Deutsche PostWorldNet’s Strategic Change Management

Subject: Strategic Management
Pages: 4
Words: 830
Reading time:
3 min

To sustain within the diverse challenge of both external and internal environment organisations are required to make a significant change. Strategic Change in spite of substantial resources dedicated to carrying on the change effort backed by top management. Talented and committed professionals and leaders drive strategic change.

Managerial feelings are a vital need for strategic changes. Organizations that cannot make a considerable change to facing crises would fail to sustain. As a consequence, their competitors are to a great extent reduced and even after valiant efforts they often cry off. Strategic Change offers a diverse perspective of strategy formulation. Strategic Change has two major magnitudes and they are (1) competitive position and (2) industry maturity.

Position maturity matrix.

The Strategic Business Unit (SBU) of an organisation functions within the segments to provide Competitive position as well as Strategic Change. The product and service that the organisation promotes and the geographic area where its product and service has entrance together build up the organisational competitive position that is diverse to Strategic Change.

Here is the result of conducting a SWOT analysis of DPWN:

Strengths and Competitive capabilitiesDistinguishing competencies;
A strong financial condition;
Strong brand name image/company reputation;
An attractive customer care;
The economy of scale and/or learning and experience curve advantages over rivals;
Strong advertisement and promotion;
Advanced Capabilities;
Market volume;
Low tariff, No trappings;
Deutsche Post World Net generated revenues of more than € 63 billion in 2007;
The contentious advertisement carried successfully;
Foremost mover advantages;
Strapping public image;
With 300,000 Human Resources, it is devoted to providing express and steadfast services;
Every day DPWN handles 70 million items and 33 parcel centres as well as exceeds 2.5 million units per week;
Elevated Load factor.
WeaknessEmployee relation;
Customer relationship;
Competitors’ relationship;
OpportunityHigh level of cost efficiencies;
Free flights are offering;
European Mail Market Liberalisation;
Postbank’s wide range of standardisation.
ThreatsRising concentration of competition within industry rivals-may compress profit margins;
Likely entry of effective new competitors;
Less extension in non-EU & US region;
Industry disapproval.

Product Life Cycle (PLC) demonstrates in the same way out of Industry maturity and could more or less be levelled as an industry life cycle. Both industries and their segments should be taken into account in this arena. It is an amalgamation of two aforesaid proportions to facilitate to use of ADL for decision-making.

DPWN Management & Strategic Change

DPWN is a most dynamic organisation. In every moment it goes over the way of Strategic change. From its birth to privatization even in the present time there are changes occurring. DPWN look to manage forwarding businesses that would be collected within the LOGISTICS allotment. Its EXPRESS department would be led by a member of the management board.
By the incorporation of Exel, the Logistics divisions are succeeding well. The volume of the road cargo business has turned with revenues of € 4 billion Euros. The Express department takes into the logistics as its subdivision. With innermost management of the European road cargo business, DPWN’s market position could be strengthened as well as revenue generation could be realised.

The new configuration would allow for improved transparency in the capital market. The margin of the Express division would be enhanced analogous to competitors. Low capital strengths are now bringing together the logistics department.

The Express business will from now on be under one unified management; the hitherto dual structure no longer applies. This will result in streamlined management, development and harmonisation of all global The Express departments would focus even stronger on the rising international business. DPWN Management is accountable for the complete Logistics division.

In the first moving world of the internet era, DPWN is the pioneer to utilise and uphold technological development. Information Technology has shaped the business world very first appearance online. DPWN itself already upgraded its service online. To cope with the challenge of fast-moving cost reduction, DPWN already started outsourcing most of its network.

The circumstances are complex in part by the to some extent multifaceted nature of the DWPN in the sector of air and hub operational structure. DWPN does not operate the air transport as well as air sorting centres directly. Both ASTAR and ABX Air companies provide planes and pilots for DWPN and sometimes facing Union Bargaining.

Instead, planes and pilots are actually provided to DHL by two companies, ASTAR and ABX Air. Further, ABX Air also runs the Wilmington hub for DHL, which is a division of Germany’s Deutsche Post. The outsourcing arrangement allowed DWPN to overcome any union bargaining issues as well as grievances. DPWN announced its plans to outsourcing airlift operations.