The Strategic Context of TNT Using Its Mission Statement, Vision, Objects, and Core Competencies - Essay Example

TNT Scenario 1. Explain the strategic context (purpose) of TNT using its mission statement, vision, objects and core competencies. Customer satisfaction and timely delivery of valuable expectations are two strategic objectives of the company. For example, the tagline ‘Sure We Can’ clearly represents the entire strategic purpose of TNT because this tagline assures customers and other stakeholders that the company understands their expectations and ensures that they will be met professionally and timely as well. In this regard, to evaluate the mission statement of the company will be highly useful: “We are a global team of empowered people that connects business, markets and people in a sustainable way” (About Us, 2014). This statement clearly highlights that TNT is not restricted to provide its services to businesses but has strategic purpose to facilitate interaction among all those who want to share their business, professional and personal information with others. In addition, ‘…in a sustainable way’ word reflects that the company also ensures that the customers incur minimum cost and obtain maximum quality, satisfaction from the services of the company. 2. Review the issues involved in the strategic planning process of TNT. “Your answer should discuss the issues which could be barriers or facilitators to the strategic planning process of TNT. These could include issues from environmental scanning, challenges related, but not limited, to resources required, targets, stakeholders to be involved, management roles and culture, etc”. The company faces serious strategic challenges that hinder the process of strategic planning. For example, Bot and Seyger (2013) highlight that the company has experienced slow growth in European countries and its erratic demand has mainly contributed to this decreasing demand; others strategic challenges include the problem of cost inflation, active competition and actively competing in the new developing strategic markets such as China and Brazil. Based on this assessment, it can be contended that the company faces numerous challenges for developing effective and useful strategic planning for obtaining its strategic business objectives. In this regard, it is important to highlight that these strategic challenges are purely external in their very nature and the company has no direct control over their subsequent changes and fluctuations. As a result, TNT’s strategic management is required to adjust its strategic position by focusing on those strategic areas where it can easily exercise control and make effective strategic planning that is doable. 3. Explain the different planning techniques that could be used by TNT to increase the effectiveness of its strategy. “Answer may focus on strategic planning techniques such as BCG growth-share matrix, SPACE, PIMS, Scenario Planning”. Scenario planning is an important strategic tool for improving the effectiveness of strategy (Glesecke, 1998, p.43). It is not about scenario writing but is more related to strategic planning (Lindgre, and Bandhold, 2003 p.21). For example, TNT wants to obtain and maintain its strategic objectives in the European market. For this purpose, it decides that till the end of 2015, it will have to increase 5 per cent market share in the European market. To implement this change, more effective strategy is required in which the PEST (political, economic, social and technological) factors will be considered. Currently, the political environment looks stable and more business friendly than ever before. Subsequently, the cost inflation and cost of living are showing more stability because the entire European economy has recently recovered its debt crisis and the businesses and consumers are experiencing a rising confidence in the business activities. Moreover, the technological changes are taking place which can directly or indirectly put positive effect on the business activity. After this environmental scanning, TNT must increase its marketing and promotion cost along with providing and offering a range of incentives and discounts for attracting customers from untapped markets. In this regard, it is important to highlight that marketing cost should be increased by 30 per cent as this will increase more chances of attracting new customers. In this strategy, social media, print and electronic media should used. 4. Produce an organisational audit for TNT using appropriate techniques. “Answer may include the use of techniques or academic frameworks such as Capability matrix (analysis of resources & competences), Value Chain analysis, SWOT analysis etc. If you apply a SWOT analysis for the internal environmental audit, you will be expected to focus on strengths and weaknesses of the organisation”. Global reach and higher and recognized quality services are two main strategic strengths of the company. Currently, TNT provides its logistics and express delivery services in more than 200 countries besides employing 65,000 people globally (About TNT Express, 2011). In other words, serving more than 200 countries means the country has strategic capability to deliver quality services in other countries and has also proven that it has recognized capability that it can also retain its such strategic position as well. At the same time, employing more than 65,000 employees is also its strength because employees are key stakeholders for such company who mainly rely on the services of the human resources. In 2013, TNT received CISCO Service Logistics Award, highlighting TNT’s excellence in providing quality logistics services (About Us, 2014). Before this award, TNT was given award by Delphi Automotives for the year 2012, it also received HR award CEVA Road Supplier award (About Us, 2014). These awards clearly exhibit that TNT has maintained and professionally complied with the professional benchmarks which are normally practiced in a number of industries. Particularly receiving HR award clearly showed that the company has strong commitment with its strategic purposes. 5. Carry out an external environmental audit for TNT using appropriate techniques. “Answer may include the use of techniques or academic frameworks such as PESTEL analysis, Porter’s 5 forces, SWOT analysis etc. If you apply a SWOT analysis for the external environmental audit, you will be expected to focus on opportunities and threats for the organisation”. Technological advancement is the biggest threat for the company. TNT mainly relies on providing postal services across the world. However, recent changes in the technology in which paper-free sharing of information and more digital communication are being preferred. In this regard, TNT faces serious threat from the technological changes because new methods are being created which make the previous postal methods obsolete. Technology can also be termed as an opportunity for the company. In this regard, it is important to highlight that the requirements and needs for business to business and business to customer have not changed much and still correspondence and communication is vital part of their business strategy. However, they have changed their communication method from postal to the digital aspect. If TNT decides to revamp its business strategy by investing in research and development especially in the field of information technology, then, there are chances that the company will be in a position to avail this opportunity. 6. Explain the significance of stakeholder analysis for TNT. “Answer should identify the key stakeholders for TNT, and explain the significance of their analysis in the formulation of a new strategy for the organization. A stakeholder diagram (mapping) can be used to present the stakeholders and their analysis can be carried out using a power/interest matrix”. Corporate Responsibility: TNT’s 2012 Materiality Matrix Source: (Corporate Responsibility Performance, 2013) This matrix clearly depicts the importance of different stakeholders for TNT and its stakeholders. Customers, suppliers, shareholders, employees and pressure groups are the main stakeholders. Each has its own importance and value for the company. In this regard, the customers are highly valuable for the company because they provide the main source of income for the company. As a result, they have placed the customers at the highest level of importance in the above graph. Broadly speaking, TNT has separated these stakeholders in three broad categories: social, environmental and business as well. As the business aspect has the key significance for the company, more reliance and focus has been given to this aspect and the priority has been made as per the importance of relevant stakeholder for the company. References About Us, (2014). TNT: Recognition. TNT. Retrieved: http://www.tnt.com/corporate/en/site/home/about_us/our_business/recognition.html About TNT Express, (2011). TNT: Sure we can. Retrieved: http://www.tnt.com/express/en_jp/site/home/about_us/about_tnt_express.html Bot, B., & Seyger, J. (2013). Deliver. TNT Express. Retrieved: http://www.tnt.com/content/dam/corporate/pdfs/Archive/Presentations/2013/tnt-express_strategy-update_presentation.pdf Corporate Responsibility Performance, (2013). Corporate Responsibility Framework. TNT. Retrieved: http://www.tnt.com/content/dam/corporate/pdfs/Archive/Quarterly%20reports/2013/AR2012/tnt-express-annual-report-2012-ch3-corporate-responsibility.pdf Giesecke, J. (Ed.) (1998). Scenario Planning for Libraries. United States: American Library Association. Lindgren, M., & Bandhold, H. (2003). Scenario Planning: The Link Between Future and Strategy. New York, NY: Palgrave MacMillan Read More