HRM Strategy in a case study on IKEA Essay

1. Introduction The human resource function has undergone throughout its history major transformations and evolutions. Concepts managements have given way to others as imposed by the globalisation of markets and by a workforce more educated, more fluid and diverse. In this context of internationalisation, companies are anxious to take their benefit so as to seek the most advantageous model management. United States speak of mobilising and unifying model of human resources. Warner (2011) discusses about Japanese model that focuses on employee participation in company decisions. Finally, the Swedish model which works on the establishment of principle of consensus. Each of these models present advantages and disadvantages, strengths and weaknesses. What is the most interesting model of human resources management and more profitable for the organisation? , the models are they transferable and applicable to cultures and different to hand out? Can a European model applied in North America and a Japanese model in Europe? What adaptation the organisation needs to do to succeed in setting? To answer this question, I have chosen the Swedish multinational IKEA. The organisation was founded in 1943 by its principal designer Ingvar Kamprad in southern Sweden. The organisation has more than 325 stores, present in 44 countries around the world, and employ more than 140,000 employees. In Quebec, IKEA opened its first store in 1982 in town centre of Montreal, in 1986 it then moved to Cavendish in the borough of Saint-Laurent employed 13,000 people in North America. The main activity of the company is selling furniture and interior designs; it is considered a world leader in this niche market. In this analysis I will try to define the concept model of human resource management IKEA adopted for its store in Quebec, understand the reasons for this choice and the success of this model. Present the functions of HRM in this organisation and its evolution through the years and finish with a personal reflection on practice and business strategy in this area The IKEA case study discusses the aspects of HRM and the approaches adopted by IKEA focuses on nurturing and developing staff. In aiming to achieve corporate goals, this initiative has enable growth, innovation, creativeness and success of the organisation. In this case study, the analysis will focus on recruitment and selection, training, work organization and labour mobility. 2. HRM practices and systems in place In order to achieve strategic objectives and goals defined by the founder Ingvar Kamprad, IKEA made changes in its human resource practises and culture at work. The organisation has put in place a human resource management initiative that makes it have a competitive advantage. Furthermore IKEA human resource management style is largely described as incorporating the HRM strategy with its corporate strategy. In terms of the organisation’s business strategy, it can be analysed that it has evolved for the past few years, where new strategy such as innovative and creative designs has taken place for more affordable cost. 3. Measurement of Managers performance The Swedish company, committed towards its working time frames restructuration, identified as an essential point to measure its managers’ performance. â€Å"A senior officer should not be a doer, but a team coordinator,† says Marc Chousseaud, human resources director who is one of the twenty leaders judged. This assessment tool allows everyone to become aware of defects management. Inaugurated in March during a training session of leadership in management, the tool – called Index Coordination Skills – is part of the Anglo-Saxon Team Management System method. It comes in the form of a questionnaire with 66 points relating to 11 skills that the manager must show. Each of the twenty managerial staff was initially self-assessed and distributed the questionnaire to teammates at headquarters and in stores. The Director of Human Resources has been judged by his collaborators (five person) and nine human resources managers, all done in an anonymous way. This cross -evaluation overcomes personal conflicts and obtains the most objective assessment possible. 4. The eleven skills measured for executives Ikea The 360 ° evaluation of Ikea frames method, used by Team Management System, determines eleven core competencies: ââ€" ¶ Listening: the manager must listen before judging; ââ€" ¶ Communication: he regularly exchanges with members of the team; ââ€" ¶ Troubleshooting: it is available and ability to overcome obstacles; ââ€" ¶ Team development: it provides the balance of talents; ââ€" ¶ Division of labour: it distributes tasks based on skills and individual preferences; ââ€" ¶ Confidence: it promotes respect, understanding and trust; ââ€" ¶ Delegation: he says the work he should not personally perform; ââ€" ¶ Exemplary: he leads by example and is accepted by the team high standards of quality; ââ€" ¶ Determination of objectives it sets exciting challenges and exerts a constant pressure to improve performance; ââ€" ¶ Coordination: coordinate effectively and meet all the members of his team; ââ€" ¶ Participation: it involves team members in solving important problems. Companies are often considered unsatisfactory, both from the point of view of employers and that of employees as well. The definition of evaluation criteria also depends on the type of management practiced in the organization. In this context, the evaluation of the individual is in achieving or not objectives fixed. Schematically, the performance of an individual can be evaluated along three dimensions, Work done; Results of its work; and Personal characteristics. 5. Motivation Factor The motivation of people at work is a key factor in business success. The meaning of work and character of obligation are dependent on its culture, structures, social, and economic realities. The involvement and motivation cannot be obtained everywhere and always by the same means. Theories and methods used by business leaders and managers to boost motivation date forty years , while the conditions of work, nature of work and skills as well as the socio- economic conditions have changed considerably and change again. Mitchell (1982) states that to engage in certain specified behaviours, motivation is considered as the level which is chosen and desired by an individual, however Steers and Porter (1991) defined motivation to be a number of forces that are co-related thus causing people to have certain way of behaviour. The third strategy is the management of human resources in the store. 75% of employees work in IKEA stores. The primary role of the store management is to recruit, train and retain motivated employees. There are a number of key factors to effectively manage a store: a turnover rate of the size of the order of 20 % per year, a proportion of full- time should not be less than 40 % or 50 % of the workforce , a maintenance management staff for five years in the ideal, and in any case for at least three years . Depiction from IKEA case study highlights that the IKEA’s SHRM policies have led to significant fall in employee turnover, i.e. fall in employee turnover to 6% in 2001 to 56% in 2002, and only 35% in 2003, thus prominence rise drift in motivation of the employees to be a part of the organization above longer durations than before. Strong leadership, a focus on skills development and planning staff are key to the management of human resources. Maslow hierarchy of needs IKEA case study has showed the use of motivational techniques ranging between Maslow’s hierarchy of needs i.e.: psychological, security, safety, affection, self-esteem, and self-actualisation. 6. Conclusion IKEA’ culture notably values the employees; by providing enriched job the organisation promotes engagement amongst employee. IKEA should use effective communication as a mean to promote high level of engagement and interaction. Different methods of communication can motivate from low level to high level of interaction. In IKEA case study an important aspect has been noticed that is none other than the use of communication. Communication eventually improved the relationship between employees with employers and enhanced the ambition in terms of motivation and commitment of the staff towards the company. In conclusion, for IKEA to be successful on a long run, they need to promote employee engagement and interest towards the organisation. In order to generate and engage workforce, IKEA need to value its employees and show them that they genuinely care for their well-being. IKEA has proved about its concerns about care and employee flexibility where this initiative has contributed greatly in engaging employees in the organisation. References: Baron, A. and Armstrong, M., (2007), â€Å"Human Capital Management, Achieving Added value Through People†, Kogan Page Limited London Amstrong, M., (2008), â€Å"Reward Management: A handbook of Renumeration Strategy and Practice†, Kogan Page Limited London Barney, J., (1986), â€Å"Organizational Culture: Can it be a source of sustained competitive advantage?† Academy of Management Review, Vol. 11, No. 3, Pg. 656-665 Attridge, M., (2009), â€Å"Measuring and Managing Employee work Engagement: A review of the Research and business literature†, Journal of Workplace behavioural health, Pg. 383-393 Corone, B., (2012), â€Å"Research in Management†, Eramus Institute of Management PhD Series, Netherlands Clutterbuck, D., (2004), â€Å"Making the most of informal mentoring: A positive climate is key†, Development and Learning in Organizations; Vol. 18, Issue: 4 Sarah, C., (2010), â€Å"The essential to employee engagement: better performance through staff satisfaction†, Kogan Page UK Douglas, et al., (2004), â€Å"The psychological conditions of meaningfulness, safety and availability and the engagem ent of human spirit at work†, Journal of Occupational psychology, Pg.11-37 Gerhart, B. & Fang, M., (2005), â€Å"National culture and human resource management: assumptions and evidence†, International Journal of Human Resource Management, Vol. 16 Issue 6, Pg. 971-986 Duncan, C., (2001), â€Å"The impact of two decades of reform of British Public Sector industrial relations†, Public Money and Management, Pg. 27-33 Gunnigle, P., Heraty, N., & Morley, M., (2006) â€Å"Human Resource Management in Ireland†, Gill & Macmillan, 3rd Edition Dublin Gibb, S., (1994), â€Å"Inside corporate mentoring schemes: the development of a conceptual framework†, Personnel Review, Vol. 23 No. 3, Pg. 47-60 Kelly D. & Albert J., (2005), â€Å"Maslow: man interrupted: reading management theory in context†, Management Decision; Vol. 43 Issue 10 Hofstede, G., (1991), â€Å"Cultures and Organizations: Software of the Mind, Intellectual Cooperation and Its Importance for Survival†, Berkshire, McGraw Hill Lynch, R., (2003), â€Å"Corporate Strategy†, 3rd Ed, FT Prentice Hall Kinne, N. Et al., (2005), â€Å"Satisfaction with HR Practices and Commitment to the Organisation: Why one size does not fit all†, Human Resources management Journal Amstrong, M., (2006), â€Å"Strategic Reward: Making it happen†, Kogan Page Limited London Rayner, C. and Derek, A., (2009), â€Å"Managing and Leading People† 2nd Edition CIPD London Marchington, M. & Wilkinson A., (2008), â€Å"Human Resource Management at Work, People Management and Development†, 4th Edition CIPD London Rolf, R., (1999), â€Å"Workforce of the future†, Global Business, Pg. 52-57 Murphy, K. & Gosselin, A., (1994), â€Å"The failure of the performance evaluation†, Vol. 19, N ° 3 Amstrong, M., (2009), â€Å"Armstrong handbook of Human Resource Management Practice†, Kogan Page Limited London Web references: Case Study http://www.palgrave.com/business/beynon-daviesbis2e/students/case-studies/IKEA_2nd-edition.pdf http://www.iisd.org/business/viewcasestudy.aspx?id=119 Ikea Case Study .slidesContainer img { border: none } var slideshare_object = { flagging: {"update_url":"https://www.slideshare.net/main/flag?slideshow_id=3204920","is_flagged":false}, user: {"userGroup":"non-member","login":"guest","id":null,"loggedin":false,"name":null,"is_valid_fbuser":false,"fb_userid":null,"is_pro":"false","su":false,"is_test_user":false,"has_uploads":null,"is_li_connected":false,"is_li_auto_created_user":false,"show_li_connect_cta":false,"has_privacy_enabled":null,"li_tracking_url":"https://www.linkedin.com/li/track"}, timer: { start: (new Date()).getTime(), end: '', execTime: '' }, top_nav: { get_url: "/top_nav"}, li_bar: {get_url: "/li_bar"}, dev: false, init: [], feature_flag: [], is_ssl: true, rum_pagekey: "desktop_slideview_embed_code_loggedout", slideshow: { id: 3204920, is_clickgen_enabled: 'false', clickgen_url: '' } }; // // var _jspl = {} _jspl.pageInitTime = (new Date()).getTime(); window._gaq = []; _gaq.push(['_setAccount','UA-2330466-1']); _gaq.push(['_setDomainName', '.slideshare.net']); _gaq.push(['_addIgnoredRef', 'slideshare.net']); _gaq.push(['_setCustomVar', 2, 'document_referrer', document.referrer]); _gaq.push(['_trackPageview', '/embedPlayerView']); (function(){ // google analytics var ga = document.createElement('script'); ga.type = 'text/javascript'; ga.async = true; ga.src = ('https:' == document.location.protocol ? 'https://ssl' : 'http://www') + '.google-analytics.com/ga.js'; s = document.getElementsByTagName('script')[0]; s.parentNode.insertBefore(ga, s); //comscore _comscore = window._comscore || []; _comscore.push({ c1: "7", c2: "6402952", c3: "1" }); var ca = document.createElement("script"); ca.type = 'text/javascript'; s = document.getElementsByTagName("script")[0]; ca.async = true; ca.src = (document.location.protocol == "https:" ? "https://sb" : "http://b") + ".scorecardresearch.com/beacon.js"; s.parentNode.insertBefore(ca, s); })(); config = {"id":3204920,"is_private":false,"is_only_private":false,"stripped_title":"ikea-case-study","slide_count":16,"image_ready":true,"has_video":false,"video_slides_count":0,"page":null,"image_bucket_location":"https://image.slidesharecdn.com/ikeacasestudy-12663939423849-phpapp02","bucket_location":"https://html.slidesharecdn.com/ikeacasestudy-12663939423849-phpapp02/","ppt_location":"ikeacasestudy-12663939423849-phpapp02","timestamp":1266372435,"use_ssl":true,"html_ttffont_url_suffix":".js","html_eotfont_url_suffix":"-eot.js","mode":"image","player_type":"document","fullscreen_bgcolor":"jsplBgColorBlack","player_bgcolor":"jsplBgColorBigfoot","spinner_url":"https://public.slidesharecdn.com/images/ssplayer/loading.gif","spinner_url_fullscreen":"//public.slidesharecdn.com/images/ssplayer/loading_black.gif","disable_eagerload":true,"fullscreen_url":"/fullscreen/riddhimachopra/ikea-case-study","author_id":4425489,"slideview_url":"/riddhimachopra/ikea-case-study?ref=https://studymoose .com/hrm-strategy-in-a-case-study-on-ikea-essay","embed_code":"\u003Ciframe src=\"https://www.slideshare.net/slideshow/embed_code/key/lZkF9ByWo1VbAd\" width=\"670\" height=\"715\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\" style=\"border:1px solid #CCC; border-width:1px; margin-bottom:5px; max-width: 100%;\" allowfullscreen\u003E \u003C/iframe\u003E \u003Cdiv style=\"margin-bottom:5px\"\u003E \u003Cstrong\u003E \u003Ca href=\"https://www.slideshare.net/riddhimachopra/ikea-case-study\" title=\"Ikea Case Study\" target=\"_blank\"\u003EIkea Case Study\u003C/a\u003E \u003C/strong\u003E from \u003Cstrong\u003E\u003Ca href=\"https://www.slideshare.net/riddhimachopra\" target=\"_blank\"\u003Eriddhimachopra\u003C/a\u003E\u003C/strong\u003E \u003C/div\u003E","embed_sizes":{"config":{"defaultPreset":"preset4"},"presets":{"preset1":{"size":{"width":382,"height":408},"displaySize":{"width":40,"height":44}},"preset2":{"size":{"width":477,"height":510},"displaySize":{ "width":50,"height":55}},"preset3":{"size":{"width":572,"height":612},"displaySize":{"width":60,"height":66}},"preset4":{"size":{"width":668,"height":714},"displaySize":{"width":70,"height":77}}}},"iframe_url":"//www.slideshare.net/slideshow/embed_code/key/lZkF9ByWo1VbAd","iframe_code":"\u003Ciframe src=\"{iframe_url}\" width=\"{width}\" height=\"{height}\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\" style=\"border:1px solid #CCC; border-width:1px; margin-bottom:5px; max-width: 100%;\" allowfullscreen\u003E \u003C/iframe\u003E \u003Cdiv style=\"margin-bottom:5px\"\u003E \u003Cstrong\u003E \u003Ca href=\"https://www.slideshare.net/riddhimachopra/ikea-case-study\" title=\"Ikea Case Study\" target=\"_blank\"\u003EIkea Case Study\u003C/a\u003E \u003C/strong\u003E from \u003Cstrong\u003E\u003Ca href=\"https://www.slideshare.net/riddhimachopra\" target=\"_blank\"\u003Eriddhimachopra\u003C/a\u003E\u003C/strong\u003E \u003C/div\u003E","wp_code":"[slideshare id=32 04920\u0026doc=ikeacasestudy-12663939423849-phpapp02\u0026type=d]","show_related_content":"1","lastscreen":{"url":"https://www.slideshare.net/riddhimachopra/ikea-case-study","related":[{"url":"https://public.slidesharecdn.com/OsamaAlbarrak/ikea-strategic-case-study","title":"IKEA Strategic case study \u0026 analysis","author":"Osama Albarrak","author_login":"OsamaAlbarrak","views":401535,"thumbnail":"//cdn.slidesharecdn.com/ss_thumbnails/ikeastrategiccasestudy-120131170424-phpapp01-thumbnail.jpg?cb=1413817091"},{"url":"https://public.slidesharecdn.com/Rahul.K/ikea-final-ppt","title":"Ikea (Final Ppt)","author":"Rahul S Karangutkar","author_login":"Rahul.K","views":70438,"thumbnail":"//cdn.slidesharecdn.com/ss_thumbnails/ikeafinalppt-12976399838005-phpapp01-thumbnail.jpg?cb=1297618439"},{"url":"https://public.slidesharecdn.com/vikassonwane/ikea-marketing-strategy-presentaion","title":"IKEA Marketing Strategy Presentaion","author":"Vikas Sonwane","author_login":"vikassonwane","views": 78766,"thumbnail":"//cdn.slidesharecdn.com/ss_thumbnails/ikeappt-140809003032-phpapp01-thumbnail.jpg?cb=1407544269"},{"url":"https://public.slidesharecdn.com/ruben_olmedo/ikea-82093990","title":"Ikea","author":"ruben_olmedo","author_login":"ruben_olmedo","views":385,"thumbnail":"//cdn.slidesharecdn.com/ss_thumbnails/ikea-171115083905-thumbnail.jpg?cb=1510735162"},{"url":"https://public.slidesharecdn.com/PauloAlves83/ikea-39422580","title":"IKEA","author":"Paulo Alves","author_login":"PauloAlves83","views":24907,"thumbnail":"//cdn.slidesharecdn.com/ss_thumbnails/ikea-takehomeexam-140923074726-phpapp02-thumbnail.jpg?cb=1411458702"},{"url":"https://public.slidesharecdn.com/ysaaab/ikea-presentation-13831798","title":"IKEA PRESENTATION","author":"Ysab Nacorda","author_login":"ysaaab","views":37342,"thumbnail":"//cdn.slidesharecdn.com/ss_thumbnails/ikeagroup7-120801190614-phpapp01-thumbnail.jpg?cb=1344316119"}]},"sharescreen":{"url":"https://www.slideshare.net/riddhimachopra/ikea-case-stu dy","title":"Ikea Case Study","slideshow_id":3204920,"html":"\u003Cdiv class=\"shareScreen\"\u003E\n\u003Ca href=\"#\" class=\"close\"\u003E\u0026times;\u003C/a\u003E\n\u003Cul class=\"shareMethods\"\u003E\n\u003Cli class=\"embed\"\u003E\n\u003Clabel for=\"embed-code\"\u003EEmbed\u003C/label\u003E\n\u003Cinput type='text' class=\"shareScreenEmbedCode\" value=\"code\" name=\"embed-code\" /\u003E\n\u003C/li\u003E\n\u003Cli class=\"url last\"\u003E\n\u003Clabel for=\"embed-url\"\u003EURL\u003C/label\u003E\n\u003Cinput type='text' class=\"shareScreenSSUrl\" value=\"code\" name=\"embed-url\" /\u003E\n\u003C/li\u003E\n\u003C/ul\u003E\n\u003Cform class=\"emailShare\"\u003E\n\u003Cfieldset\u003E\n\u003Clegend\u003EEmail this\u003C/legend\u003E\n\u003Cinput type=\"hidden\" class=\"shareDefaultMessage\" value=\"I think you will find this useful.\" /\u003E\n\u003Cul\u003E\n\u003Cli\u003E\n\u003Clabel for=\"name\"\u003EYour name\u003C/label\u003E\n\u003Cinput class='shareScreenFromName' type=\" text\" value=\"\" /\u003E\n\u003C/li\u003E\n\u003Cli\u003E\n\u003Clabel for=\"mailID\"\u003EEmail to\u003C/label\u003E\n\u003Cinput class=\"shareScreenMailID\" type=\"text\" value=\"\" /\u003E\n\u003C/li\u003E\n\u003Cli class=\"submit\"\u003E\n\u003Clabel\u003E\u0026nbsp;\u003C/label\u003E\n\u003Cinput class=\"shareSprite\" type=\"submit\" value=\"\" /\u003E\n\u003C/li\u003E\n\u003C/ul\u003E\n\u003C/fieldset\u003E\n\u003C/form\u003E\n\u003C/div\u003E\u003C!-- shareScreen ends here --\u003E\n","user_name":""},"track_slide_enable":1,"render_links":"default","twitter_recommended_users":null,"twitter_share_text":"Ikea Case Study","share_text":"Ikea Case Study by riddhimachopra via slideshare","pin_image_url":"https://image.slidesharecdn.com/ikeacasestudy-12663939423849-phpapp02/95/ikea-case-study-1-728.jpg?cb=1266372435","autoplayOnEmbed":false,"slide_error_template":"\u003Cstyle type=\"text/css\"\u003E\n.jsplayer-slide-error {\nbackground-color: #000;\npadding: 20% 0 13% !important;\n} \n.jsplayer-slide-error div {\ntext-align: center;\n}\n.jsplayer-slide-error img {\nheight: 79px !important;\nmargin: 0 0 10px;\nwidth: 80px !important;\n}\n.jsplayer-slide-error .slide-error-body {\ncolor: #eee;\nfont-family: 'Lucida Grande',Verdana, Arial, Helvetica, sans-serif;\npadding: 0 !important;\n}\n.jsplayer-slide-error .slide-error-body p {\nfont-size: 0.8em;\nline-height: 1.1em;\nmargin: 7px 0 11px;\n}\n.jsplayer-slide-error .slide-error-body input[type=button] {\nmargin: 7px 0 0;\npadding: 7px 14px;\n}\n\u003C/style\u003E\n\u003Cdiv class=\"jsplayer-slide-error\"\u003E\n\u003Cdiv style=\"position:relative;\"\u003E\n\u003Cimg src='https://public.slidesharecdn.com/images/ssplayer/error_dudes-80x79.png' height=\"79\" width=\"80\" /\u003E\n\u003Cdiv class=\"slide-error-body\"\u003E\n\u003Cp\u003EWe were unable to load the slide.\u003C/p\u003E\n\u003Cinput class=\"btn btn-large\" type=\"button\" value=\"Reload slide\" /\u003E\n\u003C/div\u003E\n\u003C/div\u003E\n\u003C/div\u 003E\n","meta_error_template":"\u003Cstyle type=\"text/css\"\u003E\n.jsplayer-slide-error {\nbackground-color: #000;\npadding: 20% 0 13% !important;\n}\n.jsplayer-slide-error div {\ntext-align: center;\n}\n.jsplayer-slide-error img {\nheight: 79px !important;\nmargin: 0 0 10px;\nwidth: 80px !important;\n}\n.jsplayer-slide-error .slide-error-body {\ncolor: #eee;\nfont-family: 'Lucida Grande',Verdana, Arial, Helvetica, sans-serif;\npadding: 0 !important;\n}\n.jsplayer-slide-error .slide-error-body p {\nfont-size: 0.8em;\nline-height: 1.1em;\nmargin: 8px 0;\n}\n.jsplayer-slide-error .slide-error-body input[type=button] {\nmargin: 7px 0 0;\npadding: 7px 14px;\n}\n\u003C/style\u003E\n\u003Cdiv class=\"jsplayer-slide-error\"\u003E\n\u003Cdiv style=\"position:relative;\"\u003E\n\u003Cimg src='https://public.slidesharecdn.com/images/ssplayer/error_dudes-80x79.png' height=\"79\" width=\"80\" /\u003E\n\u003Cdiv class=\"slide-error-body\"\u003E\n\u003Cp\u003EWe have encountered an error.\u003C /p\u003E\n\u003Cp\u003EPlease refresh the page.\u003C/p\u003E\n\u003C/div\u003E\n\u003C/div\u003E\n\u003C/div\u003E\n","replayscreen":{"html":"\u003Ca href=\"#\" class=\"j-replay-button replay-button\" \u003E\n\u003Ci class=\"fa fa-refresh\"\u003E\u003C/i\u003E\nView again\n\u003C/a\u003E\n"},"toolbar_html":"\n\u003C!-- using div.bar-[top, bottom]-margin to fix toolbar spacing with a taller progressbar (improve slide scrubbing UX) --\u003E\n\u003Cdiv class=\"j-progress-bar progress-bar-wrapper\"\u003E\n\u003Cdiv class=\"progress-bar-spacing\"\u003E\u003C/div\u003E\n\u003Cdiv class=\"buffered-bar\" tabindex=\"0\"\u003E\u003C/div\u003E\n\u003Cdiv class=\"j-slides-loaded-bar progress-bar\"\u003E\u003C/div\u003E\n\u003Cdiv class=\"j-progress-tooltip progress-tooltip\" style=\"display: none;\"\u003E\n\u003Cdiv class=\"j-tooltip-content progress-tooltip-wrapper\"\u003E\n\u003Cimg class=\"j-tooltip-thumb tooltip-thumb\" onerror=\"this.src=''\"\nslide-thumb-1=\"https://image.slidesharecdn.c om/ikeacasestudy-12663939423849-phpapp02/85/ikea-case-study-1-320.jpg?cb=1266372435\"\nslide-thumb-2=\"https://image.slidesharecdn.com/ikeacasestudy-12663939423849-phpapp02/85/ikea-case-study-2-320.jpg?cb=1266372435\"\nslide-thumb-3=\"https://image.slidesharecdn.com/ikeacasestudy-12663939423849-phpapp02/85/ikea-case-study-3-320.jpg?cb=1266372435\"\nslide-thumb-4=\"https://image.slidesharecdn.com/ikeacasestudy-12663939423849-phpapp02/85/ikea-case-study-4-320.jpg?cb=1266372435\"\nslide-thumb-5=\"https://image.slidesharecdn.com/ikeacasestudy-12663939423849-phpapp02/85/ikea-case-study-5-320.jpg?cb=1266372435\"\nslide-thumb-6=\"https://image.slidesharecdn.com/ikeacasestudy-12663939423849-phpapp02/85/ikea-case-study-6-320.jpg?cb=1266372435\"\nslide-thumb-7=\"https://image.slidesharecdn.com/ikeacasestudy-12663939423849-phpapp02/85/ikea-case-study-7-320.jpg?cb=1266372435\"\nslide-thumb-8=\"https://image.slidesharecdn.com/ikeacasestudy-12663939423849-phpapp02/85/ikea-case-study-8-320.jpg?cb= 1266372435\"\nslide-thumb-9=\"https://image.slidesharecdn.com/ikeacasestudy-12663939423849-phpapp02/85/ikea-case-study-9-320.jpg?cb=1266372435\"\nslide-thumb-10=\"https://image.slidesharecdn.com/ikeacasestudy-12663939423849-phpapp02/85/ikea-case-study-10-320.jpg?cb=1266372435\"\nslide-thumb-11=\"https://image.slidesharecdn.com/ikeacasestudy-12663939423849-phpapp02/85/ikea-case-study-11-320.jpg?cb=1266372435\"\nslide-thumb-12=\"https://image.slidesharecdn.com/ikeacasestudy-12663939423849-phpapp02/85/ikea-case-study-12-320.jpg?cb=1266372435\"\nslide-thumb-13=\"https://image.slidesharecdn.com/ikeacasestudy-12663939423849-phpapp02/85/ikea-case-study-13-320.jpg?cb=1266372435\"\nslide-thumb-14=\"https://image.slidesharecdn.com/ikeacasestudy-12663939423849-phpapp02/85/ikea-case-study-14-320.jpg?cb=1266372435\"\nslide-thumb-15=\"https://image.slidesharecdn.com/ikeacasestudy-12663939423849-phpapp02/85/ikea-case-study-15-320.jpg?cb=1266372435\"\nslide-thumb-16=\"https://image.slidesharecdn.co m/ikeacasestudy-12663939423849-phpapp02/85/ikea-case-study-16-320.jpg?cb=1266372435\"\n\u003E\n\u003Cspan class=\"j-slidecount-label slidecount-label\"\u003E1\u003C/span\u003E\n\u003C/div\u003E\n\u003Cdiv class=\"progress-tooltip-caret\"\u003E\u003C/div\u003E\n\u003C/div\u003E\n\u003C/div\u003E\n\u003Cdiv class=\"progress-bar-spacing\"\u003E\u003C/div\u003E\n\n\n\n\u003Cdiv class=\"j-tools bot-actions\"\u003E\n\u003Cbutton data-tooltip\naria-haspopup=\"true\"\nclass=\"j-toolbar-share j-tooltip btnShare has-tip j-action-share\"\ntitle=\"Share this \"\nstyle=\"padding-left: 1px;\"\u003E\n\u003Ci class=\"fa fa-share fa-lg\"\u003E\u003C/i\u003E\n\u003C/button\u003E\n\u003Ca id=\"lead-download-cta\"\ndata-tooltip\nclass=\"j-tooltip j-download button has-tip\"\nstyle=\"display:none\"\ntarget=\"_blank\"\ntitle=\"Save this \"\nhref=\"\"\u003E\n\u003Ci class=\"fa fa-download fa-lg\" style=\"margin-top: 1px;\"\u003E\u003C/i\u003E\n\u003C/a\u003E\n\u003C/div\u003E\u003C!-- .bot-actions --\u003 E\n\n\n\n\n\u003Cdiv class=\"nav\"\u003E\n\u003Cbutton id=\"btnPrevious\" title=\"Previous Slide\" aria-label=\"Previous Slide\"\u003E\n\u003Cdiv class=\"j-prev-btn arrow-left disabled\"\u003E\u003C/div\u003E\n\u003C/button\u003E\n\u003Clabel class=\"goToSlideLabel\"\u003E\n\u003Cspan id=\"current-slide\" class=\"j-current-slide\"\u003E1\u003C/span\u003E of \u003Cspan id=\"total-slides\" class=\"j-total-slides\"\u003E16\u003C/span\u003E\n\u003C/label\u003E\n\u003Cbutton id=\"btnNext\" title=\"Next Slide\"aria-label=\"Next Slide\"\u003E\n\u003Cdiv class=\"j-next-btn arrow-right\"\u003E\u003C/div\u003E\n\u003C/button\u003E\n\u003C/div\u003E\n\n\n\n\u003Cdiv class=\"navActions\"\u003E\n\n\u003Cdiv class=\"docActions\"\u003E\n\u003Cbutton id=\"btnZoomIn\" class=\"j-tooltip btnZoomIn\" title=\"Zoom In\" aria-label=\"Zoom In\"\u003E\n\u003Ci class=\"fa fa-plus fa-lg\"\u003E\u003C/i\u003E\n\u003C/button\u003E\n\u003Cbutton id=\"btnZoomOut\" class=\"j-tooltip btnZoomOut\" title=\"Zoom Out\" aria-label=\"Zoom Out\"\u003E\n\u003Ci class=\"fa fa-minus fa-lg\"\u003E\u003C/i\u003E\n\u003C/button\u003E\n\u003C/div\u003E\n\n\n\u003Cbutton id=\"btnFullScreen\" class=\"j-tooltip btnFullScreen\" title=\"View Fullscreen\" aria-label=\"View Fullscreen\"\u003E\n\u003Cspan class=\"fa fa-stack\"\u003E\n\u003Ci class=\"fa fa-expand fa-stack-1x\" aria-hidden=\"true\"\u003E\u003C/i\u003E\n\u003C/span\u003E\n\u003C/button\u003E\n\u003Cbutton id=\"btnLeaveFullScreen\" class=\"j-tooltip btnLeaveFullScreen\" title=\"Exit Fullscreen\" aria-label=\"Exit Fullscreen\"\u003E\n\u003Cspan class=\"fa-stack\"\u003E\n\u003Ci class=\"fa fa-compress fa-stack-1x\" aria-hidden=\"true\"\u003E\u003C/i\u003E\n\u003C/span\u003E\n\u003C/button\u003E\n\n\u003Cbutton class=\"view-on-ss btnViewOnSS\"\u003E\n\u003Cspan\u003EView on SlideShare\u003C/span\u003E\n\u003C/button\u003E\n\u003C/div\u003E\n\n","container":"player","enable_viewSS":true,"disable_lastscreen":false,"disable_share":false,"is_clickgen_enabled ":false,"clickgen_url":null,"referer":"https://studymoose.com/hrm-strategy-in-a-case-study-on-ikea-essay","start_slide":1,"hosted_in":"embed","slideshow_slideshow_type":1,"show_image_player":true,"video_slides":[],"slideshow_real_total_slides_count":16,"toolbar_partial":"slideshow/jsplayer_toolbar_document","is_ssl":true,"flagging":{"update_url":"https://www.slideshare.net/main/flag?slideshow_id=3204920","is_flagged":false}}; $(function(){ jsplayer = new SSPlayer(config); window.bindJsAPI && bindJsAPI(jsplayer); $(jsplayer).bind('slidechanged', function(e){ $('.current_slide_number').text(e.ssData.index); }); }); use{ fill-opacity: 1; stroke-opacity: 1; fill: transparent; stroke: transparent; } use[data-size=small]{ fill-opacity: 0; stroke-opacity: 0; fill: currentColor; stroke: currentColor; } #loader-icon{ stroke-dasharray: 200; stroke-dashoffset: 600; fill: transparent; stroke-width: inherit; } use[*|href="#loader"]{ stroke-width: 4px; -webkit-transform: translateY(-35px) translateX(-35px); transform: translateY(-35px) translateX(-35px); } use[*|href="#loader"][data-color="blue"]{ color: #00A0DC; } use[*|href="#loader"][data-color="dark-gray"]{ color: #434649; } use[*|href="#loader"][data-color="light-gray"]{ color: #A0A3A6; } use[*|href="#loader"][data-size="small"]{ stroke-width: 8px; -webkit-transform: translateY(-20px) translateX(-20px); transform: translateY(-20px) translateX(-20px); } Ikea Case Study 1 1 of 16 View on SlideShare Like this slideshow? Why not share! Share Email IKEA Strategic case study & analysis by Osama Albarrak 401535 views Ikea (Final Ppt) by Rahul S Karangutkar 70438 views IKEA Marketing Strategy Presentaion by Vikas Sonwane 78766 views Ikea by ruben_olmedo 385 views IKEA by Paulo Alves 24907 views IKEA PRESENTATION by Ysab Nacorda 37342 views Share SlideShare Facebook Twitter LinkedIn Embed Size (px) Show related SlideShares at end WordPress Shortcode Link $.ajax({ url : 'https://www.slideshare.net/pingback/embed_or_homepageplayerhits/3204920', type : 'GET', data : { ref : 'https://studymoose.com/hrm-strategy-in-a-case-study-on-ikea-essay' }, cache : false }); Ikea Case Studyfrom riddhimachopra http://www.staffs.ac.uk/schools/business/resits/postgrad/InternationalSupplyChainMgmtIKEACaseStudy.pdf http://businesscasestudies.co.uk/ikea/swot-analysis-and-sustainable-business-planning/introduction.html#axzz2yEzaqxUf http://www.slideshare.net/asad101/ikeacasestudy-12663939423849phpapp02 http://www.eurofound.europa.eu/emcc/labourmarket/greening/cases/ikeasweden.htm http://www.circleinternational.co.uk/CIRCLE/Strategy_files/ikea%20mrktswot.pdf

Qqwe

Carrier Intelligence Report Deutsche Post DHL March 2013 Table of contents Key financial figures Key stakeholder figures Macro environment Market & consumers 3 4 5 6 Corporate & media Governance & strategy Quarterly performance Corporate performance Business units 7 8 9 10 11 â€Å"Thanks to our presence in the world’s growth markets, the DHL divisions performed particularly dynamically in financial year 2012 and played a key role in increasing our consolidated revenue† Dr.Frank Appel, CEO Operations Human resources Corporate responsibility Acquisitions & divestments Product launches 12 13 14 15 16 Key press releases Outlook & targets 17 19 Key financial figures Express division boosts revenue by 9. 5% in 2012 Income Statement Total revenue EBIT margin Net profit margin Staff costs to revenue ratio Balance Sheet Total non-current assets Total current assets Total quity Total non-current liabilities Total current liabilities Current ratio Return on capital employed Geari ng ratio Cash flow Net cash flow from operating activities Net cash flow from investing activities Net cash flow from financing activities Net increase/(decrease) in cash and cash equivalents Revenue by division Mail Parcels & Express Logistics & Freight EBIT by division Mail Parcels & Express Logistics & Freight 2010 53,605. 0 3. 4% 4. 9% 31. 0% 2011 54,879. 0 4. 4% 2. 3% 30. 5% 2012 57,680. 0 4. 6% 3. 1% 30. 8% Change 5. 1% 0. 2 0. 9 0. 3 LCU, m % % % LCU, m LCU, m LCU, m LCU, m LCU, m % % 24,493. 13,270. 0 10,696. 0 13,844. 0 13,223. 0 1. 00 7. 5% 56. 4% 21,225. 0 17,183. 0 11,199. 0 8,587. 0 18,622. 0 0. 92 12. 3% 43. 4% 21,832. 0 12,289. 0 12,164. 0 9,332. 0 12,625. 0 0. 97 12. 4% 43. 4% 2. 9% -28. 5% 8. 6% 8. 7% -32. 2% 0. 05 – LCU, m LCU, m LCU, m LCU, m 1,927. 0 8. 0 (1,651. 0) 284. 0 2,371. 0 (1,129. 0) (1,547. 0) (305. 0) (203. 0) (1,697. 0) 1,199. 0 (701. 0) – LCU, m LCU, m LCU, m 13,822. 0 10,788. 0 26,707. 0 13,877. 0 11,309. 0 27,578. 0 13,874. 0 12,378. 0 29,209. 0 0. 0% 9. 5% 5. 9% IPC Statistical Database LCU, m LCU, m LCU, m 148,066. 0 88,384. 0 614. 0 147,434. 0 85,496. 0 802. 146,923. 0 84,623. 0 928. 0 – Source: Deutsche Post DHL annual reports 2010-2012, IPC analysis Note: Change represents year-on-year development from 2011 3 IPC Carrier Intelligence Report – Deutsche Post DHL Key stakeholder figures Share price up by almost 40% over 2012 Shares Share price, year-end Earnings per share Human resources Average full-time equivalents Average part-time employees Women in management Absenteeism rate EOS response rate Total employee satisfaction Employee engagement Customer index Business customer satisfaction Consumer satisfaction Sustainability Total CO2 emissions LCU LCU 010 12. 09 2. 10 2011 11. 88 0. 96 2012 16. 6 1. 37 Change 39. 7% – % % % 421,274 63,126 17. 0% 7. 4% 79. 0% 73. 0 67. 0 423,348 65,322 17. 6% 7. 4% 80. 0% 76. 0 n/a 428,287 62,523 18. 5% 7. 6% 80. 0% 76. 0 n/a 1. 2% -4. 3% 0. 9 0. 2 0. 0 0. 0 n/a n/a n/a 95. 0 n/a 96. 0 1. 0 t 28,400,000 28,200,000 n/a Retail network Wholly-owned retail outlets Contracted retail outlets Delivery performance Domestic letter quality performance (D+1) Domestic letter quality USO requirement (D+1) Domestic parcel quality performance Domestic parcel expected business-day delivery Domestic letter and parcel ratesStandard letter, 0-20g Standard letter, 20-50g Economy parcel, 2-3kg 2 19,998 2 19,998 n/a n/a % % % % 95. 4% 80% n/a n/a 95. 4% 80% n/a n/a n/a 80% n/a n/a 0. 0 â‚ ¬ â‚ ¬ â‚ ¬ 0. 55 0. 90 6. 90 0. 55 0. 90 6. 90 0. 55 0. 90 6. 90 0. 0% 0. 0% 0. 0% Source: Deutsche Post DHL annual reports 2010-2012, IPC analysis Note: Change represents year-on-year development from 2011 4 IPC Carrier Intelligence Report – Deutsche Post DHL Germany: macro environment Low unemployment and higher wages will lift economy in 2013 Economics †¢ †¢ †¢ †¢ †¢ †¢ †¢ % 4% 2% 0% -2% -4% -6% 07 08 09 10 11 Infl ation 12 13 14 15 16 17 Trade Exports: â‚ ¬1,034,140. 5m (? 8. 0%) 1. France 9. 6% 2. United States 6. 9% 3. Netherlands 6. 4% 4. China 6. 1% 5. United Kingdom 6. 0% Machinery & transport equipment, chemicals and food, drink & tobacco Demographics †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ 10% 8% 6% 4% 2% 0% 07 08 09 10 11 12 13 14 15 16 17 Unemployment rate GDP, constant prices: â‚ ¬2,436,330m GDP, current prices: â‚ ¬2,570,080m GDP per capita: â‚ ¬29,729. 4 (? 3%) GDP per capita (PPP-adjusted): â‚ ¬25,756. 3 (? 0. %) GDP related to agriculture: 1% GDP related to industry: 26% (? 4 percentage points) GDP related to service: 73% (? 4 percentage points) 348,672 km2 81,770,000 inhabitants (? 0. 2%) 234. 5 inhabitants per km2 Median age: 44. 9 years (2nd) Corruption perception: 8. 0 (? 0. 1) 39. 9m households Broadband subscribers: 31. 6% Urban population: 73. 8% Employed population: 50. 2% Imports: â‚ ¬880,951. 0m (? 9. 7%) 1. Netherlands 12. 9% 2. France 7. 6% 3. China 7. 1% 4. Belgium 6. 2% 5. Italy 5. 4% Machinery & transport equipment, chemicals and mineral fuels & lubricants Real GDP growthEconomic outlook The German economy is expected to recover from a weak end to 2012 with growth from the first quarter of 2013. With exports projected to recover and retail sales experiencing a welcome recovery, estimated GDP growth ranges from 0. 6 to 1. 3% in 2013 (2014: 1. 5 to 2. 4%). Unemployment is currently at its lowest for two decades, with business facing a shortage of skilled labour. Pay increases of up to 6. 5% awarded in 2012 should bolster consumer sentiment through to 2014. The healthy outlook is expected to generate improved public finances, turning the federal budget deficit to surplus in 2013.Source: The economist – Pocket World in Figures 2012 Edition, IMF, Bloomberg, ITC Trade Map, CIA World Factbook, ITU, Transparency International, IPC analysis Note: Brackets represent year-on-year development from 2010 or world ranking 5 IPC Carrier Intelligence Report – Deutsche Post DHL Germany: market & consumers Increasing number of consumers purchasing online Logistics market (bn T-km) Inland waterways 550 500 450 400 350 300 250 200 150 100 50 0 Financial services market (â‚ ¬bn) Road 9,000 -8% 8,000 7,000 6,000 -9% 5,000 4,000 3,000 2,000 1,000 0 Assets, all banks +11% Commentary Rail 2007 2008 2009 2010 2007 2008 009 2010 2011 According to the latest available figures, while German road freight grew by only 1. 8% in 2010 to 313bn Tonnekilometres (T-km), rail and waterways each expanded by around 12% to 107 and 62bn T-km respectively. Bank-owned assets increased by 11% over the fiveyear period to â‚ ¬8. 46tn. Household consumption grew by 1. 5% in 2011 after correcting for inflation, fuelling a German retail market which has remained steady despite the crisis in the Eurozone. The proportion of surveyed consumers purchasing online grew by 6 percentage points (p. p. ) in 20 11 to 54%, and average growth since 2002 has been above 4 p. . Broadband penetration seems to be reaching a plateau, with an increase of half a p. p. in 2011. Consumption expenditure Private final consumption expenditure, growth 2. 0% Online purchasing habits Last online purchase in the last 3 months Last online purchase more than a year ago / never ordered 100% Digitisation Internet users Broadband subscribers 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1. 5% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2007 2008 2009 2010 2011 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1. 0% 0. 5% 0. 0% -0. 5% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Source: Eurostat, ITU, OECD, IPC analysis Note: T-km=Tonne-kilometres, representing the transport of one tonne of goods (including packaging and weight of transport units) over a distance of one kilometre. p. p. = percentage points 6 IPC Carrier Intelligence Report – Deutsche Post DHL Germany: corporates & media Newspaper ad market con tinues to decline but remains largest medium Forbes Global 2000 Media spend (â‚ ¬m) -4% Top 10 advertisers 1. Procter & Gamble Media-Saturn-Holding Ferrero Aldi Unilever L'Oreal Axel Springer Lidl Edeka 2010 2011 2012 +5% +27% 0% 2. 3. 4. 5,943 5,839 5,715 3,885 3,954 4,071 4,160Top 5 by revenue 17 Volkswagen Group (Auto & Truck Manufacturers) 409 E. ON (Electric Utilities) 37 Daimler (Auto & Truck Manufacturers) 50 Allianz (Diversified Insurance) 50 Siemens (Conglomerates) 3,465 5. 6. 7. 8. 9. 3,488 3,461 Top 5 by profits 17 Volkswagen Group (Auto & Truck Manufacturers) 50 Siemens (Conglomerates) 74 BASF (Diversified Chemicals) 37 Daimler (Auto & Truck Manufacturers) 61 BMW Group (Auto & Truck Manufacturers) Top 5 by market value 50 Siemens (Conglomerates) 227 SAP (Software & Programming) 74 BASF (Diversified Chemicals) 17 Volkswagen Group (Auto & Truck Manufacturers) 37 Daimler (Auto & Truck Manufacturers) 4% +10% 692 706 719 +8% 766 797 827 3,067 3,473 75 79 Cinema 82 10. Volk swagen Group Magazines Internet TV Newspapers Radio Outdoor Media review & outlook All digital media will gain share as they become more and more important for advertisers. The growth in the smartphone market and the implementation of full-video ads in websites will lead to increased budgets. Magazines and newspapers in particular will have a different position in the future as a lot of information and entertainment is provided by internet sites.Along with digital media, cinema, outdoor and TV helped to drive German ad market in 2012. Source: www. forbes. com/global2000, ZenithOptimedia Western Europe Market & Mediafact 2011, ZenithOptimedia Advertising Expenditure Forecasts December 2011, IPC analysis Note: Forbes Global 2000; numbers under top 5 represent global ranking 7 IPC Carrier Intelligence Report – Deutsche Post DHL Governance & strategy â€Å"The provider, investment and employer of choice in its market† www. dp-dhl. com Chairman of the Board Prof. Dr.Wulf vo n Schimmelmann Chairman 2009Born 1947 Other board positions: †¢ Accenture †¢ Thomson Reuters Chief Executive Officer Dr. Frank Appel CEO 2008Born 1961 Ownership 25. 5% state owned KfW Bank 74. 5% freely floating Organisation Previous positions: †¢ Managing Director, DP †¢ Partner, McKinsey Corporate Centre Deutsche Post DHL Vision & strategy Vision †¢ To remain The Post for Germany as well as The Logistics Company for the world Chairman of the Board of Management Dr. Frank Appel Finance, Global Business Services Lawrence Rosen Personnel Angela TitzrathStrategy †¢ Strong divisional focus: strategic priorities are individually set for the Mail, Express, Global Forwarding / Freight and Supply Chain divisions †¢ Group-wide initiatives: the new commercial organisation ‘Customer Solutions & Innovation' provides customers seeking solutions from across DHL divisions with easier access to services †¢ Unified corporate culture: corporate responsib ility initiatives under the motto of ‘Living Responsibility' focus on protecting the environment, disaster management and championing education Divisions Deutsche Post DHL Mail Jurgen Gerdes Express Ken AllenGlobal Forwarding, Freight Roger Crook Supply Chain Bruce Edwards Source: www. dp-dhl. com, Deutsche Post DHL annual report 2012 8 IPC Carrier Intelligence Report – Deutsche Post DHL Quarterly performance Q4 2012: Group revenue up 3% from Q4 2011; 7% increase for P Revenue and profitability +3% 15,000 14% 12% 10,000 5. 2% 5,000 4. 2% 4. 0% 10% 8% 4. 4% 4. 2% 6% 4% 2% 0 Q4 2011 Q1 2012 Q2 2012 EBIT margin Q3 2012 Q4 2012 0% Segment performance (â‚ ¬m) +3% +7% 8. 000 7. 000 6. 000 5. 000 4. 000 3. 000 2. 000 1. 000 0 Q4 2011 Mail Q1 2012 Parcels & Express Q2 2012 Logistics & Freight Q3 2012 Q4 2012 0%Total revenue, â‚ ¬m Volume Total international addressed mail Unaddressed admail 6,000 5,000 4,000 3,000 2,000 1,000 0 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Addr essed admail Priority or standard mail -4% Parcels and Express volume Parcels and Express 300 250 200 150 100 50 0 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 +7% Commentary Consolidated revenue rose â‚ ¬451m (3. 2%) yearon-year to reach â‚ ¬14,577m in Q4 2012. EBIT margin remained steady compared to Q4 2011 but dipped slightly on the previous quarter. The Parcels & Express division saw robust revenue growth, up 7% year-on-year.The strong performance was attributable to a significant rise in volumes (see left). Logistics revenues also increased year-on-year, while Mail division revenue stabilised. Mail volumes were down 4% year-on-year, accelerated by divestments in the international mail segment (-19. 2%). Source: Deutsche Post-DHL annual and interim reports 2011-12, IPC analysis 9 IPC Carrier Intelligence Report – Deutsche Post DHL Corporate performance Higher revenues with continued increase in EBIT margin in 2012 Revenue and profitability 60,000 50,000 40,000 30,000 20, 000 10,000 0 2008 Total revenue 2009 EBIT margin 2010 Net profit margin 2011 2012 -1. % -2. 2% 0. 5% 4. 9% 3. 4% 0. 5% 2. 3% 4. 4% 3. 1% -16% +11% +2% +5% 7% 6% 5% 4% 3% 2% 1% 0% -1% -2% -3% Cash flow 203 4. 6% 1,697 1,199 3,123 Beginning of period Cash flow Operating activities Investing activities Financing activities Segment information 2012 (2008) 2% (2%) 23% (25%) Share price development 2012 (2008) 20. 0 Commentary Consolidated revenue increased by 5. 1% to â‚ ¬55,512m in financial year 2012, with positive currency effects accounting for around two-thirds of this increase. The proportion of consolidated revenue generated abroad grew to 69. 7%,. Changes in the portfolio reduced revenue by â‚ ¬216m.At â‚ ¬2,665m, EBIT was 9. 4% up on the prior-year figure. Compared to 2008, Logistics and freight divisions have grown relative to other units and now generate 53% of consolidated revenue (Mail: 23%). In 2012 the Group’s share price outperformed the DAX for the second year running. 30% (31%) 15. 0 53% (50%) 22% (25%) 70% (69%) 10. 0 15,000 10,000 5,000 5. 0 Mail Parcels & express Logistics & freight Postal retail Domestic revenue International revenue 0. 0 1/1/01 1/1/03 1/3/05 1/2/07 1/2/09 1/3/11 0 1/1/13 Share price, â‚ ¬ Traded volume Source: Deutsche Post DHL annual reports 2008-2012, IPC analysis 0 IPC Carrier Intelligence Report – Deutsche Post DHL Business units Improved profitability for P and Logistics & freight Mail â€Å"Deutsche Post DHL is Europe’s largest postal company. It offers all types of products and services to both private and business customers, physical, hybrid and electronic letters and merchandise to special services such as cash on delivery and registered mail† Mail division Revenue in 2012 was on par with 2011, reaching â‚ ¬13,972m despite three fewer working days, which however had a noticeably negative impact on transactional mail.Strong results in the Parcel Germany unit (+9. 4%) balanced declines in transactional and addressed advertising mail. EBIT reached â‚ ¬1,051m, 5. 1 % below the prior-year figure, and was reduced by â‚ ¬151m as a result of an additional VAT payment demanded by the German tax authorities. Overall market share declined from 63. 7% to 62. 7%. Revenue, â‚ ¬m 15,000 EBIT margin -3% 20% 15% 10% 5,000 5% 0% 2008 2009 2010 2011 2012 Parcels & express â€Å"In the Express division, Deutsche Post DHL transport urgent documents and goods reliably and on time from door to door.The network spans more than 220 countries and territories, in which some 100,000 employees provide services for more than 2. 6m customers† Express division Excluding currency effects and the impact of a certain divestments in 2011, revenue increased by 6. 8% to â‚ ¬12,378m in 2012, a result still below precrisis levels. EBIT for the Express division however rose to a new high, reaching â‚ ¬1,108m (a margin of 8. 7%). The result was driven by revenue growth in all regions as well as one-time effects connected to restructuring provisions in the United States.Business trend was particularly dynamic in the Americas region, with revenue up by 20. 6% to â‚ ¬2,276m in 2012. Revenue, â‚ ¬m 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2008 2009 2010 2011 2012 EBIT margin -6% 20% 15% 10% 5% 0% -5% -10% -15% -20% Logistics & freight â€Å"With a wide range of coverage and comprehensive offering for transporting freight by air, sea or land, DHL is one of the leading global freight and logistics companies. The Supply Chain business provide contract logistics solutions along the entire supply chain† Global forwarding/freight division Revenue grew by 3. % including positive currency effects of â‚ ¬507m. EBIT in the division improved due to high gross profit margins and constantly increasing efficiency. Supply chain division Increased EBIT was driven by improved contract portfolio management and cost efficiencies, compensating for mar gin pressure and costs associated with new customers. DHL is the leader in a fragmented market with a share of 7. 8%. Revenue, â‚ ¬m 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2008 2009 2010 2011 2012 -5% 10% 5% 0% EBIT margin +8% 15% 10,000 0 Source: Deutsche Post DHL annual reports 2008-2012, IPC analysis 1 IPC Carrier Intelligence Report – Deutsche Post DHL Operations Year-on-year increase in P volume of almost 10% Mail volume International addressed mail Unaddressed admail 30. 000 25. 000 -12% 20. 000 15. 000 10. 000 5. 000 0 2008 2009 2010 2011 2012 -7% Addressed admail Transactional mail Parcels & express volume +24% Commentary Transactional mail volumes fell by 3. 0% year-on-year with private customer volumes declining much more than business customer volumes. In the Dialogue Marketing business unit, total sales volumes declined slightly over the course of the year.Unaddressed advertising mail was up year-on-year, whilst addressed advertising mail declined. D ivestment of a bulk mail business in the Netherlands and domestic business in the UK resulted in a large drop in international mail volumes. The flourishing e-commerce business is the primary reason for this consistently strong growth in parcel volumes, up 9. 8% in 2012. By year-end, 42,8129 FTEs were employed in more than 220 countries and territories, 1. 1 % more than in 2011. The retail network was fully contracted and stable in 2011. 1. 000 900 800 700 600 500 400 300 200 100 0 2008 2009 2010 2011 2012 EmployeesAverage full-time equivalents -4% Employees per business unit 2012 (2008) 3% (3%) 0% +1% 34% (32%) 43% (40%) Retail network Wholly-owned retail outlets Contracted retail outlets +48% 20. 000 +1% 15. 000 0% 500. 000 400. 000 300. 000 -4% 10. 000 200. 000 100. 000 0 2008 2009 2010 2011 2012 Mail Parcels & Express 20% (25%) Logistics & Freight Corporate 5. 000 0 2008 2009 2010 2011 Source: Deutsche Post DHL annual reports 2008-2012, IPC analysis 12 IPC Carrier Intelligence R eport – Deutsche Post DHL Human resources Significant increase in women in management since 2008 Part-time employees Average part-time employeesGender 2011 (2008) 2012 (2008) 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 2008 2009 2010 2011 -13% 18,5% (13. 5%) 36,7% (37. 7%) 63,3% (62. 3%) 81,5% (86. 5%) 2012 Women in total workforce Men in total workforce Women in management Men in management Absenteeism & staff turnover Staff turnover 2008 Absenteeism rate Satisfaction & engagement Employee satisfaction Commentary While the number of part-time employees employed by Deutsche-Post DHL has fallen by 13% since 2008, the proportion of women in the Group’s workforce dropped slightly over 2008-11 (the most recent data available).In terms of management, the company has seen an increase of five p. p. over the period, reaching 18. 5% in 2012. The company is committed to filling 25-30% of vacant management positions with women. Staff turnover fell significantly over 2009-11. Absenteeism continued to increase in 2012, reaching 7. 6%. Employee satisfaction has remained constant over the last three years. 2010 2009 2010 2011 2011 2012 2012 0% 2% 4% 6% 8% 10% 12% 14% 0 10 20 30 40 50 60 70 80 90 100 Source: Deutsche Post DHL annual reports 2008-2012, Deutsche Post DHL corporate social responsibility reports 2010-2011, IPC analysis 3 IPC Carrier Intelligence Report – Deutsche Post DHL Corporate responsibility Significant increase in the number of trainees hired Environmental responsibility â€Å"The primary focus of our environmental protection program GoGreen is to minimise our business operations’ greatest impact on the environment – CO2 emissions. We are also working to limit impacts where our business activities affect the environment in other ways† By the year 2020, the Group intends to improve the CO2 efficiency of own operations (Scope 1 & 2) and those of subcontractors (Scope 3) by 30% compared with 2007.In 2012, Scope 1 & 2 CO2 emissions were approximately 5. 4m tonnes (previous year: 5. 3m). Direct CO2 emissions rose slightly mainly due to the increased demand for air transport. Scope 3 emissions data for 2012 will be available upon the release of the CSR report in April 2013. CO2 emissions (t) CO2 emissions, scope 1&2 6,000,000 +31% 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 2009 2010 2011 2012 2010 2011 2012 +6% +2%Financial responsibility â€Å"We aim to strike a balance between our economic goals and society’s requirements by putting our experience and global presence to good use to help people and the environment† Net asset base (operating assets-operating liabilities) increased by â‚ ¬1,122m to â‚ ¬15,478m in 2012 due, in part, to the Group’s investments in software and IT systems and the purchase of freight aircraft as well as replacement and expansion investments in warehouses, sorting systems and vehicle fleet. A 42. 2% increase in net working capital was mainly attributable to the decline in liabilities and other items. Revenue per employee grew by 4% YOY.Employee value creation Revenue per employee +15% 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 2008 2009 2010 2011 2012 -12% +2% +4% Social responsibility â€Å"Bundled under the motto â€Å"Living Responsibility†, our efforts focus on three areas: environmental protection (GoGreen), disaster management (GoHelp) and championing education (GoTeach)† Deutsche Post DHL aims to actively promote the diversity of its workforce and attract a wide range of applicants. Measures to improve work-life balance available to employees in Germany include support services such as back-up childcare facilities for last-minute and emergency childcare.In 2011 more than 75% of trainees were offered continued employment. The number of trainees has increased by 31% since 2008. Trainee headcount Trainees 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Source: Deutsche Post DHL annual reports 2008-2012, Deutsche Post DHL corporate social responsibility reports 2010-2011, IPC analysis 14 IPC Carrier Intelligence Report – Deutsche Post DHL Acquisitions & divestments 2009- Acquisitions Year 2012 Company LuftfrachtsicherheitService GmbH Exel Saudia LLC All you need GmbH 2SFG Tag Belgium SA CC DE Sector Logistics DivestmentsYear 2012 Company Deutsche Postbank Group (remaining shares) DHL Express Canada Exel Transportation Services Inc. Exel Transportation Services Inc. Innogistics LLC Exel Delamode Logistics SRL Fulfilment Plus GmbH 4C Associates Ltd. DHL Container Logistics UK Ltd. Global Mail Services SAS Deutsche Postbank Group CC DE Sector Regional Focus: Acquisitions 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Region 4 3 3 3 Bank Germany US Rest of world 2012 2012 2012 2012 SA DE UK BE Logistics 2011 Mail Logistics Logistics 2011 CA Logistics CA Parcels Europe Business focus: Acquisitions US Logistics 1 2 3 4 5 6 7 8 9 10 11 12 13 2011 2012 20 11 2011 2011 intelliAd Media GmbH Adcloud GmbH Eurodifarm srl. Standard Forwarding llc Tag EquityCo Limited LifeConEx llc Post Logistics Australasia Polar Air Cargo Worldwide, Inc. DE DE IT US Information Information Logistics Logistics 2010 2010 US RO Logistics Logistics Area 1 10 2 Mail Information Financial services Other 2010 2009 2009 DE UK UK Warehouse Consulting Parcels & Express Logistics 2011 KY Logistics Effect on cash flow (â‚ ¬m) Shipping 100 2011 2011 US AU Logistics Logistics 2009 FR Mail 50 0 -50 -100 2010 Acquisitions 2011 Divestments 2012 009 US Logistics 2009 DE Bank Source: Deutsche Post DHL annual reports 2009-2012, IPC analysis Note: CC (country code) 15 IPC Carrier Intelligence Report – Deutsche Post DHL Product launches Innovations in parcels, freight forwarding and e-document management DHL Easy Return Product category Parcel return Description DHL Easy Return is a new parcel product introduced in September 2012 by DHL Global Mail, the DHL unit resp onsible for international mail and B2C parcels. Features includes software to create return labels via a web portal and Track & Trace functionalities.Retailers can now manage return volumes from almost all EU countries via a standardized process. Target group Retailers Read more Door-to-more Product category Freight forwarding Description In June 2012, DHL Global Forwarding, Freight, the air and sea freight specialist within Deutsche Post DHL, launched an intercontinental door-to-door distribution service from Asia-Pacific to Europe. Door-ToMore combines DHL's intercontinental air freight transportation capabilities with its European ground distribution network. Target group Suppliers Read more DHL Packstation mTANProduct category Parcel collection / security Description DHL Paket Deutschland introduced the mobile Transaction Number (mTAN) In October 2012 at all of its 2,500 parcel machines across Germany. The mTAN will allow users to pick up their items using a temporary code sent directly to their mobile, replacing the existing PIN code. Target group Parcel customers Read more DocWallet Product category E-document management Description Tablets and smartphones have become a fixture of modern life, being used more and more by people in their jobs. But until now, integrating mobile devices into a company's IT system has posed a security challenge.The DocWallet app is Deutsche Post's solution to this problem. Target group Business users Read more Source: www. dp-dhl. com Note: Where no English language webpage exists, hyperlinks above link to external translation. 16 IPC Carrier Intelligence Report – Deutsche Post DHL Key press releases 2012- 2013 Quarter 2 †¢ Manages vending machines in Switzerland Quarter 1 †¢ Improves flexibility for road freight services through mobile solution †¢ GoGreen carbon neutral feature added to DHL Express Envelope shipping option †¢ Improves carbon footprint with new multimodal service 012 Quarter 4 â₠¬ ¢ Deutsche Post and ADAC reviewing possible entry into German long-distance bus market †¢ DocWallet – The secure documents manager for the iPad †¢ First mechanized delivery site now running †¢ Issues three bonds worth a total of EUR 2. 0 billion †¢ Current level of globalisation still lower than precrisis peak †¢ Switches to Fitch Ratings †¢ Simplified authorization and more security for DHL PackstationQuarter 3 †¢ Razorfish to develop digital strategy †¢ Postal rates for 2013 approved †¢ Opens Energy Center in Houston, Texas †¢ Express unit announces annual general price increase for 2013 †¢ Launches European return service for online retailers †¢ Proposes rate increase for letters for 2013 †¢ DHL now delivering parcels to customer's outlet of choice in Germany †¢ 400 million euros invested in letter mail network †¢ DHL marks the start of a unique City Logistics project in China †¢ Acquires onl ine marketing specialist intelliAd †¢ Launches MyDHL to enhance customer experience †¢ DHL Vision Suite opened up at DHL Innovation Center †¢ Completes Postbank transaction †¢ Angela Titzrath to become Deutsche Post DHL's Board Member for Personnel †¢ State aid ruling of European Commission will not affect net profit Source: www. dp-dhl. com 17 IPC Carrier Intelligence Report – Deutsche Post DHL Key press releases 20112011 Quarter 4 †¢ Pay online with giropay – now available at DHL Checkout †¢ EU Commission praises SEPA migration in Germany †¢ Appoints new COO for DHL Global Forwarding †¢ Appoints new CEO for DHL Freight †¢ International award for Sustainability Report †¢ Cooperation with IBM on E-Postbrief †¢ Appoints new CCO for DHL 012 Quarter 2 †¢ Introduces new recall solution for the automotive industry †¢ Introduces new multi-modal solution from Asia to Europe †¢ German financial authorit ies decide on VAT payment †¢ Federal government demand for repayment of state aid set at EUR298 million †¢ European letter price survey for 2012: Standard letter in Germany still inexpensive compared to 29 other countries †¢ Corporate Responsibility Report 2011: improves CO2 efficiency index by two index points Quarter 1 †¢ DHL Vision Suite opened up at DHL Innovation Center †¢ Completes Postbank transaction †¢ Angela Titzrath to become Deutsche Post DHL's Board Member for Personnel †¢ State aid ruling of European Commission will not affect net profit Quarter 2 †¢ DHL expands service for the pharmaceutical sector †¢ European letter price survey for 2011 †¢ Roger Crook follows Hermann Ude as Board Member for DHL Global Forwarding, Freight †¢ DHL wins EUR 10. 6 million deal with KPMG and expands Singapore Aerospace Hub Quarter 1 †¢ European Enterprise Award for Deutsche Post DHL †¢ DHL Express with quality certification for all European and U. S. facilities †¢ Dedication to global data protection is a successQuarter 3 †¢ DHL acquires 100 per cent ownership of LifeConEx †¢ Extends board member mandate of CFO Rosen for another five years †¢ E-Postbrief to become part of Europe's largest corporate network †¢ Williams Lea acquires the world's largest independent marketing execution and production agency, Tag †¢ DHL provides CO2-neutral transport for all private customer parcels throughout Germany Source: www. dp-dhl. com 18 IPC Carrier Intelligence Report – Deutsche Post DHL Outlook & targets 2012- Outlook Strategic targets Deutsche Post DHL expects consolidated EBIT to reach between â‚ ¬2. 72. 95bn in financial year 2013, assuming the world economy and trade grows by approximately 3% and the economy picks up momentum as the year progresses The mail division is expected to contribute between â‚ ¬1. 1-1. 2bn to consolidated EBIT. Compared with the previous year , an additional improvement in overall earnings to between â‚ ¬2-2. 15bn in the DHL divisions is forecastUnder the direction of new Board Member for Human Resources, Angela Titzrath, the Group will aim to develop a global HR management system under the â€Å"One HR† programme The Group aims to maintain and improve its presence and growth potential in the emerging Economies of Brazil, Russia, India, China and Mexico (BRIC + M). The Group’s Board of Management receives regular updates on business performance in these countries In 2013 the Group plans to invest a maximum of â‚ ¬1. 8bn. In the coming years, the figure is expected to fall back to a normal level. The focus will continue to be on IT, machinery, transport equipment and aircraft. Crossdivisional capital expenditure is expected to decrease slightly in 2013.Investments will again be centred on our vehicle fleet and IT Finance: Group strategy calls for paying out 40 to 60% of net profits as dividends as a ge neral rule. At the AGM on 29 May 2013, a â‚ ¬0. 70 dividend per share proposal for financial year 2012 will be put to shareholders On 6 September 2012, KfW sold 60 million Deutsche Post shares. This was the first placement since 2006 and it reduced KfW’s stake to 25. 5%; free float increased to 74. 5% The German Federal Network Agency approved Deutsche Post’s request for an adjustment in postage rates for 2013. The price for a standard domestic letter weighing up to 20g rose from â‚ ¬0. 55 to â‚ ¬0. 58 on 1 January 2013 Source: www. dp-dhl. com, Deutsche Post DHL annual report 2012 19 IPC Carrier Intelligence Report – Deutsche Post DHLInternational Post Corporation â€Å"The Leader for Postal Industry Intelligence and Research† To be successful in the postal industry today, strategic decisions must be based on relevant and time-critical business intelligence. With a team of experienced managers and analysts specialising in industry intelligence a nd research, IPC is able to provide essential knowledge on trends affecting the strategic direction of the postal industry. IPC Carrier Intelligence reports provide critical intelligence on the business performance and strategies of 40 leading global postal and logistics operators. These reports can be downloaded from the Market Intelligence section at www. ipc. be. A range of member-only publications and online tools can be accessed by individuals working for IPC members. These include:Statistical Database An online tool allowing members to generate statistical reports according to a variety of criteria, including macro economic, market, postal financial and operational data Global Postal Industry Report An industry benchmark report providing a holistic and in-depth review and analysis of industry performance Focus on the Future Report A publically available IPC and BCG joint-publication that takes a detailed and in-depth look at the future prospects of the postal sector IPC Market Intelligence Global Monitor A quarterly report presenting detailed and up-to-date confidential information on domestic and international postal volume and revenue trends If you work for an IPC member and you are not already registered, please visit the member login page at our website. 20 IPC Carrier Intelligence Report – Deutsche Post DHL International Post Corporation Avenue du Bourget 44 1130 Brussels, Belgium Tel +32 (0)2 724 72 11 Fax +32 (0)2 724 72 32 www. ipc. be  © IPC 2013 Further IPC Carrier Intelligence Reports available at www. ipc. be

Hi: Strategic Management Essay

1. Company background and purpose a. General background of the company The HSBC Group is regarded as one of the largest financial and banking corporation in the global market. The Group has around 10,000 offices in 83 nations and territories in Asia-Pacific Refion, Europe, United States of America, the Middle East and Africa and the serves over 130 million customers with assets of US$ 2,354 billion as of December 2007. The Hong Kong ad Shanghai Banking Corporation Group was established in 1865 to finance the growing trade between China and Europe, and is one of the largest banking and financial services organizations in the world. Its international network comprises over 9,500 offices in 76 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East, and Africa (‘Who is HSBC?’ 2006). Through an international network linked by advanced technology, including a rapidly growing e-commerce capability, HSBC provides a comprehensive range of financial services, including personal financial services, commercial banking corporate, investment banking and markets, private banking, and other activities (‘Who is HSBC?’ 2006). b. Clear purposes of the case HSBC emphasizes the importance of building shareholders’ value, and believes in the values and talents of its own employees, which are employed and spread all over the world. HSBC wishes to stay ahead in a very competitive global financial market, and by maintaining a great brand name, an established customer base, good and loyal employees, tight control over operating costs and constant adjustment of business strategy to cater to customers’ needs, it maintains its success in its leadership position in Hong Kong’s highly competitive banking industry. With this success, this paper studies the strategic management of HSBC. 2. Industry and general environment a. General information on industry environment (Five-forces The state of competition in an industry depends on five basic competitive forces. With this, Porter’s 5-Forces Model is useful for understanding the context of the  industry, in which the firm operates (Porter, 1998). Rivalry In HSBC, this is caused by several factors, such as the presence of a larger number of firms that compete for the same customers and resources; low switching costs for a consumer can switch from one product to another; strategic stakes are high when a company is losing market position; a diversity of rivals with different histories, cultures, and philosophies; and industry shakeout. Similarly, HSBC also faces this factor since they have a lot of competitors in the banking and financial industry. In order to gain an advantage the company has to do some competitive moves. Threat of Substitutes Substitute products refer to products in other industries (Porter, 1998). The threat to HSBC is the emergence of competent rivals that provides the needs of the target market. In accordance to the threat of substitutes in HSBC, HSBC completely manages this factor to attain business success. HSBC, in its commitment to customers in the banking and financial industry, demonstrates value and return on investment. Buyer Power This refers to the impact that customers have on a producing industry. In HSBC’s customers, buyer power is strong, such that this could provide HSBC’s rivals with a strong and efficient business. In HSBC environment, the buyer power is the impact that customers have on a producing industry. As there are still only a few banking and financial industry who can compare to what the company has managed to achieve, the bargaining power of buyers is not as great compared to the following epoch, and, coupled with the industry being a key supplying group for the buyers, which in this case, are large companies and several high end individual customers, the bargaining power of buyers have notably not budged. Supplier Power The power of suppliers over HSBC is also strong, as it also contributes to the decline of the business of the company. Due to the increase of prices in the market, prices of raw materials also increases, thus, give additional  costs for the company. In this regard, some of HSBC’s suppliers of banking and financial industry components can possibly control their business operation. Barriers or Threat to Entry The economies of scale play a significant role in the cost of produce the product and service. Companies in the banking and financial industry have competitive fixed costs and spend relatively large on plant and equipment. Moreover, competitors in the industry are not likely to cut their price to defend their market position. In an industry experiencing fast market growth, patents, proprietary knowledge, and brand reputation are also considered as barriers for companies entering the industry. b. Any opportunities & threats? Opportunities – Sustainability reporting requirement by government to companies thus increasing opportunity of banking institutions. -Growth by increasing market share through mergers and acquisitions within the industry. -Develop new products and services which link to changing people’s needs and services -Incorporate new technologies in production to stay ahead of the competition Threats The following are the threats of the company: -Economy – due to Expensive borrowing -Expansion, Mergers and Acquisitions of HSBC may lead to failure -Competition – other major companies entering the market could affect their revenue -Rules and Regulations of different countries 3. Internal activities a. What are primary & support activities within the firm? In HSBC, their strategic management can be analysed through the management program that they implement in the latter part of 2003, which is the Managing for Growth programme. Managing Program is a strategic plan that provides the company with a blueprint for growth and development from 2003 to 2008 (‘Strategy’  2006). This strategy builds on the company’s strengths and addresses the areas where further improvement is considered both desirable and attainable. HSBC’s core values are integral to its strategy, in communicating them to their clients and other stakeholders comprise an emphasis on long-term, high productivity through teamwork, ethical client relationships, an ambitious and confident sense of excellence, being international in its image, prudence, creativity and customer-oriented marketing HSBC, 2008). In addition, there are various elements in attaining HSBC objectives, and these involve accelerating the growth rate of revenue, enhancing brand strategy further, developing productivity, and maintaining the industry’s prudent risk management and strong financial advantage. Developing the skills of their employees is also given emphasis to ensure that all employees understand how they can contribute to the successful achievement of HSBC’s objectives (‘Strategy’ 2006). b. Any strengths and weaknesses? Strengths: – ensure corporate responsibility and business ethics therefore customer confidence is high -Highly experienced management and staff available in the market -Growth by increasing market share through diversification of products that supports sustainable development -Able to promote several products and services that meet the needs of the customers Weaknesses -Barriers to expansion due to environmental regulations by governments -Licensing problems -Highly competitive market -Raising money from banks rather than shareholders. Banking and financial products and services have become an important industry player by investing in diversified products and services, 4. Competitive Environment a. How do the firms compete/take competitive actions/responses? The company is experiencing different problems with competitors and its standing in the industry is down. But given the proper use of their strategic management they have, the company are able to stay in the competitive market. The company has competitive advantage over banking and financial  industries. One of the aspects of strategic management of HSBC is its brand name. The competitors i The company is known as one of the established baking and financial industry in the global market. People easily recognise the company and the different products and services that they provide. They can easily think about the company when banking and financial matters are mentioned. Another strategic approach of the company is its image with the clients. The company is known as a banking industry that provides excellent service to the clients. This can be proven by the frequency of visit clients do to the company’s branches and other marketing venues. Moreover, strategic management of the company is its increasing venue of marketing their products and their services. The company is taking steps to ensure that their products and services can reach more people at more locations, hence company engaged in having more branches at different places. The company also made use of the internet and created a website that more people in the world can use to transact with the company. Lastly, a strategic approach of HSBC is the wide range of business venture they are engaging in. The company is currently engaging not only in banking and financial aspects but in other relevant industry 5. Strategic intent and mission/vision a. Purposes of the firm Based on the given case, the strategic intent of HSBC is to become the number one choice of the customers for the banking and financial services needs. The company’ products and services have been made to provide more convenience for customers. b. What goals to be achieved? The goal of the company is to provide quality banking and financial products to their target market while providing values to their employees, management and shareholders. Their goal is to reach more customers all over the globe through their online transactions and website. c. Any formal mission/vision statement? The company’s mission statement is to be one of the globe’s great specialist banking groups that is driven by commitment with their values and philosophies. The company envision to lead in the global market and deliver  an excellent client experience based on their outstanding sales, services and solutions. In addition, the company aims on achieving superior, long-term and ethically based return for their shareholders and building highly motivated high performance teams and creating challenging, rewarding and convenient environment for their employees. 6. Strategy formulation a. Ask the following questions: i. Business-level strategy In terms of business-level strategy, it is said that HSBC is keen on expanding their business portfolio to small and medium-sized enterprises which they considered as an essential market segment to HSBC groups. In addition, their business level strategy is to provide value to internal stakeholders of the company such as employees and shareholders. ii. Corporate level strategy HSBC Holdings complied with the entire applicable code provisions of the host country regulations on their corporate governments. In terms of corporate level strategy, the management see to it that they adhere to their corporate responsibility to the community and that they are able to adhere to their corporate governance policies. iii. Cooperative strategy In terms of cooperative approach, it can be said that the entire management have a good relation with shareholders and their customers. They also cooperate with government institutions to ensure that they always adhere to the needs and demands of their clients. iv. Others i.e. acquisition, joint venture etc To expand their business portfolio, HSBC attempts to acquire various industries in different country. Merging and acquisition to existing industries in a specific nation is the approach use by the company to enter the foreign market. In addition, merging and acquisition enables the company to expand their groups and provide more diversified financial products and services. 7. Strategy implementation a. How does the firm implement the chosen strategies? The firm implements their chosen strategies by using an intensive strategic planning. In addition, the firm also implements their chose strategies  through their management team and leaders. Accordingly, the presence effective and efficient leadership in today’s organization imposes a great responsibility to the organization’s team and management networks as leadership implies the overall capacity of the organization’s performance like for instance, in terms of operations and research development. b. How effective? Based on the given analysis, it can be said that the implementation of the business approach of HSBC has been effective because of its strong competitive advantage and position in the marketplace today. The use of strategic planning helps them to monitor their strategic implementation. c. Evaluation of action plans/tactics (key actions) The action plan of the company has been able to lead them in having competitive advantage in the global market. With this information, the company must continue to find innovative strategic programs and relate effectively to other companies in the global market. The company must efficiently and effectively create a good relationship with their customers and shareholders, to continually operate. HSBC must continually conceptualize and implement strategic management approach to be able to set trends in the banking industry. Aside from developing marketing strategies, the company must focus on building employee and customer relationships, in accordance to strategic marketing concepts, for it is essential to determine and focus on the needs of the customers, as customers are the reason for being alive in the business and marketing industry. 8. Summary a. Key current situations The current situation of the banking industry can be considered to be impacted by the growing issues in the global market, such as the sub-prime crisis. The global presence of an organisation, in this case, the HSBC Bank, has been due to the strategic management and business approaches of the company. It is important to note that with globalisation and with the current rate of advancement in technology, there is an increasingly bigger chance of getting the entire firm’s marketing message through to the target  markets with the utilisation effective strategic management. As discussed, the wise use of a strategic management as well as information technology could either attract or lose existing and potential customers. The strategic marketing and management approach of the firm, therefore, need to be consistent with what was preset as marketing objective of the firm and in an industry as provision where innovations are an edge, this is very vital. b. Future of the firm It can be said that the global market provides opportunities for the baking industries to develop relationships with their stakeholders it has been found that the number of competitive moves increased as issues and problems in the global market arise. It becomes more important to manage relationships as competition increases through the use of e-commerce. It can be stated that the most effective strategy for HSBC can use in the future is a collaborative one with their channel partners. In addition, another future strategy of the company is to use integrated marketing communication to reach more clients in the global market. Reference David, F.R. (1999). â€Å"Strategic Management, Concepts and Cases,† 3rd ed. Prentice-Hall, Inc. David, F.R. (2001). Strategic Management: Concepts and Cases. 8th ed. Prentice Hall, Inc: Upper Saddle River, NJ Drejer, A. (2002). Strategic Management and Core Competencies: Theory and Application. Westport, CT: Quorum Books. Elkin, P. (1998). Mastering Business Planning and Strategy: The Power of Strategic Thinking. Knod, E. & Schonberger, R. (2001). Operations Management: Meeting Customers’ Demands. 7th Edition. Boston, MA: McGraw-Hill Irwin. Neumann, E. & Sumser, R. 2002, Marketing Communications: A Vital Element of Achieving Change. The Public Manager, 31 (4), 9+. Proctor, T 2000, Strategic Marketing: Case Questions 1. What is the firm’s competitive strategy? 1. In accordance with the case study to the business approach and strategies of HSBC it can be said that the company has been able to continue to grow and expand their business in the global market. It can be said that HSBC has been able to use various strategies which enable them to sustain their competitive position in the global market. Based on the conducted reviewed in the previous section, it can be said that HSBC strategy includes differentiation approach and innovative approach. 2. The company has been able to have a sustainable focus on their core business values ensuring that their goals, objectives and mission are achieved. In addition, the company has been able to sustain good relationship with its target market and all other stakeholders and the company focuses itself on satisfying the costumers by providing them quality products and services in the online. The ability of the management to manage their financial resources and limit their expenses to sustain their needs f or expansion has also been considered as one of the capabilities that sustain their competitive advantage. The strategies used by the HSBC include Intensive strategy, which aims to competently position and promote their products and services in the global market. The industry has also utilized the Integration strategy and forward integration in order to promote and closely manipulate where all the HSBC products and services are being sold. To improve financial performance, the company sees to it that they utilise all their resources in a manner that  will be beneficial to enhance the performance of the company. 3. Based on the given case, it can be said that the two resources and capabilities of HSBC includes their flexibility and innovation strategy. It can be said that the ability of the company to expand their business is through their ‘flexibility and innovation’ which enable HSBC to counter the risks of erosion and losing of their competitive advantage. In order to cope with the various influences and effects of market environment changes, and to sustain their competitive advantage, the management of HSBC has been able to improve and expand its organisation so as to conduct business operations and activities on a global sc ale which include the expansion of HSBC through the online presence of the brand in different parts of the world. Herein, the management of the company has been able to improve their organization structure its organisational structure to achieve their organisational objectives. In addition, the improved organisational structure is done in order to initiate speedy and flexible measures in managing their internationally diverse employees. 4. The management of HSBC has also been able to focus on their research and development department and to initiate innovative strategies designed to provide a competitive advantage and edge in the marketplace. As business gravitates towards a global scale, entrepreneurs find themselves faced with the challenge of producing new and better products at reduced cost and market price. Daft (2003) pointed out that in managing a global environment, managers of HSBC must be characterised by the ability to bring about change through innovation and creativity. Further according to Daft, a revolutionised manager sees change, rather than stability, as the nature of things (2003). Innovation as a ground for doing business in the 21st century will be the consistent tugging force that the organisation must either strive to adopt or suffer the consequences of being left behind by competitors. In addition diversification approach is also considered by HSBC to ensure having sustainable competitive advantage. Part of the diversification is to generate new coffee products that would meet the needs of the consumers in various parts of the world 2. What is the Strategic intent of the company? 1. HSBC strategic intent is to provide more options for their clients  by partnering with other international and local banking and financial industries. The company also diversified their offerings to different products, services, categories and other physical assets. Furthermore, based on the given case, the company’s strategic intent is to sustain their competitive advantage by compelling what the needs and demands of their target market and expanding their business portfolio in the global market. The company’s strategic intent is to do their business in a slow but sure manner by becoming innovative in what they are offering for the customers. 2. Another strategic intent of HSBC based in case is its goal to be recognised and respected as a global banking and financial institution and brand and to dominate the global market through their high quality product and service offerings. As discussed in the case study, the strategic management of HSBC have been focusing on how the products would gain interest from their target market and how they can be able to generate sales with their products. This is HSBC’s stronghold where it continues to yield strong sales revenue by leveraging off its excellent branches in different locations. strong brand name and excellent reputation among customers. HSBC has also been continuing to create affiliate websites to expand their business market among various consumers. 3. Another strategic intent is with regards to the achievement of their mission and vision by giving priority and values to their shareholders and customers. Based in the case, HSBC is committed to their mission of being the number one choice of the customers in their banking and financial needs. With custsomers increasingly willing to switch banking companies because of the wide variety of choice available, it is of paramount importance that the company would stick to their strategic intent and used effective approach o promote excellent marketing strategies. Its importance as possibly a bank interface could also be exploited by the industry. Since the homepage is the first thing that the users saw upon entering the website, it also was the most critical aspect on the site, where the customer should get an idea of what the site is an about and where to go within the site. All the graphic elements noticeable in most all of the reviewed websites apparently serve a purpose–to solidify the direct relationship between the customer and the brand and to make use of the visual attraction vital to clients’ decisions.

Operations Decision Essay Example | Topics and Well Written Essays - 1000 words

Operations Decision - Essay Example The company has got systems and strategies which assist their clients meet their goals and objectives. XYZ Inc. has in the past adopted a partnership approach to ensure that they work closely and optimize customer contact strategies to live their clients satisfied, increased revenue and with advanced competitive advantage. The company has assisted a number of businesses to develop software’s that fits their operations and also get them new markets. With the designed outbound solutions the company helps cover full spectrum of the clients products with the mind that there are the voice of the clients’ products. Evaluation of Performance Through its various products, the company aims ensuring customer satisfaction through well managed reduced costs by optimizing the business process to support clients. XYZ Inc. has also developed mechanisms to help customers adopt those strategies that ensure valuable long term relationship with their clients. All these strategies have hel ped XYZ Inc. to remain on top of the game and high speed expansion to a number of countries across the globe. Environmental scanning involves study and in-depth interpretation of factors such as political, economical, political, social and technological events which impact the performance of a business. The analyses of these factors are very important as they help determine whether the company should remain in operation or not. Some of the political factors which can influence manager’s decision include taxation policy, trade regulations, government stability and unemployment policy. Given that XYZ Inc. operates in many countries the management is always keen about various regulations. The instability in Syria currently influenced the closure of the offices in that country. Economic factors are also very important in influencing management’s decision. Some of these are inflation rate, recession and customer liquidation. These factors usually influence the way performan ce as it dictates the company’s sales. Socio-cultural factors that influence the management’s decision include age distribution, religion, education levels, life expectancies, population, and income level. The social factors are important as it dictates the purchasing power amongst the clients. When the socio-cultural factors are healthy and favorable in an economy then the power of the targeted clients to buy will be higher. Technology is very important given that XYZ Inc. deals a lot in technological related services. It usually dictates whether the company is in a position to meet the client’s needs. Some of the technological factors include technological changes, improved distribution channels, improved communication skills. Finally the legal and environmental factors which can also be important to the management include; health and safety law, product safety law, advertising regulations law and the labor laws. All these factors are very important in influen cing the management’s decisions on either to shut or remain in operation. Total Variable Cost = (Number of Employees X Employees Daily Wage) + Other Variable Costs = (100 X 70) + $2000= $9000 Total Cost = Total Variable Cost  +Total Fixed Cost = $ 9,000+ Fixed Cost Worker Productivity = Units of Output per Day / Number of Employees 6,000 units in 20 days= 6,000/20=300 per day 300/100= 3 Total Profit/Loss = Total Revenue –

The Basis of Sex Education Essay Example | Topics and Well Written Essays - 750 words

The Basis of Sex Education - Essay Example What is important here is how well the politicians and celebrities keep their profiles in an easily identifiable manner and what they are doing to make sure that their acts are given the proper leverage that they would like to receive at the hands of the common man and woman on the street. The debate has more feet than one can think of. This is because the people at the helm of affairs within the imparting of sex education have not been able to decipher the true representation and depiction of this form of knowledge which the children of present times should have for their respective personal careers. This would keep them aware of how others can take undue advantage of them and what they must do to make sure that the negativities remain at a fair enough distance from them. This debate has weight because the role played by the politicians and celebrities is not a good one since they are indulging in acts of a sexual nature, which would in return mean that the teenagers would not mind getting into the same as well. There has to be a dis-associative feeling attached with such a notion in order to bring the debate under wraps and to find a solution in the end. There is a great amount of evidence available which suggests that sex education should be kept at a safe distance from the shores of the schools and colleges, which is indeed a much debatable aspect of the subject at hand. This is because sex education domains have only helped the students to grow and develop as a whole. It has asked for their continuous improvement in terms of mental levels and understanding of sensitive issues which they might know come across if they were not subjected to education ranging from a sexual nature. The sex education realms are therefore very closely attached with how well the celebrities and politicians manage their respective selves. If they do not concentrate on hiding their respective sexual acts and involve within such acts, it would mean there are problems of a magnanimou s nature and the sex education debates would continue to exist in the coming times as well.     Ã‚  

The Role Of The Born Global Firms In International Business Assignment

The Role Of The Born Global Firms In International Business - Assignment Example b) Globalization and born global businesses are highly related to each other. One is the cause of the emergence of the other. Both the emerging globalization and the born-global businesses share some common issues with each other. Here, the issues found in the article have been briefly discussed.ïÆ'Ëœ Trade barriers are totally removed from most of the European economies of western countries. There each of the companies from domestic to international all of them competes with each other according to their potentiality.ïÆ'Ëœ The emerging industrialization, as well as modernization, caused globalization in the eastern economies like India, China. This indirectly helps the born global firms of the European countries to get a global market for performing their business.ïÆ'Ëœ It has also been observed nowadays, that the regional integration like NAFTA and the European Union has massively increased, which made easy for a born global firm to expand its business internationally (Case 1).à ¯Æ'Ëœ The growing integration in the global financial market has made the born global businesses more effective in the emerging economies. When the European countries would suffer from the debt crisis, the born global firms of those countries were much concerned to expand their business initially in the developing economies so that they can give potential threat to their American rival in the global financial market.Q.2. The smuggling business is growing rapidly among the spiritual Syrian people

What the Arab States Can Do To Help Bring About Perpetual Peace Term Paper

What the Arab States Can Do To Help Bring About Perpetual Peace between Israel and the Palestinians - Term Paper Example Sadly, continued state of war is what brings Palestinians together and so they consider war to be the safer choice as opposed to perpetual peace. The Palestinian leadership has remained strong to demands they are sure will never be acceptable to Israel because they believe that negotiating peace with Israeli will probably end the Palestinian entity and it will disintegrate what holds the Palestinians together hence leading to loss of political control and cohesion. Therefore, according to Palestinian leadership, creating peace with Israel will only bring suffering to the Palestinians and so they feel safe with a perpetual state of war. 11 The rivalry between the Israeli and Palestinian has attracted the establishment of many agreements, but none has succeeded in bringing peace between the two states. Arguably, Israel and the Palestinians have mutually conflicting national interests, which are very difficult to be reconciled, and in both cases, these interests have a wide consensus. The Palestinian side focuses on an independent and autonomous state from which, it can establish a strategy aimed at eradicating Israel altogether, regain the East Jerusalem and eliminate all the settlements. On the contrary, Israeli’s side mainly stands against allowing Palestinian refugees to go back to their nation and division of Jerusalem. For this reason, Israel has been attacking and terrorizing Palestinians and killing innocent children. The conflict between Israel and the Palestinians seem to last for long especially after the failure of several peace interventions and this has attracted further research on how to terminate conflict and reconcile the two regions and specifically, what other Arab States can contribute to resolve the issue. A qualitative research methodology is conducted in assessing what Arab States should do to bring peace between Israel and Palestine. In this case, the proposal will utilize a review of

Effect of inflation on USA Essay Example | Topics and Well Written Essays - 3250 words

Effect of inflation on USA - Essay Example Inflation is a depreciation of money, reducing their purchasing power. Inflation can be the result of a decrease in the production of goods produced at constant quantity of paper money. It is accompanied by higher prices and the lowering of living standards. But not every lowering of prices is a measure of inflation. Prices may rise because of the deterioration of product quality deterioration in the terms of the extraction of fuel and raw materials, changing societal needs (Thorp, 1981). Some economists believe that inflation should be understood by the raising general level of prices in the economy. Inflation is a healthy reaction to the economic organism caused financial distress, the attempt to overcome it, to reach equilibrium state between goods and money supply and demand. Inflation is reflected in excessive buying demand, the causes of which are caused by the proposal as well as demand. Certainly the drop in purchasing power of money closely linked to price increases. For example, in 2006 consumer prices (CPI index) in the United States in January rose by 0.4% compared with the previous month, Bloomberg News reported with reference to the countrys Ministry of Labor data. Analysts expected this figure to increase 0.3%. Prices excluding the cost of fuel and foodstuffs (Core CPI index) last month increased by 0.3%, which was the maximum recovery from June 2006. Experts predicted an increase of 0.2%. According to the revised data, in December, inflation stood at 0.4% for November, rather than 0.3% as previously reported. Accelerating inflation reflects a rise in prices of food, energy and clothing. Guidance Federal Reserve System (FRS), the United States, it can no longer be neglected problem of inflation in deciding on the level of basic interest rate in the near future. Inflation in the eurozone slightly dropped in March 2006 following the decline in growth in