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 contract logistics. In 2003 DHL as many companies with capital do purchased an ailing Airborne Express. This buyout's primary focus was to capture a segment of the United States Market. After about three years in 2008 the company was forced to suspend service of the US bases operations along with layoffs of about 9,500 employees."The German postal service known as Deutsche Post World Net has been the controlling force since 2003. The objective has been clear to become a viable entity in the market with United Parcel Service (UPS) and Federal Express (Fed Ex). The two giants make up a combined total of approximately 78% of the US market share. DHL has had success overseas with a controlling 40% of the European market and 40% of the Asian market. With assertiveness DHL made expansions to the routes, creating air hubs along side of a $150 million advertising campaign. The focus proved successful by working on the aspects of the freight business that DHL may have previously overlooked." (Ewing 2008).Within a five year period of the purchase of Airborne the company lost an estimated $10 billion. With modest goals set in an effort to capture at least ten to twelve percent of the US market. The challenges were Fed Ex and UPS which landed DHL about seven percent shy of the total US market. "Despite some dominance worldwide, DHL was unable to win along side of the leaders in the US market." (Ewing 2008) The decision was made in 2008 to exit from the US market with an estimated loss of over $1 billon for the year. With the massive layoff's and severance packages with corporate restructuring the loss was originally estimated at $4 billion (Ewing 2008).Leaderships FailureIn an effort to establish direction DHL made an attempt to at entering into a territory that was unfamiliar. With the development of a vision and of future strategies the company did establish changes that were necessary to the success of that vision. Lack of research entering into a new market fell on the leadership of the company while only the growth potential was taken into consideration. Moving into a new market, leadership must devise plans that will encompass all areas of the business. In this case the need for growth against large American companies was not a full proof plan to enter into the US market. Success did not come as a natural occurrence for the DHL as previously planned and thought by the leadership, which resulted in a loss.Employee buy-in is a factor needed when companies plan to reorganize, re-locate or merge. DHL failed to...

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

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

UPS Case Study

1770 words - 7 pages for package delivery remains bright. Moreover, with attention being given to the challenges of the supply chain management, package delivery companies can apply their technological expertise in developing additional business opportunities. Threats: Increasing Fuel Costs, Competitve Landscape (DHL, FedEx), Potentially slowing global economy; FedEx is together with UPS the largest leader in the world market and the main competitor in using

Similar Essays

Examining A Business Failure: Dhl Essay

1087 words - 4 pages 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

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