Nur Syahirah Husaini GM 04674

Sameena Siraj GM 04558

Geetha A/P Valaidum GM 04556
Philominah Arkappan GM 04502
COMPANY OVERVIEW
Founded in San Francisco more than 40 years ago by 3
budding entrepreneurs - Adrian Dalsey, Larry Hillblom and
Robert Lynn
DHL is the one of the global market leader in international
express, overland transport and air freight
DHL offers integrated services and tailored, customer-focused
solutions for managing and transporting letters, goods and
information.
DHLs international network links almost 220 countries and
territories worldwide
Around 285k employees are dedicated to provide fast and
reliable services that exceeds customers expectations in 120k
destinations in all continents
MISSION & VISION
Mission : to be the first choice worldwide

Vision : for the future is nothing less than to
transform the logistic industry and to deliver
beyond customers expectations.
NEW MISSION & VISION
Mission : 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.

Vision : create and promote innovative logistics
solutions that aims to deliver freight services that are
beyond customers expectations

"FedEx Corporation will produce superior financial returns for
its shareowners by providing high value-added logistics,
transportation and related information services through
focused operating companies. Customer requirements will be
met in the highest quality manner appropriate to each market
segment served. FedEx Corporation will strive to develop
mutually rewarding relationships with its employees, partners
and suppliers. Safety will be the first consideration in all
operations. Corporate activities will be conducted to the
highest ethical and professional standards."

FedEx Mission & Vision
Mission & Vision supporting the
Strategies
DHLs strategies :
To intensify customer focus
To deliver consistent service excellence
To extent capabilities
To attract, develop and retain talent
To relentlessly drive efficiency
To be proactive in social
Mission & Vision supporting the
Strategies
Statements of vision and mission of the
company are a manifestation of the
commitment of achieving success as these
statements drive strategy. Strategies are
founded on these statements hence are
considered the idea of purpose

Internal Assessment
Organizational Chart
Deutsche Post
DHL
Corporate
Center
CEO
(Dr Frank
Appel)
Finance Global
Business
Services
(Lawrence
Rosen)
Personnel
(Walter
Scheurle)
Divisions
Mail
(Jurgen
Gerdes)
Express
(Ken Allen)
Global
Forwarding
Freight
(Roger Crook)
Supply Chain
(Bruce
Edwards)
Market Positioning Map
High Distribution Network
Moderate Service Quality Service
Low Distribution Network
FedEx
UPS
DHL
Nationwide
Skynet
City-Link
TNT
DHLs Marketing Strategy
Aggressive promotion strategy (Promotion)
Just in Time
High quality service
Advanced technological support
Planning and scheduling
Horizontal management practices
Optimization of HR & OM (People)
Location (Place)
Product choice (Product)

DHLs Website
DHLs Strengths & Weaknesses
Strengths Weaknesses
Strong Brand Image Not well-known globally
Globalism High Tariffs
Technology pioneers High Prices
Innovators Not fully operational in Domestic Markets
Corporate Symbiosis
Customer loyalty issues
Reach and Frequency
No difference of the services of DHL with
competitors
Quick delivery due to dynamic route
planning system
Weak to tap and venture against its
potential domestically and internationally
Customers have control on what they
purchase
Subject to stagnate market
Excellent e-commerce services
Clear visibility of supply chains all the time
IFE Matrix
Strengths W R WS
Strong Brand Image 0.12 4 0.48
Globalism 0.08 2 0.16
Technology pioneers 0.09 3 0.27
Innovators 0.09 3 0.27
Corporate Symbiosis 0.08 3 0.24
Reach and Frequency 0.15 4 0.60
Quick delivery due to dynamic route planning system 0.03 1 0.03
Customers have control on what they purchase 0.03 1 0.03
Excellent e-commerce services 0.04 2 0.08
Clear visibility of supply chains all the time 0.04 2 0.08
Weaknesses W R WS
Not well-known globally 0.10 3 0.30
High Tariffs 0.08 1 0.08
High Prices 0.09 2 0.18
Not fully operational in Domestic Markets 0.12 3 0.36
Customer loyalty issues
0.02 1 0.02
No difference of the services of DHL with competitors
0.03 1 0.03
Weak to tap and venture against its potential domestically and
internationally
0.04 2 0.08
Subject to stagnant market
0.03 2 0.06
TOTAL 1.00 2.67
Based on the results above, DHLs Internal Factor Evaluation is slightly above average
to their internal strengths and to abstain weaknesses.
External Assessment
Major competitors
Federal Express
UPS
City-Link International
Nationwide Express
TNT Express Worldwide
Skynet Worldwide
DHL FedEx UPS
Less expensive than UPS or
FedEx
Generally more expensive
than USPS or DHL
Somewhat expensive but
cheaper than FedEx
Offers fast delivery to some
locations.
very quick delivery system Relatively fast delivery
Offers free boxes and other
shipping supplies, but only
for their Air Express service
(not DHL Ground).
Provide boxes free of
charge
Insurance for valuables
worth up to $100 is
included free of additional
charge.
Provides online tracking at
no additional cost, but not
as detailed as FedEx
Provides the most detailed
online tracking system.

Ground, Express, and
Freight shipping services
are available, as well as
extra fast same-day and
overnight options.
Competitive Profile Matrix
FedEx UPS DHL
W R E R E R E
Service Quality 0.13 4 0.52 3 0.39 2 0.26
Price Pressure 0.15 3 0.45 3 0.45 2 0.30
Strong consumer orientation, segmented
approach
0.10 3 0.30 3 0.30 2 0.20
Completeness of service 0.09 3 0.27 3 0.27 1 0.09
Good quality for a competitive discount
price
0.12 3 0.36 4 0.48 2 0.24
Reputation 0.11 3 0.33 1 0.11 1 0.11
Advertising 0.10 2 0.20 3 0.30 4 0.40
After sales service 0.08 2 0.16 1 0.08 1 0.08
Customization 0.12 2 0.24 4 0.48 2 0.24
Total 1 2.83 2.86 1.92
The result shows UPS is dominating on critical success factors because the total weighted
score is higher compared to FedEx and DHL
PESTLE Analysis
Political Environment
Europe is a stable environment where no major
political changes are expected.
European Union has removed border lines and has
made trade and business more accessible
Enable bigger exports, free movement of services.

Economical Environment
companies should not stop their investment plans
because of economic crisis.
It is important in current situation to strengthen
position in the market and expand if possible.
Emerging markets represent a potential of rapid
economy growth.
E.g restructuring or outsourcing reduced cost

Socio-cultural Environment
affect customers' needs and wants
Research & Development - to respond to changes in
society quickly not to loose market share and
demand for services.
Customer satisfaction surveys, market surveys,
employee surveys play important role in building
company's brand and image in the market.

Technological Environment
IT is the most important technology factor for logistics
business because speed and reliability are equal to success.
However, there is an indisputable constant threat of falling
behind.
Investments to the modernist technologies are evitable and in
times of economic crisis are much more important then
anytime before.
Company has to decide if it runs internal IT organization or if it
outsources most of the services and reduce cost.

Legal Environment
obligations - directives, taxes and rules that they
must be aligned with to be able to operate in the
market.
Liberalization - Removal of border lines enabled
building and strengthening of positions in the
logistics market. There are no special and expensive
authorizations necessary in CEP industry which is
another benefit for companies

Environmental Analysis
Air pollution globally transportation industry
Projects have been implemented smart
truck project

External Analysis
Opportunities Threats
Global Expansion Rules and restrictions of other countries
JV with foreign countries local
transportation companies
Competitors improvising DHLs strategies
Expansion of E-Commerce Economic and Political condition of the
country
Increasing number of manufactured
goods
Insurance costs
Delivery products from city to city New Tax System
Creation of new market segmentation Increase in fuel price
Largest world sector Tough competitors
EFE Matrix
Opportunities W R WS
Global Expansion 0.08 3 0.24
JV with foreign countries local transportation companies 0.08 3 0.24
Expansion of E-Commerce 0.07 2 0.14
Increasing number of manufactured goods 0.08 3 0.24
Delivery products from city to city 0.07 2 0.14
Creation of new market segmentation 0.07 3 0.21
Largest world sector 0.07 3 0.21
Threats W R WS
Rules and restrictions of other countries 0.06 2 0.12
Competitors improvising DHLs strategies 0.05 2 0.10
Economic and Political condition of the country 0.06 1 0.06
Insurance costs 0.08 3 0.24
New Tax System 0.07 2 0.14
Increase in fuel price 0.08 2 0.16
Tough competitors 0.08 1 0.08
Total 1 2.32
Based on the results above, DHLs External Factor Evaluation is below average to the
environment for exploiting opportunities and to overcome threats.
Strategy Formulation
SWOT Analysis
Strengths Weaknesess
Strong Brand Image
Globalism
Technology pioneers
Innovators
Corporate Symbiosis
Reach and Frequecy
Not well-known globally
High Tariffs
High Prices
Not fully operational in
Domestic Markets
Opportunities SO Strategies WO Strategies
Global Expansion
Joint Ventures
Expansion of E-Commerce
Increasing number of
manufactured goods
Advertise new technologies
and online ordering system
(S2,S3, O4)

Create joint ventures with
local logistics companies (W1,
O1, O2)
Promoting business in China
and India (W1, W4, O1)
Threats ST Strategies WT Strategies
Rules and Restrictions
Economic and Political
condition
Slow and stagnant economic
growth
Relationship with foreign
countries
The increase in fuel prices
Promotions when using
online ordering system during
economic slow-down or
restrictions (S2, S3, S6, T1, T3)
Enhance the Smart-Truck
Project to overcome fuel price
increment (S3,S4,T5)
Acquire small local
companies abroad to catch up
with competitors (W1,W4,T4)

SPACE Matrix
A SPACE MATRIX RATINGS TOTAL AVERAGE
Financial Strength (FS)
Revenue 4.00
Cost reduction 2.00
Asset utilization 3.00 9.00 3.00
Industry Strength (IS)
Technology Savvy 6.00
Large distribution network 5.00
Brand 4.00 15.00 5.00
Environmental Stability (ES)
Risk in business -3.00
Increase in fuel prices -2.00
High rivalry in market -5.00 -10.00 -3.33
Competitive Advantage (CA)
Innovation -4.00
Service quality -5.00
Product choice -3.00 -12.00 -4.00
CONCLUSION
Directional Vector X-axis: CA + IS = -4.00 + (+5.00) = 1.00
Y-axis: FS + ES = 3.00 + (-3.33) = -0.33
Strategy to pursue is Competitive Strategies
FS
CA
ES
IS
Competitive
Conservative
Defensive
Aggressive
SPACE Matrix
BCG Matrix
DHL has been analyzed in 3 categories of its
businesslike mail, express and logistic
1) mail market growth rate

DHL Market Growth Rate
53212 40935 X 100% = 30%
40935


BCG Matrix indicates that DHL is placed in Cash Cow. This
means DHLs market growth rate is low, but its market share is
high so it should milk as much profit as possible
BCG Matrix
Grand Matrix Strategy
Weak competitive position Strong competitive position
Rapid Market Growth
Slow Market Growth
QSPM
STRATEGIC ALTERNATIVES

Enhance & focus on
innovation
Expand business & acquire
more logistics companies
domestically and
internationally
Key Factors Weight AS TAS AS TAS
Opportunities

Global Expansion
0.08
3 0.24 4 0.32
JV with foreign countries
local transportation
companies
0.08
2 0.16 4 0.32
Expansion of E-Commerce
0.07
3 0.21 3 0.21
Increasing number of
manufactured goods
0.08
3 0.24 4 0.32
Delivery products from city
to city
0.07
- -
Creation of new market
segmentation
0.07
- -
Largest world sector
0.07
- -
Threats
Rules and restrictions of other
countries
0.06
2 0.12 3 0.18
Competitors improvising DHLs
strategies
0.05
- -
Economic and Political
condition of the country
0.06
- -
Insurance costs 0.08 - -
New Tax System 0.07 - -
Increase in fuel price 0.08 3 0.24 2 0.16
Tough competitors 0.08 4 0.32 4 0.32
Total 1.00
Strengths
Strong Brand Image 0.08 3 0.24 3 0.24
Globalism 0.07 2 0.14 4 0.28
Quick delivery due to dynamic
route planning system
0.03
- -
Customers have control on what
they purchase
0.03
- -
Excellent e-commerce services 0.04 - -
Clear visibility of supply chains
all the time
0.04
- -
Technology pioneers 0.07 4 0.28 3 0.21
Innovators 0.07 4 0.28 3 0.21
Corporate Symbiosis 0.06 3 0.18 4 0.24
Reach and Frequency 0.09 2 0.18 4 0.36
Weaknesses

Customer loyalty issues
0.02
- -
No difference of the services of
DHL with competitors
0.03
- -
Weak to tap and venture against
its potential domestically and
internationally
0.04
- -
Subject to stagnate market
0.03
- -
Not well-known globally 0.07
2 0.14 2 0.14
High Tariffs 0.06
2 0.12 2 0.12
High Prices 0.08
3 0.24 3 0.24
Not fully operational in
Domestic Markets
0.09
4 0.36 3 0.27
Sum Total Attractiveness Score 1.00
3.69 4.14
Recommendation
Enhance & focus on innovation
Make difference to have new customers and
increase their half market share
Making little difference on the current product or
services to be better
Delivery will be faster and cut cost by using less
fuel
Recommendation
Expand business & acquire more logistics
companies domestically and internationally
By acquiring small local companies in different
countries like China, India, USA, will give presence
in that countries.
Creative solution for problems and acquiring new
brain
Strategy Implementation
EPS/EBIT ANALYSIS
Earnings per share: Year 2011
1Y(Million) Q4(Million)
EBIT 2436 599
EPS 0.96 0.14 (0.82 for 9 months)




EPS/EBIT ANALYSIS
Earnings per share: Year 2012 (9 Months)
(Million)
EBIT 1838
INTEREST 270
EBT 1568
TAXES 452
EAT 1116
SHARES 1209
EPS 0.92




Mail : 678
Express 829
Freight 346
Supply Chain 301
Others -315
Consolidation -1
EPS/EBIT ANALYSIS
(assumption)


Capital needed 5000 million
EBIT range 2000 to 4000million
Interest rate 5%
Tax rate 25%
Stock Price 15.20
Shares outstanding 2019 million
EPS/EBIT ANALYSIS
(assumption)

100% DEBT 100% STOCK 50/50 DEBT/STOCK

EBIT 2000 4000 2000 4000 2000 4000
INTEREST 250 250 0 0 125 125
EBT 1750 3750 2000 4000 1875 3875
TAXES 438 938 500 1000 469 969
EAT 1312 2812 1500 3000 1406 2906
SHARE 2019 2019 2348 2348 2184 2184
EPS 0.65 1.39 0.64 1.28 0.64 1.33

EPS/EBIT ANALYSIS (CHART)
CONCLUSION:
THE BEST FINANCING ALTERNATIVE IS 100% DEBT SINCE THE EPS VALUE ARE LARGEST; THE WORST
FINANCING ALTERNATIVE IS 100% STOCK SINCE THE EPS VALUES ARE LOWEST.
RATIO ANALYSIS OF DHL

2012 2013
Current Ratio = 12750 20000
13449 18600

0.95:1 1.08:1
Debt Equity ratio = 22929 29161
34544 64264
66.38% 45.38%

2012 2013
Return on Sales = 1838 3701
40935 53212
4.49% 6.96%

Return on Asset = 1196 2386
40935 53212
2.92% 4.48%
RATIO ANALYSIS OF DHL
FUTURE ASSUMPTION BY DHL
The group intends to generate annual EBIT
growth by an average of 13to 15% through 2015
EBIT Range 2.6 to 2.7billion
Dividend Payout ratio will be 40 to 60%
Number of employees in 2012 ( 426,104) tend
to increase by 10% in 2013

CEO of DHL Logistics, enhancing the Smart-
Truck Project is going to be his first strategy.
This project will allow their company to
deliver faster and cut cost by using less fuel.
To achieve this goal, we will follow some
steps:
a)Increase the budget of R&D 10%.
b)Prepare an office for a new innovation team
and assign a leader to work on this project
FUTURE ASSUMPTION BY DHL
The Financial Perspective
Strategic Themes

Strategy

Revenue Growth &
Mix
Cost
Reduction/Producti
vity Improvement

Asset Utilization




Growth
Strategic Objective
Improve Market
Penetration
Improve Revenue
Productivity
Efficient use of
resources
Improve wallet
share
Improve Channel
Mix
Improve market
share
Reduce Operating
Expenses
Ensure Loyalty
Strategy Evaluation Balance
Scorecard
The Financial Perspective
Strategic Themes

Strategy

Revenue Growth &
Mix
Cost
Reduction/Producti
vity Improvement

Asset Utilization




Growth
Strategic Objective
Improve Market
Penetration
Improve Revenue
Productivity
Efficient use of
resources
Improve wallet
share
Improve Channel
Mix
Improve market
share
Reduce Operating
Expenses
Ensure Loyalty
The Customer Perspective
The Customer Value Preposition
Strategy Product/Service
Attributes
Image and
Reputation
Customer
Relationship




Growth
Strategic Objectives
Price/Performance Brand Image Contractual
Responsiveness
Ease of Use Brand Equity Flexibility
Product Availability Honesty and
Openness
Buying Experience
Customer Feedback
The Business Process Perspective
Types of Business Processes
Strategy Innovation Operations Post-sales Service
Strategic Objectives



Growth
Identify emerging
needs of customers
Reduce order
fulfillment cycle
time
Enhancing support
centres
Improve
communication
process between
customer and
company
Response time for
solving customer
problems
Learning and Growth
Categories

Strategies
Employee
Capabilities
Information System
Capabilities
Motivation
Empowerment and
Alignment




Growth
Strategic Objectives
Strategic skills
(improve selling
skills, analyst skills,
technical support)
Improve Intellectual
Property
Staff Empowerment
Skill leverage
(multiple product
selling)
Tracking privacy Personal goals
alignment with
corporate goals
Morale
Conclusion
DHL already established themselves and
holding the third largest logistic company in
the world
Based on all the strategies matrix above, will
be able to aid DHL future performance and
overtake their competitors


THANK YOU