...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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...major benefit of using the company is its ability to provide “day-certain” service to every business address in the US and Canada, as well as provide “time-certain” delivery to those areas within one to three business days. The company was founded in 1973 by Frederick W. Smith, whose vision was to provide overnight delivery services for his clients. The company is divided into eight major divisions: [pic] The mission of FedEx is to provide superior financial returns for shareowners by providing high value-added supply chain, transportation, business and related information services through focused operating companies. Customer needs will be met in the highest quality manner appropriate to each market segment served. FedEx strives to develop gratifying relationships with its employees, partners and suppliers. Safety will be the first consideration in all operations and all activities will be conducted to the highest ethical and professional standards (FedEx Corporation – Financial and Strategic Analysis Review, 2011). FedEx’s vision is a world where goods and information move quickly and seamlessly. The company’s goal is to connect the world in such a way that consumers will view them as a provider of convenient, reliable, trustworthy and fast service. The FedEx corporation strategy focuses on three levels: • Compete collectively – standing as one brand with one voice • Operate independently – focusing on different market segment networks to...
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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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...FedEx Express Segment, FedEx Ground Segment, FedEx Freight Segment and FedEx Services Segment. The FedEx Express Segment includes two companies which are FedEx Express and FedEx Trade Networks. In the FedEx Ground Segment includes FedEx Ground and FedEx SmartPost, For FedEx Freight Segment consists of FedEx Freight, FedEx Custom Critical and Caribbean Transportation Services. As for FedEx Services Segment comprise of FedEx Services, FedEx Office, FedEx Customer Information Services as well as FedEx Global Supply Chain Services. FedEx has experience tremendous success domestically and internationally since it began operations, however FedEx is still does not has the main market share in both markets as UPS dominates the ground delivery and DHL dominates the international express delivery. So in this paper, we will be answering three questions regarding FedEx’s methods of expansion, reasons for its global operations problems, SWOT considerations, competitive landscape and recommendations to encroach upon the two competitors. 2.0 QUESTION 1 Evaluate the methods used by FedEx to grow domestically and internationally. Why do you think that the company initially had problems in its global operations? 2.1 Evaluate the methods used by FedEx to grow domestically and internationally Before FedEx has its tremendous successes, they have adopted various alternatives to grow in the domestic market and expand into international market. FedEx had used few methods to grow domestically...
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...Assignment Front Sheet Qualification Unit number and title Pearson BTEC Level 7 Diploma in Strategic Management and Leadership (QCF) Unit 14: Strategic Supply Chain Management and Logistics Unit Code: D/602/2357 Student name Assessor name Date issued Completion date Submitted on Assignment title Word Count Hand-in Policy You must complete this assignment on time. If you experience difficulties, you must inform your tutor accordingly. Late Work Policy Consideration will be given to students who have valid reasons for late submission (e.g. illness) Plagiarism In case of plagiarism, college regulations will be applied. You must declare that this work is your own by signing the following statement: Learner declaration I certify that the work submitted for this assignment is my own and research sources are fully acknowledged. Student signature: Date: Assessment Criteria Learning Outcome LO1 LO2 LO3 Learning Outcome Understand the relationship between supply chain management (SCM) and organisational business objectives Be able to use information technology to optimise supplier relationships in an organisation Understand the role of information technology in supply chain management Assess ment Criteria 1.1 1.2 1.3 2.1 2.2 2.3 3.1 3.2 3.3 LO4 Understand the role of logistics and procurement in supply chain management 4.1 4.2 4.3 5.1 LO5 Be able to plan...
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...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 Marketing. * The second objective of the report is to understand the marketing activities of a business organization. Benefit of the report The best part of this report is that the students get the opportunity to visualize the scenario of the marketing impact of the company through the analysis. It...
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...Zimpost owns all the post offices in Zimbabwe. That is where postage stamps are sold. Parcels are sent and delivered by Zimpost. It delivers mail and parcels in the country and globally. Various types of parcels and mail are sent. Zimpost has entered into a partnership with DHL. DHL is an international company that delivers mail and parcel across the entire globe. In Zimbabwe, DHL has very limited facilities. It does not have huge offices and other premises. It does not have many delivering vehicles in the country. As a result, DHL entered in cooperation with Zimpost, which has a lot of facilities in the country. On the contrary, DHL has got cargoes to deliver parcels across the globe. On the other hand Zimpost does not have cargo flights to carry mail around the globe. In their partnership these two companies are using cooperative strategy. This is a form of strategic alliance between these two countries. The main reason for the alliance has been to make use of their technology to reach a wide market. In Zimbabwe, DHL gives all its parcels and mail to Zimpost. Zimpost delivers these inside Zimbabwe only. On the other hand for all the parcels that get out of Zimbabwe, Zimpost gives the parcels to DHL. DHL delivers the parcels across the globe. Zimpost has no capacity to deliver outside the country. This...
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...Introduction Today’s companies are confronted with rapidly changing business environments and a seemingly ever-increasing complexity. The current financial and economic crisis is just one – albeit a very significant one – driver of change. All business fields − and the logistics industry in particular − will be affected by those developments. More than ever, companies need to be ready to adapt to shifting situations. As being part of one of the largest logistic company in the industry, we have got a chance to an in depth study of logistic business and DHL. Literature Review: Logistics in the year 2020 The increase of Internet commerce, the individualization of products, and the development of new markets promise large growth potential. At the same time, logistics companies will face enormous challenges. They can only overcome them by intensively investing in the development of new transport routes and introducing a new degree of flexibility into their operations (Mark G, 2008). Logistics companies will profit immediately from the transformation of global conditions and customer behavior. The first benefit will come in the form of rising transport volumes. Some of the expected changes are as follows: 1.1 Focus: New Scopes of Responsibilities By the year 2020, the logistics industry will have massively expanded its number of corporate and private clients thanks to extensive investments in research and development. The value chain will have been constantly lengthened...
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...Airborne Express Case Q&A Info other than Case * Airborne Express is acquired by DHL in 2003 * DHL retained ownership of Airborne's ground operations and spun off its air operations as ABX Air, Inc. * Currently DHL is the number 1 delivery service company.(2nd is Fed Ex and 3rd is Blue Dart) Airborne Express Case Q&A 1. Consider the structure of the Express Mail industry in the US and how it has evolved. Why has it evolved this way? 2nd heading is about Express Mail Industry in US (in case study given) * In 1996 shipments was $16-17b Company. * Quick on-time physical delivery was coming * Use of technology was changing the game like routing * Tracking of shipment was a new service offered * Customer service was improving 2. What is Airborne’s strategy? How has it positioned itself in the industry? How is it different from FedEx or UPS? * Targeted business customer that regularly shipped large volumes of urgent items like Xerox (Position) * Never advertised much publically, instead focused on larger shipping companies * Sales force was given good freedom to negotiate volume discounts. * It positioned themselves as low price service. * They owned airports which served as its major hub to reduce the operational cost * Selective in technology selection. Wanted others to use it first. 3. How does Airborne deliver value to its customers? * High-quality, reliable service * Company offers...
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...Business Strategy United Parcel Service (UPS) Overview United Parcel Service, Inc. was founded in 1907 as a private messenger and delivery service in Seattle, Washington. Today, UPS is the world’s largest package delivery company, a leader in the U.S. less-than-truckload industry and the premier provider of global supply chain management solutions. It deliver packages each business day for 1.6 million shipping customers to 8.2 million receivers ("consignees") in over 220 countries and territories. In 2014, it delivered an average of 18.0 million pieces per day worldwide, or a total of 4.6 billion packages. Total revenue in 2014 was $58.2 billion. It are a global leader in logistics, and it create value for its customers through solutions that lower costs, improve service and provide highly customizable supply chain control and visibility. Customers are attracted to its broad set of services that are delivered as promised through its integrated ground, air and ocean global network. Its services and integrated network allow shippers to simplify their supply chains by using fewer carriers, and to adapt their transportation requirements and expenditures as their businesses evolve. Across its service portfolio, it also provide control and visibility of customers’ inventories and supply chains via its UPS technology platform. The information flow from UPS technology drives improvements for its customers, as well as for UPS, in reliability, flexibility...
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...UPS Case Study Considerations of Macro Environment Market Demographics: The target market is everyone in the world who needs to ship an item. Christmas time is a particularly busy time for shipping items across the world, whereas people need a company like UPS to do the delivering for them. Economic: Gasoline prices, along with rising energy prices are the major concern. Jet fuel prices are at $2.80/gallon! However, many people would rather have items shipped rather than spend money on gas to go and buy the item. Legal: International express services can be delayed by government policies and restrictions that can include anticompetitive practices of government-owned or authorized monopolies, licensing requirements, customs procedures, restrictions on access to aviation markets, restrictions on access to ground transportation systems, and restrictions on foreign investment. Socio-Culture: The economy is really bad right now, so many people don’t have extra money to make a lot of online purchases and businesses are not selling as much, therefore not needing to ship as much. Global: Worldwide packaging shipping volume is increasing as a result of global exchange, e-commerce, and changes in supply-chain management. Technological: The internet has expanded the reach of direct marketing. Industry Analysis: Dominate Characteristics: With globalization, shipping is now a major priority for businesses and many individuals, especially those that...
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...Airborne Express Case Q&A Info other than Case * Airborne Express is acquired by DHL in 2003 * DHL retained ownership of Airborne's ground operations and spun off its air operations as ABX Air, Inc. * Currently DHL is the number 1 delivery service company.(2nd is Fed Ex and 3rd is Blue Dart) Airborne Express Case Q&A 1. Consider the structure of the Express Mail industry in the US and how it has evolved. Why has it evolved this way? 2nd heading is about Express Mail Industry in US (in case study given) * In 1996 shipments was $16-17b Company. * Quick on-time physical delivery was coming * Use of technology was changing the game like routing * Tracking of shipment was a new service offered * Customer service was improving 2. What is Airborne’s strategy? How has it positioned itself in the industry? How is it different from FedEx or UPS? * Targeted business customer that regularly shipped large volumes of urgent items like Xerox (Position) * Never advertised much publically, instead focused on larger shipping companies * Sales force was given good freedom to negotiate volume discounts. * It positioned themselves as low price service. * They owned airports which served as its major hub to reduce the operational cost * Selective in technology selection. Wanted others to use it first. 3. How does Airborne deliver value to its customers? * High-quality, reliable service * Company offers...
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...Vacancy for Brand Manager Dekko Group and Red Bull both wanted candidates having minimum 5 years experiment. Both Dekko Group and Red Bull wants Brand Mangers who have previous professional experience including the experience of maintaining and operating big, sophisticated establishment. They both want candidates who have good communication and who are capable of handling others as well as themselves. Both companies want candidates who have Bachelor's degree; MBA not required, but preferred. The applicants should have experience in the following area(s): Brand Planning/Development, Marketing. They also mentioned that the candidates should have strong drives to achieve results. Red Bull published the ad in a highly professional way, whereas Dekko Group did not do it. Red Bull mentioned their requirements in bulletin points and in detail, which highlight each and every point and Dekko Group, wrote all their requirements in one paragraph which is little vague. Red Bull mentioned the age limit Dekko Group did not. Red Bull mentioned key results and deliverables (what does success look like) but Dekko Group did not say anything regarding this. Red Bull broadly described about major activities to ensure achievement of key results and deliverables and Dekko did not mention about it. Red Bull did not mention the salary they will give but Dekko Group clearly mentioned it. 1. Dekko Group did not mentioned key results and deliverables (what does success look like) 2. Dekko...
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...logistics and business services organisation that has shaken the belief held by behemoths regarding the level of innovation and service that they can offer to the customer base. With its out-of-box approach it has made industrial leaders like UPS, DHL etc, and look like new kids in the block. The strategic initiatives that the organisation has taken during various time a frame has exemplified the leadership ability of Mr. Smith to work toward uncertainly and how to respond to them. Introduction A general assumption regarding strategy is that executives by applying a set of tools will be able to predict a future of any business clearly enough to choose a clear strategy or direction to adopt. This overall scenarios and assumptions made usually led to a layout of vision for the future with assumed precision. However, one needs to remember that when the time ahead looks uncertain this approach is at best only helpful marginally and may in fact sometimes be dangerous as underestimating certain factors will only expose the organisation to more uncertainty and may eventually lead to its decay. In the opposite end of the spectrum lies the scenario where managers would be unable to find a strategy that would work under traditional analysis and this would later on lead them to totally abandon the tools with presumptions that...
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...Introduction Business SegmentsFedEx ExpressFedEx GroundFedEx FreightFedEx ServicesCorporate Strategy“Compete Collectively, Manage Collaboratively” • 3. Brand Planning AssessmentThe FedEx PositionWho is the target market?“anyone who needs to send something anywhere in the world. Whether it’s the one and only package you'll ever ship in your life or you have 1000 packages to ship every day.” • 4. Brand Planning AssessmentThe FedEx PositionWho are the main competitors?UPS • 5. Brand Planning AssessmentThe FedEx PositionWhat are the points of parity?-Both companies ship packagesBoth online services allow you to track packages, order supplies and pay bills.What are the points of difference?-FedEx has 3 times as many planes-Print and ship from anywhere services-FedEx has been known to update technology more frequently than UPS • 6. Brand Planning AssessmentThe FedEx PositionFast Forward MovingPrecise • 7. Brand Planning AssessmentKey Marketing ActivitiesAlliances with NFL, NBA, FedEx cup, FedEx racing, the FedEx orange bowl, and the FedEx field Senior Vice President of International Marketing, Rajesh Subramaniam, said, “FedEx sponsors and associates with several sports that share its attributes of speed, reliability, precision, teamwork and flawless execution.” • 8. Brand Valuation Assessment Building EquityFavorability & Awareness Through Six ElementsMEMORABLEMEANINGFULLIKEABLETRANSFERABLEADAPTABLEPROTECTABLE • 9. Brand Valuation...
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