Critical issues in the case study

DHL Case Study

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nCritical issues in the case study

nIn 2008, the CEO of DHL Express communicated the resolution of the company to terminate business in the US markets. The firm noted that the local parcel market registered losses for more than 6 years. The decision to close business in the country was a major source of concern because the firm employed a large number of people, which could be adversely affected by the business (Walker, 2014). In addition, the firm noted that it would proceed with its operations covering the US and other countries although it dropped key domestic-only operations in the ground and air services within the US starting from January 2009. The most critical issue is that the decision caused massive loss of jobs in the country at the time when it was grappling with economic crisis. More notably, DHL caused loss of over 9,500 jobs in the country (DHL Express, 2017). The layoffs caused closure of over 300 DHL stations in the US. The decision was informed by the fact that it required to initiate a turn-around strategy to organize itself for economic challenges in the future.

nAppropriate sequence of shutting down business

nDHL failed to use appropriate sequence of events to announce the end of domestic-only operations in the United States and the subsequent shutdown. The company should have announced earlier in order to give room for employees to adjust for the layoffs (MacGillavry & Wilson, 2014). Additionally, the notice to shut down its operations should have taken time because the resolution affected thousands of people (MacGillavry & Sinyan, 2016). More time before shutting down help the stakeholders such as customers, employees and suppliers adapt. Therefore, it should have taken longer time after announcement to close down the business operations.

nThe need to communicate to its non-US customers

nDHL should communicate the advantages or benefits and key quality services to non-US customers aiming to guarantee viability of its new e-commerce trade model. International business requires the company to win the support of customer (MacGillavry & Sinyan, 2016). Therefore, by communicating the benefits and quality services, DHL Company is able to enhance customer experience, customer service, and satisfaction. Moreover, it would be able to deal with emerging customer concerns and complaints and deal with turnover. Similarly, such actions facilitate improvement of the market share (MacGillavry & Wilson, 2014).

nThe need to take action in Wilmington, Ohio

nThere was need for DHL to take action in Wilmington, Ohio because the town –having a population of 12,000 people, was the headquarter of DHLs ground and air operations in the United States. In addition, about 33 percent of households in the town worked in the company (MacGillavry & Wilson, 2014). Therefore, the closure of business affected large number of persons who depended on the firm both directly and indirectly. Furthermore, parcel shipper were left at the mercies of DHLs competitors such as UPS Inc. and FedEx Corp. in order to reactivate the economy of the Wilmington, the company need to convert its former international and domestic shipping hub into a global logistic hub connected to China. In so doing, it can sustain its operations in the town serving as airfreight facility (MacGillavry & Sinyan, 2016). It should also establish aircraft repair and maintenance operations in the city in order to cushion the people against job losses.

nResponsibility to its employees and the communities

nDHL bears corporate responsibility towards its employees and communities. For instance, the company has a role of supporting volunteerism of the employees especially in the International Volunteer Day. Moreover, it encourages employees engagement, which promotes social commitment for its employees. In this regard, it focuses on solving the difficulties experienced by the employees (DHL Express, 2017). In so doing, it builds the spirit of teamwork and community that is passed over into the workplaces. On the other hand, it meets its obligations in the community through environmental protection, education, and disaster management (Walker, 2014).

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nReferences

nDHL Express. (2017). DHL Express U.S. Certified as Great Place to Work. Businesswire.com. Retrieved 6 October 2017, from HYPERLINK “http://www.businesswire.com/news/home/20170612005158/en/DHL-Express-U.S.-Certified-Great-Place-Work”http://www.businesswire.com/news/home/20170612005158/en/DHL-Express-U.S.-Certified-Great-Place-Work

nMacGillavry, K., & Sinyan, P. (2016). Focusing on the Critical Link Between Employee Engagement and Customer Centricity at DHL Freight. Global Business and Organizational Excellence, 35(4), 6-16.

nMacGillavry, K., & Wilson, A. (2014). Delivering loyalty via customer experience management at DHL Freight. Global Business and Organizational Excellence, 33(6), 6-20.

nWalker, R. (2014). Strategic management communication for leaders. Nelson Education.