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Decision Making in DHL

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Decision Making in DHL
Introduction:
DHL commits its expertise in international express, air and ocean freight, road and rail transportation, contract logistics and international mail services to its customers. A global network composed of more than 220 countries and territories and about 275,000 employees worldwide offers customers superior service quality and local knowledge to satisfy their supply chain requirements. DHL accepts its social responsibility by supporting climate protection, disaster management and education. DHL is part of Deutsche Post DHL. The Group generated revenue of more than 53 billion euros in 2011.
I will be discussing DHL from many aspects such as decision making and its effect on the organizational performance from the perspective of Cyert & March and compare it to Bursson theory. Also I will cover Zimmermen theory about rules and apply it to DHL case study. Finally I will examine the macro environment of DHL organization.

Body:
DHL was the global market leader in international express shipping, overland transport, and air freight, as well as ocean freight and contract logistics. As of April 2011, its network covered more than 220 countries and territories worldwide in 120,000 destinations. It had many awards to its credit (Refer to Exhibit I for the details of awards won by DHL). According to Ken Allen, CEO, Express Division, DHL, “The express sector is one of the major drivers of global trade and we are excellently positioned to capitalize on this through our services which meet our customers’ domestic and international transport requirements, anywhere around the world.”

Formal organization has its own specific function or functions. A university for example has the main function of promoting education. But it also promotes artistic, literary, athletic and other interests of the members. The principal function of the church is religion but it also promotes charitable, ethical, athelitic, recreational, educational and other activities. Thus the



References: * Salaman, G. (2002) Decision Making for Business, London, The Open University/The Alden Press, Oxford. * Salaman, G. (2001) Business Behaviour in a Changing World: Module One Study Guide, London, The Open University. * http://www.dhl.com.kw/en/about_us.html * http://en.wikipedia.org/wiki/PEST_analysis * http://www.sociologyguide.com/organization-and-individual/formal-organizations.php

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