TNT Express Scenario - Assignment Example

TNT Express Scenario Explain the strategic context (purpose) of TNT using its mission ment, vision, objects and core competencies. The main purpose of TNT is to exceed what the customer expects from them in terms of courier services across the globe be it documents or goods. They plan to make the customer feel that it is not just a normal courier service but also one that has values to it. They plan to be the best in the industry by instilling pride to people, create value to its stakeholders and being responsible to the world. This responsibility is through its plan to decrease CO2 emissions across the world through its program “Planet Me” (Tnt.com, 2014) 2. Review the issues involved in the strategic planning process of TNT. In terms of saving the planet, this will be possible with the recent introduction of less carbon emission engines. As time goes by, more and more companies are coming up with cars that save in terms of fuel and reduce CO2 emissions. There has also been an introduction of electric powered cars; however, they are not fully designed in terms of efficiency as most of them have a problem when it comes to battery power. It is possible for them to be a leading company in the freight business as more and more people are now in a position to make purchases through the net and ship to them. They should tap into the upcoming e shops that are established daily and offer cheap but efficient services to its potential customers. They can also talk to the already established e shops to expand its services to them. In order to gain customers and add value to the business, they need to focus on customer satisfactory first. This is through ensuring that there are no loop holes in the system and have a great 24/7service to all its customers. Updating the customer about his/ her shipment will make them trust you that all is well and you care more about them than the money they bring in. 3. Explain the different planning techniques that could be used by TNT to increase the effectiveness of its strategy. One of the best techniques is Scenario Planning. It mainly focuses on the questions that start with “What if…?” especially in important issues as well as strong external influence. It strategy is writing down guidelines that will propel a plan to implement growth of the company in the next 5, 10, 15, 50 years to come. As the plans are drawn, you need to consider things that may happen unexpectedly to an individual or the organisation and how you will counter attack them. (Quantum.dialog.com, 2014) With this kind of technique in place, they are sure to have efficient use of time and avoid redoing past mistakes. They will have a plan on when to move ahead or lay back, they will decrease overuse of capital and resources on useless risks as well as make upfront investment in terms of planning so as to avoid the need to go through each and every crisis that occur from scratch. (Quantum.dialog.com, 2014) Another great technique is the BCG-Matrix. Its model is simple to read and understand as well as coming up with one. It is applicable to big companies such as TNT that want to achieve growth as well as experience effects. It assists managers to evaluate the balance of the company’s portfolio of Cash Cows, Dogs, Stars as well as Question marks. It provides the management with a platform to prepare and decide on future actions and when a company uses the experience curve accordingly, it will profit through placing its products at a low price that will not hurt the company and end up getting the earliest market share. (Bcg-matrix.com, 2014) 4. Produce an organisational audit for TNT using appropriate techniques. Strengths TNT has great experience in managerial skills and through the gathered experience, they have managed to have a high growth rate in terms of sales. Since TNT has a widespread of customers across the globe, they tend to form barriers to upcoming and established courier companies. When faced with debt, TNT gets monetary assistance from the government. This shows how powerful they are and are a great asset to the government. Weaknesses One of TNT’s major weaknesses is high loan rates from banks. This has lead to the company to work with a low budget and its effects are visible. There is low productivity leading to low profits. A very small portion of the money is invested in development and research and in the end; the company lacks incoming up with brands (Swot.businessplaninternational.com, 2014) 5. Carry out an external environmental audit for TNT using appropriate techniques. The future is bright for TNT as there are more and more opportunities coming up. There are always new markets, rich in untapped resources that they can acquire before others. The growing economy is another opportunity as demand for courier services is steadily growing due to the new establishments of online shops. The growing economy positively affects the income level, as it is constantly increasing and so is the capital needed to venture into buying new acquisitions Threats The world is changing each minute. New technology is launched every day. However to keep up with this, the company need to have resources, which TNT lacks. Due to this, it will suffer technological problems from its competitors. There has been a sharp rising in the cost of raw materials and this has greatly affected TNT’s purse, as they have to dig deeper for them not to suffer losses. Through this, the company will get stiff competition from other business because it has a limited financial capital External business risks Limited financial capital (Swot.businessplaninternational.com, 2014) 6. Explain the significance of stakeholder analysis for TNT. The key stakeholder groups in TNT are employees, suppliers, customers, investors, subcontractors and civil society organisations. TNT engages with the stakeholders in a bid to obtain views and perspectives on Corporate Responsibilities. Such kinds of CR are innovation, governance, health and safety, sustainable supply chain etc. the company and its stake holders each has a certain percentage that it makes on any CR. References Bcg-matrix.com. 2014. Benefits and Limitations of the BCG-Matrix | BCG-Matrix. [online] Available at: http://www.bcg-matrix.com/benefits-limitations-bcg-matrix/ [Accessed: 28 Mar 2014]. Quantum.dialog.com. 2014. The Importance and Benefits of Scenario Planning - Quantum2. [online] Available at: http://quantum.dialog.com/newsletter/topics/2008may/ [Accessed: 28 Mar 2014]. Swot.businessplaninternational.com. 2014. SWOT matrix for TNT Express NV company in United States. [online] Available at: http://swot.businessplaninternational.com/companies-swot-analysis/94007-swot-analysis-tnt-express-nv-in-united-states.html [Accessed: 28 Mar 2014]. Tnt.com. 2014. TNT Express - Our mission and standards. [online] Available at: http://www.tnt.com/express/en_ke/site/home/about_us/mission_standards.html [Accessed: 28 Mar 2014]. Read More