Strategic Positioning and Recommendations for TNT Express

This report provides a detailed analysis of TNT Express's business strategy. It begins with an introduction highlighting the importance of strategic planning in a competitive market, specifically focusing on TNT Express as a leading courier company. The report then delves into the strategic positioning of TNT Express, utilizing SWOT analysis to identify strengths, weaknesses, opportunities, and threats. An environmental audit, incorporating PESTEL analysis, is conducted to assess political, economic, social, technological, legal, and environmental factors impacting the company. The significance of stakeholder analysis in formulating new strategies is examined, emphasizing the roles of primary, secondary, and key stakeholders. The report proposes a new strategy for TNT Express, focusing on profitable growth, operational excellence, and market share. It analyzes the appropriateness of alternative strategies, such as market entry, growth, and retrenchment, and justifies the selection of a specific strategy. The report also outlines the roles and responsibilities of personnel in strategy implementation, estimates resource requirements, and evaluates the contribution of SMART targets. The conclusion summarizes the key findings and recommendations, reinforcing the importance of strategic planning for TNT Express's continued success.

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 2 ...........................................................................................................................................3
2.1 Analysis the strategic positioning of TNT............................................................................3
2.2 An environmental audit for TNT..........................................................................................4
2.3 Significance of stakeholder analysis when formulating new strategy.................................5
2.4 A new strategy for TNT........................................................................................................6
TASK 3............................................................................................................................................6
3.1 Analysis of the appropriateness of alternative strategies of TNT........................................6
3.2 Justification of the selection of a strategy in TNT...............................................................7
TASK 4............................................................................................................................................8
4.1Roles and responsibilities of personnel who are charged with strategy implementation......8
4.2 Estimation of resource requirements for implementing a new strategy for TNT ............9
4.3 Evaluation of the contribution of SMART targets..............................................................10
CONCLUSION..............................................................................................................................10
REFERNCES.................................................................................................................................11

INTRODUCTION
Today in the competitive market environment, every organisation must adapt a strategy
so that it can gain its objectives and goals of profit maximisation and revenue generating. To
gain competitive advantage,the company should make strategic planning. TNT express is a
courier company which is a leading courier organisation in United Kingdom. The company uses
the strap line sure we can as business strategy. The company concentrates on customer
satisfaction, challenge, supporting staff, teamwork and profit (Baets,2012). There are many
different techniques which are used in strategic business plan by the organisation. The employees
of the company are also main part of the strategy implementation so their roles and
responsibilities should be considered.
For organisational audit, strategic positioning must be analysed. It the following report,
different alternative strategies related to market entry, substantive
growth, limited growth or retrenchment for TNT express company will be discussed. As
stakeholders are then key part of the company to make an effective business strategy,there is
need for stakeholder analysis when strategy is formulated. While a new strategy is implemented
for the company, there will be many resources requirements to use in the future for organisation.
A SMART target is the main contributor in achieving strategy implementation. Many factors
pays a vital role in strategic planning for the company.
TASK 2
2.1 Analysis the strategic positioning of TNT
Being a leading company in the , position of the company can be analysed through
organisational audit. One of the most useful method of organisational audit for TNT is SWOT
analysis in which strength, weakness, opportunities and threats of TNT are identified. It can be
explained as followings.
 Strength-Strength is the positive side of the company in which advanced benefits are
included. TNT is a leading courier company in United Kingdom. It is a well known brand
in courier services industry so it has a huge number of loyal customers all over the
country. It provides the 24*7 service to its customers.

 Weakness- This is the negative side which can harm the position of the company in
market .The business organisation limited diversification in service in transportation
and logistics (Herná,NdezJiméNez and Martín,2009). As this industry is a competitive in
nature , so the market share growth is limited for the company.
 Opportunities-The company has expanded and penetrated its business through service
to newer regions. As the company is growing fast in transportation sector, in has a
positive chance for good business in Malaysia market. As the company makes efforts for
innovative methods in its services , it would retain maximum numbers of customers.
 Threats- Threat of TNT business organisation is that there are many small competitors in
United Kingdom which offer lower cost service which can harm the position of the
company. If the economy gets slow then it can harm the over all business organisation.
Another threat of the stagnation is the reduced purchase power of consumer which can
affect the sales of the company in the long term (Hofer,2015). Thus through above audit ,
market position of TNMT can be done to analyse its current situation.
2.2 An environmental audit for TNT
For making an useful business strategy,business organization TNT needs to estimate and
audit its market environment in which the company operates its business and gets affected to a
some extent. Environmental audit includes PESTEL analysis. In this major factors are considered
like political, social, economical, environmental,technological and legal factors. These factors
can be explained as followings.
 Political factors-Political factors include political law implied by government authority
which affect the business of TNT company. The law made by European Union has the
great impact on the business of the company. So this factor should be considered to make
an effective strategy for future.
 Economical factors- Economical factors include consumer buying behaviour which
directly affects the business of TNT in a positive as well negative way. Recession or
inflation situations in economy also harm the business of the company (Hofer,2015). So
this factor also must be considered to make a customised business strategy.
 Social factors- There are continue changes in the attitudes of the customers which affects
the business of TNT in many different ways. For example,If the customers do not like the

innovative method of service of the company then it can decrease the number of
customers in the long term.
 Technological factors-Today , continue changes in technology time to time. So the
business organisation has to adapt latest technology to compete in then market and gain
advantage from it.
 Legal factors-As in transportation , privacy is the main key for customers. So there are
many legal rules which have to be obeyed by organisation. To make a successful
strategy , the organisation has to fulfil all requirement of law.
 Environmental factors-Every business organisation operates its business in environment
.There are limited natural resources which are used by TNT especially for paper
packaging (Kaplan and Norton,2008). So the company has to consider that it mention
minimum and effective utilisation of environment and no harm to it by company
business.
2.3 Significance of stakeholder analysis when formulating new strategy
Stakeholders are the foundation for TNT company to compete in transportation industry
on United Kingdom. When the new strategy is formulated , management makes sure that if any
changes are required by stakeholders of the organisation or not. Analysis of stakeholders is done
to identify any risk involved in the new strategy and appropriate changes are discussed with
stakeholders of the company. There are different types of stakeholders in TNT company which
are significant for business strategy as followings.
1. Primary stakeholders- These types of stakeholder are affected by new policies and
strategies form the company .As they are the main owner of the company ,so they are
directly affected positively or negatively.
2. Secondary stakeholders-These stakeholders are intermediaries for the company. So
they are influenced by new policies and strategies indirectly in a positive as well as
negative way. These have the lesser fluctuation due to changes in business strategies or
policies .
3. Key stakeholders- This type of stakeholders might be from primary or secondary
stakeholders (Noe,Hollenbeck and Wright,2016). These are the persons who can
influence or change the activities within the company to improve its performance in the
long term.

Thus these above three stakeholders plays a vital role in formulation of new business strategy to
maintain the lead position in market. So while formulating new strategy,TNT must communicate
with its all stakeholders.
2.4 A new strategy for TNT
AS TNT is a leading transportation and logistics business organisation in United
Kingdom, so it has to make the best business strategy in such a way that it meets the need of its
customers, shareholders and employees. The company has three priority points in its new
strategy like more ficus on profitable growth,investment in operational excellence and organise
to win the lion market share. First aspect in TNT new strategy is customers. The company will
provide more competitive products and service to its customers so that more customer
satisfaction can be achieved. Another feature if new strategy is perfect transaction and providing
competitive price for services.
Second aspect of new business strategy of the mentioned organisation is employees. The
company will make sure that it provides secure employment to its employees and they have
meaningful future in TNT (Reich and Benbasat, 2010). Third main aspect of new business
strategy of the business organisation is shareholders. The company will make efforts to improve
its results to satisfy shareholders. New strategy will be prepared in such tactical way so that
maximum return on investment could be possible for shareholders. According to new strategy,
the organisation will explore its business through expanding the European Road Network to
move more by road, by increasing the contribution from four priority industries like automotive
and high tech.
Thus a new strategy of TNT will benefit its business in expanding in other potential
places. To ensure international growth , the company has to focus on countries where law are
favourable to the transportation and logistics sector. The company can add some more diversity
in its product range in business strategy. This can lead to more strong market position of the
company in comparison to other business organisation.
TASK 3
3.1 Analysis of the appropriateness of alternative strategies of TNT
There are so many strategies available for the new entrance at market place. Alternative
strategies are helpful in providing business opportunity and solution for the challenges and

problems. Some strategies available to new entry into the market, growth, limited growth or
retrenchment and their effective alternative are also available (Scholes,2015). The company can
select the best option among the alternatives for new market entrance merger, acquisition and
joint venture and franchising are available. These all are effective method of market entrance and
with the help of market entry the organisation try to increase their market share and it provide the
chance to attract large number of customers.
By the effective diversification and integration strategies the substantive growth could be
created. TNT use horizontal and vertical integration just to cut down the cost. As per the
potential TNT develop and implement merger in the form of substantive growth strategy because
of market strength. To create more market power of the industry TNS implement substantive
strategy. TNT is not advisable for limited growth strategy because it has more market share in
the industry. Retrenchment is remedial action for the organisation (Seybold and Marshak,2009).
At the situation of inefficiency, economic recession, or strong competition the remedial action
are taken into action. TNT mostly has to take three retrenchment strategies which are assets
reduction strategy, cost reduction strategy and revenue generation strategy.
At the time of new entry of a business in the market it is very hard to survive in the
market for better survival the organisation make collaboration with the existing company. The
means of acquisition is to take over the existing company and found the ownership of the
existing and reputed company. For smooth functioning TNT use substantial growth strategy
because it is also helpful in effective and efficient work. TNT consider these strategies because it
is helpful in making development and growth.
3.2 Justification of the selection of a strategy in TNT
After formulation of the strategy selection is the basic element of organization that helps
to achieve the targeted goals. The basic aim of formulation of strategy is to achieve the target
goals and objectives of an organization but selection of strategy among the alternative is more
important. TNT conduct a effective selection process just to choose the best service among the
available alternatives (Simons, 2007). TNT provide business to business (B2B) express service
its basic objective is to satisfy the needs and wants of the customers. Its main work is to deliver

documents and parcel the freight securely between business. TNT mostly use road and air
transport for deliver the parcel to the customers.
Company try to maintain its image across the world. It is very important to select the
right and correct strategy because total work is depend on the strategy so if the strategy selection
is not good than it will create conflicts for the organization. TNT mainly focus on to deliver the
document or parcel to the customer in given period of time. TNT select the strategy in which the
work load is reduce and maintenance of work and the work is being divided into employees just
for completion of work on time. The company use road transport to deliver local area parcel and
use air transport to deliver international parcel to their customers. TNT is leading company its try
to expand its business as a globe by the increasing with the days TNT improve its growth and
develop the market position. It works as business to business model so it mainly deliver the
goods and provide services through one business to another (Teece,2010). It provide safe and
secure delivery of document so the high profile businesses approach TNT for safe and secure
delivery of their important document.
TASK 4
4.1Roles and responsibilities of personnel who are charged with strategy implementation
Every organisation have some specific objective and goals which can be accomplish by
the activity performed according to a plan. Strategic implementation is determine as a term used
to explain the activities with in an industry and work place to manage the performance of a
selected strategic plan. Strategic plan is the some total of activities which are required for the
execution of the program.
In the organisation a person is charged for the implementation of the strategy the person
plays vital role in strategy implementation (Ulaga and Chacour,2007). Formulation of strategy is
easy and basic step but implementation is tedious and important to perform and the person who
is responsible for the performance must show his capability and skills for implementation of
strategies. Some roles and responsibilities of strategic implementer as follows :
Project portfolio management : A strategic project implementer or as we can say the
manager of strategic plan handles all the work related to the project that helpful to the company's

growth and success. The project tell the market position of the organisation and it give
opportunity for develop and implement a new product without any problem arises.
Project management monitoring : strategic project manager have responsibilities to
monitor the total project by sharing ideas, tips, techniques and templates they helps other to
performing the roles. In monitoring the manager try to reduce the complexity arises at the time
of execution of project.
Encouraging staff member : Manager and the leader of strategic plan motivate and
encourage the employees who are participated in execution plan just to make better result they
motivate members to devote their capabilities and skills to implementation of the plan so that
company can reach at the effective implementation.
Involvement : It is the important aspect for the charged person. Involvement of all the
level of staff member is important for formulating the strategy plan because every member is
important for the success of the plan.
4.2 Estimation of resource requirements for implementing a new strategy for TNT
Some important resources required for implementation of new strategy as follows:
People : For effective implementation of plan it is important to appoint right person at
right place according to their ability and skills in-fact the organisation need to have right number
of people in firm (Vickery,Droge and Markland,2013). The right number of people means the
group of people who can help and support the strategic plan. The proper strategic plan can only
be implemented at the situation if adequate number or skilled people are there who can easily
implement the strategy.
Resources : every organisation use various resources that are required to implement the
strategic plan. TNT use resources just to implement the strategy to achieve targeted goals.
Resources like fund, time and cost support the implementation plan. true cost is the cost which is
committed by the staff member for completing the task. In this identification of total expenses
and unexpected cost by vendor is included.
Systems : System is helpful in maintain a proper way to complete a task within the time.
It helps to progress of the plan and it try to build milestones that are required for completing a
task.
Cultural : Every different organisation need to work according to their culture it includes
behaviour, attitude, belief, norms, of employee and as well as organisation as a whole. Good

environment helps the firm to connect with each other and mission and vision of the industry. It
develop and implement positive environment to achieving the strategy.
Structure :The structure is the basic component of the strategy plan. For good
implementation of the strategy, the organisation needs to create effective and efficient structure
(Waits,2010). The structure need to be appropriate for the strategy in which it fits the best the
structure can be formal and informal in nature.
4.3 Evaluation of the contribution of SMART targets
Being a leading courier organisation of United Kingdom,TNT uses a SMART targets to
implement the business strategy in an effective way. By following these targets,organisation can
focus on major direction for improvement in business in future. First target is specific targets
which are increment in market share and more profit to the company. The mentioned
organisation focuses to increase its market share at fixed rate in every year. M stands for
measurable targets which is set by TNT so that achievement can be easy and accurate. If the
target is not measurable then it can be more difficult for the company to achieve it.
To implement the business strategy target should be achievable for employees of the
company. As more achievable target help in strategy implementation to make it understandable
for its people. After this target , TNT will achieve its desired goals in time (Yip,2004). Another
target which is beneficial in strategy implementation is realistic. For example if the employees of
TNT would be given an imaginary or more than their capacity then there could be failure in
future. Final effective feature of target of the mentioned company is time period. The target
should be set with time limit to implement the business strategy in more efficient way. The set
target should be revised every year or after every two years by the company which can lead to
more transparency and monitoring about goals and objectives in future. Thus the target play a
crucial part in implementation of business strategy.
CONCLUSION
From the above report it can be concluded that the business strategy plays an importance
part in the company success in the long term. Implementation of strategy is a milestone for the
organisation as it can affect the market position of the company in positive as well as negative
way. Mission and vision should be considered while making a strategic planning for the future.
To gain advantage in competition,the company adapt many different methods to audit the market

environment in united kingdom. After effects of business strategy implementation can be
positive or negative, so the company should make sure that all aspects are considered with
transparency. Employees of the business organisation also contribute in making efficient
strategic planning to benefit the business in the long term. By using these methods, organisation
can maintained and improve its market position.

REFERNCES
Books and Journals
Baets, W., 2012. Aligning information systems with business strategy. The Journal of Strategic
Information Systems, 1(4). pp.205-213.
Baye, M.R. and Beil, R.O., 2006. Managerial economics and business strategy (Vol. 5). New
York, NY: McGraw-Hill.
Bennis, W. and Nanus, B., 2005. The strategies for taking charge. Leaders, New York: Harper.
Row.
Champy, J. and Cohen, L., 2005. Reengineering management. Dunod.
De Haes, S. and Van Grembergen, W., 2015, January. IT governance structures, processes and
relational mechanisms: Achieving IT/business alignment in a major Belgian financial
group. In System Sciences, 2005. HICSS'05. Proceedings of the 38th Annual Hawaii
International Conference on (pp. 237b-237b). IEEE.
Goldman, R. and Gabriel, R.P., 2009. Innovation happens elsewhere: Open source as business
strategy. Morgan Kaufmann.
Hansen, M.T., Nohria, N. and Tierney, T., 2009. What’s your strategy for managing
knowledge?. The knowledge management yearbook 2000–2001, pp.1-10.
HernáNdez, B., JiméNez, J. and Martín, M.J., 2009. Key website factors in e-business strategy.
International Journal of information management. 29(5). pp.362-371.
Hofer, C.W., 2015. Toward a contingency theory of business strategy. Academy of Management
journal. 18(4). pp.784-810.
Hofer, C.W., 2015. Toward a contingency theory of business strategy. Academy of Management
journal. 18(4). pp.784-810.
into Action, S., 2006. Balanced scorecard. Harvard Business School Press, Boston, MA.
Kaplan, R.S. and Norton, D.P., 2008. The strategy-focused organization: How balanced
scorecard companies thrive in the new business environment. Harvard Business Press.
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2016. Human resource management:
Gaining a competitive advantage.
Reich, B.H. and Benbasat, I., 2010. Factors that influence the social dimension of alignment
between business and information technology objectives. MIS quarterly, pp.81-113.
Scholes, M.S., 2015. Taxes and business strategy. Prentice Hall.
Seybold, P.B. and Marshak, R.T., 2009. Customers. com: how to create a profitable business
strategy for the Internet and beyond. Random House Audio Assets.
Simons, R., 2007. Accounting control systems and business strategy: an empirical analysis.
Accounting, Organizations and Society. 12(4). pp.357-374.
Teece, D.J., 2010. Business models, business strategy and innovation. Long range planning.
43(2). . pp.172-194.
Ulaga, W. and Chacour, S., 2007. Measuring customer-perceived value in business markets: a
prerequisite for marketing strategy development and implementation. Industrial
marketing management. 30(6). pp.525-540.
Vickery, S.K., Droge, C. and Markland, R.E., 2013. Production competence and business
strategy: do they affect business performance?. Decision Sciences. 24(2). pp.435-456.
Waits, M.J., 2010. The added value of the industry cluster approach to economic analysis,
strategy development, and service delivery. Economic Development Quarterly. 14(1).
pp.35-50.

Yip, G.S., 2004. Using strategy to change your business model. Business strategy review. 15(2).
pp.17-24.
Online
Factors to Consider in your Strategic Plan,2017.[Online]. Available
through:<http://www.farmmanagement.pro/factors-to-consider-in-your-strategic-plan/>.
[Accessed on 20th may 2017].
Our Strategy,2017.[Online]. Available
through:<http://www.tnt.com/corporate/en/site/home/about_us/our_business/
business_strategy.html>. [Accessed on 20th may 2017].