Strategic Management in DHL

This document provides insights into the strategic management practices of DHL, a leading courier and parcel services company. It discusses their innovative techniques, corporate social responsibility initiatives, and competition with FedEx. The document also highlights the importance of employee welfare, training, and market analysis in DHL's success.

Strategic Management
project 2

Table of Contents
Essay................................................................................................................................................3
books and journals.......................................................................................................................7

Essay
In the recent times, the need and requirement of strategic management in various organisations
is increasing rapidly. Strategic Management is a way through which companies can plan out their
strategies and implement them accordingly. As we all know that companies operate in dynamic
environment, hence it becomes very essential for the companies to plan effective strategies in
order to identify and cope up with the uncertainties and risk of the market environment. DHL is a
German company that provides courier and parcel services across the globe. It is a leading and
popular name its respective industry (Schilling and Shankar, 2019). It is considered as one of the
most successful and celebrated organisation around the world.
DHL has a fast system of delivery and it delivers couriers and parcels internationally as well.
The business of the company is widely scattered and the company benefits from the good share
in the current market environment. The company capitalises on air plane services foe the
delivery of the couriers and parcels to their respective users. The company also has a huge
number of workforce and personnel available with them which helps the organization to carry
the operations effectively and efficiently. The revenue generation of the company is increasing at
a good pace and the company is enjoying good profit.
The company has always led emphasis on coming up with new innovative techniques
which can improve the current status of services in the organisation. These techniques have also
helped the business to grow and develop and has also contributed in the accomplishment of goals
of the company. The company is also performing its duties with respect to CSR i.e. corporate
social responsibility (Ginter, Duncan and Swayne, 2018). DHL is providing helping hands to
various small companies which needs the support from the company. It has bought companies
which were sinking in order to restructure them and utilise them in an effective way. It is leaving
no stone unturned in providing welfare opportunities to the society and is also working towards
conserving the environment. The company has taken major steps such as reduction of plastic and
harmful emission of green house gases. The company has also developed a program named “Go
green” which specifically works towards conservation of our natural environment. The company
is also planning out to bring strategies that will help to reduce the effects of harmful global
warming in the environment.

Like any other company, DHL also has head to head competitors. FedEx up is one of the major
competitor of DHL. The company working towards building strategies and plans in order to
eliminate the competition. The company is also investing in e-commerce services and is
expanding the operations world wide. Expansion has helped the company to carry out its
operations in countries where these services were not accessible before. Company is capitalising
in countries where there is a need for these type of services and catering to them as well. This is
helping the company to engage more people towards the organisation and attract more customers
as well.
In order to succeed in a long run it very essential and important for an organisation to show
complete dedication in its work and maintain discipline in the organisation. A disciplined
organisation is likely to provide services for a long run in comparison to one with casual
behaviour. DHL gives equal respect to all the employees working under the organisation and
also promotes equality and justice in the organisation . It does not promote any discrimination in
the organisation. DHL has also led its services to Human right activism and has been an active
part of it till date (Rothaermel, 2016). It promotes employee welfare and development. It gives
the liberty to its employees to stand for their rights and voice out their opinions. This
environment and culture of the organisation is one of the reasons why company is able to make
an impact in its industry.
DHL has invested a lot of time in training its employees and this is the reason why the
company is able to carry out its operations so smoothly and rapidly. The employees choices and
preferences are also given utmost importance in the company. Happy employees will lead to
effective results and ultimately help the organisation to achieve success. The company also
provides employees with research and development department where they can carry on which
their research projects allotted by the company (Lasserre, 2017). This way, DHL employees can
enhance their learning and company can utilise these research outcomes to identify the trends in
the market and plan the strategies according to the outcomes to gain competitive edge over its
competitors in the target market.

Since the market is so uncertain and new entries are coming in the market frequently, the
company needs to be ready with the strategies that could respond to these uncertainty in the
market. The company performs SWOT analysis and PESTLE analysis in order to identify the
internal as well as the external environment of the company. DHL also adopts other models and
methods through which it can find out current trends and analyse the same for the growth of the
company (Hitt and Duane Ireland, 2017).
It can be said that DHL has all those elements which can act as a driving force for the
success of a company. Its structure and working environment is such that the company can
achieve more. The company has formed strategies which have helped the company to respond to
inside and outside environmental risks (Trigeorgis and Reuer, 2017). The current position of the
company is very good and people look up to the company in a positive way. The company has
been able to build a good brand image and reputation in the market which has helped it to gain a
lot of loyal customers and clients. Due to this reason the company has also got great reviews by
customers end. The company also gets to enjoy the benefits of its goodwill in the market as it
handles the client grievances very effectively and genuinely tries to solve their issues. The
employees have also provided good feedback about their tenure in the company.
Innovation is key aspect for DHL , and leads their organisation to a new level by improving
innovative techniques . It gives strength and power to the organisation. Through its huge network
operator it has strong brand image and goodwill. Its only because they are leading their products into
more than 220 countries, this feature provide global level of network and hence, handling power of the
market by being its leader (Morden, 2016). It also build logistic industry projects into organisation.
Which provide a area for customers and shareholders for contribution with professionals. Logistic
features like innovative sensors and other thing being assistance in managing these centres. Strong
brand goodwill is also play a vital role in companies success through which it ranked in 2016 with the
honour of 5790 dollars for its active contribution towards society and technology.
There are several weaknesses of DHL by internal or external al factors that affects its growth, the
major weak points are of equity growth, investment rates, external factor crises, and dependency on other
firms in terms of diversification. In order to focus on small markets, thus become a high weakness for
DHL as the market is highly competitive and it is difficult to manage its growth in a local society. Its
growth is also affected by less attention on improving innovation centre for its quality appraisal. As it
stared its investment return is not so effective which in case prove to be a less prominent aspect. Hence,

this tends to create difficulty in attracting customers towards their business also, the the competition are
running on high growth through which it can be a major issue in pricing policies.
Apart from weaknesses there are remaining threat of DHL, this includes rapidly increasing
competition into the market which incudes UPS, Fed Ex and TNT. These technologies are upgrading
their software through which it can exploit the market situation also, it has to bear its operating expenses
for running its global outlets and managing them properly (Engert, Rauter and Baumgartner, 2016).
This interns makes heavy chaos between employees and organisations goal. In order to overcome this
threat they opt new innovative technology in 2015 which has its major segment of delivery and outlets.
Through which it can diversify new opportunities into market growth.
Segmentation targeting positioning is termed to be an essential business tool to target large
number of customers by adapting this model. It assist the company to maintain its reputation and goodwill
. In context with this, it defines segmentation targeting on market customers by acknowledging their age,
standard of living, education, gender and other factors which impact on choosing customer demand
during a specified time period. It has to be an essential factor for analysing customers needs so that DHS
could provide valuable services to the customers. Targeting refers to focus on lot of customers at a
particular time and set their plans according to render services to them. It also include marketing research
along with customer research so that, it could attain benefits of market as well as society.
Positioning is significant process in the organisation which help in building the brand
image as well as provide appropriate image of the mind-set of the customer so that organisation
can easily perform its function at the marketplace as well as attract large number of customers by
positioning the product within the market will it want to trade are currently trading. Positioning
is also important for organisation in improving its system as well as achieving the analysis of
market by adopting appropriate competitive strategy which can be help in increasing the success
as well as increasing opportunities for the organisation. It is also identify the positioning step will
help in building appropriate strategies which will satisfy the needs and requirements of
customers within the market and provide organisation in opportunity to perform in an innovative
and unique product mix (David and David, 2016). There are also identified that STP analysis
will help in targeting number of customer within the market.
There are a number of system which are used by the organisation in order to market their
products and services which are related to DHL functioning. It is also identified that there are
various factors which help in managing innovation as well as attracting different individuals
where dhl can easily manage its courier services by elimination of human error within the

services. It is also identified that in order to eliminate the human error and improving the
organisational performance there are various factors which help the organisation and dividing
their function and achieving better results according to the needs and requirements. It is also
analysed that form can easily use the political and social economic factors which help the
organisation in managing its function and performing its objective according to the opportunities
available within the market and taking corrective action in terms of courier services. It is also
identified that there are various functions which can be performed by the manager in order to
improve the customer satisfaction which are directly related to improving its services and
bringing motivation within the employees.
Evaluated from the above-mentioned information that there are various factors which are
related to the performance of DHL within the courier industry which health organisation and
improving its function and achieve the appropriate position within the market. It is also identified
there where we there are various functions which impact on efficiency as well as proper
utilisation of resources and it is mandatory for form to achieve its goals and objective by
combining the resources in order to meet its desired results. Organisation and boosting a
performance and getting success in the market where it is working in order to analyse the internal
national market.

REFERENCES
Books and journals
Schilling, M.A. and Shankar, R., 2019. Strategic management of technological innovation.
McGraw-Hill Education.
Ginter, P.M., Duncan, W.J. and Swayne, L.E., 2018. The strategic management of health care
organizations. John Wiley & Sons.
Rothaermel, F.T., 2016. Strategic management: concepts (Vol. 2). McGraw-Hill Education.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Hitt, M. and Duane Ireland, R., 2017. The intersection of entrepreneurship and strategic
management research. The Blackwell handbook of entrepreneurship, pp.45-63.
Trigeorgis, L. and Reuer, J.J., 2017. Real options theory in strategic management. Strategic
Management Journal, 38(1), pp.42-63.
Morden, T., 2016. Principles of strategic management. Routledge.
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.
David, F. and David, F.R., 2016. Strategic management: A competitive advantage approach,
concepts and cases. Florence: Pearson–Prentice Hall.