Strategic Planning for TNT: Analysis and Implementation

1 | P a g e

Table of Contents
Introduction.................................................................................................................................................3
Task 1..........................................................................................................................................................4
1.1 Assessment of how business missions, visions, objectives, goals and core competencies
inform strategic planning:.......................................................................................................................4
1.2 Analyzing the factors that have to be considered when formulating strategic plans:.........................5
1.3 Evaluation of the effectiveness of techniques used when developing strategic business plans:.........6
Task 2..........................................................................................................................................................6
2.1 Analysis of the strategic positioning of TNT by carrying out an organizational audit:......................7
2.2Carry out an environmental audit for a given organization:................................................................8
2.3 Assessment of the significance of stakeholder analysis when formulating new strategy:..................9
2.4 Presentation of a new strategy for TNT.............................................................................................9
3.1 Analysis of the appropriateness of alternative strategies relating to market entry, substantive
growth, limited growth or retrenchment for TNT:.................................................................................10
3.2 Justification of the selection of a strategy:.......................................................................................10
4.1 Assessment of the roles and responsibilities of personnel who are charged with strategy
implementation:.....................................................................................................................................11
4.2 Analysis of the estimated resource requirements for implementing a new strategy for TNT:..........11
4.3 Evaluation of the contribution of SMART targets to the achievement of strategy implementation in
TNT:......................................................................................................................................................12
Conclusion:...............................................................................................................................................13
Reference:.................................................................................................................................................14
2 | P a g e

Introduction
Success of business organization largely depends on Strategic planning. Through a well strategic
planning an organization can easily gains its object. Actually without a well structured strategic
planning it is very hard to reach its ultimate destination. In recent days every the man who wants
to do business in any sector he must have knowledge about strategic planning. In every business
there is competition. To compete with other organization and to survive in competition the
company must have strategic planning. Strategic plan helps an organization to utilize its
resources in an effective way through reducing costs. If the organization doesn’t have any
strategic planning its costs will gradually increase and the way to ensure its objects will be very
hard. Being a student of this business school every student is able to know the actual facts of
strategic planning. When they are going to do any business, they will be better. Through
analyzing the assignment, it is clear that the world`s best transport service company TNT is
successful for a long time as it has a well structured strategic planning.
3 | P a g e

Task 1
1.1 Assessment of how business missions, visions, objectives, goals and core
competencies inform strategic planning:
Strategies refers to a cautious method or plan for achieving a particular goal for a long time. It
also can be defined as the ability of carrying out or making plans to reach a goal. By Strategic
planning we understand a process which sets strategy, resource allocation and direction for
reaching the longing goals of a company like TNT. In order to set the direction of a company
like TNT, it needs to understand the current position of the company named TNT and what is
going to be future of the TNT. People related to business say during making strategic plan one
has to consider some major components. Without considering these components it is impossible
to make a strategic plan for a company like TNT. The major components of TNT are mission,
vision, objectives, goals and core competencies.
Mission: The basic aim of TNT is mission which explains why TNT exists and what TNT needs
to do for achieving its vision. For TNT, the mission is much important because it describes how
to gain the vision of TNT. Mission inspires the worker of the TNT to work together like a team
to gain TNT’s vision.
Vision: Vision refers to an outline of a company like TNT which describes in future what TNT
desires to be, or in a fixed time what TNT wants to gain.
Objectives: Objectives refers to the ultimate result that is required by a company like TNT. The
main/basic objective of TNT is to gain profit.
Goals: Goal refers to a desire of a person. Goal ensures the target of the TNT by making the
ways of success.
Core competencies: It is one of the major elements of business success. It helps TNT to make
something different from the company who competes with us. It helps to make a better
competition with its competitor (Kaplan & Norton, 1998).
4 | P a g e

1.2 Analyzing the factors that have to be considered when formulating strategic plans:
Actually strategic planning is a lengthy process. It tells how to reach the targets of a company
like TNT. As a result it becomes very important to an organization like TNT. Some subjects
must be scrutinized which are involved in strategic planning. Five major factors that make a
strategic planning successful are describing below:
Engagement: Strategic planning is not an event. It is actually a process. A major subject in the
process is engagement of all levels of employees throughout the organization like TNT.
Employees engagement produce extra inputs and helps to fulfill their promise to the finish plan.
Communication: At the time of taking a bottom up and top down communication approach
strategic planning becomes successful. Bottom up refers to tell how the staffs are going to be a
part of the strategic planning that means staffs share their views with senior management. On the
other hand top down refers to the process in which senior management share their view with
staffs.
Innovation: Conducting with new products or delivery a new goods or service, restructure a
department is called innovation which is a major part of strategic planning.
Project management: Associated to project management there are two critical components when
the strategic planning is jointly. First one is recognizing the project that is necessary to make sure
success in the implementation of each strategy. Devolving a prioritization of all these projects to
ensure the high precedence ones have the appropriate resourcing to make sure achievement is the
another one.
Culture: Culture of a company refers to values, behaves, behaviors and attitudes of its staffs.
Every company like TNT has unique and individual’s personality. They differ from each other in
the view of culture (Hoffmann & Schlosser, 2001).
5 | P a g e

1.3 Evaluation of the effectiveness of techniques used when developing strategic business
plans:
Producing basic actions and decisions which form and direct what a business organization is,
what it does, and why it does it, strategic planning is required to be characterized as a systematic
effort. Developing the map by which a company like TNT manages its position is the main
purpose of the strategic planning. In making a strategic planning there are about various models,
approaches such as SWOT, PEST, STEER, and EPISTEL. They are describing in the below.
SWOT: SWOT analysis refers to find out strength, weakness, opportunities and threats of a
company like TNT. It helps the company to identify where it has strength, in which section it has
weakness, in which sector it may have opportunities and in future which terms may be appear as
treat of the company like TNT.
PEST: PEST is a term which helps the company like TNT to identify economical, political,
social and technical subjects. Considering this issues a company become more capable to make a
more effective strategic plan.
STEER: Through STEER analysis we understand considering socio-cultural, technological,
economic, ecological and regulatory factors during making the strategic planning of a company
like TNT.
PISTEL: The term PISTEL refers to scrutiny environment, political, informatics, social,
technological and economical and legal issues of a country to make a strategic plan.
The described issues are most useful to recognize main strategic planning issues (Jennings,
2002).
M 3 is given through Power Point
Task 2
Introduction: Through this assignment we will have much knowledge about the world largest
company TNT and have knowledge of business strategy. Through learning this concept we will
be able to shine in our corporate sector.
6 | P a g e

2.1 Analysis of the strategic positioning of TNT by carrying out an organizational audit:
Auditing of a company like TNT refers to authentication of actions of the TNT such as
examination of a quality and the process in which the company like TNT maintain its work. It
can also define as testing proficiency of the company like TNT. ). Strategic positioning of a
company like TNT refers to how the company, TNT create a better customer value than its
competitor and how the company serve this value to the customer in a better way than its
competitor. In recent days there are lots of methods of Strategic positioning analysis tools like
SWOT analysis. SWOT analysis of TNT is given below.
Strength of TNT: The Company, TNT has so many strengths that make the company able to be
success easily. They are describing in below:
 TNT is a world recognized company
 TNT is a global company
 The company has business in more than 200 countries whole over the world.
 The established year of the company is 1946.
 The company has the capacity of making fastest delivery of necessary goods and
documents and is able to make it as a common belief in people mind.
 The company has a set of trained up people who are very skill in their job.
 The company, TNT is now able to reduce its cost. As a profit maximization is very easy
for the Company
 The objects of the strategic plan of the company like policies, missions, visions, goals,
objectives and the functions is much clear. As a result the employees can implant it in a
very easy way
Weakness of TNT: Every side has two sides. They are positive side and negative side. Like
others TNT has also some negative side. This negative side is considered as weakness of TNT
Company. The weakness are describing in below:
 The Company, TNT has huge cost structure
 It has a lengthy process of tax structure
 TNT has environmental weakness that is grasped by some unavoidable natural climates.
7 | P a g e

Opportunities of TNT: TNT Company has some opportunity to do better in the future. The
company has to capture the opportunities and utilize it in proper way. The opportunities are
given below:
 The Company has a great opportunity to expand its business in new market
 By devolving its technical sides it can be more profit able.
 The growth rate is increasing
Threats of TNT: There are a few threats of TNT. They are describing in below:
 Cash flow of the company is a threat
 Demographical situation in all countries is not same (Krasnobaeva, 2010).
2.2Carry out an environmental audit for a given organization:
Environment is the best participation of business for every winning business organization like
TNT. There are may be some factors which are external affect the TNT’s operation in many
ways. It may be political affairs. In recent days TNT is much affected by it. PESTEL analysis
can be used here. PESTEL related to environment, political, informatics, social, technological
and economical and legal issues of a country.
TNT manages its business globally. As a result TNT has to cross the political boundaries in
different times in many countries across the world. As a result the company has to always very
careful about political affairs of different country. Political affairs of a country make customer in
different ways. In some country it make positive customer and in some country it make negative
customer. It has been also seen that the exchange rate differ from one country to another country.
Another subject is legal tender money all over the world is not same. They are different from
each other. Global environment is also differs from one country to another country. As a result
the unfavorable of business situation and the excellence of business environment seriously
depends on the environmental factors. At last it can say clearly that environmental audit causes
positives outcomes and a successful position that is greatly depend on environmental factors (Gil
& others, 2001).
8 | P a g e

2.3 Assessment of the significance of stakeholder analysis when formulating new strategy:
Stakeholders are one of the major key factors of any organization. They are the main sources of
funding. Any agreement in business is largely depend on financial funding. In this case
stakeholders are the organizer to arrange this money. As a result they have a great importance in
business. Different types of party can be stakeholders of a company. But in the view of business,
stakeholder refers to a person or party who has financial link with the business. For making a
new strategy stakeholders analyzing is very important. The major significances in that area are
given in below:
The support of stakeholders is very helpful to TNT to gain more resources which create more
opportunity to be successful.
Through well communication with them, TNT will be able to ensure that the stakeholders
recognize what the Company, TNT is doing and recognizes the actual benefit of the project
clearly.
It helps the company to make sure the total assurance for the stakeholders.
It helps the company to compute the growth rate and performance of the company.
It creates importance for the stakeholders as stakeholders carry liable of the company (Savage &
others, 1991).
2.4 Presentation of a new strategy for TNT:
In recent years TNT’s performance in the business area is very well. However in the recent
strategic planning there a few mistake. Presentations refer to show something that can be used to
gain success in the determined area. Presentation of a new strategy for TNT refers to create or
shoeing new strategy that may be applied to obtain success. New strategy plan arise from service
deficient or needs of new service.
The new strategy planning for TNT Company can be Individual performance appraisal for the
employees. Through applying this strategy the company will be able to make sure the best
possible outcomes from the staffs of the company (Ciumasu & others, 2005)
9 | P a g e

3.1 Analysis of the appropriateness of alternative strategies relating to market entry,
substantive growth, limited growth or retrenchment for TNT:
Basically Merger and acquisition are the two vital factors that accumulate the substantive
growth. Merger refers to accumulating two individual organizations for doing business with a
body. A big company like TNT can increase its business through merger. Besides TNT there are
many small companies who are or TNT depend on each other. TNT can accumulate them under
his business. Through this process he can increase his business boundary.
On the hand acquisition refers to buy a company by another company. A company like TNT can
buy a company through buying the company’s share or assets. This process can also be adopted
by the company TNT. The company, TNT can buy a company’s share more than 50% or he can
but the assets of that company more than 50% and managing the company under his company.
As a result TNT’s boundary will be increased.
Considering present situation of TNT, Merger will be better. Adopting merger process TNT
company will be more profitable (Wilson, 2010).
3.2 Justification of the selection of a strategy:
The Company, TNT is a global company and it has more than 200 hundreds business all over the
world. At that moment if the company buys more assets or shares of others company it will be
very hard for the company to maintain all the assets properly. As a result the company may have
to face loss. On the hand if the company follow merger process, it can easily its goal. Merger
related to buy a company’s share or its assets. If the company follows merger process the
company needs not more employees. Current people of that company can manage the company.
They are much skill at their current position. As a result the company will able to face profit
quickly. On the other hand the company TNT has to business all over the world. If it follows
10 | P a g e

merger process it will have more power all over the world. As a result it will be easy for the
company to gain the ultimate result (Bevilacqua & Braglia, 2000).
4.1 Assessment of the roles and responsibilities of personnel who are charged with strategy
implementation:
Strategic planning of any organization moreover when it is TNT is the most important issue.
Goals of the organization ultimately depend on it. The person who is in responsible of making
the planning and implementing the planning has some responsibilities for ensuring the qualities
for performing strategic approaches and functions. At first he has to basic knowledge of TNT’s
business process. He has to a clear idea about objectives, aims, missions, visions and functions of
TNT. Considering all sides of the company, TNT, he will make the strategic plan and takes steps
to implement it (Yeung & Brockbank, 1994).
4.2 Analysis of the estimated resource requirements for implementing a new strategy for
TNT:
For increasing the profit rate of TNT, the company needs to apply new strategy. For applying the
recent strategy the company needs more resources. A big company like TNT generally makes
long term strategy. To make long term strategic planning the company like TNT always is
careful about its four basic resources. They are financial resources, physical resources, human
resources, and technological resources. To make successful and effective planning the planning
maker will allocate this resources in right way and in right process. Otherwise it will be not
possible to gain the ultimate result of The Company, TNT. (Frow & Payne, 2009).
11 | P a g e

4.3 Evaluation of the contribution of SMART targets to the achievement of strategy
implementation in TNT:
Smart target of an organization refers to the organization must have a specific, measurable,
achievable, time bond and realistic characterized goal. If the goal of the company like TNT is not
specific, the employees will be confused. They will be unable to understand what they need to
follow and what need not follow. They randomly follow different types of goals. As a result they
will be unable to meet with the ultimate result. If the goal is specific, they all will be run after
that one. As a result it will be very easy for the company, TNT to ensure the ultimate result. If
the planning maker of the TNT makes a strategic planning which is not achievable and only it is
imaginable, then it is not possible at all to gain the objects. The objects of the company must be
achievable. The goal of the company must be measurable, time bond, realistic otherwise it will
be very hard for the company to achieve the goal. If the goal is not time bond, employees will
work slowly. As a result the cost of the company will be increase day by day. And one time it
will be fail to gain its goal. After all it can be said clearly that the company, TNT goal should be
smart target. So they can easily obtain it (Pritchard & Armistead, 1999)
M1: The positive and the negative aspects of using the PESTEL:
In the present world all things has two sides. One of them is positive and another is negative.
Like others PESTEL has two sides. They are describing in below
Positive sides:
PESTEL helps us to introduce our new products and markets nationally and globally. It helps an
organization to decrease its possible risk. It offers an organization very easy and simple work
structure.
Negative sides:
It doesn’t permit to use external information. The techniques need to conduct in business
regularly. But every organization doesn’t have the ability. Users usually simplify its information
much.
12 | P a g e

M 2: Sources and cites of information
Pritchard, J. P., and Armistead, C. (1999). Business process management-lessons from European
business. Business Process Management Journal, 5(1), 10-35.
Frow, P. E. and Payne, A. F. (2009). Customer relationship management: a strategic perspective.
Journal of Business Market Management, 3(1), 7-27.
Savage, G. T., Nix, T. W., Whitehead, C. J., and Blair, J. D. (1991). Strategies for assessing and
managing organizational stakeholders. The executive, 5(2), 61-75
Evaluation of the contribution of SMART targets to the achievement of strategy implementation
in TNT <http://whatis.techtarget.com/definition/SMART-SMART-goals
Positive and the negative aspects of using the PESTEL http://www.free-management-
ebooks.com/faqst/pestle-09.htm
D1:
In future or after 5 years there may be come many changes in environment. In this case the
planning maker should make decision analyzing present situation. There may be come
demographical change. Then they have to increase their manpower.
D2:
Through this assignment the students are able to understand the actual factors and matters of a
company. We will be now able to handle this kind of business situation. Now we have much
knowledge of business strategy and how to implication it.
D3:
After completing this assignment, we student have much knowledge about the company named
TNT. In future we will be able to manage this kind of largest company as a result of doing this
assignment.
Conclusion:
TNT is one of the successful businesses in the whole United Kingdom as well as all over the
world. After all it has some lacking. If the company research with this mistake they will be soon
13 | P a g e

the world largest business. To be the world largest business, they need to bring some change in
their strategic planning. In the strategic planning, human resources side should be taken very
carefully. As it is a global business, it needs a skilled man power. Skill man power can manage
the business all over the world. So the goal will be very easy. The others three resources should
also be used carefully and cost effective manner. SWOT analysis should be used frequently to
measure its current situation in the market. Thus the company will be the best in the world.
Reference:
1. Analysis of the appropriateness of alternative strategies relating to market entry,
substantive growth, limited growth or retrenchment for
TNT<http://www.entrepreneur.com/encyclopedia/acquisition> [Accessed on: 01 April,
2016].
2. Assessment of how business missions, visions, objectives, goals and core
competencies inform strategic planning
<http://www.merriam-webster.com/dictionary/strategy > [Accessed on 01 April, 2016].
3. Bevilacqua, M., and Braglia, M. (2000). The analytic hierarchy process applied to
maintenance strategy selection. Reliability Engineering & System Safety, 70(1), 71-83.
4. Ciumasu, I. M., Krämer, P. M., Weber, C. M., Kolb, G., Tiemann, D., Windisch, S., ...
and Kettrup, A. A. (2005). A new, versatile field immunosensor for environmental
pollutants: Development and proof of principle with TNT, diuron, and atrazine.
Biosensors and Bioelectronics, 21(2), 354-364.
5. Evaluation of the contribution of SMART targets to the achievement of strategy
implementation in TNT <http://whatis.techtarget.com/definition/SMART-SMART-goals
> [Accessed on 01 April, 2016].
6. Frow, P. E. and Payne, A. F. (2009). Customer relationship management: a strategic
perspective. Journal of Business Market Management, 3(1), 7-27.
14 | P a g e

7. Gil, M. A., Jiménez, J. B. and Lorente, J. C. (2001). An analysis of environmental
management, organizational context and performance of Spanish hotels. Omega, 29(6),
457-471.
8. Hoffmann, W. H., and Schlosser, R. (2001). Success factors of strategic alliances in small
and medium-sized enterprises—An empirical survey. Long range planning, 34(3), 357-
381.
9. Jennings, D. (2002). Strategic management: an evaluation of the use of three learning
methods. Journal of Management Development, 21(9), 655-665.
10. Kaplan, R. S., and Norton, D. P. (1998). Putting the balanced scorecard to work. The
Economic Impact of Knowledge, 315-324.
11. Krasnobaeva, T. (2010). The analysis of alternative transportation routes in comission of
TNT Express.
12. Pritchard, J. P., and Armistead, C. (1999). Business process management-lessons from
European business. Business Process Management Journal, 5(1), 10-35.
13. Savage, G. T., Nix, T. W., Whitehead, C. J., and Blair, J. D. (1991). Strategies for
assessing and managing organizational stakeholders. The executive, 5(2), 61-75
14. Wilson, R. M. (2010). Strategic marketing planning. Routledge.
15. Yeung, A., and Brockbank, W. (1994). Lower cost, higher value: Human resource
function in transfo. People and Strategy, 17(3), 1.
15 | P a g e