Business Model and Strategic Plan of C.H. Robinson Worldwide, Inc - Case Study Example

Business Model and Strategic Plan Part: I Business Model and Strategic Plan Part I: In the first part of the business model and strategic plan, concept of a new product or service division of the C.H. Robinson Worldwide, Inc. will be outlined. The organisation has been established in the year 1905. They are deemed as third party logistics service providers in the world. The organisation is providing diversified service to its clients which are increasing the compatibility in the industry. Services like the freight transportation, produce sourcing, logistics, information services and outsource solutions are provided by C.H. Robinson Worldwide, Inc. to its clients from North America, South America, Europe, and Asia (Brinckmann & Kim, 2015). Recently it has been observed that they are having almost 46,000 global customers (Chrobinson.com, 2015a). C.H. Robinson Worldwide, Inc. is the largest motor carrier network in North America region. They are having huge capacity of resources and vehicles. They are using the road transport, motor transporter, locomotive transportation, air cargo carriers and marine line cargos (Dandira, 2011). During the year they have earned gross revenue of $13.5 billion. They are having 11,500 employees in their worldwide cargo shipment. Although C.H. Robinson Worldwide, Inc. poses good amount of logistics market share in North America, South America, Europe, and Asia, they are planning to expand their business in new and innovative dimension. Such strategies will help the firm in expanding their business to obtain higher flexibility and sustainability (Chrobinson.com, 2015b). C.H. Robinson Worldwide, Inc. is planning to develop a new public transportation service in the New York area. Mainly this new company or service division will be serving the local medium sized organisations, tourists, local universities and many other travellers with a shuttle bus system. Such services are aiming to increase the profitability by attracting normal customers of USA area (Eckhardt, 2013). The organisation will be developing their marketing and service delivery operations through the existing network offices of cargo or logistics business. The service will concentrate on meeting the local transportation needs of the various American peoples. In order to develop the service dimension they can use their experience of dealing with 66,000 transportation providers (Investor.chrobinson.com, 2015). They are operating motor carriers, railroads, airline cargo carriers, and sea carriers so it will be easy to introduce a public or shuttle bus transportation services (Gagne, 2002). Initially the mission statement of the C.H. Robinson Worldwide, Inc. suggested that they were concerned for the welfare peoples or employees, processes, and technologies which are used (Eckhardt, 2013). They concentrated to improve the global transportation and supply chains of their client companies. However, with the changed business model the firm is planning to deliver outstanding value to the travellers and daily public transport users. Buses are one of the major public transports in the USA. Shuttle bus system is gaining popularity in US or New York area. Recently buses are not only used in the purpose of travelling only. Earlier a bus is used in the practice of transporting from one city to other (Kim & Min, 2015). Shuttle buses of C.H. Robinson Worldwide, Inc. are having the mission of providing the customers with vast purposes or usage. In US shuttle buses are highly used by the medium scaled organisations in order to pick up and drop their key employees. Such buses are also used by the mall set up. C.H. Robinson Worldwide, Inc. will redefine their missions as per the requirement college students, tourism resorts, non-profit organisations and care homes patients or staff (Myrna, 2012). Therefore, redefined mission of the firm is to develop services as per the requirement of the big organisations. The global transportation and logistics service providers will try to develop their existing and newly recruited employees as per the newly developed shuttle bus services segment. Another vision or mission of the C.H. Robinson Worldwide, Inc. is selecting best possible shuttle bus brand from the market, which will give proper feasibility of the investment for the long run (Zott & Amit, 2013). C.H. Robinson Worldwide, Inc. is trying to create modified vision and a business model for this new division for gaining future sustainability. Existing business model of the firm suggests that they are acting principally so that they can provide more values to their clients. In the new shuttle service division they are planning to increase the expertise of their procurement system. New business model will be integrating the experience of the transportation and logistics models. Business model of C.H. Robinson Worldwide, Inc. is highly variable or flexible. Such model helped them to meet various challenges effectively. The organisation has faced different challenges changing economic capacity of the country and logistics industry circumstances (Myrna, 2012). New business model will be developed on the basis of customer needs analysis in the shuttle system. This type of analysis also helps the organisation in achieving competitive advantages in the USA Shuttle industry. Selected dimension of the transportation have high amount of versatility. Shuttle buses are used by different industries like hospitality, educational set schools, colleges, and airports, malls set up, resorts, tour companies, and care homes. Therefore, shuttle bus service of the C.H. Robinson Worldwide, Inc. is a quite feasible strategic fit. In the new service segment the firm will be using shuttle buses like “The Chevrolet Express, the GMC Savana, Ford E350 and E450 (Chrobinson.com, 2015a). Such busses are highly technically supported and consisting high-end features. C.H. Robinson Worldwide, Inc. will be offering the features like Metro Card accept and automated ticket vending with the help of exact coin changes. The value proposition will be increased by the mean of various additional services. New division will be having the business model, which considers technology as the crucial factor of gaining compatibility. The strategic direction of organisation includes technological value addition. The shuttle buses of C.H. Robinson Worldwide, Inc. will offer tourists with route information. Details will be displayed on the front side of each shuttle bus and travellers will get the relevant knowledge before boarding. They will get the assurance of their journey timing, so it will create more satisfaction and value addition among the customers (Kim & Min, 2015). C.H. Robinson Worldwide, Inc. will be offering both ‘pay while ride’ and ‘payment kiosks booking systems’ in the bus stop. It is a provision for ethical consideration and financial safety. They are planning to introduce their shuttle bus service throughout the day. Buses will be available for 24 hours a day. Overnight transportation service will attract more travellers in the New York City (Chrobinson.com, 2015a). Future business model of C.H. Robinson Worldwide, Inc. will be offering traveller with the schedule and route map of the Bus service. Such testimonials will be available in the corporate website of the firm and bus stop posters. These documents will also outline the arrival and departure of the bus along with the potential journey (Gagne, 2002). C.H. Robinson Worldwide, Inc. is planning to operate their bust service in each 5 to 15 minutes during rush hours. Also they are planning to implement QR code on each bus and bus stop so that travellers can obtain the information regarding the subsequent bus arrival times. In addition, in the late night the firm is planning to increase the safety of the passengers by offering them with customised routes. C.H. Robinson Worldwide, Inc. will be offering separate provisions for the female travellers and staffs. On the other hand, C.H. Robinson Worldwide, Inc. will be recruiting staff on the basis of vision, mission, and value of the service dimensions. Being the leading third party logistics service providers the firm is planning to increase the integrated cultures, corporate social responsibility, and organisational ethics. Shuttle bus service segment will be providing benevolent service to the poor peoples, students and disaster teams. It will increase the rate of corporate social responsibilities (Eckhardt, 2013). Finally it can be said that C.H. Robinson Worldwide, Inc. is famous for their custom of management. Such management practices mainly concentrated on the production and truckload services. Therefore, they can use their “portfolio of sourcing, transportation, and logistics services” in the new service dimensions partly. Shuttle bus service provision will be achieving potential success along with a high market capitalisation rate (Dandira, 2011). Gradually their mission will cover development initiatives for their staff, travellers, operational and technology. The organisation is aiming to improve the New York’s transportation systems and distributing exceptional value to the travellers. References Brinckmann, J., & Kim, S. (2015). Why We Plan: The Impact of Nascent Entrepreneurs Cognitive Characteristics and Human Capital on Business Planning. Strategic Entrepreneurship Journal, 9(2), 153-166. Chrobinson.com,. (2015). About Us - C.H. Robinson. Retrieved 27 June 2015, from http://www.chrobinson.com/en/uk/About-Us/ Chrobinson.com,. (2015). Freight Services - C.H. Robinson. Retrieved 27 June 2015, from http://www.chrobinson.com/en/us/Logistics/ Dandira, M. (2011). The impact of executive directors service contracts on strategic plan. Business Strategy Series, 12(1), 12-18. Eckhardt, J. (2013). Opportunities in business model research. Strategic Organization, 11(4), 412-417. Gagne, K. (2002). Using performance management to support an organizations strategic business plan. Employ. Relat. Today, 28(4), 53-59. Investor.chrobinson.com,. (2015). Investors: Corporate Overview - C.H. Robinson Worldwide, Inc.. Retrieved 27 June 2015, from http://investor.chrobinson.com/phoenix.zhtml?c=97366&p=irol-homeProfile Kim, S., & Min, S. (2015). Business Model Innovation Performance: When does Adding a New Business Model Benefit an Incumbent?. Strategic Entrepreneurship Journal, 9(1), 34-57. Myrna, J. (2012). A rolling stone gathers no moss: prevent your strategic plan from stagnating. Business Strategy Series, 13(3), 136-142. Zott, C., & Amit, R. (2013). The business model: A theoretically anchored robust construct for strategic analysis. Strategic Organization, 11(4), 403-411. Read More