Strategic Management: Performance Evaluation and Plan of DHL

This report on strategic management evaluates the performance of DHL and presents a strategic plan for the company. It discusses the Ansoff Matrix and Porter's Generic Model and how they apply to DHL. The report also includes a reflection on the strategic view of the company.

Strategic Management
(Assessment 2)

Table of Contents
INTRODUCTION...........................................................................................................................1
PART A(1).......................................................................................................................................1
Performance Evaluation of DHL............................................................................................1
PART A (2)......................................................................................................................................3
Strategic Plan of Company.....................................................................................................3
PART B............................................................................................................................................5
Reflection of the strategic view of the company....................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Strategic planning is defined as the procedure of making tactics that could help the
company in implementing appropriate schemes that could help the company in achieving
growth. The process is likely to take up effective integration of various units as well as
coordination of efforts related to accomplishment of desired organisational objectives. For this
purpose, strategic schemes are likely to represent appropriate deals for long term goals of the
organisation so that vision and mission of the firm could be represented. It considers effective
development of appropriate priorities related to the suitable planning and utilise available
resources (Sumkaew and Intanon, 2020). For completing this report DHL company has been
taken which is based in Germany and deals in providing courier facilities to people in context of
maintaining effective profit margins. The organisation was established in the year 1969 with the
aim of delivering global courier services. Hence, the following report represents strategic plan
which is implemented by the selected organisation. It also represent reflection tools to remain
sustain in competitive benefit.
PART A(1)
Performance Evaluation of DHL
The business aim of DHL is to serve their customers with value added services in order to
create higher customer satisfaction and effective purchasing experience. For, this the DHL is
likely to face the prominent challenges in the dynamic competitive business environment which
is due to changing external environmental factors. Organisations most often try to sustain in a
competitive and monopoly market by building a strong customer base. In addition, to this the
DHL is likely to serve around 200 organisations all across the globe through their effective
services (Grainger-Brown and Malekpour, 2019). In relation to this, by undertaking the excellent
performance of the DHL is discussed beneath:
 Competitive strength: these are the key powers of the company which are build over
the time through investment of effective time period and by practising on the serving the
customers in most prominent manner (Stretton, 2020). For this, DHL is likely to maintain
their strong customer base at the international level which is supportive for gaining the
effective customer engagement and relationship for long term. It also helps in enhancing
the productivity and enable the company and its employees to run suitable promotional
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and branding events in order to catch customers attention to create large customer base
that avail such services. This helps the company in relation to the achievement of the
organisational goals and objectives. Apart from this, DHL tends to bring the enhanced
feasibility and consistency in the working of the DHL to develop cost cutting strategies.
This have power of increasing the profit margin and convert brand into the leader of
market.
 Market position and areas: DHL is the strong brand in relation to chosen prominent
strategies that help the company in providing the opportunities related to expansion. The
company always try to enhance the possibilities for the increment of its operations within
the organisation. For this, DHL is maintaining the good brand image in order to serve
values with their services (Oswago, 2018). This facilitates the strong communication
between the company and its customers that also assist in meeting the organisational
goals and objectives. It tends to display the efficient marketing channel company is using
in order to reach larger customers across the target market and also improves the sales
productivity. For this, DHL effectively influenced the various internal factors by taking
into consideration the various the different political conditions. It is also useful to create
suitable opportunities and take corrective actions to gain prominent opportunities and
also tends to enhance the customer satisfaction by achieving suitable efforts of
management.
Therefore, DHL is able to maintain the high brand value and image in the market which
is also useful in managing the effective supply chain of the company. Moreover, the company
also plans to invest in gaining prominent funds to manage and maintain the talented workforce.
With the compliance of effective use of technology in precise way the DHL try to achieve their
organisational goals and objectives (Kim, Qian and Zhang, 2020). For this, the company needs to
have effective value chain to offer the most desirable services to the customers at the
international level. Hence, DHL is likely to utilize the several strategic tools and techniques
including the human resource which is useful in development of value chain network.
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PART A (2)
Strategic Plan of Company
Mission: The mission of DHL is to connect and improve lived of people. The company
want to become client-centric and delivering excellent day out and day in.
Vision: The vision of the company is to become it want to become The Logistic
Company of the world.
Strategic objectives: The objectives of the respective company is mentioned below:
 To focus on strategies that made it successful which is its logistic sector in the growth
market in the world.
 The company want to organise certified programmes which is a specialised training plan
for entire employees.
 The respective organisation also wants to expand its business across the globe
specifically in emerging and e-commerce market.
Strategic Models for the Company
Ansoff Matrix:
 Market Penetration: In this strategy organisations utilise their products in the present
market which simply means that companies try to enhance their market share with this
scheme. The market penetration strategy could be implemented through various ways
such as reducing prices so that more customers could get attracted, enhance distribution
and promotions tactics or acquiring competitor in the similar market (Eskandari,
Rezaeisoufi and Keshavarz, 2021).
 Market development: In this phase the organisations develop a new product in order to
cater into present market. This stage includes large research and development as well as
expansion of product range. This could be embedded by organisation when they have
complete knowledge as well as understanding of market and are able to provide solutions
to meet demands of customers.
 Product development: At this stage, companies are required to enter new market with
their existing products or services so that they could grab new customer base and market
segment. Product development strategies includes several methods such as catering to
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diverse client segment, entering into new local market or expand business in international
market.
 Diversification: In this strategy companies enter new market with new commodities.
There are two types of diversification which are Related diversification and unrelated
diversification. Related diversification is defined existence of potential synergies that
must be realised between present business and new market or product. Whereas unrelated
diversification is defined as non-existence of potential synergies to be realised between
new commodities or market and present business (Vargas-Hernández, Pallagst and
Hammer, 2018).
In case of DHL, the company must implement Product development strategy from Ansoff Matrix
so that it could be able to expand its business activities in international market and enhance its
customer base.
Porter's Generic Model:
 Cost leadership: This porter's generic strategy strategy is associated with gaining
competitive advantage in the market by increasing sales. There are usually two main
kinds of cost leadership strategy which include enhancing profits by minimising costs or
increasing market share by applying low prices. This strategy mainly indicates that
organisations must become leader in context of cost in their own industrial sector.
 Cost focus: At this phase companies focus on niche market segment through
understanding dynamics and demands of customers which helps them in providing
products at lower prices (Hieu and Nwachukwu, 2019).
 Differentiation leadership: This phase of the model includes differentiation strategies
applied by companies in terms of providing innovative products or services that attracts
more customers.
 Differentiation focus: During this stage companies focus on providing different products
or services in the target market (Bettis and Blettner, 2020).
In terms of DHL, the company need to implement cost leadership porter's generic
strategy so that it could gain competitive advantage in the marketplace and increase its market
share.
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Action Plan for the Company
Budget
DHL utilise its capital in different business activities which helps the firm in maintaining
its operations. For instance the company uses around £5000 for marketing which includes online
and offline promotional strategies (Mitchell, 2021). Furthermore, the company use
approximately £12000 for Human resource activities which includes training, recruiting, on-
boarding and other activities. The respective organisation also use around £250000in technology
advancements and approximately £40000 in buying raw materials.
Particulars Amount (£)
Marketing 5000
Human resources 12000
Technological advancements (Considering
the delivery on stipulated period of time)
250000
Raw materials 40000
PART B
Reflection of the strategic view of the company
From the above discussion I have analysed that company must implement desirable
strategies so that it could gain competitive advantage in the market. I have also evaluate that
DHL has maintained its strong client base at the global level which is accessory for gaining the
effective customer engagement and relationship for long term. I have also gained information
that the respective company has maintained positive brand image so that it could serve values
with its facilities. This facilitates the strong communication between the firm and its clients that
also aid in meeting the organisational goals and aims. I have also examined that the respective
firm has its own vision, mission and objectives which helps it in accomplishing its objectives
more easily. The firm also used its available resources in very effective manner which also helps
it in managing budget.
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CONCLUSION
From the above report it has been concluded that it is very essential for organisations to
make effective strategies so that they could operate business more effectively and smoothly. It is
also essential for companies to evaluate their performance so that they could analyse their market
position. It is also been examined from the discussion that organisations must apply strategic
models such as Porter's generic model and Ansoff Matrix so that they could gain competitive
advantage in the market over others. It has also been evaluated that organisation must use all
their budget so that they could maintain their resources.
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REFERENCES
Books and Journals
Bettis, R.A. and Blettner, D., 2020. Strategic reality today: Extraordinary past success, but
difficult challenges loom. Strategic Management Review, 1(1), pp.75-101.
Eskandari, I., Rezaeisoufi, M. and Keshavarz, L., 2021. Identifying Strategic Management
Barriers in the Department of Physical Education and Health Education. Applied
Research in Sport Management, 10(2), pp.11-22.
Grainger-Brown, J. and Malekpour, S., 2019. Implementing the sustainable development goals:
A review of strategic tools and frameworks available to organisations. Sustainability,
11(5), p.1381.
Hieu, V.M. and Nwachukwu, C., 2019. Strategy Evaluation Process And Strategic Performance
Nexus.
Kim, E., Qian, T.Y. and Zhang, J.J., 2020. Strategic visionary management as enabler of
commercial sport management. In Managing Sport Across Borders (pp. 41-63).
Routledge.
Mitchell, D., 2021. Bought in? The contingent effect of stakeholder support upon strategic
implementation success in American municipalities. Public Management Review, pp.1-
26.
Oswago, C.A., 2018. Influence of strategic management capabilities on the performance of
commercial banks in Kenya (Doctoral dissertation, JKUAT-COHRED).
Stretton, A., 2020. Expanding from conventional project management into broader types of
services in an organisational strategic management context. PM World Journal, 9.
Sumkaew, N. and Intanon, R., 2020. The Relationship between Strategic Management
Accounting Information Usage, Environmental Uncertainty and Nationality of Director
of Manufacturing Enterprises in Thailand. Open Journal of Social Sciences, 8(9), pp.39-
52.
Vargas-Hernández, J.G., Pallagst, K. and Hammer, P., 2018. Strategic Management Innovation
of Urban Green Spaces for Sustainable Community Development. Handbook of
Engaged Sustainability.
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