Category: DHL

Executive summary

This paper will focus on making a knowledge management strategy for DHL Company. I have chosen the DHL Company because it has a good reputation in shipping services (Schorer, 1968). It has a long and reputable history that can form a firm basis for a knowledge management strategy.

The paper will analyse the gaps that exist within the organizational structure of the company and make relevant recommendation that solve the challenges it faces.

In this light, it will focus and analyse the company based on the people who surround the company, the technology that the company has employed and the processes it has implemented in its operations.

Introduction

Knowledge management is the collective process that aims at creating, spreading and using knowledge. It is an all-inclusive process which ensures that knowledge is well organized and utilized to meet the organizational objectives.

In this case, it focuses on the knowledge concerning the people, logistics, processes and technology (Menipaz, 2011). In this light, it focuses on the knowledge gaps and strategic gaps that exist.

Knowledge gap is the difference between what the organization knows and what the organization must know. On the other hand, a strategic gap refers to the difference that exists between what the firm can do and what it must do. The two analyses form the basis of knowledge management.

Sub-company: DHL Aero Expreso

Since the DHL Company is a big company that covers about 220 countries around the world (Schulzinger, 2003). As a result, it is quite vague to make a knowledge management strategy for the whole company due to its size. Therefore, it is sensible to consider a sub-company of the entire company.

In this light, this paper will consider Aero Expreso as the sub-company. Aero Expreso is a sub-company that deal with cargo airlines for the services of DHL Company (Rein, Kotler & Stoller, 1997). It is physically located in the Panama City and offers its services to the South and Central America.

The main base of this cargo airlines is called Tocumen International Airport. It makes both the international and local flights around America (Wright, 2011).

Some of the destinations of these flights include San Jose, Miami, Guatemala City, Curacao and Aruba. The company has makes flight using the Boeing airplanes that serves within a relatively sizeable area.

In this paper, we shall discuss the effects of KM strategy on the Aero Expreso Company (Schorer, 1968). This implies that it will focus on the links that exist between the knowledge management and other materials including human resources, technology culture

Human Resource and Knowledge Management

Human resource is the most crucial field in an organization. It determines, by a large extent, the success of the organization. In this light, human beings are the main beholders of knowledge in all measures. They are responsible of creating, improving and instilling knowledge to other people within the organization.

This implies that people are the source of knowledge for the organization. Therefore, the human resource management can be termed as the leaders of knowledge management concepts (Sears, 2007).

In this light, they are responsible of harnessing, analysing and monitoring the knowledge that is held by the human resource. As a result, it can be argued that the human resource managers ensure that the human capital is well utilized in terms of their intellect.

Importantly, the most crucial factor of knowledge management is using all the knowledge that the human resource have. This implies that the human resource ensures that this goal is achieved in the organization (Sherman, 2001).

Therefore, this develops a link between human resources and knowledge management. Apart from the above basic concept of capturing and developing knowledge as factor of knowledge management strategy, human resource enables the association to obtain and disseminate information (Unsworth, 2001).

In this light, each of the people have special information that they bring to the company. In reference to Aero Expreso, there are various human resources that exists within the company. In this case, there are employees, employers, customers and shareholders.

In particular, they include pilots, managers, customers care staff, and public relations officers among others. These stakeholders have diverse and special roles that help the company in a unique way. For example, the pilots use their knowledge in facilitating the actual transportation during the flights.

On the other hand, the public relations officers aim at advertising the company to the public in order to get more customers for their airline. However, this knowledge must be integrated in order to prevent overlapping of roles and poor performance.

The human resource managers are responsible for managing that knowledge and ensure that the company gets the right outcome. The human resource managers manage the knowledge through various strategies.

For example, a human resource manager can implement a performance contract policy that induces the employees to work for good performance in their respective working places.

Technology and Knowledge Management

In regard technology, it is important to note that technology is not a priority to the concept of knowledge management. In this light, the most crucial factors that are considered in the concept of knowledge management include people, knowledge and the objectives of the organization.

Understandably, technology cannot work independently and without the intervention of other factors of the organization. Instead, technology is adopted and integrated within the processes of the organizations in order to realize business performance.

However, technology plays a crucial role that cannot be ignored in the field of knowledge management. This implies that technology is not a priority in knowledge management but it is a necessity.

In regard to knowledge management, technology is viewed as an enabler of the knowledge management in various capacities. There are various technologies that enable knowledge management in an organization forming a link between technology and KM.

These include the technologies that determines the character of the knowledge, technology that addresses the users requirements, the ones that support sense, and the ones that trigger structured approaches. These technologies are used in order to harness and utilize information from various arms of the organization.

Secondly, it creates connections between the various fields that contain diverse knowledge. In other words, it enables the organization to integrate the diverse knowledge that the organization holds.

Also, it automates business operations and ensures that all the business barriers are eliminated. These barriers are eliminated by providing appropriate ways of solving problems that arise within the organization.

In regard to Aero Express, the company has improvised technology in various fields in order to achieve the above functionalities. For example, the company has a smart track system that is improvised in order to facilitate efficiency.

In this light, the tracking system is used for the purpose of tracking the parcels during transportation. In this case, the customers have are allowed to open accounts with the system (Doz & Hamel, 1998). This account is used for the purpose of inquiring about the progress of transportation.

The technological integration enables customers to follow the progress at the comfort of their home. This implies that technology enables management of information during transportation.

In this light, we can conclude that technology enables the company to manage knowledge in a simpler manner that using the manual systems (Watford, 1999).

In addition, the company has efficient customer care system that are enhanced through technology. In this light, the customers can call the customers care desk and obtain help from the

Culture and Knowledge Management

The culture of the people that work in an organization affects knowledge management. In this light, culture refers to the manner in which the company is organized. It includes the organizational routines that are involved in the process of doing things (Johnson & Scholes, 1999).

Surprisingly, culture has a link with knowledge management since it controls the knowledge of stakeholder (Bruce & Pepitone, 1999). In this case, none of the stakeholders can apply their knowledge beyond the companies culture. This implies that they do not act in a manner that please them.

Instead, they follow the rules of the company in order to achieve the organizational goals and objectives. The culture of the organization helps to transform knowledge into power (Kimball & Hall, 2004). In this case, knowledge theories suggest that knowledge becomes power when it is organized.

Therefore, when an organization develops a culture of doing operating their businesses, it becomes power. Therefore, the company realizes good outcomes due to the organizational rules and directives (McKenzie, 1979). Aero Expreso have various organizational culture that enables it to move forward.

For example, the organization uses Boeing aero planes for the purpose of facilitating flights. This implies that pilots must apply their knowledge in relation to the Boeing aero plane since it is used by the organization (Menipaz, 2011).

Conclusion

It is clear that the knowledge management strategy has a strong relationship with the culture of an organization, technology, human resource among others. This implies that these factors must be integrated in the process on managing knowledge since they are vital components (Miniter, 2002).

References

Bruce, A & Pepitone, J 1999, Motivating employees, McGraw-Hill, New York.

Doz, Y & Hamel, G 1998, Alliance advantage: the art of creating value through partnering, Harvard Business School Press, Boston.

Watford, E 1999, Getting closer to clients, DHL press, London.

Johnson, G & Scholes, K 1999, Exploring corporate strategy (5th ed.), Prentice Hall Europe, London.

Kimball, B & Hall, J 2004, Selling in the New World of business. Best Business Books, New York.

McKenzie, R 1979, Restrictions on business mobility: a study in political rhetoric and economic reality, American Enterprise Institute for Public Policy Research, Washington:.

Menipaz, E 2011, International Business: theory and practice, Sage Publications, London.

Miniter, R 2002, The myth of market share: why market share is the fools gold of business, Crown Business, New York.

Rein, I, Kotler, P & Stoller, M 1997, High visibility the making and marketing of professionals into celebrities, NTC Pub. Group, Lincolnwood..

Schorer, M 1968, DHL: D.H Lawrence, Dell Publishers, New York.

Schulzinger, R 2003, A companion to American foreign relations, Blackwell Publishers, Malden.

Sears, W 2007, The front line guide to thinking clearly, HRD Press, Amherst.

Sherman, A 2001, Fast track business growth smart strategies to grow without getting derailed, Kiplinger Books, Washington.

Unsworth, B 2001, The partnership, W.W. Norton, New York.

Wright, F 2011, In memoriam DHL (2nd ed.), Cultural and Political Booklets, Wellington.

Introduction

Although flying is considered to be the safest way to travel, a lot of different aviation incidents and accidents happen from time to time all across the globe. There are different causes of plane crashes, but the most common are mechanical errors, pilot errors, and weather conditions. The paper is aimed at the comparison of two accidents that demonstrate pilots’ talents and emergency preparedness: United Airlines Flight 232 case and Baghdad DHL attempted shootdown incident. At first sight, these two accidents do not have similar characteristics due to entirely different causes. However, there are some analogical features and even connections between these two cases.

Comparison of two plane crashes

The McDonnell Douglas DC-10, a three-engine wide-body jet airliner, landed under emergency conditions in Sioux City on July 19, 1989. As it is described by the Aviation Safety Network (n.d.a.), about one hour after takeoff the tail-mounted engine number two was destroyed. The crew was able to land the plane without conventional control at the airport of Sioux City, but the right-wing of the airliner hit the runway, and the plane broken into several parts. There were 296 people on board (285 passengers and 11 crew members), of whom 111 died, and 185 survived. According to the National Transportation Safety Board (n.d.), the probable cause of the accident was the failure of the United Airlines personnel to detect a fatigue crack located in a critical area of the stage one fan disk. The three hydraulic systems were lost that is why the crew almost could not control the airplane.

Baghdad DHL attempted shootdown incident is an aviation case occurred on the 22nd of November, 2003. The Aviation Safety Network (n.d.b.) identifies that soon after taking off from Baghdad airport the cargo aircraft Airbus A300B4-203F was hit by a surface-to-air missile that damaged the console and the mechanization of the left-wing. It caused the leakage of aviation fuel and the complete loss of hydraulic flight control systems. However, the flight crew was able to land the plane at Baghdad airport. Unlike the United Airlines Flight 232 case no one of the three crew members died. The type of landing was similar to the landing of DC-10 in 1989. Space Daily (2003) underlines that the captain of the DHL Airbus A300 attended the seminar in Brussels earlier where the captain who commanded the United Airlines DC-10 and could land the plane performed. Two captains landed the aircrafts using engine power only.

Conclusion

To sum up, it is believed that flying is the safest mode of transportation. Nevertheless, no one is 100% safe from air accidents. It is confirmed by the fact that a lot of different aviation incidents occur periodically according to the same scheme. The brightest example is United Airlines Flight 232 and Baghdad DHL attempted shootdown cases. It is worth mentioning that United Airlines Flight 232 catastrophe was caused by an engine failure, and the DHL Airbus A300 was struck by a missile. Even so, the result of these two cases was the same. There were complete hydraulic system failures and losses of all the main controls that depend on hydraulics. It forced the pilots to land the planes using differential thrust. While the causes of the accidents were different, the problems and types of landing were similar. These two accidents demonstrate the incredible feat of airmanship.

References

Space Daily. (2003). DHL aircraft hit by a missile over Baghdad had lost all hydraulics. Web.

The Aviation Safety Network. (n.d.a.). Accident description. Web.

The Aviation Safety Network. (n.d.b.). Criminal occurrence description. Web.

The National Transportation Safety Board. (n.d.). Aircraft accident report. Web.

Introduction: Company overview

Deutsche Post DHL (DP DHL) is a logistics solution provider operating globally. DHL’s headquarters are in Bonn, Germany and the company’s primary operations are found in more than 220 countries across Europe, America, and Asia. The company offers an assortment of services including mail, carriage, contract logistics solutions and other value-added services. Principally, the company has diversified its operations in terms of business divisions and geographical markets. Global forwarding, freight division is the company’s largest business division accounting for almost 30% of the total revenues (“Datamonitor: Deutsche Post” 3). However, the core operation is the express division, offering courier and express services globally. The mail division, supply chain and express division follow the topmost division in that order, in terms of revenue. Evidently, the company prides itself in comprehensive contract logistics solutions, which has empowered it to influence economies of scale and help it to not only shape but also uphold a strong brand globally (Musiolik 29). The company’s motto is “Living responsibility”, and in practice, they live it as the company emphasizes its pledge to social accountability (Musiolik 29). This has seen the company establish programs in ecological protection, disaster management, and education.

DHL and business ethics

Ethics is considerably a key integrating force in management. According to Godiwalla (1382), managers now, more than ever, understand that by embedding ethics into business, they can secure a competitive advantage and promote a sustainable development of their companies. Business ethics comprise a set of rules and moral standards that aim at enhancing the company’s economic conducts and activity (Neiman 78; Raza 50).

At DHL, quality is of paramount significance. Moreover, DHL is ethically committed to achieving customer satisfaction through their customer-focused business processes, projects, and dealings (“DHL: We Deliver” 46). The focus of DHL Company is to inspire trust in their company, and as a result, they take into account not only the quality of their service but also the ethical, social, and environmental performance.

The corporate values of DHL guide the employees towards sustainable development. Additionally, social responsibility enables DHL to honour the diverse interests of their customers, employees and business partners (Rahim and Shawkat 610). As a multinational company, DHL subscribes to the United Nations Global Compact, which sees to it that they respect human rights in their sphere of influence. Moreover, the company is ethically committed to transparency, pledges to accounting and reporting standards that ensure accuracy and authenticity of information, and complies with rights and regulations that combat money-laundering activity. DHL has chosen to pursue effective business ethics through a monolith and standardized global approach (Godiwalla 1381). The company has also adopted multiple and customized approaches that suit each country’s needs. It is evident that by adopting a customized approach for each country, DHL is able to embrace a second approach that enhances the company’s ethical commitment to its different markets. The ethical commitment allows the company to respond to different needs and expectations represented in the different territories. Additionally, DH is able to cater for business ethics and social responsibility in each country where it operates.

DHL, corporate governance and CSR initiatives

Corporate governance comprises the wholeness of all universal and nationwide values and ideologies for good, accountable company administration and management. As of Marketline (6), corporate governance does not contain established uniform international rules, but refers to a company’s consideration of responsible company running. At DHL, there are certain elements that underpin the company’s corporate governance. Apart from DHL declaring their conformity with a corporate governance code and the company upholds the guiding principle for their employee engagement, which is “Respect and Results” (“DHL: Deutsche Post” 13). Moreover, the DHL Company has a code of conduct for employees and suppliers which include anticorruption and competition guidelines. To a certain extent, corporate governance and corporate social responsibility (CSR) converge. Rahim and Shawkat (607) assert that this convergence works for the good of the corporate regulatory landscape. Even though this significance is reduced in strong economies, it has contributed to significant reform of the regulatory environment that guides corporate governance in weak economies. This attribute makes sense; especially following the assertion that economic globalization has reduced the percentage of the global population living in moderate and extreme poverty (Arnold 126). This shows that most MNCs are expanding from strong economies to weak economies, and to ensure sustainability, corporate governance aids in ensuring achievement of these goals.

Therefore, CSR is a function of corporate governance. At DHL, three programs express the company’s commitment to sustainability

CSR initiatives

DHL has a variety of sustainability programs under its living responsibility banner, and one of them is the Go Green program. The program is the cornerstone of the company’s sustainability efforts for environmental protection. The program was set up in 2008 as response to global environmental issues, and it aims at addressing the company’s energy efficiency and carbon intensity (“Datamonitor: DP DHL” 2). The program has since grown to cover environmental issues such as waste, water consumption, environmental management, and sustainable sourcing. The company anticipates improving the carbon dioxide efficiency of its processes and subcontractors by 30% by the year 2020. This resourcefulness has seen the company introduce fuel-efficient vehicles and uptake of renewable energy in the facilities it owns. Moreover, the company has introduced green parcels in Germany, and seen to it that they go green in a considerable number of its operations and processes

Go Help program is another CSR initiative that DHL has established as a means of responsible living, and its design centres on three functions, which aim to assist in disaster management. The three functions include disaster response, disaster preparedness and a partnership with UNICEF to reduce child mortality (“Datamonitor: DP DHL” 9). Partnering with the United Nations has seen DHL dispatch their disaster response teams at disaster-site airports and their disaster preparation training program that help airports equip themselves for emergency situations (“DHL: We Deliver” 65). Meanwhile, The Go Teach program consists mainly of localized programs that aim at championing education (“DHL: We Deliver” 15). The initiative has seen DHL give many children from poor backgrounds a chance at a good education (“Datamonitor: DP DHL” 10). Moreover, DHL supports volunteer work among its employees through the Global Volunteer Day and the Living Responsibility Fund.

Discussion of CSR initiatives

Evidently, the CSR initiatives of DHL enable the company to accomplish one of its objectives, which is to ensure achievement of sustainable living. The company made a major step when it decided to participate in a green economy since the establishment of the Go Green program in 2008. This milestone has helped the company to grow its brand worldwide.

As a global logistics company mainly dealing with transport, DHL seems aware that its contribution to the greenhouse gases was immense and taking a step to put the production of carbon dioxide in check through various means discussed has earned it a competitive advantage. This shows how much the company values the environments in which it operates and it is willing to achieve sustainability to ensure continuity.

The Go Teach program has extremely benefited the DHL in terms of winning the trust of its customers in this weak economy, as they see the company as an aid and not only an agent looking to make profits. While DHL benefits from the sales it makes to these populations, the community benefits in other ways. This relationship is the cornerstone of dependence that shows value for people. The Go Help program is also a feasible initiative, as it not only seeks to help, but also seeks to earn trust among consumers, which comes without much compromise, for it reflects the saying that a friend in need is a friend indeed.

Conclusion

The resolution of DHL to establish such feasible CSR initiatives has been a major score that has enabled the company to continue towering as the logistics company of choice among many consumers in the world. Through CSR, the company not only endears itself to the consumer market, but also does what is ethically right by giving back to the same society where it generates its profits. Overall, the company has successfully used CSR as part of its public relations, resultantly making it successful in how it relates to different stakeholders.

Works Cited

Arnold, Denis. “Global Justice and International Business.” Business Ethics Quarterly 23.1 (2013): 125-143. Print.

Datamonitor: Deutsche Post DHL: Company Profile 2011. Web.

Datamonitor: DP DHL Sustainability Case Study: How is DP DHL responding to the Challenges of Sustainability? 2010. Web.

DHL: Deutsche Post DHL: Code of Conduct. Web. 2015.

DHL: We Deliver Responsibility: Corporate Responsibility Report 2011. Web.

Godiwalla, Yezdi. “Business Ethics and Soil Responsibility for the Multinational Corporation.” Journal of Modern Accounting and Auditing 8.9 (2012): 1381-1391. Print.

Marketline: Deutsche Post AG: Company Overview 2014. Web.

Musiolik, Thomas. The Global Player: How to Become “the Logistics Company for the World“, Hamburg: DiplomicaVerlag, 2012. Print.

Neiman, Paul. “A Social Contract for International Business Ethics.” Journal of Business Ethics 114 (2013): 75-90. Print

Rahim, Mia and Alam Shawkat. “Convergence of Corporate Social Responsibility and Corporate Governance in Weak Economies: The Case of Bangladesh.” Journal of Business Ethics 121 (2014): 607-620. Print.

Raza, Ahmad. “Determinants of Business Ethics on Multinational and Local Organizations.” Journal of Business Studies Quarterly 4.4 (2013): 47-55. Print.

DHL or Deutsche Post is considered to be one of the most effective and widely used mail services in the world. The environments and culture of DHL Company are the major aspects that influence business and people’s readiness to get involved in one. The fluctuating market often demands changes in the location, so that it stays successful.

DHL is an international business, and it uses competitive means to make an increase in profits and distribution of products or services. One of the strategic advances that were made is related to changing the consulting practice and connection between locations. The major focus has turned to people and interaction with the public.

The express service, global forwarding and a strong supply chain are all aspects that make DHL strong. As customers will often return to the same organization if the products and services are reliable and of high quality, it was wise for business to pay special attention to how matters are conducted. The supply chain itself is determined by providing contracts and logistics among the supply routes and destinations. Also, there is a wide variety of sectors in DHL that offer diverse divisions, each specific to the conditions present.

The global developments and operations have been on an increase in the past decades. The global business industry has made use of many employees from different countries. As the headquarters are located in Germany, the cultural specifics are very unique. The supply chain is functioning mostly in Europe, the United States and Canada, but also, in other countries as well. The global sector has been used to supply goods and services, which makes the company especially flexible in all aspects on the organization and supply (Savignano 11).

DHL Supply Chain has three major regions where it operates. They are south and north Americas, Asia, which is comprised of Pacific, Middle East and Africa, and Europe. Since DHL operates in so many different environments, the conditions allow adjusting to the supply demand of each particular country or nation.

Because the organization is involved in so many levels of society, the supply chain is a part of the solutions in providing healthcare support. This comes in extremely useful to both the company and the partnering nation because the demand is used for the betterment of social life, which as a result, brings more business to the company (Savignano 13).

Automotive industry and energy matters are another division where the supply chain is particularly growing. With the increase in technology and the search for clean energy, the company is able to contribute to the research and provide a service which is much useful in the modern world. DHL Supply Chain serves customers in many different industries, which sets it out among other organizations.

Being a leader in logistics, it functions in over 220 countries, which leads to a significant growth in revenues and demand. Partnering with other companies is also common, which stimulates development and international cooperation. The markets that are evolving rather rapidly, such as China, India, Brazil and Mexico, have inputted extra needs on DHL. This has boosted supply demand and services allocation (“DHL”).

Overall, the company is making great progress in spreading its business all over the world. A high efficiency of services and the proper organization of the supply chain create the best environment for DHL and its future plans.

Works Cited

DHL 2013. Web.

Savignano, Marcelo. The Multiple Identities of an Employer: A case study on DHL. Munich, Germany: GRIN Verlag, 2010. Print.

Executive summary

This paper will focus on making a knowledge management strategy for DHL Company. I have chosen the DHL Company because it has a good reputation in shipping services (Schorer, 1968). It has a long and reputable history that can form a firm basis for a knowledge management strategy.

The paper will analyse the gaps that exist within the organizational structure of the company and make relevant recommendation that solve the challenges it faces.

In this light, it will focus and analyse the company based on the people who surround the company, the technology that the company has employed and the processes it has implemented in its operations.

Introduction

Knowledge management is the collective process that aims at creating, spreading and using knowledge. It is an all-inclusive process which ensures that knowledge is well organized and utilized to meet the organizational objectives.

In this case, it focuses on the knowledge concerning the people, logistics, processes and technology (Menipaz, 2011). In this light, it focuses on the knowledge gaps and strategic gaps that exist.

Knowledge gap is the difference between what the organization knows and what the organization must know. On the other hand, a strategic gap refers to the difference that exists between what the firm can do and what it must do. The two analyses form the basis of knowledge management.

Sub-company: DHL Aero Expreso

Since the DHL Company is a big company that covers about 220 countries around the world (Schulzinger, 2003). As a result, it is quite vague to make a knowledge management strategy for the whole company due to its size. Therefore, it is sensible to consider a sub-company of the entire company.

In this light, this paper will consider Aero Expreso as the sub-company. Aero Expreso is a sub-company that deal with cargo airlines for the services of DHL Company (Rein, Kotler & Stoller, 1997). It is physically located in the Panama City and offers its services to the South and Central America.

The main base of this cargo airlines is called Tocumen International Airport. It makes both the international and local flights around America (Wright, 2011).

Some of the destinations of these flights include San Jose, Miami, Guatemala City, Curacao and Aruba. The company has makes flight using the Boeing airplanes that serves within a relatively sizeable area.

In this paper, we shall discuss the effects of KM strategy on the Aero Expreso Company (Schorer, 1968). This implies that it will focus on the links that exist between the knowledge management and other materials including human resources, technology culture

Human Resource and Knowledge Management

Human resource is the most crucial field in an organization. It determines, by a large extent, the success of the organization. In this light, human beings are the main beholders of knowledge in all measures. They are responsible of creating, improving and instilling knowledge to other people within the organization.

This implies that people are the source of knowledge for the organization. Therefore, the human resource management can be termed as the leaders of knowledge management concepts (Sears, 2007).

In this light, they are responsible of harnessing, analysing and monitoring the knowledge that is held by the human resource. As a result, it can be argued that the human resource managers ensure that the human capital is well utilized in terms of their intellect.

Importantly, the most crucial factor of knowledge management is using all the knowledge that the human resource have. This implies that the human resource ensures that this goal is achieved in the organization (Sherman, 2001).

Therefore, this develops a link between human resources and knowledge management. Apart from the above basic concept of capturing and developing knowledge as factor of knowledge management strategy, human resource enables the association to obtain and disseminate information (Unsworth, 2001).

In this light, each of the people have special information that they bring to the company. In reference to Aero Expreso, there are various human resources that exists within the company. In this case, there are employees, employers, customers and shareholders.

In particular, they include pilots, managers, customers care staff, and public relations officers among others. These stakeholders have diverse and special roles that help the company in a unique way. For example, the pilots use their knowledge in facilitating the actual transportation during the flights.

On the other hand, the public relations officers aim at advertising the company to the public in order to get more customers for their airline. However, this knowledge must be integrated in order to prevent overlapping of roles and poor performance.

The human resource managers are responsible for managing that knowledge and ensure that the company gets the right outcome. The human resource managers manage the knowledge through various strategies.

For example, a human resource manager can implement a performance contract policy that induces the employees to work for good performance in their respective working places.

Technology and Knowledge Management

In regard technology, it is important to note that technology is not a priority to the concept of knowledge management. In this light, the most crucial factors that are considered in the concept of knowledge management include people, knowledge and the objectives of the organization.

Understandably, technology cannot work independently and without the intervention of other factors of the organization. Instead, technology is adopted and integrated within the processes of the organizations in order to realize business performance.

However, technology plays a crucial role that cannot be ignored in the field of knowledge management. This implies that technology is not a priority in knowledge management but it is a necessity.

In regard to knowledge management, technology is viewed as an enabler of the knowledge management in various capacities. There are various technologies that enable knowledge management in an organization forming a link between technology and KM.

These include the technologies that determines the character of the knowledge, technology that addresses the users’ requirements, the ones that support sense, and the ones that trigger structured approaches. These technologies are used in order to harness and utilize information from various arms of the organization.

Secondly, it creates connections between the various fields that contain diverse knowledge. In other words, it enables the organization to integrate the diverse knowledge that the organization holds.

Also, it automates business operations and ensures that all the business barriers are eliminated. These barriers are eliminated by providing appropriate ways of solving problems that arise within the organization.

In regard to Aero Express, the company has improvised technology in various fields in order to achieve the above functionalities. For example, the company has a smart track system that is improvised in order to facilitate efficiency.

In this light, the tracking system is used for the purpose of tracking the parcels during transportation. In this case, the customers have are allowed to open accounts with the system (Doz & Hamel, 1998). This account is used for the purpose of inquiring about the progress of transportation.

The technological integration enables customers to follow the progress at the comfort of their home. This implies that technology enables management of information during transportation.

In this light, we can conclude that technology enables the company to manage knowledge in a simpler manner that using the manual systems (Watford, 1999).

In addition, the company has efficient customer care system that are enhanced through technology. In this light, the customers can call the customers care desk and obtain help from the

Culture and Knowledge Management

The culture of the people that work in an organization affects knowledge management. In this light, culture refers to the manner in which the company is organized. It includes the organizational routines that are involved in the process of doing things (Johnson & Scholes, 1999).

Surprisingly, culture has a link with knowledge management since it controls the knowledge of stakeholder (Bruce & Pepitone, 1999). In this case, none of the stakeholders can apply their knowledge beyond the companies’ culture. This implies that they do not act in a manner that please them.

Instead, they follow the rules of the company in order to achieve the organizational goals and objectives. The culture of the organization helps to transform knowledge into power (Kimball & Hall, 2004). In this case, knowledge theories suggest that knowledge becomes power when it is organized.

Therefore, when an organization develops a culture of doing operating their businesses, it becomes power. Therefore, the company realizes good outcomes due to the organizational rules and directives (McKenzie, 1979). Aero Expreso have various organizational culture that enables it to move forward.

For example, the organization uses Boeing aero planes for the purpose of facilitating flights. This implies that pilots must apply their knowledge in relation to the Boeing aero plane since it is used by the organization (Menipaz, 2011).

Conclusion

It is clear that the knowledge management strategy has a strong relationship with the culture of an organization, technology, human resource among others. This implies that these factors must be integrated in the process on managing knowledge since they are vital components (Miniter, 2002).

References

Bruce, A & Pepitone, J 1999, Motivating employees, McGraw-Hill, New York.

Doz, Y & Hamel, G 1998, Alliance advantage: the art of creating value through partnering, Harvard Business School Press, Boston.

Watford, E 1999, Getting closer to clients, DHL press, London.

Johnson, G & Scholes, K 1999, Exploring corporate strategy (5th ed.), Prentice Hall Europe, London.

Kimball, B & Hall, J 2004, Selling in the New World of business. Best Business Books, New York.

McKenzie, R 1979, Restrictions on business mobility: a study in political rhetoric and economic reality, American Enterprise Institute for Public Policy Research, Washington:.

Menipaz, E 2011, International Business: theory and practice, Sage Publications, London.

Miniter, R 2002, The myth of market share: why market share is the fool’s gold of business, Crown Business, New York.

Rein, I, Kotler, P & Stoller, M 1997, High visibility the making and marketing of professionals into celebrities, NTC Pub. Group, Lincolnwood..

Schorer, M 1968, DHL: D.H Lawrence, Dell Publishers, New York.

Schulzinger, R 2003, A companion to American foreign relations, Blackwell Publishers, Malden.

Sears, W 2007, The front line guide to thinking clearly, HRD Press, Amherst.

Sherman, A 2001, Fast track business growth smart strategies to grow without getting derailed, Kiplinger Books, Washington.

Unsworth, B 2001, The partnership, W.W. Norton, New York.

Wright, F 2011, In memoriam DHL (2nd ed.), Cultural and Political Booklets, Wellington.

DHL Express has gained an impressive reputation over the past few decades by providing transportation services of outstanding quality. According to the mission and vision of the organisation, the company is aimed at becoming the household name for logistics in general: “Our vision stresses that we want to be the logistics provider people turn to – their first choice not only for all their shipping needs, but also as an employee or investor” (Our mission and vision, 2015).

However, in the environment of the 21^st-century global market, DHL has faced the necessity to re-evaluate its assets and reconsider its priorities. In order to remain efficient in the global environment, the company will have to promote the concept of green economy in order to make the process of delivery environmentally friendly, update its IT system and redesign the leadership strategy so that the framework of transformative leadership could be established within the organization.

In terms of the workflow improvement, the company will have to reconsider not only its leadership issues, but also the fact that the organization uses an outdated information system. Particularly, it is the inventory issue that affects the workflow on a rather deep level. Despite the fact that the issue has been put into the limelight several times, particularly, in 2007 and 2004 (European printing solution for DHL Global Forwarding, 2008), the situation concerning the use of appropriate technology remains to be solved.

The information concerning the outdated approach towards inventory also points at the issue regarding the use of the company’s financial resources. There is no need to stress the fact that a technologically enhanced approach to data management and consumer relations will trigger a drastic change in the company’s resources allocation. Therefore, the reconsideration of the organisation’s financial strategy needs to be viewed as the first step towards improving the current state of affairs.

As the diagram provided above shows, the DHL Company needs to introduce the approach that will help the company focus on the IT issues and the enhancement of its environmental strategy, including the primary need concerning the information transfer. Sd the check sheet provided below shows, DHL will have to work towards enhancement of its leadership model, which will allow for creating a sustainable approach towards the use of natural resources

Chart 2. Check Sheet

The check sheet provided above sets the company aside from a range of other organizations, as it displays the organization’s readiness to address the current issues, particularly, the issue of green economy, and contributing to the improvement of the environmental situation. Moreover, the check sheet offered above proves that the organization has a detailed plan on improving its mode of operation.

The current allocation of the organisation’s resources does seem reasonable, as the company clearly abuses the resources that it has at its disposal at present. Additionally, the update of the IT system used in the organization is quite clear based on the chart provided above. Finally, the change of the leadership strategy towards the transformative one is likely to affect the motivation rates among the staff and, therefore, increase the overall performance rates of the organization.

As the diagram provided above shows, it is crucial that the organization should consider funding the development of a more efficient leadership strategy. Despite the fact that the promotion of green economy seems the organization’s top priority at present, it is the manner of making important decisions that defines the company’s future now.

The reasons for the improvement of the specified domains are obvious. First and most important, the quality of the technology used in the course of services delivery will promote higher quality rates and, therefore, increased rates of customer satisfaction. Secondly, the improvement of the framework of relationships between the staff and the company’s managers will enhance the motivation rates among the employees. Finally, the reconsideration of the environmental strategy adopted by the DHL Organisation will provide.

It should be born in mind that the approach adopted within the company should be structured in alignment with the core competencies that the organization can be distinguished with. Specifically, the competencies such as personal devotion of the staff, the proactive solutions and the worldwide locxal strength deserve to be mentioned.

In order to improve the management process within the organisation and promote better relationships between the employees and the staff, the Six Sigma approach was chosen. According to the official definition of the strategy, Six Sigma is a “business strategy used to improve business profitability, to improve the effectiveness and efficiency of all operations to meet or exceed customer’s needs and expectations” (Kwak & Anbari, 2004, p. 2). The diagram below displays the effects of adopting the Six Sigma model to the framework of the DHL organisation.

As displayed in Diagram 2, the organisation needs not only carrying out the changes mentioned above in a manner as expeditious as possible, but could also use the redesign of its leadership strategy. The latter, in fact, can be viewed as the primary tool for boosting the motivation rates among the staff. The transformative leadership style can be used as the tool for redesigning the staff’s motivation and getting the employees’ priorities straight.

As ti has been stressed above, the organization is facing major issues with three key workflows, i.e., the absence of green delivery of the end product, the lack of an appropriate leadership model and the necessity to update the current IT system. It is quite remarkable that the suggested approach will also lead to a major enhancement in the services quality; specifically, the information flow will be enhanced, which will trigger a drop in the number and length of delays, therefore, affecting customers’ perception of the DHL services. This is the point, at which leadership factors of top management need to be brought up.

Seeing that changes in the leadership approach are inevitable and, more importantly, crucial in the specified design to the success of the implementation of the new approaches towards customers and data management, it is imperative that the appropriate leadership model should be integrated into the company’s framework. Therefore, the key tenets of the leadership factors of top management need to be revisited. The model in question, in fact, supports the idea of altering the relationships between managers and employees, as well as the reconsideration of the role of employees in the company, by promoting the proper behavioural patterns to the staff through the introduction of the appropriate role model, which the leader is going to represent and which the staff is supposed to follow. Additionally, the model suggested above puts a very strong emphasis on knowledge in accordance with the model in question, therefore, promoting trust among the company members.

Finally, the paradigm under consideration provides a very distinct focus of the further changes, i.e., the overall enhancement of the production process through the enhancement of information management and the redesign of the organisational behaviour for both the staff and the managers. Thus, it can be assumed that the model to be adopted in the context of the DHL organisation aligns with the key tenets of the leadership factors approach (De Hoogh, Hartog & Koopman, 2007).

As a result of improved manager– employee relationships and the alterations made to the current data processing framework, the organisation will be capable of responding to the needs of the clients in a more adequate and expeditious manner. The enhancement of the staff’s role in the company’s operations will, in its turn, contribute to a major boost in the individual productivity of the staff members and the overall performance of the company. As a result, a major boost in quality of the services provided will be carried out.

There is no need to stress the fact that the quality of the services will have to be checked regularly. The specified change to the organisation’s operations is crucial for maintaining the organisation’s reputation in the target market and improving customer relationships (Jennex, 2010). Thus, it will be necessary to consider the adoption of weekly audits for checking the quality of the transportation process, including the time that it takes, the arrangements that are made prior to the products transfer, the efficacy of the information processing tools, the responsiveness of the staff, etc. In addition to the above-mentioned tool, the incorporation of daily reports into the staff’s routine will have to be considered.

While weekly audits will facilitate a detailed analysis of the overall performance of the organisation, these are the daily reports that will help notice a problem at the earliest stages of its development and even suggest the methods of addressing it. The specified innovation is especially significant for the enhancement of the financial department’s operations.

Therefore, based on the issues detected above, three key tools for enhancing the company’s operations can be suggested, i.e., the reconsideration of the firm’s budget and the provision of financial resources for a technological update of DHL, the change in the leadership approach and the incorporation of weekly and daily checks into the mechanism of the financial department’s operations. As far as the tools allowing for galvanising the process of decision making are concerned, various negotiation techniques, which help focus on locating the compromise in meeting the needs of the key stakeholders deserves to be viewed as an option. To be more exact, the principle of collaboration as the foundation for negotiating between the company stakeholders should be brought up (Dima & Vlăduţescu, 2012).

In order to measure the progress that the above-mentioned strategies will supposedly have on the DHL Company’s performance, the aforementioned Sis Sigma approach can be viewed as a means to assess the overall performance of the organisation. By quantifying the results of the assessment and comparing them to the outcomes of the evaluation provided above, one will be able to define the progress made by DHL and suggest further avenues for improving the company’s evolution.

Apart from the measurements discussed above, the company will have to consider the measurements that are related to the process of communicating with its suppliers. For these purposes, the creation of employee communities and the design and analysis of regular surveys will have to be viewed as an option.

Despite the fact that the DHL organisation has been doing comparatively well over the past decade, the issues concerning the lack of innovations in the technology used by the company, as well as the communication principles that leave much to be desired in terms of both customer feedback and information management within the company, needs a closer attention. By reducing the costs for the transportation and the related issues, the organisation might be able to enhance its communication system and invest into the development of a flexible system of feedback gathering. Additionally, collecting feedback from the staff is imperative for the further enhancement of the company’s operations and its overall performance.

The specified objective, in its turn, can be attained by promoting a new model of organisational behaviour based on the principles of corporate social responsibility and total quality management among the staff. The issues regarding the lack of motivation among the staff, in their turn, can be addressed by developing an elaborate model of organisational behaviour for the staff to comply with, as well as the reconsideration of the corporate values towards a more stakeholder focused approach; thus, the needs of the staff will be met within a relatively short amount of time and DHL’s efficacy will rise significantly.

Reference List

De Hoogh, A. H. B., Hartog, D. N. D. & Koopman, A. P. L. (2007). Linking the Big Five-Factors of personality to charismatic and transactional leadership; perceived dynamic work environment as a moderator. California Management Review, 47(1), 839–865. Web.

Dima, J. C. & Vlăduţescu, D. S. (2012). Persuasive communication in logistic negotiation. International Journal of Eco Research, 3(1), 14–23. Web.

European printing solution for DHL Global Forwarding. (2008). Web.

Jennex, M. E. (2010). Strategies for knowledge management success: Exploring organisational efficacy: exploring organisational efficacy. New York, NY: IGI Global. Web.

Our mission and vision. (2015). Web.

Kwak, Y. H. & Anbari, N T. (2004). Benefits, obstacles, and future of six sigma approach. Technovision, 1(1), 1–8. Web.

Today, DHL is the largest international express delivery service. It carries over 1 billion shipments and serves millions of customers annually. With its integrated network of almost 45,000 offices, DHL is present in most countries of the world, delivering shipments to 120,000 global destinations. There are many specific features to DHL that make it the leader in the global express delivery market, including various customer services, such as track and trace, an organized hub system, and an efficient operations division.

The track and trace service, which was introduced by DHL in 1986, was enabled by the use of barcodes on each parcel. This allowed for the logging of every shipment onto the system so that the customer could track its progress online throughout the journey. Being able to follow the shipment process gives the customer a certain peace of mind as it confirms that the delivery is going to be on time and as expected. Receiving up-to-date tracking information is also important for the customers in the B2B sector: If the shipment contains products that have to be sold on a tight deadline, the business can rest assured that the order will arrive on time. Another benefit for corporate users is the use of similar barcodes with only the end numbers differing for large sets of shipments, which makes it easier for the business to check several tracking numbers consequently. These features make track and trace service useful both for B2C and B2B customers all around the world.

DHL’s developed worldwide network consists of 238 gateways, 450 hubs, and over 72,000 vehicles. An organized hub system is essential for the company to optimize its operations and to ensure timely delivery of all shipments to various locations. Local offices send all the parcels received to regional hubs, which then sort and send shipments to either a regional sorting facility (local deliveries) or a gateway (remote and international destinations). Regional sorting facilities sort and distribute packages to local service centers, where each parcel is allocated to a delivery route. Couriers pick up packages for their route and deliver them to customers. Gateways, on the other hand, are both the ports of service for local offices and facilities for export to foreign destinations that have all the necessary resources to send and receive international shipments, including the possibility to perform customs checks on site.

In gateways, the operations of different types are clearly distinguished. For instance, at DHL’s Miami gateway, there are over 200 employees working in two shifts, morning and night. The morning shift starts at 4 a.m. and finishes at 3 p.m., whereas the night shift starts at 3 p.m. and ends at 12 a.m. With the majority of inbound aircraft arriving in the morning, the morning shift is focused on receiving the parcels and arranging them to be shipped to a regional hub for further sorting and delivery. The night shift, on the other hand, is for outbound operations. DHL’s Miami gateway services the countries of Latin America, so any shipments to those countries are brought to the gateway either from service centers or the regional hub. Each parcel undergoes on-site customs certification and the sorting process before it is dispatched to the destination country.

Overall, there are many features that contribute to DHL’s success. One of the most important factors is the company’s unparalleled investment into creating a global network that is equally developed in many countries to ensure better and quicker service worldwide. DHL also offers tailored services to suit the needs of a variety of customers while at the same time showing a great organization of labor as most parcels are picked up only 15 minutes after the customer places the order. DHL’s efficient operations, as well as its flexibility and responsiveness, distinguish the company from its competitors, allowing it to hold a firm leading position in the global market.

DHL is a multinational company offering overseas transport to clients across the globe. The DHL; started by offering delivery services in one country, but at present, it serves more than two hundred and twenty regions including the Far East, Eastern Europe, and china. DHL is at present the global leading company in the industry of express and logistics services. The DHL provides innovative and customized transport solutions to its clients, from a single source. In 2003 the DHL expanded significantly after it merged with other shipping companies; Danzas and Deutsche post (Gregoty1984).

To rise to this position; DHL has employed several strategies which make it the leading company within the industry. The DHL provides door-to-door services thus expanding its imports. The door to door services are very beneficial to clients; since it is very convenient and reliable to the customers. With the use of one currency which is the US dollar; the company has been very convenient to its clients, thus making transactions easy. Their invoices are written using the values on us dollars thus very easy to transact. This strategy has made DHL clients very loyal to the company, thus making it to be the leading company in the market (Abate1993).

The operation of the DHL in nearly all corners of the globe makes it most preferred by customers; which is because the DHL serves more than 220 regions including the Far East, Eastern Europe, and china. This makes DHL be the most popular company in the market since its presence in most countries creates consumer awareness about its existence. By the fact that DHL operates in many countries; creates consumer confidence in that consumers will feel much convenient to transport goods using one company, then transporting goods with different companies on their way to their destination (Goodrich1955).

The DHL operates using one currency which is the US dollar; which helps to speed up transactions and reduce costs that may be incurred through currency conversion. This scenario is very advantageous to the clients; as it helps to build consumer trust and satisfaction. By the fact that less time is incurred in transactions and costs evaded through the use of one currency; makes the DHL offer the cheapest transport charges thus attracting more clients.

Further, the US dollar is accessible in nearly all nations thus making it the most convenient means of making payments. This is because; it lessens the consumers’ burden of looking for different currencies; which may cost a lot of time thus causing delays during transportation. Since consumers’ deadlines are met as planned, DHL is thus in a position of attracting and retaining its customers (Abate1993).

The application of modern technology in making transactions; which are supported by the use of information technology helps DHL to provide quality services to its clients. This can be justified by the fact that; orders are made online, thus not much time is wasted in traveling to the head offices thus attaining consumer satisfaction. Payments are also computerized and are made through the banks, which further saves the time used in making payments; which makes DHL one of the most efficient transport companies.

The DHL is also equipped with modern tracking tools, which helps to monitor cargo movement and thus help reduce delays and theft; thus optimizing consumer satisfaction. Consumers’ parcels and cargo are in this case much secure; thus the company does not face extra costs in compensating clients as a result of theft and fraud, which helps the DHL to maximize its profit (Gardner et al1992).

DHL has also been able to win clients through its successful marketing strategies, which has made its operations to be known all over the globe. First and foremost the DHL has applied internet marketing by opening its website; which has helped boost sales and the reception of consumer views about the company’s operations. Email marketing has also helped DHL to build trust in its customers, from which the DHL is also able to get valuable information and also increase revenues. The DHL has also managed to conduct successful sales and marketing training, which has been achieved through watching marketing tapes and online marketing training among others. These marketing strategies have also enabled DHL to understand its clients and also act to the information received from them (Gardner et al1992).

The pricing strategy of DHL has been one of the best; where it has been able to meet the needs of the different clients across the globe thus building customer trust. To arrive at this pricing strategy the DHL has done an intense SWOT analysis; to come up with the most appropriate pricing strategy. Following the diversity of clients drawn from different nations; developed and developing countries, DHL has adjusted its prices to cater to the needs of all its clients. The DHL has been forced to balance between decentralized, centralized, and hybrid techniques of pricing. To increase revenue the DHL had to increase prices but this adversely affected the clients from poor states; thus the need to revise the prices. As result, this has led to the introduction of lower and flexible prices accompanied by discounts to cater to clients from poor states (Hocknell2001).

After keenly following the operations of the DHL in all the regions of operation, it is clear to judge that its services are highly preferred by transportation clients. This preference is due to the good strategies applied by the management of DHL, which makes it very efficient and able to offer high-quality services at reasonable prices. In the case the management of DHL follows these strategies it will continue to be the market leader, and able to win customer trust thus rising even to higher levels.

References list

Abate, Z. 1993. Water resources development in Ethiopia: an evaluation of Present experience and future planning concepts: a management Method for analyzing a key resource in a nation’s development. London: Ithaca Press.

Gardner, R. and Joseph, P. 1992 Post-Gulf War challenges to the UN Collective security. Washington, D.C: United States Institute of Peace.

Goodrich, L. and Anne, P. 1955. The United Nations and the maintenance of International peace and security. Washington, D.C: Brookings Institution.

Gregoty, F. 1984. The multinational force – aid or obstacle to conflict Resolution? London: Institute for the Study of Conflict.

Hocknell, P. 2001. Boundaries of cooperation: Cyprus, de facto partition, And the delimitation of Tran boundary resource management. Boston: Kluwer Law International.

Introduction

The main focus of this study is the third-party (3PL) logistic company known as DHL. The original objective of 3PL is to offer and combine operating, warehouse, and delivery services that may be expanded and adapted following client requirements or market circumstances (Aritonang et al., 2020). DHL is a world-leading contract logistics organization that provides global services, including express delivery, freight transport, supply chain management, e-commerce services, and mail and package dispatching. It is a German logistics company Deutsche Post subsidiary with its headquarters in Bonn. The purpose of this research is to study the assets of DHL and analyze how they are utilized in the various market segments in which they contend.

DHL Vertical Supply Chain

DHL’s core business is international express delivery, and the major modes of transportation are 2,200 flights per day with 280 dedicated aircraft, around 200 ocean freight, and 37,700 vehicles. The firm serves 220 countries with 3,200 territories and more than 590,000 employees (DHL, 2022). The organization’s total assets were approximately 63.6 billion euros in 2021 (DHL, 2022). In the Express division, they dependably and promptly deliver urgent documentation and commodities directly to the doorstep. Their main line of operation is international time-definite (TDI) deliveries. DHL offers industry-specific services to complement its TDI product.

For instance, they provide a diverse array of thermal packaging for temperature-controlled, cold storage, and frozen products as part of the Medical Express transportation service, specially designed for biomedical research and healthcare businesses. Generally, it consistently provides superior technologies and services to important customers to create robust cooperation relationships with clients (Khan et al., 2019). However, to increase profits, DHL’s key target is to concentrate on long-term customer relationships. As an international supplier, they must uphold the clients’ promises. Thus, they continuously assess their needs, for instance, through client satisfaction ratings and their incredible customer-oriented culture initiative.

In order to generate profits, DHL provides clients with diverse delivery options and affordable prices. Post and parcel Germany division services range from traditional and hybrid mails to specialized parcel delivery products. They include extra services such as certified post, payment on delivery, and insured products. DHL Global Forwarding freight division has ocean freight facilities and enjoys a long-standing partnership with the carrier. The employees can speak their native languages to facilitate easy interaction with the client (Khan et al., 2019). With the help of its data management systems, tracing and tracking technology can provide clients complete accessibility throughout the supply chain (Aritonang et al., 2020). Utilizing automated machines provides the opportunity to decrease delivery time and expense simultaneously.

In order to make things simpler for their clients and to provide value, DHL’s eCommerce solution division, through their own and partner networks, offers a domestic last-mile package delivery service, supplying to both B2C and B2B clients from a variety of industries. Their non-TDI inter-service offers global shipping options to help their clients take advantage of the robust development in inter commerce while still living up to their standards for efficiency, visibility, and quality. DHL’s supply chain division includes customized supply chain solutions and logistical services. In addition to warehouse operations and transportation, they provide value-added services, including eFulfillment and receivables management, Lead Logistics Partner (LLP), property investment Services, Delivery Logistics, and packaging solutions for major market segments (DHL, 2022). In collaboration with government agencies, they regularly examine their facilities’ operational safety, standard conformance, and service quality.

Conclusion

In order to operate the corporation, DHL Group employs the use of both financial and non-financial operational measures. The trends in these measures are contrasted to the previous year and projection information to assist in managerial decision-making. Keeping the asset cost consideration in business choices promotes resource efficiency and guarantees that their operating company is focused on sustaining value while enhancing cash flow. The business’s success is influenced by committed and motivated employees, the latest technological innovations, and operation-specific strategies such as warehousing and collaborating with other business partners.

References

Aritonang, K., Nainggolan, M., & Djunaidi, A. V. (2020). Integrated Supply Chain for a Single Vendor and Multiple Buyers and Products with Crashing Lead Time. International Journal of Technology, 11(3), 642-651.

Deutsche Post DHL Group closes 2021 with record earnings. (2022). Web.

Khan, S. A. R., & Yu, Z. (2019). Strategic supply chain management. AG: Springer International Publishing.

Executive Summary

Companies use the merger strategy as an essential business strategy. It aims at joining the efforts of two or more companies rather than one. As a result, the companies work together in mutual benefit to attain their individual and collaborative goals.

In this case, the companies attain equal status and enjoy their benefits in equal proportions (World Finance World Economy, 2007). I have chosen DHL and FedEx companies for this proposal because they have a long and reputable history in business. The DHL Company was formed over 40 years ago in San Francisco (DHL, 1994).

It was formed by three businesspersons and entrepreneurs who wanted to endorse the ideology of parcel and paper delivery in San Francisco. These entrepreneurs included Robert Lynn, Larry Hillblom and Dalsey Adrian. They started by shipping and delivering papers to Honolulu from San Francisco before opening an office in London for global shipping in 1974 This office served 3000 customers around the world.

On the other hand, FedEx was conceived in year 1973. It was founded when the Caliber System Company was acquired by the Federal Express (FedEx, 1995). Originally, the Caliber System offered express shipping only. After acquisition, FedEx extended it services leading to market extension.

The company’s headquarters is located in Memphis and headed by Fredrick Smith. In 2012, the total revenue was amounting to $ 42.7 billion, and the operating income was $ 3.19 billion. The companies would have a horizontal relationship in a merging environment since they offer similar products. The companies have various weaknesses as well as strengths that will be integrated in the merging process.

Background

In this light, I would propose that the two companies merge to form an alliance. In this case, the two companies will merge to form a single company that will be offering the same services. In addition, they should merge into a merger of equals. As a result, the companies will have equal shares in the merging. They will abandon their individual logos and obtain a common logo. Also, they will use a common business name. Therefore, the new company name will be DHL and FedEx Co.

There are various reasons as to why the two companies will merge into a single company. In the executive summary, it is clear that the two companies have strengths and weaknesses. The merging will allow the company to make an all-inclusive alliance. In this light, the strengths of DHL will complement the weaknesses of FedEx Company.

On the other hand, the strengths of the FedEx Company will compensate for the weaknesses of DHL. For example, the DHL Company has a network of about 230 countries around the world. This implies that FedEx will widen the network. On the other hand, the DHL Company will be able to penetrate the USA market through the various FedEx subsidiaries. This interdependence forms the true rationale of the merging.

Market Analysis

Current Position

The current market is a competitive market between the two companies. In this light, their market share is almost equal around the world. In a financial report that was released in 2012, the company had a network of about 221 countries. On the other hand, DHL Company had reached about 230 countries around the world.

This implies that the two companies have an extremely high competition in the market. However, the countries are not exactly the same. Therefore, there are some countries that get services from FedEx and not from the DHL Company. In fact, this forms the basis of this merging. However, the competition does not involve the two companies only.

There are about six other companies which struggle for the same market share. These include ARAMEX, Choice Logistics, BAX Global, Purolator Courier, TNT N.V and United Parcel Service (Parsons, 1997). As a result, the market share faces an extremely high competition. In addition, the two companies targets different clients within the market share. In this light, the DHL Company offers their services at high prices.

This implies that they target the wealthy clients who are above the middle class. This is because they have invested a lot of funds on their logistics and systems. Therefore, the company offers high class services that can be afforded by the wealthy people only. On the other hand, FedEx Company has subsidized its prices allowing for the wealthy and the middle class. This market segmentation is the most challenging issue evolving around the target market.

Future Position

The future position of the market seeks to analyze the nature of the market in the face of merging. In this light, it is crucial to understand that the two companies are the most vital. This means that they are financially stable and solvent. As a result, the merging will reduce the competition that exists in the market. In fact, the two companies have the ability to dominate the market. Therefore, they will suppress the other companies significantly.

The companies will join up their networks leading to increased coverage. The companies will harmonize the prices into common rates. In this case, the DHL prices will reduce while the FedEx prices might be increased. These common market rates will ensure that the market is harmonized. As a result, the market segments will disappear. Therefore, the harmonized prices will target all clients. The alliance will get more customers in the market share than the rest. This will lead to an increase in the market share.

Benefits

Customers’ Benefits

In reference to customers, they will enjoy the subsidy of prices. Particularly, the DHL clients will be served at lower rates than before. In addition, the alliance will enhance the improvement of the technological systems. This will ensure that customers receive efficient and fast services than the original setup.

Companies’ Benefits

For the companies, the most significant benefit is the mutual interdependence between the two companies. In this light, the companies will help each other to obscure its weaknesses and improve on the strengths. For example, the popularity of DHL Company is USA is lower than FedEx. Therefore, FedEx will enable the DHL Company to increase its popularity. On the other hand, FedEx has a smaller foreign network than DHL Company. Therefore, DHL will help FedEx to penetrate the global market widely.

Marketing Plan

The merging of the two companies will result into a new brand in the market. As a result, there will be an efficient marketing and advertising plan that will aim at popularizing the joint brand. These are some of the marketing strategies.

Media

Media reaches a large number of people. In this light, the two companies will seek to advertise their merging in the televisions, radio stations, newspapers, financial magazines and newspapers. In this case, they will incorporate these advertising bodies during the launching day.

As a result, many clients will be aware of the new company formation. The social media will be involved in advertising and marketing the brand. The public relations officers will open a page of the brand and invite people to like the page. In this page, they will be making advertisement about their new services and processes.

Sports

Sports have been the central mark of leisure. Therefore, the companies will be sponsoring teams in various games. Mainly, they will sponsor footballs teams owing to the large number of football fans. As a result, the companies will create awareness of their merging.

Community Support

The companies will be sponsoring various community projects aiming at creating awareness. In this light, the companies will sponsor education for the needy students. This will assist the company in creating a good reputation. Consequently, it will earn popularity and increase their market share.

Timelines

The merging plan will take a little time. In this light, the possible time will be estimated at two years. In the first six months, the companies should agree on the process of merging. This will involve a close evaluation of the pros and cons. After the agreement, the companies will design the new logos and company name. In addition, they will make a detailed budget of the merging process. Also, they will identify the possible sources of these funds.

In the next six months, the company should work on the integration the technological system. This will ensure that the systems are harmonized to reflect common rates. During this period, the companies will change the brand names in all their delivery vessels. These include the vehicles, ships and airplanes. They will change their organizational goals and processes to incorporate the two companies.

For the last one year, the company will select new organizational leadership. These include the Chief Executive Officer, Board of Governors, departmental heads. In addition, they will consolidate their employees and train them on the new organizational processes.

Finance

Cost

Normally, the cost of merging is significantly high. However, the cost of merging between DHL and FedEx will be lower than the expected cost. This is because the two companies have already made strong systems. Therefore, the integration will be quite easy. This table represents the cost of various items in one financial year 2013-2014.

Revenue

The integration of the two companies will help in the efficiency of the system and create a stronger brand than the original one. Therefore, the total revenue will increase by 40 percent.

Considering, nine years of operation this proposal will seek to speculate on the graph for profit margin. The proposal will present a graph for nine financial years which will show the expected general trend for the profit margins.

Explanation

The graph shows that the profits of DHL and FedEx will remain constant for the first two financial year. This is due to the introduction of the new brand in the market share which has not been marketed. As a result, the customers will need time to adopt the changes that are brought about by the merging process.

From the year 2015 to 2016 the graph is extremely steep owing to high profits. In this case, the companies will combine their individual market shares and strengths that will allow the companies to make high profits. At the same time, customers will be familiar with the new brand resulting from the merging process.

Therefore, customers from both companies will join their financial capability resulting to elevated profits. From the year 2018 to 2021 will increase at a low rate owing to customer deterioration in the market share. The companies, which will have attracted most of the customers, will have little effect on their number of customers. Therefore, the level of profit will remain constant, but it will not reduce.

Conclusion

The proposal has created an all-inclusive framework for the merging of DHL and FedEx. In this light, it has explained the reason for choosing DHL and FedDex and proposing a merging process between them. Secondly, the proposal has explained the historical background of the two companies alongside their financial experiences. The proposal has analyzed the current and future positions.

Moreover, it has provided an in-detailed plan of the marketing plan that include social media, sponsorship, clothing and media. In this case, the proposal has provided details pertaining to the implementation of the plan of marketing. Lastly, the proposal has included a financial table containing the current and future revenue alongside the cost incurred in the merging process. Importantly, the proposal has represented the profit projections for the two companies over the next nine year starting from the year 2013 to 2021.

References

World Finance World Economy: Merger and Acquisition Strategies (2007). Web.

Parsons, R. (1995). Businessweek: Business News, Stock market & Financial Advice. Web.

DHL: Global (1994). Web.

FedEx: Shipping, Logistics Management and Supply Chain Management (1995). Web.