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Strategic management plan of DHL
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Table of Contents
Introduction
................................................................................................................................
3
Overview of the company
..........................................................................................................
3
Business environment of DHL
...................................................................................................
4
Technological environment
....................................................................................................
4
Competitive environment
.......................................................................................................
4
Cultural environment
.............................................................................................................
4
Strategic position of DHL
..........................................................................................................
5
Global Strength
......................................................................................................................
5
Deep Sector Understanding
....................................................................................................
5
Innovation
..............................................................................................................................
6
IT philosophy
.........................................................................................................................
6
Diversity and Inclusion Strategy of DHL
..................................................................................
7
Value Chain analysis
..................................................................................................................
8
Value System
..........................................................................................................................
8
Value Chain
............................................................................................................................
9
PESTEL analysis
......................................................................................................................
10
Competitive analysis
................................................................................................................
12
Recommendations
....................................................................................................................
13
Conclusion
................................................................................................................................
14
References
................................................................................................................................
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Introduction
Since it entails moral and appropriate corporate behavior, timely business development is
crucial. The worldwide logistics corporation DHL's operating environment is evaluated in the
report. DHL has successfully done this by utilizing technical advancements. Among the
techniques used by DHL firms to carry out their tasks are: To evaluate global logistics,
introduce performance evaluation metrics. Due to the complexity and inconsistency of supply
chains brought about by globalization, DHL has also implemented information planning and
management(
Ahmadi
et al
., 2021). By carefully adjusting the various actions, the problem
was resolved. DHL is also an expert in obtaining data for strategic supply chain choices
. DHL
Company has chosen to build a number of solutions for fine-tuning global logistics
performance indicators in order to address the measurement problems it is currently
encountering. These remedies consist of: It has an integrated system that simultaneously
measures all crucial metrics. A performance pyramid framework that incorporates
performance systems was also chosen by the organization. In order to guarantee that new
measurements are properly created and pertinent, the organization also intends to incorporate
performance measurement log sheets.
Overview of the company
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The German logistics firm DHL is well-known for offering parcel, courier, and express
services on a global scale. Customers of Toots can only get night service from this business.
There aren't many significant competitors for DHL Express in the overnight sector,
sometimes known as Federal Express. 40 years ago, DHL began operations. The paper is
flown from San Francisco to Honolulu by a small business(Altrad
et al.,
2021). Currently, the
corporation ships goods internationally via air, sea, and road. Additionally, it has one of the
biggest networks in 220 different nations and areas. In every nation we service, the employee
turnover rate is higher than 300,000. Our customers can readily access a wide range of
services and solutions we provide. Their offerings include the delivery of packages, letters,
and merchandise. It is regarded as a top European corporation and has a market share of at
least 25%. The business conducts all of its operations in a legal manner.
Business environment of DHL
Technological environment
In order to provide DHL services, technology is crucial. DHL is very good at anticipating and
anticipating the needs of information-dependent and information-dependent environments,
and DHL leverages cutting-edge technology to set industry standards for effectiveness and
customer service. DHL pioneered the use of wireless technology more than 20 years ago, and
it continues to develop cutting-edge wireless solutions that set the standard for the
industry(Forto and Harrison, 2021). Because of this, DHL created an information system
network that enables customers and support personnel to access wirelessly at any time and
from any location. In order to enhance customer happiness and general customer transactions,
DHL then created an e-business application. A online or call centre service was built into the
e-business system so that the firm could simply be informed of the delivery of a package.
Competitive environment
The largest courier service in the world, United Parcel Service Inc., has its headquarters in
Sandy Springs, Georgia, in the United States. In more than 200 countries and territories
around the world, UPS delivers more than 15 million goods every day to 6.1 million
customers. The package cars, or brown trucks, that UPS is famous for among its own
employees are also used by its own aircraft, which is situated in Louisville, Kentucky. There
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is a Worldport Airhub for the airline.
Cultural environment
International business DHL employs aggressive strategies to boost sales and disperse goods
and services. Changes in advisory processes and links between locations are one of the key
advancements made so far. The interaction between individuals and the general public is the
main focus. DHL's strengths include express services, global forwarding, and a solid supply
chain. It was important for businesses to pay particular attention to how things are done
because clients frequently return to the same company when products and services are
dependable and of a high caliber(Kumar and Gupta,
2022).
Logistics services and
agreements between delivery routes and destinations are used to manage the supply chain as a
whole. Additionally, DHL has various departments, each of which offers various divisions
tailored to the current circumstance.
In recent decades, there has been an upsurge in global operations and development. Many
workers from many nations have been engaged by the international business sector. With its
headquarters in Germany, the cultural traits are particularly distinctive. Although it also
operates in other nations, the supply chain predominantly operates in Europe, the United
States, and Canada. The corporation is exceptionally adaptable in all elements of its structure
and delivery because the global sector is used to offer goods and services. There are three
main regions where the DHL supply chain is active(Laforet and Bilek, 2021). They are the
Middle East, Africa, the Americas, Asia, including the Pacific Ocean, and Europe. DHL
operates in a variety of settings, allowing you to adapt it to the needs of your particular nation
or countries(Nduati
et al.,
2021). Due to organizations’ involvement in so many facets of
society, the supply chain is a component of the healthcare delivery system. Demand is utilised
to enhance social life and generate more business for the corporation, which benefits both the
company and the partner nation greatly. DHL places more emphasis on the idea that treating
people with respect is a basic value and standard operating procedure inside an organisation.
The value of diversity is woven throughout DHL Corporation in order to foster a culture
where people may contribute and thrive.
Strategic position of DHL
Global Strength
DHL is the biggest freight company in the world, operating in more than 220 nations. DHL
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has an edge over other international players because of this. DHL is extending its reach with
solid corporate guidance and effective communication. To build and grow its services and
establish a substantial presence in emerging areas, HL has made significant investments in
developing nations(
MALICK, 2021). For instance, DHL has spent over $16.3 million
developing innovative technologies, such drones for delivery and logistics management, in
India. DHL is regarded for having enormous resources and a very solid economic history. As
a result, an increasing number of businesses rely on DHL and its services. Additionally, this
financial situation supports DHL's yearly commercial expansion.
Deep Sector Understanding
In order for these activities to be completed effectively and with a high level of customer
satisfaction, the organizational structure is in charge of allocating them among various
individuals or departments. The control system keeps an eye on how the strategy is being
implemented to make sure everything is going as planned. Corrective action will be taken if
necessary. The DHL Company is well-equipped to carry out its strategy. It likewise follows
the principle of service for profit. This indicates that the level of service delivered is valued
more highly than the potential rewards(
Pandey
et al
., 2021). The management of DHL is of
the opinion that a high level of service will provide the business an advantage over its rivals.
You can delegate tasks pertaining to the services you offer to one of DHL's many business
divisions. DHL implements its plan using a global perspective. For the entire network, this is
the only strategy. As a result, changes are implemented internationally.
Innovation
In the logistics sector, DHL sees itself as a pioneer. To create the DHL Innovation Center,
which offers clients and stakeholders a platform to interact with DHL specialists, we
structurally invested in trend research and solution development. The Innovation Center gave
birth to the successful logistics solution projects SmartSensor and Resillience360. Real-time
package tracking for all goods is provided by DHL using one of the biggest computer and
telecommunications networks in the world(Suhairi and Zamri, 2021). SuperTracke portable
computers are used by the company's courier services to track the delivery of cargo over
DHL's integrated network. Utilizing DHL technology is centred on the consumer as well as
remaining competitive. DHL enables businesses to track the progress of goods in real time at
any location along the shipping path. The DHL website, DHL Ship Manager on DHL.com, or
DHL World Shipping Software are the three options for customers to trace their packages.
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IT philosophy
To give
dependable and prompt service, DHL is always creating novel technology.
Employees at DHL regularly enter data into COSMOS using a variety of methods. Through a
computer terminal, customer service representatives enter shipment details into COSMOS
and alert the dispatcher nearest to the pickup or delivery location. At every step of the
delivery process, couriers only utilize SuperTracker to scan the barcode on each bill of
lading. Throughout collecting, arriving at the beginning and terminating stations, packing in a
courier van, and delivery, scans are made(
Păun and Pînzaru, 2021). Information on packet
destinations, routing instructions, and the kind of service sought are all stored and sent by the
super tracker. The information will be downloaded from SuperTracker to DADS when the
courier gets back to the van, and the location of the COSMOS system package will be
updated(
Schislyaeva and Kovalenko, 2021). Customers can use this to know precisely where
their packages are and when to expect delivery. It makes no difference if you use the DHL
website or DHL Ship software to trace the package or if you contact customer support. FedEx
Express continuously monitors the shipment and keeps complete control over it at all times.
DHL guarantees that all packages will be delivered within a minute of the delivery time
because it is an essential component of the system. Otherwise, the client will not make a
payment. The business also provides the only second warranty in the sector. Within 30
minutes of receiving the request, DHL will cover the transportation costs for the package if
the customer is unsure of its precise location(
Shooshtari and Manuel,
2021).
Diversity and Inclusion Strategy of DHL
For a corporation to foster innovation, diversity and inclusion strategies must be part of the
mission statement. For businesses trying to develop diversity and inclusion initiatives, putting
changes into practise can be challenging, but it can also be profitable in the long run.
Organizations need to promote a culture of recognising and evaluating varied individuals
from various demographics who have distinct personalities, abilities, experiences, and levels
of education (Waltert
et al.,
2021).
By fostering a welcoming environment for them, these
people's participation should be promoted. People with various experiences provide the
business various ideas and assist the business in coming up with solutions to the challenge.
We see workforce diversity as a fundamental plus for our multinational organisation. People
from various societies and cultures come together through the Deutsche Post DHL Group.
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These all have unique abilities, backgrounds, and viewpoints.
To foster diversity, businesses
are also funding initiatives and activities. Additionally, it increased public and commercial
awareness. The business transforms into a labour union. They began collaborating with these
businesses. Encourage staff members to openly discuss any difficulties they have
encountered.
DHL Corporation has worked hard and with great enthusiasm to advance inclusivity and
diversity. Its many divisions have carried out numerous initiatives in recent years to enhance
diversity and inclusion. In the interim, we have created a number of initiatives to implement
diverse workplaces across all departments. Adopting a culture that encourages cooperation,
egalitarianism, and flexibility will boost everyone's potential and retention in the workplace.
By providing group projects to encourage teamwork in order to accomplish the project goals,
management increases this. Additionally, policies and regulations have been formed in
opposition to how management treats its workforce. All of these actions will improve
employee retention.
By identifying system obstacles and removing exclusions, organizations establish
accountability and sustainability. Leadership is encouraged to manage and behave
responsibly in a number of ways by inclusion, a politics with inbuilt inclusion and diversity.
All employees benefit from equity and are motivated to work hard because of the welcoming
environment. If everyone in the workplace complies with anti-discrimination and diversity
rules, diversity and inclusion can be achieved regardless of status. Corporate leaders,
including managers and supervisors, promote diversity and inclusion in the workplace,
implement inclusive environments, serve as role models for children, and organize seminars
and training sessions on the topic.
Value Chain analysis
DHL takes pride in its extensive worldwide network and quick package delivery times.
Behind the services provided is a carefully planned process that always demands precision
and consistency. To coordinate these operations, it is crucial that many departments
collaborate simultaneously. The first time a consumer interacts with a corporate
representative who works for one of the many franchises that exist around the world, the
process to deliver the value promised by the brand officially begins. The franchise receives,
examines, and safeguards the shipment. Only the package's receiver will be able to open it
after it has been safeguarded (
Cavusgil
et al
., 2014). Once the package is safe, a routine
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courier team visit from DHL will take it to corporate offices. These packages are rescanned
and prepared for customs clearance at the headquarters. The shipment will be scheduled for
the destination flight following customer processing. The staff at the airport's final stop
makes sure that the package's clearance criteria are met and that it is transported to the
recipient's door. DHL (prior to COVID-19) offers a 3-day standard delivery guarantee for all
destinations. This ensures the quickest time provided by brands in this region (
Doh
et al
.,
2017).
Value System
In DHL's value system, there are five primary business partners: suppliers, investors, female
employees, clients, and DHL China, which runs the Suzhou Hub. The hub gives the suppliers
cash in return for commodities like paper, pens, printers, and other office equipment like the
transportation of vehicles, planes, and ships (
Hamilton and Webster, 2018). The investors put
money into the hub with the expectation of receiving dividends in return. The women
employees work for the hub and receive payment in exchange. Customers must pay money in
order to obtain goods or services from the hub, in this case, express delivery services. The
center will get investment and support from DHL UK, just like the central hub, and will pass
revenues to DHL UK afterward.
Value Chain
Here is a diagram of the DHL value chain. The connections between the five main processes
of the DHL Suzhou office are depicted in this value chain diagram. Before allocating cash to
the acquisition process to buy packaging and equipment, the branch first collects income
through a financial procedure. Additionally, a number of modes of transportation are required
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for employees who deliver products to customers (
Tejani and Fukuda‐Parr, 2021). In
addition, the financial procedure supplies money for salaries, which are paid to internal
female DHL women employees that do labor. To assist the business in timely completing its
customers' orders, the service process provides women labor from the equipment that was
acquired through the payroll and acquisition procedures (
Allen and Truman, 2016).
PESTEL analysis
Political
The company operates in almost every country in the world, making it one of the world's
leading courier services. It is crucial that the intellectual property of the company be
protected by national laws, otherwise, entrepreneurs will hesitate to invest in the company.
Companies find it difficult to do business in a country with high importation taxes and
exportation taxes (
Collinson
et al
., 2020). It is DHL's responsibility to comply with national
import and export restrictions, tariffs, and trade restrictions. Low minimum wage countries
yield high business yields, and businesses in such countries have a higher probability of
survival.
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Economic
The quick expansion of a corporation is directly impacted by the GDP growth rate of a
nation. Customers' purchasing power is decreasing in nations with high inflation, which has a
negative impact on DHL's company. The number of business owners willing to invest in a
company will depend on national interest rates. The greater the interest rate, the more capital
entrepreneurs are willing to put up, and the greater the expansion of the business. The
currency rate has an impact on a country's interests when DHL conducts business with it
globally. As a result, fluctuating currency rates hinder DHL's expansion. If the unemployment
rate for women is high, more women will be willing to labor for low pay, which will increase
DHL's earnings.
Social
DHL is a premium brand; thus, it might not succeed in developing nations or in nations where
the majority of the populace belongs to a particular socio-economic class and DHL's services
are not offered. DHL may fail to owe to decreased international shipping if a nation's
populace has a propensity to believe that it consumes exclusively locally produced goods.
The population of the relevant countries' online buying habits must also be understood by
DHL (
Neelankavil, 2015). Young people are avid internet shoppers, which helps logistics
firms like DHL grow their clientele. The elderly, on the other hand, are not particularly
acclimated to it. Demographic analysis is therefore also required.
Technological
Safety and efficiency are the cornerstones of the DHL brand. Therefore, it is important to
focus on the advancement of the technology being utilized in accordance with the trend in
order to preserve the brand name and increase earnings. While this might result in higher
expenses, it also gives DHL a competitive edge. Social media marketing will still be a lot
simpler in this day and age, and DHL will need to employ it to boost efficiency (
Powell,
2018). Giving customers a mechanism to track transported goods boosts customer trust and,
as a result, the credibility of the business.
Environmental
Consumer protection laws must be followed. Due to customer privacy and security issues,
privacy regulations need to be looked into by DHL. Laws are also in place to guarantee a
particular level of quality and to shield customers from false advertising promises. These
laws must be followed by DHL. Legislation pertaining to worker health and safety as well as
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laws prohibiting discrimination against female workers must be taken into consideration.
DHL must offer a secure working environment for female employees as well as fair and equal
employment chances.
Legal
The effectiveness of shipping firms like DHL is greatly influenced by the weather. Delivery
can be delayed by bad weather, especially when it is being sent abroad. Weather-related harm
to your shipment is possible if you are not attentive. The logistics industry is expanding
vehicle use and causing more pollution (
Starostka-Patyk
et al
., 2015). To avoid
environmental harm, DHL must pay attention to the trucks and other factors employed along
the delivery chain. If not, both citizens and governments risk losing interest in DHL.
Competitive analysis
In addition to delivering packages, packages, and containers, DHL also gives happiness,
success, and good health. Improve people's daily lives by bringing them together. DHL raises
the standard of living for all of its employees as a matter of fairness. Your expertise will grow
thanks to the company, which also helps you develop personally. Never forget that life is
thrilling outside of work just as much as it is inside (
Kanungo
et al
., 2018).
Women's freight is transported by HL, a logistics firm. You have the chance to shine because-
DHL offers a secure and dependable environment for returning employees to explore choices
and fulfill their objectives to gradually reintegrate into the workforce by securing full-time
employment or part-time job. Women always would want to propose a full-time position.
Focusing on practices that enable flexible and enabling work arrangements for women in the
workplace is the goal of local teams and policies (
Green, 2017). Many political elements
assist all female employees with children while concentrating on the needs of working
women.
DHL's Diversity Policy and Practices challenge gender preconceptions and empower women
to assert themselves in roles previously held by men. As women are respected and endorsed.
Giving is the goal. Women now hold more than one-fifth of mid-career and senior
management jobs. That number is also steadily rising. There are many programs within the
organization to promote and inspire female employees, from talent pools to networking
events and career programs. Don't forget to recognize the Cargo Initiative Women from DHL
Global Forwarding, who earned Gold at the Stevie Awards for Internationally Renowned
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Business Women for the second consecutive year.
The national ranking of UK corporations recognizes Royal Mail's initiatives to boost
women's careers in the workplace. After being recognized as one of the Top 10 Gender
Private Sector Organizations by Business in the Community (BITC) in 2013, Royal Mail has
met its "gold" standard. The organization received this honor on Tuesday, November 19, after
comparing gender equality with that of other UK businesses, taking into account elements
like career development, learning and development, and equal compensation for equal effort.
Female non-managerial individuals are provided access to a specified number of days
through the Springboard Women's Development Program that are intended to boost self-
esteem and encourage career advancement along with an executive leadership training
program. Since its commencement in 2012, this significant leadership development program
has enrolled an equal number of men and women. The esteemed BITC evaluation
underscores Royal Mail's dedication to workplace diversity and gender equality (
Oxford
Analytica, 2021).
The business received the Working Mums Top Employer Awards at the beginning of
November for encouraging mothers to develop in their careers. Royal Mail won the title of
Company of the Year at the Women in Logistics Awards in September. This public image and
other latest awards demonstrate our dedication to assisting and fostering women in the
workplace, whether they are frontline coworkers or senior executives, according to Sue
Whalley, director of regulatory and government relations at Royal Mail and chair of the
organization's gender diversity steering group. "The initiatives we implement advance
diversity and gender equality across our enterprise. Royal main thinks that this is critical to
attaining its corporate objectives.
The functioning of migrant management may be partially impacted by comparative studies of
labor culture variations between DHL and Royal Mail, although other problems relate to the
general management of the migrant population. It is significant to remember that. Therefore,
both businesses can question if migrant women's leaders will be successful in enacting a
cultural boycott of women in the nation (
Roy, 2017). However, DHL, a global logistics
provider, has the know-how to support the 200 e-commerce businesses now taking part in
ITC programs. DHL places orders for the management of women in the workplace. The
company consistently outperforms the competition.
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Recommendations
Because COVID-19 has a different economic impact on women than it does on males, DHL's
logistics sector must develop actions and regulations that specifically cater to the demands of
female employees. Women in the sector frequently remain in positions with lower or lower-
income, or lower or lower prestige than men, and have few or no possibilities for career
growth. Males continue to dominate the road freight transport industry. Waiting times, forced
quarantines, forced inspections, and discrimination are all negative effects of new restrictions
and closures at border crossings (
Bauknecht
et al
., 2016). Given that truck drivers spend a lot
of time in cabs, rest places and social facilities are crucial for controlling driver fatigue and
well-being. Their job was adversely affected by the closure of non-critical companies, such as
commercial service areas, social welfare agencies, restaurants, and workshops.
The supply and procurement networks of DHL may be significantly impacted by increasing
the number of women in the workforce. DHL must take significant action to alter some of the
norms that prevent women from working in logistics, though, in order to make this simpler
(
WOMEN, 2019). As was mentioned above, according to the research, having more women
on boards, in management positions, and in supervisory positions, leads to improved
corporate performance. To encourage other women to follow in their footsteps, the logistics
sector, including DHL, requires strong role models and leaders.
Conclusion
What position will women hold in the future of international business? It is obvious that there
is a trend to raise the position of women in nations that are already powerful. "21st-century
organizations must develop new, more inventive management practices due to dramatic
changes in society, and business, it is not the same old thing. To increase women workers'
presence in the logistics industry, DHL takes a very significant approach to support
unconventional ways of doing business while maintaining diversity and inclusion. Take care
of all the talented employees in your firm while working with varied executives. Achieve the
desired results by controlling these expenses.
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