Strategic Business Strategy FOR TNT

Business strategy

Table of Contents
INTRODUCTION ..........................................................................................................................2
TASK 1............................................................................................................................................2
1.1 How business mission, vision, objectives, goals and core competencies affect strategic
planning .................................................................................................................................2
1.2 Analyse the factors that have to be considered when formulating strategic plans for TNT. 3
1.3 Evaluate the effectiveness of techniques that are used when developing strategic business
plan.........................................................................................................................................5
TASK 2............................................................................................................................................7
Organisational audit................................................................................................................7
Environmental audit...............................................................................................................8
Stakeholder Analysis..............................................................................................................9
New strategy for TNT..........................................................................................................10
Alternative strategies............................................................................................................11
Justification...........................................................................................................................12
Assess the roles and responsibilities of personnel who are charged with strategy
implementation ....................................................................................................................12
Analyse the estimated resource requirements for implementing the new strategy for TNT14
SMART objectives...............................................................................................................15
RECOMMENDATIONS...............................................................................................................16
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................18

Illustration Index
Illustration 1: SPACE Analysis.......................................................................................................6
Illustration 2: BCG Matrix...............................................................................................................7
Illustration 3: Stakeholder Analysis...............................................................................................10
1

INTRODUCTION
Business strategy refers to the various ways by which an organisation can effectively
achieve its objectives and goals. It also called as long term planning of the companies for
accomplishing their objectives in efficient manner. In this strategy is game plan of the firm's
management which is used for strengthening its performance and work efficiency. These
strategies include SWOT and PESTEL analysis. Business strategies are generally developed by
organizations for attaining different objectives in effective manner. These strategies play
important role in growth, development and success of an organization. The current research
project is based on Business strategy. Regarding this, it focuses on TNT express which is
operating its business in courier industry of UK. It is an international company which is engaged
in express and freight delivery service (TNT Express launches PharmaSafe, 2016). It includes
internal and external environment of the organization which are required for developing new
strategies of an organization (Åkerman, 2014). Along with this, it also shed lights on current and
future strategy of the company. Further, it includes different models and theories for developing
appropriate tactics for an organization. Including this, stake holder's analysis will also be
completed by this investigation. In addition, appropriate process of future strategic
implementation plan is also describing in the following paragraphs of the report.
TASK 1
1.1 How business mission, vision, objectives, goals and core competencies affect strategic
planning
Strategies have to be planned by keeping in mind the objectives of company. TNT has
kept their customers at the core of their strategies. Company makes sure that all the stakeholders
have been involved in the decision making. TNT follows a strategy map which aligns the entire
organisation together (Al-Ansaari and et.al., 2014). This makes sure that aims, objectives,
mission and vision are according to the strategies of entire organisation. Further, it is using
balance scorecard method and has been awarded for its exceptional performance in the industry.
Operational activities are linked with the strategy and it has shown remarkable growth for them
(Aversa and et.al., 2015). Their vision is to become the most admired company and increase their
sales. For this, they have made sure that proper plans are followed by all the departments in the
organisation to achieve desired goals. They have realised the importance of customers and
2

various services which are provided to them (Baddache and Nicolai, 2013). So, they have
incorporated all these in their objectives and planned to accomplish it.
Identification of TNT’s mission, vision,
goals, objectives and core competencies
Explanation
Mission  Exceed customer’s expectation
 Deliver value to customers by
providing efficient and reliable
services
 Lead the industry by creating
values and taking responsibility
Mission of TNT is to provide
excellent services to its
customers. It has planned to
maintain the same level of
services across the globe.
Vision  To become the most admired
company in the industry
TNT has clear vision and it has
formulated strategies and plans
to ensure quality services.
Goal  Achieve 2% sales growth annually TNT has planned to expand
and attract more customers
constantly.
Objective  To achieve profitable growth
 To reduce carbon emission by 45%
till 2020
 Answer customer calls within ten
seconds
To maintain healthy
relationship with various
stakeholders and grow
business with sustainable
development.
Core competencies  Efficient transportation of goods or
documents
 Providing quality services
 Enhancing customer satisfaction
 Responsible behavior
 High caliber workforce
Strength of TNT lies in
attracting customers and
building high level of
workforce which meets
expectations of the customers.
3

1.2 Analyse the factors that have to be considered when formulating strategic plans for TNT
High standard of services that TNT has been able to achieve is a result of its business
strategy. Strategic planning begins with the formulation of Mission and Vision statements. After
that, goals, objectives and aim of the organisation are decided (Dameron and Durand, 2013).
Further, current situation is accessed by considering the internal and external environment of
business. Important factors that have to be considered while formulating strategies are:
Internal factors: Such factors include employees, management, physical and financial
resources etc. These are very important and a strategy cannot be formulated without considering
these factors.
Support activities: These activities include infrastructure of the firm, skills needed in the
workforce, technology, assets and inventory (Doole and Lowe, 2008). A firm cannot develop a
strategy without taking all these factors into consideration.
Primary business activities: Primary activity of TNT is to transmit goods and provide
quality services to the employees. They have to ensure that customers are satisfied with the
services that are given to them.
External factors: Such factors which affect business are competition, preferences of
customers, economy, tariffs, rules, recession and inflation. Plans have to be altered by keeping in
mind the changes in business environment.
Strategic challenges and facilitators for TNT are:
 Fierce competition: TNT has been facing tough competition from DHL and Fed Ex
(Ferreira, 2013). As a result, they change continuously their strategies and plans to
remain competitive in the market.
 Growth of B2C: TNT is a B2B company and there has been a significant rise in direct
customer service. It is a major challenge for them because they have to include such thing
in their portfolio to remain competitive (Few and Few, 2013). Plans have to be altered
and this perspective of business has to be included.
 Slow growth in Europe: Growth rate has been slow in Europe and they have to look for
other opportunities for business. For that, TNT is planning to expand their business in
China and Brazil.
These factors have affected the business but there are some positive effects for the company
which facilities in the formation of strategies and plans. These are as follows:
4