Business Strategy Report: Analysis of TNT Express Operations

This report provides a comprehensive analysis of TNT Express's business strategy. It begins with an assessment of the company's mission, vision, objectives, goals, and core competencies, highlighting how these elements inform strategic planning. The report then identifies key factors that contribute to the development of strategic plans, including communication, innovation, and organizational culture. It evaluates strategic techniques like the BCG growth-share matrix and PIMS. A SWOT analysis is conducted to assess TNT's strategic positioning, while a PESTLE analysis examines the external environment. The importance of stakeholder research is emphasized, and a new strategy involving merger and acquisition is proposed to enhance profitability and market share. The report concludes with a discussion of alternative strategies, evaluating the appropriateness of market entry, substantive growth, limited growth, and retrenchment strategies for TNT Express.

Business Strategy
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TABLE OF CONTENTS
INTRODUCTION................................................................................................................................4
TASK 1a...............................................................................................................................................4
Assessment of the business missions, visions, objectives, goals and core competencies inform
strategic planning.............................................................................................................................4
Identification of the factors which assists in developing the strategic plans for TNT ....................5
Evaluation of techniques and their effectiveness ...........................................................................5
TASK 1B..............................................................................................................................................6
CONCLUSION....................................................................................................................................8
TASK 2.................................................................................................................................................8
REFERENCES...................................................................................................................................12
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ILLUSTRATION INDEX
Illustration 1: stakeholder analysis............................................................................................................8
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INTRODUCTION
Business strategies are made because to achieved desire objectives of the organization..
Business strategy can be defined as a long term business plan. In other words, a business strategy
comprises of business and personal goals with a competitive advantage through which the organization
can runs successfully (Niven, 2014). For conducting the present research, organization given is TNT
express. This company deals with services like express and freight delivery services and charter airline
(TNT, 2016). The first task comprises of report and essay which covers business objectives and
strategic planning to achieve the objectives. Furthermore, the task covers business strategies techniques
by auditing the business operations and by analysing the stakeholder strategy to form business plans.
TASK 1A
Assessment of the business missions, visions, objectives, goals and core competencies inform strategic
planning
Define Determining the vision,
objective, mission, core
competence and goal of TNT
Explanation of the vision,
objective, mission, core
competence and goal of TNT
Mission: To provide
employees and
stakeholders with the
purpose of the
organization.
 To exceed customers
expectations.
 Deliver value to the
customer.
 TNT wants to fulfil
customers’ expectations by
providing them with
products (Antony, 2015).
 The firm also wants to give
reliable and efficient
services to their customers.
Vision: This statement says
about desired future of the
organization.
To become the biggest transport
empire in the world.
TNT want to be become a biggest
transport empire in the world
operating through air, rail, road and
se.
Goals: The way to achieve
the mission of the
organization.
To satisfy their customers and
enhance their profitability
(Hargrave, 2014).
The company wants to grow their
business as well as their profits by
satisfying their customers.
Objectives: It is the desired
outcome of the
organization.
To achieve profitable growth The company wants to increase
their revenues and profitability and
to expand their market share.
Core Competence: It
differentiates the
organization from its
competitors through their
d competitive advantages.
 Having distinctive
position in the market.
 Building their core
strengths.
 TNT has market position
with the competitive
advantages like speed,
reliability and service
(Edwards and Ellison,
2013).
 Core strengths can be
identified in the form of
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skills, resources and their
activities.
Identification of the factors which assists in developing the strategic plans for TNT
Strategic plans are important because helps in making the strategy of the future which assists
accomplished the goals and objectives. There are various aspects which are to be needed in developing
the strategic plan and they are communication, innovation and culture. From the above factors factors,
the three factors are as given below: Communication: To make the strategic plan successful, the company should ensure that the
communication between superiors and subordinates goes efficiently. (Azar, 2011). Employees
will give ideas to the strategic planning process with the help of feedback surveys, focus
groups, meetings, etc. Innovation: Innovation process will never lead to the failure and it will always provide new
services or restructure to their services. TNT also motivates their employees so that they able to
serve best to their customers through their required skills and knowledge. Through this, the
workforce wills gets motivated and will put their innovative and creative ideas in the strategies
to attract large number of customers (Wankel, 2012).
 Culture: Organizational culture is the main reason which comprises of attitudes, beliefs, values
and behaviour of the employees. If the employees help in the change and forms effective
strategies then only strategic plans for the organization can be made.
Evaluation of techniques and their effectiveness
BCG growth-share matrix and PIMS are the two techniques that are used while developing strategic
business plans. This technique helps the TNT to make business plans in which it includes to allocate
the resources. Further, an important role is played by these techniques in as these work as tool various
functions. These include product management and portfolio analysis, brand marketing and strategic
management (Burke and Schreiber, 2014). There are two aspects on which BCG analysis is based.
They are growth rates and market share. In an industry which has slow growth, cash cows have high
market share. Second element is this analysis is ‘Dogs’ which are characterized by low market share in
an industry which has slow growth. The third category is ‘Question mark’. This denotes the businesses
that have a low market share even in high growth market (Butler, 2012). The last category is known as
‘Stars’. These are those units which occupy a high market share in an industry which is growing at a
fast rate. Profit impact of market strategies or PIMS is another technique. This comprises of a thorough
analysis and study of the performance of all the business units.
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TASK 1B
The organizational audit for TNT to analyse the strategic positioning
A SWOT analysis is a technique which is used to analyse strategic positioning of TNT through
organizational audit.
Strengths
The company has large diversified service range which includes logistics and mail services. It
is one of the European market leader in the delivery services in which it is considered as the most
fastest and dependable provider. (Burlton, 2010). The company uses sophisticated technology as an
innovative force in the express industry. It constitutes of the skilled and talented staff which tarined to
serve the customers effectively.
Weaknesses
The company has limited diversification in their services. The company where it exists is a
competitive segment of the market share which is limited.
Opportunities
TNT can bring diversification in their products and services and expand their business
operations globally (Kourdi, 2010). The company can develop their transportation and communication
technology with better services.
Threats
There are small competitors with low cost services which can be the major threats for the
organization. There are many competitors which can be threats to the TNT such as DHL, FedEx, UPS
airlines etc.
PESTLE analysis of TNT express
Environment identification to be done to know the adequate method for the chosen organization
and this can be done through PESTEL analysis.
Political
TNT operations are globally with acquiring the different countries. There are some countries
which follows flexible rules and regulations but there are times when their operating cost and inflation
rate does not facilitates the organization.
Economic
There are some global economical situations such as recessions and economic crises in that
exchange rates of that particular countries can affect the TNT (Figge and et. al., 2012). It is an
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important factors of the company which shows the financial position of the company.
Social
To promote the TNT as well as its services, the company should kept in its mind their socio
cultural aspects of the customers. So that firm can't able to hurt the sentiments of the target groups. The
tastes and preferences of the customers keeps on changing so the TNT should focus on needs and
requirements of the consumers.
Technological
This factor is important for the TNT because its all services is depend on the communication
and transportation. To deliver the services in the most effective way to the customers, TNT should
introduce new innovation and advanced technology in their services.
Environmental
These factors focuses at the sustainable development which is the vital factor for the
environment (Ireland, Hoskisson and Hitt, 2013). The chosen organizational should considered the
aspects of surrounding without affecting the corporate existence.
Legal
These factors are different in each countries. In this, TNT has to follow different rules and
regulations , laws and the regulatory framework to operate its business operation in various countries.
Classification of the importance of stakeholder research when TNT strategy will developed
Every organization needs the stakeholders to build up their reputation as well as their business
in the market place. Stakeholders are the people who has different perspectives and motive in the
company which can influences the business operations. There are various types of the stakeholders
and they are employees, consumers, government, providers, stakeholders etc. If any new strategy are to
be formulated for the betterment of the organization then stakeholders are to be involved or
requirements are to be needed in fulfilling the aspects of the strategy. To know their expectations from
the company then the firm should do stakeholder analysis to know about them. It importance are
crucial aspects which are the major part in developing any new or old strategy (Keim and Hillman,
2012). Stakeholder analysis helps in develop most effective strategies and helps in reducing the
obstacles for the successful business operations. The organization can use the opinions of the most
powerful stakeholders to shape up the business. If there are powerful stakeholders in the organizations
then business have more resources in the organizations.
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A new strategy for TNT
The new strategy for TNT can be merger or Acquisition (M&A) which helps the organization to
enhance their profitability and increase their market share. TNT can apply merger and acquisition
strategy with the small, emerging and developing mail services company so by which they can enlarge
their customer base and increase their market share. The company use the target business's distribution
channels and systems for their own use (Berio and Harzallah, 2014). The company has more more
merits other than M&A and they are skilled and talented workforce which are holding some years of
experience in this field and value the customers. If the organization is developing then the funds and
assets are needed for the different aspects in which one is distribution of the products and services etc.
Merger and acquisition startegy will helps the TNT in their operational costs and enhancing the buying
power of the customers while also shared the budgets as well as profits and loss of the services. It also
helps in diversify their products and services in the long term perspectives.
CONCLUSION
It concluded that the TNT has some mission and vision by which it accomplished their goals
and services by developing their business strategy. The are some factors and techniques such as BCG
matrix which the organizations to build their business and expand their market share. TNT has also
carried out the micro and macro environmental analysis of the organization through SWOT and
PESTEL analysis respectively. TNT has formulates two new business strategies which are stakeholder
analysis and other is merger and acquisition.
TASK 2
Introduction
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Illustration 1: stakeholder analysis
(Source: www.allpm.com)

As based on the above scenario, the company which has been chosen is TNT services. This
essay will cover the various appropriate business strategies from which the best option will be chosen.
Furthermore, the roles and responsibilities of the individual and the utilization of resources of the
organization can be evaluated. The essay also covers the SMART objectives to apply in the business
strategies by which company can increase their profitability and their market share.
Analyse the appropriateness of alternative strategies
There are various alternatives strategies in the market which includes market entry, substantive
growth, limited growth or retrenchment. The market strategy can be defined as the method through
which goods and services are introduced to the new market (Hax, 2012). The substantive growth are
can be implemented through two main factors which merger and acquisition. TNT has more potential
to use merger as a substantive growth strategy because of its market strength. On the other hand,
acquisition can be implemented by TNT since it has more market power in the industry (Harzallah and
Vernadat, 2012). Limited growth can be in form of joint venture because the competitive advantage is
narrow. TNT has more market share in the industry so it is not recommended for limited growth
strategy. Retrenchment is always a curative action. These curative actions are taken at the stage of the
inefficiency, economic recession or at the time of strong competition. One alternative strategy for the
company can be substantive growth strategies.
Justify the selection of the alternative strategy
The selective strategy is substantive growth strategy. The greatest advantage of achieving
substantive growth in a business is very likely lead to more growth in the future and wealth tends to
grow exponentially. A business can fund their further projects to gain market share from its
competitors. If a business is achieving substantive growth, it will know that it is gaining on its
competition. When looking at a business from a larger societal perspective, the achievement of
substantive growth is the major justification for its existence (Kambil, 2014). Through the achievement
of substantive growth a business not only enriches its owners and employees but it increases the wealth
in the society. A business must consider what its key priorities will be in the future. This is a part of the
rational process of planning. Substantive growth provides a key advantage to business strategists in
making their steps clear.
Assess the roles and responsibilities of personnel who are charged with strategy implementation
The roles and responsibilities of personnel who are charged with strategy implementation can
helped in the future strategies. The first role is envisioning future strategy which involve with clear
communicating the strategy to internal and external groups (Abraham, 2010). The next role is aligning
the organisation to deliver the strategy this role is about the loyalty towards the organization in times of
thick and thin (Marren, 2014). In this, motivation is crucial aspect which should be followed by the
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employees to brings the change in organization through various perspectives. The last role of the
personnel is crucial change which states that implementation of the strategy will helps in the enhancing
the profitability and reputation of the chosen organization. In addition to this, the leader plays
important role in formulating the strategy and bringing new change in the company through innovation
and creativity. These changes in the strategy can be brought by the middle management and the
consumers. This because these groups can only analysis the best perspectives of the stated strategy.
Customers have more duties for strategy implementation because they formulates the strategy.
For applying the new strategy for TNT, identify the calculate resources requirements
To enhanced the profitability and to become leader in the market, TNT should practice some
strategy which helps it to acquire the competitive advantages. For the strategy implementation
company will need some resources which can be given as human resources, capital and other
machineries and equipments. The main resources is human resources which can only support the
capital as well as the other techniques. This resources only helps in implementation the strategy
perfectly and directs them to full fill accordingly (Schoenberg, Collier and Bowman, 2013). To
enhance this resources company can provide training courses ans other activities to enhance their
knowledge and skills. As all the aspects of the business and its strategy are retailed to the money so
there should be good funds are to be collected for the future activities. In addition to this, the
machineries and equipments needed finance which can be elaborated in the production and marketing
resources which is essential for the TNT to implemented the strategy in the organization. As the new
advanced technology is crucial for the business firm so that quality improvisation should be done time
to time to have the successful business.
Evaluate the contribution of SMART targets to the achievement of strategy implementation
In order to succeed, formulation of SMART objectives is vital for every business. Specific
means goals need to be specific. If the goals are measurable, they help in management planning and its
control and implementation. Similarly, goals which are attainable provide an inspiration to the people.
Relevant goals must be assigned to a person or a department. Another requirement is that goals must
include a timeline (Aaker, 2011). TNT should be measurable in terms of their services and business
operations. Customer focus is one of the key areas of TNT through which it is able to differentiate
itself from the competitors. The company should focus on achievable task so that they can
accomplished their goals and attract large number of customers. TNT should concentrates on the time
specific objectives so that their services can reach to the customers at quick as possible.
Conclusion
From the report it can be inferred that the different types of alternative strategies for growth that
can be used by organization are substantive growth, retrenchment and market entry. In these strategies,
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substantive growth strategies is chosen as best alternative for the organization. The further essay
concludes that individual roles and responsibilities which needed for the strategy implementation. The
organization also needed estimated resources so that the new strategy could be efficiently executed and
implemented.
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REFERENCES
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Schoenberg, R., Collier, N. and Bowman, C., 2013. Strategies for business turnaround and recovery: a
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Online
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