This website uses cookies to ensure you have the best experience. Learn more

Examining A Business Failure: Dhl Essay

1087 words - 4 pages

AbstractDHL, a parcel delivery service, is popular in the global market for being a leader in international express and air freight. The company also is the world's number 1 in ocean freight and contract logistics. In 2003, DHL acquired Airborne express, in an attempt to capture a portion of the United States (US) market. Soon after in 2008 the company announced the suspension of its US operations and layoffs totaling 9,500 workers. Management and leadership issues can be attributed to the failure of this venture. The following will identify the management and leadership failures which led to the DHL failure, as well as how these failures could have been predicted. In addition, the following will also show how proper organizational behavior of management and leadership could have impacted the structure of DHL in a positive manner (Ewing 2008).DHL, controlled since 2003 by the privatized German postal service known as Deutsche Post World Net had a simple objective. The objective was to become a viable alternative in the US to industry leaders, Federal Express (Fed Ex) and United Parcel Service (UPS). Combined UPS and Fed Ex enjoy a total of 78% of the US market. DHL has had success overseas, controlling 40% of the European market and 40% of the Asian market. In an effort to build its presence in the US the corporation expanded its trucking routes, created air hubs, and developed a $150 million advertising campaign. DHL focused on aspects of the freight business in which the company felt were overlooked. The company focused on improving customer service while molding employees into more of a customer-friendly workforce (Ewing 2008).DHL FailsIn the five years since DHL purchased Airborne it has lost an estimated $10 billion. The company set modest goals hoping to capture 10-12% of the total US market. In its attempt to challenge FedEx and UPS fell short and it is reported that DHL only had 7% of the total US market. Despite its dominance worldwide, DHL was unable to put up much of a fight among the US market. In 2008 the company made the decision to withdraw from the US market, estimating a $1 billion loss for the year. Overall the organization expected a $4 billion loss when you factor in severance packages and corporate restructuring (Ewing 2008).Leadership FailureEstablishing DirectionDHL did attempt to establish the direction of the company in unfamiliar territory. The organization did develop a vision of the future and did establish strategies for producing the necessary changes in an effort to achieve this vision. DHL recognized the potential for growth and intended to capture a modest 10-12% of the market. DHL planned on expanding the service area and providing a more customer service based approach to the freight industry. Despite the changes it appears that DHL did not properly research the US market and mistakenly felt that because they were successful in the European market that success would come naturally in the US market (Ewing...

Find Another Essay On Examining a Business Failure: DHL

Examining Business Failure Essay

966 words - 4 pages Examining Business Failure Organizational behavior is a key factor in determining how an organization becomes effective in undertaking its tasks. The behavior should be one that is accepted by both the management and their subjects. This helps avoid the frequent conflicts of interest that are likely to be experienced in the work place. It also helps maintain the code of ethics that might have been set up by the management of the

E-BUSINESS SYSTEMS IMPLEMENTATION: A REPORT ON SUCCESS/FAILURE

3590 words - 14 pages Electronic Data Interchange, EDI) for many years, and have had ample opportunities to assess the benefits of the implementation of information and communication technologies in their business processes. Supply Chain Management has emerged as a key lever in creating value for today's companies as they seek to lower costs, increase asset productivity and improve customer relationships. Supply chains exist in both service and manufacturing

Account

715 words - 3 pages ZCZB 6513 MANAGING OPERATION AND INFORMATION SYSTEM 1 | P a g e STRATEGIC INFORMATION SYSTEM FOR DHL About DHL Worldwide ExpressDHL Worldwide Express is the global market leader of the international air express industry. DHL is the pioneering in the industry since 1969. But today DHL continues to be at the forefront of technology, offering fast, responsive, and cost-effective, express deliveries in addition to e-commerce fulfillment and

DHL Information System Case Study Report - PM203 Information Technology

2118 words - 9 pages their choice. During giving a very clear and transparent view, DHL had achieved approximately 1% growth in its earnings in the year 2005. This Oracle solution has reduced the selling time, administrative time etc. also. Forwarding and Freight: This department of the operational level are responsible in carrying goods through railroad, road transport, air and sea. The three main business units are, A. DHL Global forwarding: It handles the

GLOBAL MARKETING- entry of DHL in INDIA

9472 words - 38 pages DHL Worldwide Express DivisionWhen DHL Worldwide Express was launched in 1979 as a division of Airfreight Ltd. (hereafter referred to as DHL India to distinguish it from its overseas ally which we refer to as DHL Worldwide), it ushered in the era of air express business in India. The DHL Division enjoyed considerable autonomy in its working right from the start.Mr. Cyrus Guzder joined the Airfreight Limited in 1968 and took over as its Managing

STRATEGIES IN THE AIRFREIGHT INDUSTRY & 5 FORCE ANALYSIS

3843 words - 15 pages customers' expectations. Total revenues in 2002 accounted for US$1,046 million in the U.S., and approximately US$5.8 billion worldwide. Based in Brussels, Belgium, DHL is 100% ownedby Deutsche Post World Net .A mission statement must be specific enough to pin down a company's real business arena. (Strickland; Thomson, 2003) A strategically revealing mission statement incorporates three elements:Customer needs, or what is being satisfied.Customer

DHL Worldwide Express, First in World

1074 words - 4 pages to FedEx and UPS, DHL do not take a package and hand it off to an agent. Instead, DHL ensures that their deliveries and pick-ups are made by DHL personnel and that they can manage business locally by using local people who know their customers. UPS and FedEx both focus on using wireless technology for their service as a competitive tool, such as 802.11b WLAN 10, Bluetooth, DIAD 11, and GPRS. Furthermore, FedEx update their technology often to

Total Quality Management: Six Sigma Application in Courier Industry

2280 words - 9 pages addition, DHL leverages its extensive experience with the latest internet-based technologies to deliver a suite of complementary products and services that greatly enhance the success of any Six Sigma deployment. At DHL, the Goal is Results! As a result new customers begin purchasing from a company known for its high quality goods, and so revenues increase.Six Sigma is a quality improvement and business strategy that began in the 1980's at Motorola

UPS: Making Air Package Deliveries

1128 words - 5 pages History UPS started delivering packages by air as early as 1929 with United Airlines operating ford Tri-motors. UPS’s first airline venture started as a 50/50 partnership with DHL in a company called International Parcel Express (IPX). IPX hired a group of former Transamerica employees to gain the air carrier certificate. With 60 aircraft in the fleet of IPX by 1987, it was becoming difficult to manage with all the different contract carriers

Wharehousing

845 words - 4 pages accommodate future sales and growth and is adaptable to the next generation of technology that is available. Technology is ever changing and it does not wait on anyone, failure to embrace it will only leave your WMS and business well behind your competitors. It is essential to pick the right level of technology for your business to keep cost at a minimum, and performance at a high level, following the key points that have been previously

Levels of Planning

1692 words - 7 pages (Wikipedia,2006). In order to have a successful plan, companies must develop a strategy on how they plan to accomplish their goals and missions. A good business strategy is to know your business inside and out, to include, strengths, weaknesses, opportunities, threats, and company trends.Having a plan is one thing, but having a strategy to accomplish that plan is another. Strategy is a long term plan of action designed to achieve a particular

Similar Essays

Examining A Business Failure (Dhl) Essay

939 words - 4 pages Business Failure PAGE 2 Running head: EXAMINING A BUSINESS FAILURE DHLExamining a Business Failure (DHL)Organizational LeadershipLDR/531August 2010"Over forty years ago founded in San Francisco California by three entrepreneurs- Adrian Dalsey, Larry Hillblom and Robert Lynn (DHL)." The company is considered a leader in the global market in an industry of international express and logistics. The company has been a leader in ocean freight and

Examining A Business Failure Essay

1023 words - 4 pages University of PhoenixOrganizational LeadershipLDR/531February 15, 2010Organizations today must stay in focus in order to stay competitive and successful. There are times when an organization fails due to various reasoning's. Today's paper will focus on examining a business failure. The business of discussion in this paper will be WorldCom. Organizational behavior theories will be discussed. Also there will be a discussion on what role did

Business Failure Dhl Essay

1548 words - 6 pages Business Failure PAGE \* Arabic 8 Running Head: Business Failure DHLBusiness Failure DHLMilton RamosUniversity of PhoenixLDR/531 Organizational LeadershipGroup: PA10MBA02Instructor: Margaret EttenheimJuly 1, 2010Workshop 1, Assignment 1DHL is considered to be one of the leading logistics and parcel delivery service providers in the world with delivery services in more than 200 countries. DHL was founded in 1969 by Adrian Dalsey, Larry Hillblom

Examining A Business Failure Paper

1122 words - 4 pages failure of Enron's business principles.ReferencesGudinkunst, A. (2002). Enron- A study of failures Who, How, and Why? The Faculty Network. Retrieved January 15, 2010 from http://web.bryant.edu/~facdev/Web%20Sites/newsletter/fall02/agudikunst.htmHanson, K. (2002). Lessons from the Enron Scandal. Retrieved January 17, 2010, from http://www.scu.edu/ethics/publications/ethicalperspectives/enronlessons.htmlHulbert, M. (November 2007). The Law of