Nur Syahira
Syahirah
h Husaini
Sameena Siraj
Geetha A/P Valaidum
Philominah
Philomin
ah Arkappan
GM 04674
GM 04558
GM 04556
GM 04502
COMPANY
COMP
ANY OVERVIEW
•
•
•
•
Founded in San Francisco more than 40 years ago by 3
budding entrepreneurs - Adrian Dalsey, Larry Hillblom and
Robert Lynn
DHL is the one of the global market leader in international
express, overland
overland ttransport
ransport and air freight
DHL offers integrated services and tailored, customer-focused
solutions for managing and transporting letters, goods and
information.
DHL’s international network links almost 220 countries and
territories worldwide
•
Around 285k employees are dedicated to provide fast and
reliable
services
exceeds customer’s expectations in 120k
destinations
in allthat
continents
MISSION & VISION
•
•
Mission : to be the first choice worldwide
Vision : for the future is nothing less than to
transform the logistic industry and to deliver
beyond customer’s expectations.
NEW MISSION & VISION
•
•
Mission : enhances the business of our customers by
offering highest quality express and logistics
solutions based on strong local expertise combined
with the most extensiv
extensive
e global network presence.
Vision : create and promote innovative logistics
solutions that aims to deliver freight services that are
beyond customers expectations
FedEx Mission & Vision
•
"FedEx Corporation will produce superior financial returns for
its shareowners by providing high value-added logistics,
transportation and related information services through
focused operating companies. Customer requirements will be
met in the highest quality manner appropriate to each market
segment served. FedEx Corporation will strive to develop
mutually rewarding relationships with its employees, partners
and suppliers. Safety will be the first consideration in all
operations. Corporate activities will be conducted to the
highest
ethical
and
professional
standards."
Mission & Vision supporting the
Strategies
•
DHL’s strategies :
–
–
To intensify customer focus
–
To deliver consistent service excellence
To extent capabilities
capabilities
–
To attract, develop
develop and
and retain talent
–
–
To relentlessly drive efficiency
To be proactive in social
Mission & Vision supporting the
Strategies
•
Statements of vision and mission of the
company are a manifestation of the
commitment
of
achieving
success
as
these
statements drive strategy. Strategies are
founded on these statements hence are
considered the idea of purpose
Internal
Int
ernal Assessment
Organizational Chart
Deutsche Post
DHL
Corporate
Center
CEO
(Dr Frank
Appel)
Finance Global
Business
Services
(Lawrence
Rosen)
Divisions
Personnel
(Walter
Scheurle)
Mail
(Jurgen
Gerdes)
Express
(Ken Allen)
Global
Forwarding
Freight
(Roger Crook)
Supply Chain
(Bruce
Edwards)
Market Positioning Map
High Distribution Network
FedEx

UPS

Skynet

DHL

Quality Service
Moderate Service
TNT

City-Link

Nationwide

Low Distribution Network
DHL’s Marketing Strategy
•
Aggressive promotion strategy (Promotion)
•
Just in Time
•
•
High quality service
Advanced technological support
•
Planning and scheduling
•
Horizontal management practices
Optimization of HR & OM (People)
•
Location
Locati
on (Place)
•
Product choice (Product)
•
DHL’s Website
DHL’s Strengths & Weaknesses
Strengths
Weaknesses
Strong Brand Image
Not well-known globally
Globalism
Global
ism
High Tariffs
Technology pioneers
High Prices
Innovators
Not fully operational in Domestic Markets
Corporate Symbiosis
Customer loyalty issues
Reach and Frequency
No difference of
of the services of DHL with
Quick delivery due to dynamic route
planning system
competitors
Weak to tap and venture against its
potential domestically and internationally
Customers have control on what they
purchase
Subject to stagnate market
Excellent e-commerce services
Clear visibility of supply chains all the time
IFE Matrix
Strengths
W
R
WS
Strong Brand Image
0.12
4
0.48
Globalism
0.08
2
0.16
Technology pioneers
0.09
3
0.27
Innovators
0.09
3
0.27
Corporate Symbiosis
0.08
3
0.24
Reach and Frequency
0.15
4
0.60
Quick delivery due to dynamic route planning system
0.03
1
0.03
Customers have control on what they purchase
0.03
1
0.03
Excellent e-commerce services
0.04
2
0.08
Clear visibility of supply chains all the time
0.04
2
0.08
Weaknesses
W
R
WS
Not well-known globally
0.10
3
0.30
High Tariffs
0.08
1
0.08
High Prices
0.09
2
0.18
Not fully operational in Domestic
Domestic Markets
0.12
3
0.36
Customer loyalty issues
0.02
1
0.02
No difference of the services of DHL with competitors
0.03
1
0.03
Weak to ta
tap
p and venture against its potential domestically and
internationally
0.04
2
0.08
Subject to stagnant market
0.03
2
0.06
TOTAL
TOT
AL
1.00
2.67
Based on the results above, DHL’s Internal Factor Evaluation is slightly above average
to their internal strengths and to abstain weaknesses.
External Assessment
Major competitors
•
Federal Express
•
UPS
•
City-Link International
Nationwide Express
•
TNT Express Worldwide
•
Skynet Worldwide
•
DHL
FedEx
UPS
Less expensive than UPS or Generally more expensive Somewhat expensive but
FedEx
than USPS or DHL
Offers fast delivery to some very quick delivery system
locations.
Offers free boxes and other Provide
shipping supplies, but only charge
boxes
free
cheaper than FedEx
Relatively fast delivery
of Insurance for
worth up to
for their Air Express service
(not DHL Ground).
valuables
$100 is
included free of additional
charge.
Provides online tracking at Provides the most detailed
no additional cost, but not online tracking system.
as detailed as FedEx
Ground,
Express,
and
Freight shipping services
are available, as well as
extra fast same-day and
overnight options.
Competitive Profile Matrix
FedEx
UPS
DHL
W
R
E
R
E
R
E
Service Quality
0.13
4
0.52
3
0.39
2
0.26
Price Pressure
0.15
3
0.45
3
0.45
2
0.30
Strong consumer orientation, segmented
approach
0.10
3
0.30
3
0.30
2
0.20
Completeness of service
0.09
3
0.27
3
0.27
1
0.09
Good quality for a competitive discount
price
0.12
3
0.36
4
0.48
2
0.24
Reputation
0.11
3
0.33
1
0.11
1
0.11
Advertising
0.10
2
0.20
3
0.30
4
0.40
After sales service
0.08
2
0.16
1
0.08
1
0.08
Customization
0.12
2
0.24
4
0.48
2
0.24
Total
1
2.83
2.86
1.92
The result shows UPS is dominating on critical success
suc cess factors because the total weighted
score is higher compared to FedEx and DHL
PESTLE Analysis
•
Political Environment
–
–
–
Europe is a stable environment where no major
political changes are expected.
European Union has removed border lines and has
made trade and business more accessible
Enable bigger exports, free movement of services.
Economical Environment
companies should not stop their investment plans
because of economic crisis.
–
It is important in current situation to strengthen
position in the market and expand if possible.
–
Emerging markets represent a potential of rapid
economy growth.
–
E.g restructuring or outsourcing –reduced cost
–
Socio-cultural Environment
•
affect customers' needs and wants
•
Research & Development - to respond to changes in
society
not to loose market share and
demandquickly
for services.
•
Customer satisfaction surveys, market surveys,
employee surveys play important role in building
company's brand and image in the market.
Technological Environment
•
•
•
IT is the most important technology factor for logistics
business because speed and reliability are equal to success.
However, there is an indisputable constant threat of falling
behind.
Investments
Inves
tments to the modernist technologies are evitable and in
times of economic crisis are much more important then
anytime before.
Company has to decide if it
i t runs internal IT organization or if it
outsources most of the services and reduce cost.
Legal Environment
•
•
obligations - directives, taxes and rules that they
must be aligned with to be able to operate
operate in the
market.
Liberalization - Removal of border lines enabled
building and strengthening of positions in the
logistics market.
market. There are no special and expensive
authorizations necessary in CEP industry which is
authorizations
another benefit for companies
Environmental Analysis
•
Air pollution globally – transportation industry
•
Projects have been implemented – smart
truck project
External Analysis
Opportunities
Threats
Global Expansion
Rules and restrictions of other countries
JV with foreign countries’ local
Competitors improvising
improvis ing DHL’s
DHL’s strategies
transportation companies
Expansion of E-Commerce
Economic and Political condition of the
country
Increasing number of manufactured
goods
Insurance costs
Delivery products from city to city
New Tax System
Creation of new market segmentation
Increase in fuel price
Largest world sector
Tough competitors
EFE Matrix
Opportunities
W
R
WS
Global Expansion
0.08
3
0.24
JV with foreign countries’ local transportation companies
0.08
3
0.24
Expansion of E-Commerce
0.07
2
0.14
Increasing number of manufactured goods
0.08
3
0.24
Delivery products from city to city
0.07
2
0.14
Creation of new market segmentation
0.07
3
0.21
Largest world sector
0.07
3
0.21
Threats
W
R
WS
Rules and restrictions of other countries
0.06
2
0.12
Competitors improvising
improvisi ng DHL’
DHL’ss strategies
0.05
2
0.10
Economic and Political condition of the country
0.06
1
0.06
Insurance costs
0.08
3
0.24
New Tax System
0.07
2
0.14
Increase in fuel price
0.08
2
0.16
Tough competitors
0.08
1
0.08
Total
1
2.32
Based on the results above, DHL’s External Factor Evaluation is below average to the
environment for exploiting opportunities and to overcome threats.
Strategy Formulation
SWOT Analysis
Strengths
•
•
•
•
•
•
Opportunities
es
Opportuniti
Strong Brand Image
Globalism
Technology pioneers
Innovators
Corporate Symbiosis
Reach and Frequecy
Weaknesess
Not well-known globally
High Tariffs
High Prices
Not fully operational
Domestic Markets
•
•
•
•
SO Strategies
in
WO Strategies
Global Expansion
Advertise new technologies
Create joint ventures with
Joint Ventures
and online ordering system local logistics companies (W1,
Expansion of E-Commerce
(S2,S3, O4)
O1, O2)
Increasing
number
of
Promoting business in China
manufactured goods
and India (W1, W4, O1)
•
•
•
•
•
•
•
Threats
Rules and Restriction
Restrictionss
Economic
and
Political
condition
Slow and stagnant economic
growth
•
•
•
•
Relationship
countries
with
ST Strategies
Promotions
when
using
online ordering system during
economic
slow-down
or
restrictions (S2, S3, S6, T1, T3)
Enhance the Smart-Truck
•
•
foreign Project to overcome fuel price
increment (S3,S4,T5)
WT Strategies
Acquire
small
local
companies abroad to catch up
with competitors
competi tors (W1,W4,
(W1,W4,T4)
T4)
•
The increase in fuel prices
SPACE
SP
ACE Matrix
Matrix
A SPACE MA
MATRI
TRIX
X
RA
RATIN
TINGS
GS
Financial Strength (FS)
Revenue
4.00
Cost reduction
2.00
Asset utilization
3.00
Industry Strength (IS)
Technology Savvy
6.00
Large distribution network
5.00
Brand
4.00
Environmental
Environme
ntal Stability ((ES)
ES)
Risk in business
-3.00
Increase in fuel prices
-2.00
High rivalry in market
-5.00
Competitive Advantage (CA)
Innovation
-4.00
Service quality
-5.00
Product choice
-3.00
CONCLUSION
Directional Vector X-axis: CA + IS = -4.00 + (+5.00) = 1.00
Y-axis: FS + ES = 3.00 + (-3.33) = -0.33
Strategy to pursue is Competitive Strategies
TOTAL
AVER
VERAGE
AGE
9.00
3.00
15.00
5.00
-10.00
-3.33
-12.00
-4.00
SPACE
SP
ACE Matrix
Matrix
FS
Aggressive
Conservative
CA
IS
Competitive
Defensive
ES
BCG Matrix
•
•
DHL has been analyzed in 3 categories of its
businesslike – mail, express and logistic
1) mail – market growth rate
•
DHL Mark
Market Growth Rate
53212 – 40935 X 100% =
30%
40935
BCG Matrix indicates that DHL is placed in Cash Cow. This
means DHL’s market growth rate is low, but its market share is
high so it should milk as much profit as possible
BCG Matrix
Grand Matrix Strategy
Rapid Market Growth
Weak competitive position
Strong competitive position
Slow Market Growth
QSPM
STRATEGIC ALTERNATIVES
ALTERNATIVES
Key Factors
Expand business & acquire
more logistics companies
domestically and
internationally
AS
TAS
Enhance & focus on
innovation
AS
TAS
Weight
Opportunities
Global Expansion
JV with foreign countries’
local transportation
companies
Expansion of E-Commerce
Increasing number of
manufactured goods
Delivery products from city
to city
Creation of new market
segmentation
Largest world sector
0.08
3
0.24
4
0.32
2
0.16
4
0.32
3
0.21
3
0.21
3
0.24
4
0.32
0.08
0.07
0.08
0.07
-
-
-
-
-
-
0.07
0.07
Threats
Rules and restrictions of other
countries
Competitors improvising DHL’s
strategies
Economic and Political
condition of the country
Insurance costs
New Tax
Tax System
Increase in fuel price
Tough
Total competitors
0.06
2
0.12
3
0.18
-
-
-
-
0.08
0.07
0.08
3
0.24
2
0.16
0.08
1.00
4
0.32
4
0.32
0.08
0.07
3
2
-
0.24
0.14
3
4
-
0.24
0.28
0.05
0.06
Strengths
Strong Brand Image
Globalism
Quick delivery due to dynamic
route planning system
0.03
Customers have control on what
they purchase
Excellent e-commerce services
Clear visibility of supply chains
all the time
Technology pioneers
Innovators
0.03
-
-
0.04
-
-
0.07
0.07
4
4
0.28
0.28
3
3
0.21
0.21
Corporate Symbiosis
Reach and Frequency
0.06
0.09
3
2
0.18
0.18
4
4
0.24
0.36
0.04
Weaknesses
Customer loyalty issues
0.02
No difference of the services of
DHL with competitors
-
-
-
-
-
-
-
0.03
Weak to tap and venture against
ag ainst
its potential domestically and
internationally
0.04
Subject to stagnate market
0.03
-
Not well-known globally
globally
0.07
2
0.14
2
0.14
High Tariffs
0.06
2
0.12
2
0.12
High Prices
0.08
3
0.24
3
0.24
Not fully operational
operational in
Domestic Markets
0.09
4
0.36
3
0.27
Sum Total Attractiveness Score
1.00
3.69
4.14
Recommendation
•
Enhance & focus on innovation
–
–
–
Make difference to have new customers and
increase their half mark
market
et share
Making little difference on the current product or
services to be better
Delivery will be faster and cut cost by using less
fuel
Recommendation
•
Expand business & acquire more logistics
companies domestically and internationally
–
By acquiring small local companies in diff
different
erent
countries like
like China, India, USA, will give presence
in that countries.
–
Creative
Creativ
e solution for problems and acquiring new
brain
Strategy Implementation
EPS/EBIT ANALYSIS
•
Earnings per share: Year 2011
€ 1Y(Million) Q4(Million)
•
•
EBIT
EPS
2436
0.96
599
0.14
(0.82 for 9 months)
EPS/EBIT
EPS/EB
IT ANALYSIS
ANALYSIS
•
Earnings per share: Year 2012 (9 Months)
€ (Million)
EBIT
1838
Mail
•
INTEREST
EBT
270
1568
€346
Freight
Supply Chain €301
•
TAXES
452
•
EAT
SHARES
1116
1209
•
EPS
0.92
•
•
•
:
€678
Express
€829
Others
€-315
Consolidation €-1
EPS/EBIT ANALYSIS
(assumption)
Capital needed
€ 5000 million
EBIT range
€ 2000 to 4000million
Interest rate
€ 5%
Tax rate
Stock Price
25%
€ 15.20
Shares outstanding
€ 2019 million
EPS/EBIT ANALYSIS
(assumption)
100% DEBT
100% STOCK
50/50 DEBT/STOCK
EBIT
2000
4000
2000
4000
2000
4000
INTEREST
EBT
250
1750
250
3750
0
2000
0
4000
125
1875
125
3875
TAXES
438
938
500
469
969
EAT
EA
T
1312
2812
1406
2906
SHARE
2019
2019
2348
2348
2184
2184
EPS
0.65
1.39
0.64
1.28
0.64
1.33
1500
1000
3000
EPS/EBIT
EPS/EBI
T ANALYSIS
ANALYSIS (CHART)
CONCLUSION:
THE BEST FINANCING ALTERNA
ALTERNATIVE
TIVE IS 100% DEBT SINCE THE
T HE EPS VALU
VALUE
E ARE LARGEST; THE WORST
FINANCING ALTERNA
ALTERNATIVE
TIVE IS 100% STOCK SINCE THE EPS VALUES ARE LOWEST.
RATIO ANALYSIS OF DHL
Current Ratio € =
Debt Equity ratio € =
2012
2013
12750
20000
13449
18600
0.95:1
1.08:1
22929
29161
34544
64264
66.38%
45.38%
RATIO ANALYSIS OF DHL
Return on Sales € =
2012
2013
1838
3701
40935
Return on Asset € =
53212
4.49%
6.96%
1196
2386
40935
53212
2.92%
4.48%
FUTURE ASSUMPTION BY DHL
•
The group intends to generate
gen erate annual EBIT
•
growth by an average of 13to 15% through 2015
EBIT Range 2.6 to 2.7billion
•
Dividend Payout ratio will be 40 to 60%
•
Number of employees in 2012 ( 426,104) tend
to increase by 10% in 2013
FUTURE ASSUMPTION BY DHL
•
CEO of DHL Logistics, enhancing the SmartTruck Project is going to be his first strategy.
This project will allow their company to
deliver faster and cut cost by using less fuel.
•
To achieve this goal, we will follow some
steps:
a)Increase the budget of R&D 10%.
b)Prepare an office for a new innovation team
and assign a leader to work on this project
The Financial Per
Perspective
spective
Strategic Themes
Strategy
Revenue Growth &
Mix
Cost
Reduction/Producti
vity Improvement
Asset Utilization
Strategic Objective
Growth
Improve Market
Penetration
Improve Revenue
Productivity
Improve wallet
share
Improve Channel
Mix
Improve market
share
Reduce Operating
Expenses
Ensure Loyalty
Efficient use of
resources
Strategy
Strat
egy Evaluation – Balance
Scorecard
The Financial Per
Perspective
spective
Strategic Themes
Strategy
Revenue Growth &
Mix
Cost
Reduction/Producti
vity Improvement
Asset Utilization
Strategic Objective
Growth
Improve Market
Penetration
Improve Revenue
Productivity
Improve wallet
share
Improve Channel
Mix
Improve market
share
Reduce Operating
Expenses
Ensure Loyalty
Efficient use of
resources
The Customer Perspective
The Customer Value Preposition
Strategy
Product/Service
Attributes
Image and
Reputation
Customer
Relationship
Strategic Objectives
Growth
Price/Performance
Brand Image
Contractual
Responsiveness
Ease of Use
Brand Equity
Flexibility
Product Availability
Honesty
and
Openness
Buying Experience
Customer Feedback
The Business Process Perspective
Types of Business Processes
Strategy
Innovation
Operations
Post-sales Service
Strategic Objectives
Identify emerging Reduce
needs of customers fulfillment
time
Growth
order Enhancing support
cycle centres
Improve
communication
Response time for
solving
customer
process
between problems
customer
and
company
Learning and Growth
Growth
Categories
Strategies
Employee
Capabilities
Information System
Capabilities
Motivation
Empowerment and
Alignment
Strategic Objectives
Growth
Strategic
skills Improve Intellectual Staff Empowerment
(improve
selling Property
skills, analyst skills,
technical support)
Skill
(multiple
selling)
leverage Tracking privacy
product
Personal
goals
alignment
with
corporate goals
Morale
Conclusion
•
•
DHL already established themselves and
holding the third largest logistic company in
the world
Based on all the strategies matrix above, will
be able to aid DHL future performance and
overtake
overtak
e their competitors
THANK YOU