Strategic Management Analysis: DHL's Performance and Strategic Plan

This report offers a comprehensive analysis of DHL's strategic management practices. It begins with an introduction to strategic planning and its importance, followed by a performance evaluation of DHL, focusing on its competitive strengths and market position. The report then delves into DHL's strategic plan, including its mission, vision, and strategic objectives. It explores the application of strategic models such as the Ansoff Matrix and Porter's Generic Model to DHL's operations. The report also includes an action plan with a budget for various resources and a discussion on controlling and monitoring strategies. Finally, it concludes with a reflection on the learning experience and the insights gained from studying DHL's strategic approach. The report highlights how DHL aims to achieve a competitive advantage and maintain its market leadership in the courier service industry through effective strategic planning and implementation.

Strategic Management

Table of Contents
Introduction......................................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 2............................................................................................................................................3
PART A (1)......................................................................................................................................3
Performance Evaluation of DHL............................................................................................3
PART A (2)......................................................................................................................................4
Strategic Plan of Company..............................................................................................................4
Strategic Models of Company................................................................................................5
PART B............................................................................................................................................8
Conclusion.......................................................................................................................................8
References......................................................................................................................................10
Books and Journals...............................................................................................................10

Introduction
Strategic planning can be comprehensively referred to as the procedure of devising and
formulating strategic course of action by way of which an organisation can attain competitive
edge in the global market place. This procedure mainly encompasses the integration of several
departmental sections of the company and facilitation of effectual coordination among them.
This helps in accomplishing the goals and objectives of the entity in a timely manner (Chang,
2016). Strategic planning enables a firm to review its market environment and thereby
implement market strategies that can aid in competing with the rival firms in an effective
manner. The following report deals with strategic planning conducted in the premises of DHL
(Dalsey, Hillblom and Lynn). This is a well-renowned German organisation offering courier
related services to the people. The report covers the evaluation of organisational performance of
DHL in context of its external environment. It also includes the strategic plan undertaken by the
entity. Furthermore, it contains the importance of strategic tools in terms of attainment of
competitive edge in the market place. Lastly, reflection is presented on online learning activities
with innovative view within the strategic market place.
MAIN BODY
TASK 2
PART A (1)
Performance Evaluation of DHL
The aim of DHL is to render value added services to the customer base so as to transform
their experiences into something memorable. The organisation is encountering several issues in
the competitive landscape that arose because of external components. The intention of this
organisation is to attain a competitive advantage that can assist in development of stronger

customer base. This courier company is known to serve over 200 countries worldwide with its
effective services. Concerning this, the performance evaluation of DHL is given as follows:-
Competitive Strength: This demonstrates the strength of the organisation that is created
over the course of time by delivering effective services to the customers in a timely manner
(Davies, 2016). In this relation, it has been identified that DHL has maintained its loyal and
stronger customer base at the international scale by virtue of its sound customer relations. This
would inflate the productivity levels of the organisation and drive it to achieve the predetermined
goals and objectives within due course of time. Another way leveraged by the company in this
relation is the usage of advertisements to gain the attention of potential customers and inflate the
existent market share of the firm (Eaton and Kilby, 2015). Through the adoption of cost cutting
strategy, DHL seeks to attain competitive strength in the global market place. This further leads
to the augmentation of profit margins and makes the brand a market leader within the concerned
sector.
Market position and areas: DHL is a renowned brand which makes use of several
strategies to maintain and sustain its high market position in the courier sector. This further
provides due assistance to the respective corporation in securing a high market position and
consequently gaining the trust of the customers. This enterprise offers its services in 220 nations
across the world which has provided aid to it in building an extensive networking worldwide.
The strong marketing channels like social media marketing and digital marketing are used by the
corporation to capture the attention of public towards the services provided by it at the
international scale. The company is affected by an array of external business environment factors
that mainly include several political scenarios prevailing in the world.
PART A (2)
Strategic Plan of Company
Strategic planning for an organisation includes the stipulation of vision, mission and
objectives for the long run of the entity. In this relation, it can be comprehensively stated that
strategic plan is developed by an organisation for the purpose of achieving market growth and
facilitating development of the global market share. Concerning DHL, it is analysed that the
entity is focuses on inflating its digital presence by way of formulating change management

procedures within the organisational premises (Johnson, 2016). The strategic plan of DHL is laid
down as under:-
Mission: The mission statement of DHL is laid down as “To appeal to the public by
keeping them at the forefront of the organisation.” This allows the organisation to enhance their
profitability by empowering the employees.
Vision: The vision statement of DHL is “To become the largest logistics company of the
world by tapping the opportunities emerging in the market.” The organisation intends to set an
example in front of the other organisations operating within the same industry.
Strategic Objectives:
 To augment the customer base by 10% by the end of next 6 months. To develop the revenues by 20% by the end of the next 12 months.
Strategic Models of Company
There are distinct strategic models that can be utilised by DHL within working
environment for delivering their operations. This will provide firms with an advantage through
which they are able to analyse their internal along with external capabilities.
Ansoff Matrix: For attainment of growth, DHL can opt for Ansoff matrix through which
they can attain growth within the market. The different factors associated with this are illustrated
beneath:
Market penetration: With reference to strategy, the firm have undertaken low price
policies for attracting ample of customers. This has been adopted via firm for enhancement of
revenue along with relevant sales generation through effectual usage of promotion and
advertising. This strategy is regarded less risky as firm delivers their services within the same
market and by giving same products. DHL can aim for amplification of their services so that they
can address the customer needs.
Market development: The firm renders effectual as well as efficient products for their
consumers as this will lead them to captivate ample of consumers for their brand. The rationale
of this strategy is to gain high economy by enhancing overall sales of the organisation. With
reference to this, the emphasis of DHL is on attracting as well as retaining ample of probable
customers to lead within the market.
Product development: The firm provides new products to consumers within existent
market. This strategy is utilised via DHL by analysing the preferences of their customers and

accordingly making alterations within their offerings. The rationale behind this is to have
competitive edge and be a leader in the industry (Laudon and Traver, 2016).
Diversification: This involves enhancing the product range or services that are being
rendered by the organisation. Along with new services, firm can also expand their operations
within the new market. This will aid DHL to have an opportunity for growth at global market
and retain their customers for longer frame of time.
DHL can make use of market development strategy through which they can provide
services within the new market and develop a strong customer base by accomplishment of their
preferences (Lawton, 2017). Furthermore, firm will be able to attain their goals as well as
objectives within peculiar duration of time.
Porter's Generic Model
This framework is utilised by organization for carrying out analysis so that they can
identify way in which they approach their customers as well as targeted market. DHL makes use
o distinct strategies for attracting their customers as well as enhancing their positioning for
having competitive edge in the marketplace. The Porter’s generic model in context of DHL is
specified beneath:
Cost Leadership: This strategy is utilised via firm for leading industry by addressing
needs of customers in effective delivery of services. The firm can opt for strategy for analysing
growth prospects within the competitive marketplace. DHL have opted for making use of this
strategy through which they can captivate customers and amplify their sales. This can be attained
via offering certain festival offers, vouchers, discounts and various other aspects.
Cost focus: The strategy focuses within emphasising cost of products as well as
captivates customers by rendering them with relevant budgeted amount. DHL can opt for this
strategy to set up prices for products within the economical manner for both customers as well as
organisation (Moseley III, 2017). The firm executes this strategy for making sure that higher
profitability can be attained and this will enable them to have growth within the external
environment.
Differentiation leadership: This strategy comprises of diversified nature that is
associated with leadership context within the industry. This explicates that firm can have market
leadership by rendering them with effectual products for maintain their consumers. DHL have

opted for this strategy by taking into consideration preferences of individuals for having a
competitive edge within the marketplace.
Differentiation focus: According to this, the firm will take into account the primal
anticipations of customers so that they can be addressed in an adequate manner. In this case, firm
tends to provide their consumers with unique services that are not offered by their competitors
within the marketplace (Razak and et. al., 2016). The rationale of DHL is conduct extensive
market research and accordingly identifies priority of their consumers for having edge in the
marketplace.
DHL can make use of differentiation strategy as this will enable them to address the
preferences of customers in adequate manner by providing them with unlike services. The
innovation within operations will further lead to enhance their positioning along with image in
the market. Thus, overall profitability and productivity will be amplified.
Action Plan for the Company
Budget can be utilised by organisation for identification of resources required by them
and accordingly formulating the budget needed for possessing them. DHL have opted to
formulate budget as this will lead them to make sure that all the aspects or resources are used in
an adequate manner. To enhance the delivery of their services and captivate customers, it
becomes important for them to ensure efficiency within the working environment (Scholes,
2015). They can opt for online services and for this relevant funds have to be organised.
Particulars Amount (£)
Human resources 15000
Marketing 7000
Technological enhancements 300000
Raw materials 50000
Controlling and Monitoring
This is liable for firm that they are liable for controlling as well as monitoring resources
and budget of firm for ensuring overall effectiveness. DHL can attain their goals as well as
objectives in case if any kind of deficiencies takes place within execution of strategies. Through
the usage of benchmarking techniques, the firm can address their requirements within the timely

manner for making sure that their operations are conducted in the smooth manner (Thompson,
Strickland and Gamble, 2015).
PART B
Reflection of strategic views of organisation
By going through this module, I can acquire knowledge related with the working
premises. In addition to this, I have acknowledged strategic viewpoint of the firm as well as ways
in which they execute strategies for maintaining overall competitiveness. This is important for
organisation to ensure that distinct steps are being taken up by firm through which they can
captivate ample number of customers towards their services. Through attainment of benchmarks
effectual usage of resources can be made through which external environment can be analysed
by them. This module also enables them to render relevant understanding related with ways in
which firm maintain relevant profitability levels and are also able to retain their customers. I
have acknowledged strategic planning of the organisation as well as coordinated with efforts
made via distinct departments for attaining organisational objectives along with goals. By
completion of this module, various skills have been developed as well as the progress have been
analysed within distinct sectors of the industry.
This module has made relevant contribution to develop career and ensure that target goals
are attained. In addition to this, skills will aid within understanding related with different models
which can be used within analysing preferences of the customers. This also enabled within
enhancement of communication skills through which career goals can be attained.
Conclusion
From above it can be concluded that, strategic management implies that relevant
strategies are utilised by organisation for having competitive advantage. This leads to make sure
that external environment must be taken into consideration so that adequate strategies will be
developed. The firm is delivering their services at global level which means that they have to
take into account all the conditions that prevails within the marketplace. This will lead them to
have competitive edge and make sure that they sustain by having significant profit margin. It can
be attained by opting for efficacious strategic plan.

References
Books and Journals
Chang, J. F., 2016. Business process management systems: strategy and implementation.
Auerbach Publications.
Davies, A., 2016. Best practice in corporate governance: Building reputation and sustainable
success. Routledge.
Eaton, D. and Kilby, G., 2015. Does Your Organizational Culture Support Your Business
Strategy?. The Journal for Quality and Participation. 37(4). p.4.
Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
Laudon, K. C. and Traver, C. G., 2016. E-commerce: business, technology, society.
Lawton, T. C., 2017. Cleared for take-off: structure and strategy in the low fare airline business.
Routledge.
Moseley III, G.B., 2017. Managing health care business strategy. Jones & Bartlett Learning.
Razak and et. al., 2016. Theories of knowledge sharing behavior in business strategy. Procedia
Economics and Finance. 37. pp.545-553.
Scholes, M. S., 2015. Taxes and business strategy. Prentice Hall.
Thompson, A., Strickland, A. J. and Gamble, J., 2015. Crafting and executing strategy: Concepts
and readings. McGraw-Hill Education.