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Essay / Research Paper Abstract
A 3 page paper that discuses DHL's current problems. The essay begins with a report of how DHL was founded and when it was aquired by Deutsche Post World Net. The writer discusses the continuing losses in the U.S. market and what DHL is doing to overcome those issues. Bibliography lists 5 sources.
Page Count:
3 pages (~225 words per page)
File: MM12_PGdhlup.RTF
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Unformatted sample text from the term paper:
(DHL, 2008). The service transported cargo from San Francisco to Honolulu with the owners flying the cargo themselves (DHL, 2008). DHL became a wholly-owned subsidiary of the Deutsche Post World
Net in Bonn, Germany in 2002 (DHL, 2008). Today, DHL branded business operations account for more than half of the Deutsche Post AGs revenue (Woodruff, 2008). The company has
been challenged with lower sales in the United States in recent years. Major competitors FedEx and UPS have gained more market share leading to losses for DHL. In a move
to offset the losses, DHL purchased Airborne in 2003 but found that this acquisition did not help the company (Hannon, 2008). That acquisition was part of the corporations restructuring plan
only to find that Airborne did not really provide any type of competitive edge in the U.S. (Hannon, 2008). The corporation spent 1.05 billion to acquire Airborne for the purpose
of increasing its ground deliveries and then, spent another 1.2 billion upgrading its network in the U.S. (Watson, 2008). But, it didnt work, in fact, in 2008, losses are expected
to exceed $1.3 billion, a loss that would be reduced to about $300 million in three more years (Watson, 2008) but this was too much. DHL does not have any
problems in terms of labor supply. There is no shortage of labor. They had some problems with the union a few years ago but those were resolved. The company has
been faced with greater competition, higher costs and lower sales. So. labor supply has nothing to do with DHLs problems over the last several years, the company has more than
enough employees. As stated, the problem is lower sales in a more competitive market leading to lower revenue. Bradley (2008) reported that towards the end of May, DHL executives "acknowledged
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