Strategic Management: Performance Evaluation and Strategic Planning for DHL

This study material focuses on strategic management for DHL, covering the performance evaluation of the company and the strategic plan for its future growth. It discusses DHL's competitive strengths, market position, and areas for improvement. It also explores different strategies, such as Ansoff Matrix and Porter's generic model, that DHL can use to gain a competitive advantage. The material includes an action plan and reflection on the module. Suitable for students studying strategic management or anyone interested in DHL's strategic approach.

Strategic Management
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Table of Contents
INTRODUCTION...........................................................................................................................1
PART A (1)......................................................................................................................................1
Critically evaluate the performance of DHL..........................................................................1
PART A (2)......................................................................................................................................2
Strategic plan for the company...............................................................................................2
PART B............................................................................................................................................5
Reflection...............................................................................................................................5
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Strategic planning is considered as the procedure regarding the effective documentation
and establishment of direction for the effective business. In terms of this, strategic plan offer
prominent place in terms of recording the effective mission, vision and values for the long terms
goals and prominent actions that are useful to reaching towards the customers (Ansoff and et. al.,
2018). To carry forward this report, DHL is considered which is an international German courier
service that tends to deliver around 1.3 billion parcels and headquartered in Bonn, Germany.
Moreover, company is founded in 1969 by Adrian Dalsey, Robert Lynn and Larry Hillblom. For
this, the report tends to cover the critical evaluation of the performance of company and also
describe the purpose of strategic plan undertaking the effective tools that helps in achieving
competitive advantage. Lastly, it tends to reflect on the online learning activities that are
observed as the holistic strategic view in market.
PART A (1)
Critically evaluate the performance of DHL
DHL tends to operate in highly competitive market by offering equal services to their
potential customers that tends to improve the image and reputation of company. The good
performance of company tends to maintain the separate image in market in terms of
accomplishing the goals and objectives and also tends to offer its services for more than 220
countries at the global level. In terms of this, the effective performance is discussed as under
with the help of few points:
Competitive strengths: It depict the major strength of respective company considering
the wide network for the innovation and strong brand equity as company is more dedicated
towards the effective customer relationship management by which they are able to accomplish
the effective customer satisfaction among their customers and undertaking the effective brand
image towards their customers (Wheelen and et. al., 2017). Along with this, automation activities
tends to bring consistency for the quality of DHL products and also tends to enable company in
terms of scale up and scale down which is based on the condition of market. Furthermore, DHL
has strong cash flow that tends to offer resources in terms of expanding towards the new project.
Market position and areas: DHL is quite effective in terms of maintaining the separate
image in market in terms of achieving the goals and objectives of company by offering its
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services in more than 220 areas at the world wide level. For this, undertaking various factors that
has major impact on the marketing system of DHL because of effective management system in
terms of managing various individuals and other courier services in order to reduce human
mistake in order to make their effective position in market. Undertaking the improvement in
courier service of company, management use new and effective software which is helpful for
company in terms of dividing the work. Considering this, various factors like political, social,
economic and environmental factors are essential for the effective management of company in
order to identify them to get effective opportunities which is helpful in taking corrective actions
for the customer satisfaction.
Therefore, company has a strong brand reputation in courier services through a effective
value chain, for this, there are some significant areas across the same in which they need
effective improvement. For this, company need to invest in the effective execution for the latest
technology in terms of delivering their products at different stages of value chain in terms of
making sure to increase the efficiency of company. For this, there are various stages of value
chain of company regarding the effective human resource management to ensure the skills and
qualification of employees.
PART A (2)
Strategic plan for the company
To gain competitive advantage in the market, it is important for DHL to prominently
execute their plans and strategies undertaking prominent techniques and tools. In regard of this,
DHL tends to enhance its online presence with the help of effective strategic plan in order to
enhance its effectiveness. In terms of this, effective strategic plan is formulated for DHL for
proper execution of plan.
Mission: Its mission is to connect people and enhance their lives by undertaking the
customer centric and also delivering the excellent day in and out services. They also tends to
bring people together and make their life pretty much simple.
Vision: The vision of company is to become first choice not only to fulfil the shipping
needs but also the first choice for the effective career and investment opportunities in terms of
being global benchmark for being responsible towards the business practices.
Strategic objectives:
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 To improve their services in order to satisfy the requirements of their customers and also
enhance sales by 15% to 20% in the upcoming two years. To increase the customer base by 9% to 10% in 12 months.
Strategic that can be used:
Ansoff Matrix: In terms of accomplishing growth in market DHL need to make effective
use of Ansoff matrix to examine the methods in which company can attain its growth in market
area. Market penetration: As per this strategy, the existing products are being sold in the
existing market area by undertaking the low prices with the help of effective
advertisement and promotions (Hitt and Duane Ireland, 2017). It is useful for company in
order to make sure the market share and also reach towards the huge customer base to
enhance their sales. It is undertaken as the less risky growth strategy which is used by
DHL in terms of making improvement in its current services and market share.
Therefore, by offering effective products at the low prices is helpful for company in
terms of reaching towards the large number of customer base within the significant
market area. Market development: According to this strategy, effective and existing products are
being offered in new market area by which huge number of customers can reach towards
the market area. It is useful for the respective company in terms of gaining the economies
of scale by approaching to maximum number of customers in terms of improving the
global image of company that can be developed in the market (Trigeorgis and Reuer,
2017). In regard of DHL, company can enter into the emerging market in terms of
enhancing the market reach of company that is helpful to increase the profitability of
company. Product development: As per this strategy, company can offer its new products and
concerning services in the existing market which is effective for company to reach to
their new and effective customer base (Meyer, Neck and Meeks, 2017). It can be done by
the company considering the proper research and effective development of strategies
against their competitors. In terms of DHL, they can opt this strategy by making effective
improvement in their products and offered services so that they can easily offer various
services to their customers.
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 Diversification: Undertaking this strategy, company offer new products and services in
the new market area as it is considered as the risky strategy that tends to include both the
new market and product and also tends to take lot of investment in order to take entry for
the new market with new product (David and David, 2016). It is useful for the company
to accomplish competitive advantage in the market area considering the needs of
customers and also offer new and innovative products. Hence, DHL can opt this strategy
in order to expand their emerging market by providing diverse varieties in their services.
DHL can make effective use of the discussed strategies as it tends to enhance their
customer base and market research by providing competitive products to their customers. DHL
can make effective use of product differentiation in order to enhance the development of
products by undertaking the requirements and wants of customers.
Porter's generic model: In order to achieve competitive advantage in the prominent
market area, porter's generic model can be obtain as it useful for company to decide the
prominent approach to target the market area. For this, prominent strategies are useful for DHL
that are mentioned as under: Cost leadership: This strategy represent that company need to develop its significant
products and services at the low cost that is helpful in terms of achieving the large market
area and also tends to attract customers towards them (Engert, Rauter and Baumgartner,
2016). It can be opted by DHL undertaking the products at discount, voucher and sales
that is helpful in terms of attracting large customers in comparison to its competitors to
earn high profitability that can be achieve by company. Cost focus: As per this strategy, company tends to achieve cost advantage in order to
acquire small market area in terms of becoming the leader of market regarding cost for
the particular market area (Durand, Grant and Madsen, 2017). It is useful for company in
terms of becoming more competitive in particular market area by which high profitability
can be accomplished. Differentiation leadership: Considering this strategy, company leads to target the needs
of huge market area as per the competitive advantage in terms of providing various
products and services to their customers. As per this, prominent changes are undertaken
considering the preferences of customers that can be fulfilled by providing innovative
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services and products to company as due to this, it becomes easy to survive in market
(Aguinis, Edwards and Bradley, 2017).
 Differentiation focus: Undertaking this strategy it tends to put emphasis on the primary
needs of small market area by which they can become quite competitive in order to meet
the needs of target market area (Hitt, Ireland and Hoskisson, 2016). This strategy tends to
offer opportunity to company in order to provide various products regarding the effective
comparison of competitors in market area.
Hence, in terms of DHL they can opt differentiation leadership strategy in order to
improve their online services undertaking the needs and preferences of customers by which they
can achieve their goals in an effective manner. It can be improved considering the needs of
customers in terms of providing easy and fast services in order to save their time and cost by
offering quality services.
Action plan:
Budget Allocation: In terms of prominently executing the significant strategies which is
opted by company is important for the effective budget which is undertaken as the significant
activities that are needed for the overall procedure. It is useful in terms of enhancing the
effectiveness and efficiency to get desired result that leads to execute the effective strategies for
improving the online services of DHL by undertaking the budget that can be prominently
considered by company.
Particulars Amount (£)
Marketing 4500
Human resources 9000
Technological advancements (Considering
the delivery on stipulated period of time)
220000
Raw materials 38000
Controlling and monitoring: It is important that effective controlling and monitoring
practices should be undertaken regarding the prominent execution of process and strategies so
that desired goals and objectives can be achieved. With the help of benchmarking and KPI
techniques it can be done in smooth and easy manner undertaking the significant differences of
estimated and actual performance and then make improvement in the implementation of strategy.
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PART B
Reflection
Considering this module, it has been offer an effective learning experience for me as by
this I got to know how to improve the overall performance of company. Not this, I also got to
know about the prominent opportunity to learn that it is quite essential for company to maintain
effective level of performance in terms of contributing the overall profitability to maintain
position in market. I also got to know the significance of strategic plan as it plays an important
role in terms of helping company to accomplish its goals and objectives in an effective way. I
also got a chance to develop better understanding for the respective sector as my thinking skills
also get progress by observing the strategic view of company in market.
This module prominently contribute the career development for the future as I want to
develop my career in this sector. Moreover, it also tends to define other skills which I have
learned by considering this module as my written communication skills got improved and I am
quite able to present my thoughts in an effective manner. Therefore, this module is helpful for
me in my career as it helped me in learning new concepts.
CONCLUSION
By considering the above discussion, it is identified that strategic management plays
significant role in terms of effective organisation and also helpful to accomplish prominent goals
and objectives. It tends to allow organisation to develop and formulate effective strategies in
order to take decisions. Respective company is the well known and famous brand as also tends to
maintain strong reputation in market undertaking its strengths and weaknesses for effective
management. Hence, if company need to retain its customers and remain competitive, then they
need to opt several strategies in terms of conducting smooth business operations.
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REFERENCES
Books and Journals
Aguinis, H., Edwards, J.R. and Bradley, K.J., 2017. Improving our understanding of moderation
and mediation in strategic management research. Organizational Research
Methods. 20(4). pp.665-685.
Ansoff, H.I and et. al., 2018. Implanting strategic management. Springer.
David, F. and David, F.R., 2016. Strategic management: A competitive advantage approach,
concepts and cases. Florence: Pearson–Prentice Hall.
Durand, R., Grant, R.M. and Madsen, T.L., 2017. The expanding domain of strategic
management research and the quest for integration. Strategic Management
Journal. 38(1). pp.4-16.
Engert, S., Rauter, R. and Baumgartner, R.J., 2016. Exploring the integration of corporate
sustainability into strategic management: a literature review. Journal of cleaner
production. 112. pp.2833-2850.
Hitt, M. and Duane Ireland, R., 2017. The intersection of entrepreneurship and strategic
management research. The Blackwell handbook of entrepreneurship, pp.45-63.
Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2016. Strategic management: Concepts and cases:
Competitiveness and globalization. Cengage Learning.
Meyer, G.D., Neck, H.M. and Meeks, M.D., 2017. The entrepreneurship‐strategic management
interface. Strategic entrepreneurship: Creating a new mindset, pp.17-44.
Trigeorgis, L. and Reuer, J.J., 2017. Real options theory in strategic management. Strategic
Management Journal. 38(1). pp.42-63.
Wheelen, T.L and et. al., 2017. Strategic management and business policy (p. 55). Boston, MA:
pearson.
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