Translating Strategy into Value Delivered - Case Study Example

Assignment 2: Group Assignment Translating Strategy into Value Delivered Group Members Table of Contents 0.0 ExecutiveSummary...................................................................................................2 1.0  Introduction and Unit of Analysis (Firm/SBU/Group/Process level)...................... 2 2.0 Business/Marketing Strategy of the Unit of Analysis............................................... 2 3.0  Translating Strategy into Value Delivered .............................................................. 3 3.1  Customer Solutions (or Product).............................................................................. 3 3.2 Cost for the Customer  (or Price).............................................................................. 3 3.3 Communication (Promotion)..................................................................................... 3 3.4 Convenience (Place).................................................................................................. 4 4.0 The Customer Perspective of Value Delivered......................................................... 5 5.0  The Relationship between Strategy and Operational Marketing............................. 5 5.1 Diagnosis................................................................................................................... 5 5.2 Recommendations..................................................................................................... 6 5.3  Conclusion................................................................................................................ 6 References....................................................................................................................... 8 Appendix………………………………………………………………………………. 8 0.0 Executive Summary The essay is written with the objective of proffering an existing marketing strategy, particularly that of DHL Company. Likewise, a diagnosis of how DHL translates its marketing strategy into delivered value for its customers from two perspectives, to wit: (1) from a firm’s perspective; and (2) from a customer’s perspective. Finally, the discourse would recognise any potential conflict between strategic objectives and operational concerns from a value perspective and make recommendations on how to improve or optimise the interplay between marketing strategy and value delivered. 1.0 Introduction and Unit of Analysis (Firm/SBU/Group/Process level) DHL is an express shipping multinational company operating in 220 countries and territories around the globe. It employed more than 22,000 people and delivers more than 1.2 million packages daily (Scott 2007). The owners revolutionized the field of international express transport and logistics business through the delivery of documents rapidly done through international air express. 2.0 Business/Marketing Strategy of the Unit of Analysis The marketing strategy of DHL Company is to enforce brand association and retention with customers all over the world acknowledging DHL as the global market leader in international express, overland transport and air freight. It wants to enforce the image that it is also the worlds number 1 in ocean freight and contract logistics. DHL offers a complete range of customized solutions - from express document shipping to supply chain management” (DHL 2010). The mission of DHL is to provide excellent customer service in the field of international express transport and logistics. In doing this, they have adhered to preserve and protect the environment in the course of their journey for express delivery and in the products they utilize. 3.0 Translating Strategy into Value Delivered This portion of the discourse presents an analysis of ‘visible’ manifestations of the operational marketing aspects (4 Ps or 4Cs framework). An analysis of the need to establish how the firm delivers value to the customer would be proffered. 3.1 Customer Solutions (Products) DHL offers a full range of customized solutions - from express document shipping to supply chain management. DHL offers a complete range of customized solutions - from express document shipping to supply chain management.” (DHL 2010) DHL delivers value through a multidisciplinary and holistic approach of managing complexity. The other strengths of DHL are as follows: (1) a global network which spans 220 countries; (2) owns 60,000 vehicles and 250 aircrafts for transport services; (3) highly professional management and staff composed of 160,000 employees worldwide; and (4) uniquely positioned to offer a one stop shop transport service and logistics needs. 3.2 Cost for the Customer DHL pegs costs for deliveries at competitive prices. It considers foreign currency rates in the determination of the most conservatively competitive rates for delivery of packages in its global markets. 3.3 Communication (Promotion) Their strategy of global expansion and joint ventures over the two decades all contributed to the growth of DHL. In addition, with the entrance of Deutsche Post World Net, which strategically purchased other companies acknowledged to be leaders in the field of transport delivery and logistics, the market leadership of DHL is globally entrenched. As part of its promotions, DHL boasts of its strengths in its official website through the well defined mission, vision, and values which spell out its corporate strategies. “DHL enhances the business of our customers by offer­ing highest quality express and logistics solutions based on strong local expertise combined with the most extensive global network presence. DHL attracts, develops and retains exceptional people by creating a truly global working environment and placing value on our multi-cultural heritage. DHL delivers above-average returns by providing supe­rior quality and solutions at all levels of the business processes. DHL is a responsible cor­porate citizen in all coun­tries in which we operate, taking into account the social and environmental needs of our employees, local communities and the public”(DHL Mission, Vision and Values, 2010). By taking into account the needs of the customers and creating strategies that work on satisfying customers’ needs, DHL continue to exhibit strength and success in their fields of endeavor. 3.4 Place Its global network spans 220 countries. The locations of its branches and offices are strategic in terms of identifying target markets in commercial and business areas. Management is constantly identifying strengths and weaknesses in the internal organization, as well as opportunities and threats from the external environment (Koontz 2006). To enable this multinational company to keep tract of environmental factors affecting all its operations and branches, it recently opened an Innovation Center, a place for research, meetings and a place to present innovation in logistics (DHL Global 2010). 4.0 The Customer Perspective of Value Delivered Interviews with various customers of DHL have attested that the company adheres to its promise of reliability and good service. Our group interviewed a total of 30 customers from diverse locations patronizing different DHL branches. According to 75% of them, there was never a single case of late delivery by DHL. They have a company policy that in cases of late deliveries, the customers are reimbursed in full and the package is shipped for free. However, for the 25%, there were cases where the customers had been expecting the delivery to come on specified days and the package never arrived. According to one lady, the package was forwarded to a third party courier without proper and prior advice. When asked how come the package was not delivered, the response from their staff was that the customer refused the shipment (which was impossible because the package’s content is critical and important as it is expected to be delivered on the date specified). 5.0  The Relationship between Strategy and Operational Marketing DHL concisely summarized its strategy in its mission, vision and values statement. All marketing efforts that ensue are consistent with their well defined goals. Of course, due to the expanse of DHL’s operations, there are possibilities that uniquely identified incidents for late deliveries ensue for a variety of reasons. 5.1 Diagnosis For cases where customers complained of late deliveries, management in these specific locations must monitor the root cause for the delay. It could be any of the following reasons: newly hired personnel who are not yet fully accustomed to locations for the delivery; some freak unavoidable accidents along the way; customers misinterpreting expected delivery dates; and natural disasters. 5.2 Recommendations In this regard, immediately addressing the concerns of the customers is critical to ensure that DHL conforms to satisfying their customers at all times. Likewise, environmental scanning would ensure that unexpected backlogs are forecasted, customer preferences are incorporated in delivery and promotional strategies, rates are constantly being reviewed for competitive pressures, and company personnel must always be rewarded and motivated for excellent performance. 5.3 Conclusions Organizational excellence begins with the performance of people. It is what people do or do not do that ultimately determines what the organization can or cannot become. It is their dedication and commitment to organizational purposes that make the difference. Whether organizational goals can be achieved will depend on the willingness of people to make the necessary contributions. It is the performance of people that is the true benchmark of organizational performance. People constitute an organization’s most important and vital factor in its success or failure. In order to function efficiently and effectively, people must be managed well. Strategy is not the same as strategic plans. Strategic planning is the formal process that takes place, usually in larger organisations, defining how things will be done. However strategy exists in all organisations even though it may not be written down and articulated. It defines the organisation’s behaviour and how it tries to cope with its environment. Strategy versus marketing operations should frequently be evaluated in terms of the fact that corporate strategies are unique and varied between and among firms. Firms, like DHL, have multi-products and multi-divisions which complicate the application of strategies and more firms operate in international markets. More importantly, as the roles and functions of global organizations become more diverse adapting to the demands of the times, the means to assess its effectiveness evolves into encompassing areas of employee development (employee behavior, attitudes and skills), competencies, performance, as these attributes all contribute to the achievement of organizational goals. As organizations become more specialized in their respective core competencies, the mission and vision that each explicitly stipulates does not necessarily focus on the bottom-line. More contemporary organizations include goals of social responsibility, service to the community, enhancement and encouragement of cultural diversity, among others. In this regard, the effectiveness of strategy in relation to marketing operations should be measured in terms of their success in achieving their well defined goals and how effective they are in keeping their customers satisfied. References DHL Global (2009). Innovation Center. 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