had, for several years, been consulting with our Coroner’s Division as a forensic anthropologist. During this time he came to learn that there were numerous coroners’ cases in which the identity of the decedent was unknown. These cases were kept in three-ring binders on a shelf in the Sergeant’s office. Over the years, in the course of this forensic work, we would discuss these cases and the progress that was being made on them. The conversation usually ran along the lines of us asking “any luck with that 1980 homicide victim?” and the sergeant answering “well, we’ve gotten so many new cases that I haven’t been able to even look at it yet.” This went on for a few years and through two different sergeants. One day we, as a crime analysis unit, were brainstorming about how we could broaden our “client base”, as it were. We had been successful in integrating ourselves into our Investigations Bureau and had been involved in numerous major cases. And, of course, we had always been active in producing tactical and strategic analyses for our patrol personnel. But we knew that we could be doing more, particularly given the size and responsibilities of our agency. It was during...
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...BUSINESS CASE Presented to the Accountancy Department De La Salle University In partial fulfillment Of the course requirements In ACCTBA2 (C33) March 2, 2015 A stakeholder is typically concerned with an organization delivering intended results and meeting its financial objectives. In general, a stakeholder can be one of two types: internal (from within an organization) or external (outside of an organization). The stakeholders in this situation are Lanie Marquez and Tim Rodriguez who are also partners in the retail distribution business and their capital contributions are as follows P500,000 and P300,000 respectively they are an internal stakeholder since they are also the owners. The total Capital of both stakeholders is P800,000 and with a monthly salary for both partners at P15,000 on the assumption that both of them will contribute to manage the business equally. Assuming that both managed the business equally the total salary for the year for Lanie and Tim are P180,000 each. They share profit and loss equally and no interest will be given on capital contributed. The problem for this situation is that Lanie is starting to get concerned with the behavior of her other partner Tim. He only manages the business 50% of the time, which will mean that his salary of P15,000 will need to decrease by also 50% since he does not manage the business equally with his partner. The business has seen a downturn in the profit outcome and for the current financial...
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