NATIONWIDE EXPRESS COURIER SERVICES BERHAD: A CASE
The objective of this paper is to demonstrate the integrative linkage between Strategic Management and the Human Resource Management of Nationwide Express Courier Services Berhad. The Lewin-Schein change model was applied as the theoretical framework to identify and analyze the strengths and weaknesses of Nationwide Express as well as the threats and opportunities of the company. A short interview was done to complete this paper. Keyword
Strategic management, strategy formulation, strategy Implementation, strategy evaluation.
Rapid environmental change, globalization, competition to provide innovative products and services, changing customer and investor demands have become the standard backdrop for organizations. To compete effectively, firms must constantly improve their performance by reducing costs, enhancing quality, and differentiating their products and services (April Chang and Tung Chun Huang, 2005). The effort to develop linkages between business and personnel management in firms is not a new one. In fact, the whole issue of human resource management was raised at the beginning of the 1980s in terms of the need to look
at the traditional personnel issues, such as selection, training, compensation, etc.
, from a strategic perspective.
“Strategic” usually referred to a longer and broader perspective, and to high
organizational level decision making (Arja Ropo, 1993). The term strategy has been defined in a variety ways. In business environment, strategy can be defined as integrated decision, actions, or plans designed to set and achieve the organizations’ goals. Strategic management is the set of managerial decision and action that determines the long-term performance of the organization. It includes environmental scanning both external and internal, strategy formulation strategic or long range planning, strategy implementation, and evaluation and control. Based on the theoretical framework of LewinScheinhe, the strategic management process consists of three basic elements: strategy formulation, strategy Implementation and Strategy Evaluation as shown in Figure 1. In order to complete this study, we have decided to apply this model towards Nationwide Express Courier Services Berhad.
Figure 1: Theoretical framework of Strategic Management by Lewin-Scheinhe
2.0 BACKGROUND OF COURIER SERVICES IN MALAYSIA
A courier is a person or a company who delivers messages, packages, and mail. Couriers are distinguished from ordinary mail services by features such as speed, security, tracking, signature, specialization and individualization of express services, and swift delivery times, which are optional for most everyday mail services. As a premium service, couriers are usually more expensive than usual mail services, and their use is typically restricted to packages where one or more of these features are considered important enough to warrant the cost. Different courier services operate on all scales, from
within specific towns or cities, to regional, national and global services.
Courier services in Malaysia are relatively young. In the early 1970s, foreign companies such as DHL and OCS beginning their operations in Malaysia. The first local courier company to operate in Malaysia is City-Link Express (M) Sdn Bhd which began its operations in 1979. This was followed by ABX Express (1984), Nationwide Express (1985). POSLAJU (part of the Pos Malaysia) and UPS appeared in the scene in 1988. FEDEX came in 1991. In 1997 a local outfit GD Express began operating. Today the domestic courier service is mainly dominated by City-Link Express, Nationwide Express and GD Express (GDex). Both Nationwide and GDex are public listed company while City-Link Express had remained firmly in the hands of its founder, David Tan (Sources from: Wikipedia). According to Malaysian Communications and Multimedia
Commission, 114 of license of courier service provider were issued as at June 2011 (Figure 2).
Figure 2: Number of Courier Licenses
Nationwide Express Courier Services Berhad was found in 1985. Nationwide Express was one of the first few locally established companies in Malaysia, with its principal activity being that of a courier service provider. Supported by more than 1,600 dedicated employees, 240 fleet of natwide mobiles and 500 motorbike couriers, it meets the demand for door-to-door fast, efficient and reliable service for speedy transfer of lightweight and high value goods between locations.
Nationwide Express has been ranked as the most preferred courier company in an independent survey carried out by Malaysian Communication and Multimedia Commission (MCMC). Nationwide Express has also been awarded the Best Malaysia Brand 2004 in the logistics category at the International Brand Consumer Fair (IBCOF) 2004. They were also successfully selected as the 2005 Superbrands of Malaysia and recently won the Brandlaureate 2006/2007 for being the Best Brand in Courier – Logistics (Malaysia).
Nationwide Express main hub is located at its Head Office in Shah Alam, Selangor. They are handling over 50,000 packages per day and with ongoing of facilities and it may handle up to 70,000 pieces of packages daily. With over 118 locations, Nationwide Express has the most comprehensive and extensive
network in the whole of Malaysia. They have centers where it is strategically located in virtually every town dotted along the length and breadth of the Peninsular and East Malaysia, Brunei and Singapore.
3.1 SUBSIDIARY COMPANIES
The core business of this company is a courier service provider. It meets the demand for fast, efficient and reliable service for the speedy transfer of light-weight and high value goods between locations. As to date, it has a total of 180 networks, comprising of branches and agents all over Malaysia, Singapore, Brunei Darussalam, Thailand and Saudi Arabia. It has six subsidiary companies under the Nationwide Express Group as shown in Figure 3.
Figure 3: Subsidiary Companies of Nationwide Express
Freight Forwarders Sdn
Logistics Sdn Bhd (NEL)
Courier Pte Ltd (NECPL)
Metro Sdn Bhd (NEM)
Distributions Sdn Bhd
Retail Sdn Bhd (NER)
3.1.1 Nationwide Express Freight Forwarders Sdn Bhd (NEFF)
NEFF is a cargo forwarding solutions including warehousing,
freight, pick and pack, forwarding, trucking and customer
clearance via land, sea or air.
3.1.2 Nationwide Express Logistics Sdn Bhd (NEL)
NEL is a set of services to cater for client’s special requirement excess baggage to all destinations and a special package for Haji and Umrah.
3.1.3 Nationwide Express Courier Pte Ltd (NECPL)
Instantly respond to the customers’ urgent collections and delivery instructions, adhere to rigorous express service
standards of 24 hours deliveries within Peninsular Malaysia and 48 hours to East Malaysia for the courier products and solutions.
3.1.4 Nationwide Express Metro Sdn Bhd (NEM)
NEM is a service designed for high value items. High value
items are handled by Special Delivery Department dedicated to ensure high value items are securely delivered utilizing special unit, separate sorting hub and special fleet of vehicles with guards, GPS and other security devices.
3.1.5 Nationwide Express Distributions Sdn Bhd (NED)
NED is a new service provided by Nationwide Express and will be implemented by nationwide as one of their strategic planning for the future business expansion.
3.1.6 Nationwide Express Retail Sdn Bhd (NER)
Nationwide Express Retail Boutique Outlets acts as a one-stop solutions provider for the customer with diverse expectations and demands.
4.0 STRATEGY FORMULATION
The first element of the theoretical framework of strategic management by Lewin-Scheinhe is strategy formulation. Strategy formulation is the development of long-range plans for they effective management of environmental opportunities and threats, taking into consideration corporate strengths and weakness. It includes defining, developing and reviewing the corporate vision and mission, specifying achievable objectives, developing strategies and setting policy guidelines.
4.1 REVIEW OF THE VISION STATEMENT
The vision statement of the Nationwide Express Courier Services as stated in their Annual Report 2011 is:
“To be the premier total logistics provider globally providing innovation in services with the State Of The Art Technology”.
In our opinion, the current vision statement of Nationwide Express is good. However, in preparing a vision statement, an organization could also take the meaning of each word into consideration. This is to ensure that public will easily understand the true vision of the company that have to be transform into sentences that consist of various words. The proposed vision statement for Nationwide Express is:
“To be the world No. 1 logistics provider in the ocean freight and contract logistics by providing innovation in services with the latest and highest standard of technology”.
4.2 REVIEW OF THE MISSION STATEMENT
The mission of the company is DELIVERS. Each of the alphabets represents the following statement:
Efficient & excellent service
Intimacy with business partner
Exceed customer expectation
Respect for personal dignity
An organization’s mission is its purpose, or the reason for its existence. It states what it is providing to society .A well-conceived mission statement defines the fundamental, unique purpose that sets a company apart from other firms of its types and identifies the scope of the company’s operation in terms of products offered and markets served. In order to develop the good mission statement, nine components should be evaluated as shown in Table 1.
Table 1: Components of Proposed Mission Statement
Provide the efficient and excellent service to meet the high level of customer satisfaction.
Product and Services
Courier service provider
Malaysia and over the world
Use the high standard of technology
Concern for survival,
Strive in consistently produces healthy financial standings for all
growth and profitability
stakeholders while keep holding on the strong believe that every stakeholders’ satisfaction ensured excellent business and organization performance.
A promise delivered
Business to business
Concern for public image
Concern for employees
Efficient and reliable service for speedy transfer of lightweight and high value goods between locations.
Dedicated and motivated employees
After evaluated the nine components as shown in Table 1, the following mission statement are proposed to Nationwide Express as we think that the mission statement should be clearly stated and must be understood by the customers and investors.
1. “Nationwide Express will lead the logistics industry in Malaysia and over the world by providing the efficient and excellent services to meet the high levels of customer satisfaction from time to time”.
2. “Nationwide Express will be the number one logistics company in Malaysia that uses the high standards of technology in providing the efficient and reliable service for speedy transfer of lightweight and high value goods between locations”.
3. “We will strive in consistently produces healthy financial standings for all stakeholders while keep holding on the strong believe that every
stakeholders’ satisfaction ensured excellent business and
4.3 EXTERNAL AND INTERNAL STRATEGIC MANAGEMENT AUDITS
External strategic business audits are essential for finding hidden opportunities and reducing the impact of future threats in a rapidly changing business environment. External strategic management audits provide management with both insight and preparation for the changing marketplace.
In the other hand involvement in internal strategic management audits performing an internal strategic-management audit provides vehicle for understanding nature and effect of decisions in other functional business areas of the firm.
4.4 OPPORTUNITIES AND THREATS
Based on our observation, we have identified several opportunities and threats of Nationwide Express. The identified opportunities and threats of Nationwide Express are:
Market penetration in other countries (expansion
Nationwide can do joint ventures or cooperation with small
local company from other countries (e,g: India & China) for
expansion of the services globally. However Nationwide
should properly choose and implemented, as joint ventures
can be a great way for business to get in on opportunities
(and profits) that otherwise they would miss out on. By
teaming up with other people or businesses in a joint
venture, they can extend your marketing reach, access
needed information and resources, build credibility with a
particular target market and access new markets that
would be inaccessible without the partner.
Change marketing / promotion strategy
Nationwide not already has a major presence of shipping
online. They should keep finding Internet companies to
contract delivery of their products. Since the growth of ecommerce is rapid now, Nationwide could enjoy both profits and brand name recognition from this kind of expansion.
would also like to recommend that Nationwide be supposed
to change their marketing strategy towards business to
consumer (B2C). For example they can catch the online
shopping customers to use their services.
Advent of technologies
Nationwide convince the potential and new customer to use
services provide by them especially in terms of security and safety because they have e-tracking system. Their webbased track and trace system enables the customer to view the latest status on their shipment, and allows them to track up to 15 consignments at once. They can check a
shipment’s status as it progresses through their hubs and
scanning stations, or view the name of the person who
signed for the package just by clicking on the consignment
number. They’re making technology work for them and
their customers, anytime, anywhere.
Nationwide facing financial constraints in term of buying
new truck. Therefore they decide of buying the new truck
stage by stage in order to replace all the old truck.
Nationwide costs escalated in 2008/09, partly due to higher
operating and delivery costs. It was also because of a
compounded result of the world fuel price increase in the
consumables – most of which contains oil derivatives. So,
even when the prices of fuel had reduced, the prices of
these consumables remained with no signs of reduction. In
terms of operating costs, they have not embarked on
operational expansion, but more to develop new solutions
and improve our operating and delivery processes to
tightening our purse strings, cost is still on the rise, and more so now, in the wake of global economic downturn,
prices of consumables are showing signs of further
increase. Therefore, to further reduce cost and wastages,
they continue with their cost rationalisation drive in the
current financial year. They also encourage their worker to
practice the multitasking in order to reduce the number of
staff they need to pay for salary.
One of the Nationwide services is they provide Nationwide
Express Metro Sdn Bhd. This service provides services for
distribution of high value and tight security items. In the
process of shipping these type of items they cannot predict
weather all over the country and also globally. Therefore
when the climate changes happen they will hold the
delivery as the concern more on safety of the items.
Merger of Airline Company
Recently we have heard about the rumours on merger of
the two big airline companies in Malaysia between AirAsia
and Malaysia Airlines (MAS). The effect is it will
standardize the price of courier services. Not like before
Nationwide can compare the price that being offer for the
shipment by these two companies. The merger between
the two companies will give big impact to Nationwide. For
that reason, in the future Nationwide decide on buying their own airplane in order to support and improve their services
4.5 EXTERNAL FACTORS EVALUATION (EFE) MATRIX
Based on the identified opportunities and threats from the external strategic management audit exercise, an External Factors Evaluation (EFE) Matrix is drawn up to gauge to what extent the company’s strategies could address the external factors to capitalise on the opportunities while avoiding the threats.
In the EFE Matrix, each factor is weighted according to level of relative importance, and a rating from 1 to 4 is determined for each factor. The rating of 1 means the company will only be able to respond poorly to the opportunity or threat, while a 4 rating means the company has superior response to the opportunity or threat. The total weighted score at the bottom of the EFE Matrix indicates how effectively the company’s strategies are designed to capitalise on the opportunities and avoid the threats. A score of 1.00 means the company is not capitalising on opportunities or avoiding threats, while a score of 4.00 indicates outstanding response to all opportunities or threats.
The EFE Matrix for Nationwide Express is shown in table below. It can be seen that with a score of 2.95, Nationwide Express’ strategies are in a position to capitalise on opportunities while avoiding threats, better than the average company.
Table 2 : External Factors Evaluation Matrix
KEY EXTERNAL FACTOR
Market penetration in other
countries (expansion globally)
Joint ventures- cooperation with
small local company from other
countries (e,g: India & China)
for expansion of the services
Change marketing / promotion
strategy by change it to the B2C
Advent of technologies—
convince new customer to use
services provide by Nationwide.
(in terms of security and safety).
Fuel prices- Proliferation of fuel
price in market.
Climate change – Unpredicted
weather all over the country and
Merger of AirAsia and MAS that
will standardize the price of
4.6 COMPETITIVE PROFILE MATRIX (CPM)
While performing the scanning of the company’s external environment, we also had to learn about the other competitors of Nationwide Express. Without analyzing the competitors, the external audit will not show the
complete picture. The tool used to compare Nationwide Express with its competitors is the Competitive Profile Matrix (CPM). The CPM shows how competitive each company is, in terms of a set of predetermined criteria or critical success factors, which varies from industry to industry. The critical factors for courier companies that have been agreed are as follows:
Table 3 : Critical Factors for Competitive Profile Matrix
After sales service
Completeness of service
Quality of service
Promotional activities promote the
Survey on customer satisfaction.
Evaluate either the service fulfil customer
The profile of the company
Price of publication in market.
Availability to provide best price to
Efficiency of goods delivered
Good quality name in market area.
Loyalty of customer uses the courier
services as their first choice in delivering
Table 4: Competitive Profile Matrix
After sales service
Good quality for a
The CPM shows that Nationwide Express scored the highest with 3.27, followed by GDEX and SKYNET with scores of 3.11 and 2.57 respectively. Companies scoring above 2.50 indicate that they relatively have more strengths than weaknesses compared to their competitors. With Nationwide Express scoring a good 3.27, it implies that the company has plenty of strengths against it competitors.
As summary, we believe that any courier company has adopted cost, productivity, safety and quality as the main dimension of focus in its performance
performance measurement will be translated into a model with related key performance indicators suitable for the Nationwide Express as well. i.
Delivery cost per nominal
Total distribution cost per distance travelled
Truck avoidable accident rate
Lost workday case rate
Quality (Delivery reliability)
Delivery in full on time
4.7 STRENGTHS AND WEAKNESSES
Based on our observation, we have identified several strengths and weaknesses of Nationwide Express. The identified strengths and weaknesses of Nationwide Express are:
Extensive distribution network of 200 locations
Nationwide Express regional distribution offices are
centrally located in major cities which are operationally
visible to the public at large, which is of 80 stations, 60
agents and 60 drop-off centres.
Skilful and trained labour
Special handling items like passports, flight tickets,
banker’s cheques and other personal belongings make
up a great portion of the deliveries made by Nationwide
Express, compelling them to train their couriers on the
customized handling as and when required.
Wide Network Coverage
Up to 200 stations Nationwide Express with extended
hours terminal-based outlets designed to facilitate the
High Quality Customer Services
Friendly local service provided by fully trained and
equipped customer care consultants. A team of customer
service offices are equipped to further support the
Proven Business Process
Smooth processing operation 6 days a week. Nationwide
Express is a household name and a brand to be
reckoned with! It is a brand that was introduced twenty six
(26) years ago, and over the years has evolved into a
brand name which is synonymous to courier services in
the Malaysian logistics scene. To instantly respond to
instructions, they adhere to rigorous express service
standards of twenty four (24) hours deliveries within
Peninsular Malaysia and forty eight (48) hours to East
Malaysia for their courier products and solutions. They
differentiate their courier products and solutions into two
(2), namely Standard courier products and solutions and
Premium courier products and solutions.
Highly integrated operating environment
Nationwide Express offers ideal integration of its network
system services into the existing IT infrastructure
leveraging on the existing operating environment of their
company. They have a group of well-experienced
professionals dedicated in one stop centre solution
consultation, implementation, operation and support for
their entire partner.
Capable in handling large transaction or bulk
As a one stop centre, they not only manage their own
cash business but we are also managing several types of
cash collection for their agency business namely Takaful
Nasional, Touch ‘n Go, Pos Malaysia and e-pay prepaid
reload and etc.
KRI- Reliable and timely commitment
These are the tools for enhancing productivity and
creating value for customers, and strategies to help
valued customers in gaining advantage all over Malaysia.
Nationwide Express definitely has it capacity and
capability to be a potential service provider company to
undertake a scope of work as per term and requirement
To enhance customer relations, Nationwide Express will
propose dedicated personnel to provide superior logistic
services as well as strategic operational capabilities on
the spot for the convenience as well.
Less of marketing and promotional activities
From our observation we see that Nationwide not really
concentrate on doing marketing by focusing on the
potential company that have been identified. They believe
that rather than invest on the promotional activities they
are more fascinated on paying more salary to the staff
that can give more profit to the company.
Use old vehicles/truck
Nationwide is still using the old vehicles and truck.
Therefore they are on the process of buying new vehicles
and truck in order to support the company activities. They
decide to buy new vehicles and truck stage by stage as
they are facing the problem of budget constraint.
Delivery only focus on local target market
Nationwide only keeping the local market in focus.
Therefore they should expand their target market into the
4.8 INTERNAL FACTOR EVALUATION (IFE) MATRIX
IFE (Internal Factor Evaluation) matrix is one of the best strategic tools for internal audit of the company. IFE is use for internal audit of functional area of business such as finance, marketing, IT, operations, accounts and others depend upon the nature of business and its size. IFE rating is the way out to differentiate internal strengths and weakness. Internal weaknesses are further divided in two categories namely minor weakness and major weakness same goes of the strengths. The range of rating start from minimum 1.0 which is worst and maximum 4.0 which is the best factor of the company.
Table 5 : IFE Matrix for Nationwide Express
KEY INTERNAL FACTOR
Capable in handling large
transaction or bulk transportation
Extensive distribution network of
200 locations throughout Malaysia,
Singapore, Indonesia and Brunei.
High Quality Customer Services.
Highly integrated operating
KRI- Reliable and timely
Proven Business Process
Skillfull and trained labour
Wide Network Coverage
Less of marketing and promotional
Use old vehicles/truck
Delivery only focus on local target
4.9 STRATEGY MATCHING TECHNIQUES
4.9.1 Internal-External (IE) Matrix
The IE matrix is an important strategic tool which comes under the portfolio management considered much similar to BCG
Matrix. The IE matrix used to plot the organization divisions in nine cell diagram, each cell has some meaning associated
which suggests strategies as shown in Figure 4.
Figure 4: The Internal-External (IE) Matrix
The IE Matrix is based on two key dimensions: the IFE total
weighted scores on the x axis and the EFE total weighted
scores on the y axis. On the x axis of the IE Matrix, an IFE total weighted score of 1.0 to 1.99 represents a weak internal
position; a score of 2.0 to 2.99 is considered average; and a score of 3.0 to 4.0 is strong. Similarly, on the y axis, an EFE
total weighted score of 1.0 to 1.99 is considered low; a score of 2.0 to 2.99 is medium; and a score of 3.0 to 4.0 is high.
The IF Matrix can be divided into three major regions that have different strategy implications. First, the prescription for divisions that fall into cells 1, 2, or 4 can be described as grow and build. Second, divisions that fall into cells 3, 5, or 7 can be managed best with hold and maintain strategies; market penetration and product development are two commonly employed. The last one
is for divisions that fall into cells 6, 8, or 9 are harvest or divert. Based on the IFE and EFE matrix score as stated above, the
result for IE matrix for Nationwide Express as following (See Figure 5):
Grow and build
Figure 5 : The IE Matrix of Nationwide Express
The IFE Matrix score of Nationwide Express is 3.18 and EFE
Matrix score is 2.95. It is clearly stated that Nationwide Express Courier Services Berhad is fall under the first prescription for divisions that can be described as grow and build strategies. 4.9.2 Grand Strategy Matrix (GSM)
Grand Strategy Matrix is based on two evaluative dimensions: competitive position and market growth. Appropriate strategies for an organization to consider are listed in sequential order of attractiveness in each quadrant of the matrix. Firms located in Quadrant I of the Grand Strategy Matrix have a strong
competitive position in a rapid growth industry. These firms should concentrate continuously on market penetration, market development, and product development strategies.
When a Quadrant I organisation has excessive resources, then backward, forward, or horizontal integration may be effective strategies. When a Quadrant I firm is too heavily committed to a single product, then concentric diversification may reduce the risks associated with a narrow product line. Firms positioned in Quadrant II have a weak competitive position in a rapid growth industry and they need to evaluate their present position to the marketplace. Although their industry is growing they are
to compete effectively and need to determine the firm’s
ineffectiveness and the way to improve its competitiveness.
Quadrant II firms should firstly apply intensive strategies (market penetration,
However, if the firm is lacking a distinctive competence or
competitive advantage, then horizontal integration is often a desirable alternative. As a last result, divestiture or liquidation should be considered.
Quadrant III the organizations have been identified as a weak competitive position in slow-growth industries. These firms must quickly make some drastic changes to avoid further demise and possible liquidation. Extensive cost and retrenchment should be pursued first. Other options for Quadrant III businesses are divestiture or liquidation.
Finally, Quadrant IV businesses have a strong competitive
position but are in a slow growth industry. These firms have strength to launch diversified programs into more promising
growth areas. They can pursue concentric, horizontal, or
conglomerate diversification successfully.
GSM Matrix for Nationwide Express is drawn under Quadrant 1
which is in an excellent strategic position and high market
Figure 6 : GSM Matrix for Nationwide Express
FORMULATED STRATEGIES FOR NATIONWIDE EXPRESS
Based on the GSM, the strategies as in the Table 6 were developed. We then evaluated their advantages and disadvantages (see Table 7) to provide us with a general indication of which strategy should be seriously pursued. Table 6 : Assessment of the Possible Strategies
Possible Strategies for Nationwide
Strategy and Definition
The expansion of the total market for
1. Entering new segments of the
market – international market
3. Increasing usage per user
The activity or fact of increasing the
market share of an existing product
1. Promoting a new product, through
sales by improving
1. Creation of services with new or
different characteristics that offer
developing new ones
new or additional benefits to the
A business strategy that involves a form
of vertical integration whereby activities
customers for example to the
are expanded to include control of the
buyers of online shopping.
direct distribution of its services
A form of vertical integration that involves
1. Buying their own airline in order to
the purchase of suppliers in order to
avoid depending on other airline
company for the items shipment.
When a company expands its business
into different products that are similar to
services for much type of rarely
freight items for example like
herbs which have high demand in
A type of diversification in which a
1. It is closely related to Nationwide
company acquires or develops new
Express company core business
products or services.
or technology in order to enter one
example the e-tracking system.
Table 7 : Formulated Strategies for Nationwide Express
Entering new segments 1. Nationwide
services will be more
used by customers
2. Increased in sales
1. Need more budget to
open their branches.
2. Need to hire more
new It is encourage able for They need to spend
to budget on advertising in
product order to let customers
current knows about the discount
lower prices, or volume situation
Creation of services with
Staff needs to enhance
can still offer price
their communication skills
characteristics that offer
in the market but
have value added
1. Nationwide Express
benefits to the customer
for it services in
order to make it
different and unique
2. The customers will
with the Nationwide
Offer services directly to Opportunities to increase Nationwide Express needs the
(e- the sales of services
Buying their own airline
more effort to identify the
to Need more budget to buy,
increase the sales maintenance and training
in handling of the airline.
airline company for the
2. Save time.
5.0 STRATEGY IMPLEMENTATION
SERVICES AND ENHANCEMENT IN LOGISTIC FOR DELIVERING
Figure 7: Initiative taken for strategy implementation
E NEW TRUCK.
S TRUCK FOR
Figure 7 show about the strategy should be taken by Nationwide Express in order to increase their sales and also provide better services in Nationwide Express. The number of step should be planned to ensure the strategy runs smoothly and achieve what is targeted by the company.
1. Review mission and vision of Nationwide Express to highlight better quality services provide to customer.
2. Planning for buying new trucks, to change it with the old ones. 3. Prepare paper work request for changing new vehicle and ask budget from financial department.
4. Collaborate with HR department to provide special training on safety in handling and driving new trucks, new and old workers who will drive the
trucks are compulsory to attend the training. 5. Prepare project paper to propose new smart truck service and built new team to implement this project.
6. Restructure the human resource focusing on sales and marketing department to enhance sales by doing promotional activities. 7. Create new sub unit under marketing unit to implement new promotional strategies and this will be led by Head of Marketing Department.
8. Create two position under marketing unit which are Promotional Executive and Corporate Events Executive.
9. Hire 10 staff for the subunit to plan and implement promotional strategies and activities.
10. Collaborate with Human Resource Department to provide special training for staff at Marketing Unit including the head of the unit and also the staff hired and new staff from all departments.
11. Plan to promote to enhance ‘special courier service’ for academic institution each final semester every year.
12. Prepare systematic schedule to implement the ‘special courier service’ at selected academic institution.
13. Measure staff performance to ensure company objective are achieve.
14. Give proper reward or incentives for staff who actively promoting and increase the sales of products and services.
15. Promotion of product and services through online marketing using social networks such as Twitter, Mail, Facebook and so forth.
LONG TERM OBJECTIVES
1. Increase Profit Company to 30% within a year, two times from the profit now which is from 2010(RM 87520.00) to 2011( RM
2. Visit 30 academic institution, a month before end of semester for promotional of ‘special courier service’ for students.
3. Participate in Corporate Events to promote product and services. 4. Establish joint venture with all over the country around the world.
5.3.1 Logistic Solution Plan.
Enhance old truck conversion to a new truck.
Express delivery is about delivering goods as fast as
possible and fulfills the customer expectations in goods
delivery. It is important for Nationwide Express to have a
good vehicle to avoid any problems during the process of
delivering the documents or materials. As we discussed early in this report, Nationwide Express are actively cooperate with a lots of company and those company give their trust to
Nationwide in delivering their goods as fast as possible
without having any problems.
Nationwide Express focusing their business in local area
which is vehicles such as lorry or truck is needed in
delivering the items. One of the problems and become their
weaknesses for now is about the use of old truck in
delivering process and some of the old truck faced with
engine problems and reduce the time in delivering process.
This situation decrease the efficiency for Nationwide Express as a delivering company that time is an important matter for them. So there is a need for this company change the truck
to the new ones.
Launch smart truck for express delivering purposes.
Other than bad situation that might be face in logistics, now the existence a lots of Courier Company make the
competition become high, Nationwide Express need to
expand their market share and need to have new customer
other than focus on business to business sales. In order to
attract new customers, the companies need to make
difference to have new customers and increase their market
share. To invent completely new product can be very
expensive and take very much time. So, making little
difference on the current product or service can be better. At this time, we need to talk about innovation. Enhancing the
Smart-Truck Project is going to be one of the strategy. This project will allow company to deliver faster and cut cost by using less fuel.
Smart Truck technology is designed to provide solutions to
urban logistic challenges such as traffic restrictions, density and clogging, while ensuring environmental protection and
“intelligent” pick-up and delivery vehicles compute delivery deadlines to calculate the ideal sequence for shipments, and use real-time GPS to avoid jams and optimise routings,
thereby enabling flexibility and last-minute pick-ups. This
allows the Smart Truck to spend more time on the road to
perform their pick-up and delivery services. The Smart Truck technology also enables a more efficient sorting process by
synchronizing the data and physical flow, while real-time
communications and visibility of services avoid ‘missed’ pickups and delayed deliveries. Together, this provides
better customer service and a more cost-effective operation
as a result of optimum use of vehicles with less wasted
5.3.2 Restructuring Marketing Unit.
Head of Marketing
Social (PR/Advertising) Manager.
Client Communication Manager
Head of Marketing
Direct firm’s overall marketing and strategic planning programs, and corporate communications. Facilitate client development through marketing and client services programs. Duties and responsibilities include:
Design, implement, and facilitate annual marketing plan for the
implementation of section business/marketing plans.
Plan and administer the firm’s Marketing Operations budget; support development of regional marketing budgets.
Oversee the Charitable Contributions Foundation.
Organize and implement client relations including:
client development activities
client skills training
client satisfaction surveys
Supervise firm’s RFP protocol process including soliciting RFPs
proposals for new business; participate in planning and
presentation sessions, when assigned.
Oversee business development activities including:
efforts through Business Development Coordinator
implementing prospecting and client contact systems.
Client Communication Executive.
Design and develop marketing materials, e.g. corporate
brochure, articling brochure, personal and practice group
profiles, website, etc.
Develop and integrate marketing activities across service areas, e.g. logo, templates for request for proposals,
Develop and maintain the firm’s website; keep site content fresh
and updated in
Monitor production of
marketing materials to ensure
consistency and appropriateness.
Public Relations/ Advertising.
Develop and implement the firm’s public relations program, to include internal and external publications (e.g. newsletters, client alerts, greeting cards, etc.) that enhance public
awareness of the firm.
Develop and implement the firm’s advertising program design and place advertisements; negotiate contracts with media; work with design agencies on advertising campaigns.
Evaluate and implement firm participation in sponsorships and community programs.
Training is required to all new staff and also each staff that their unit are being restructured. It is because, restructuring usually will increase job responsibilities and their job responsibilities will differ from previous job description. New task will be delegate by them in order to ensure the objective of restructuring will benefits and achieve the target. The suggested course training outlines are as below:
a. Course Objectives
Provides an understanding of the marketing management
framework of a business organization
Offers experiential analysis to understand the challenges of CMOs and Marketing Managers
Focuses on marketing management best practices, tools and models to implement an effective marketing and sales
Emphasizes planning and executing strategic marketing
Provides insights on how to develop marketing strategies, initiatives and programs to build and sustain a competitive
Provides a practical framework for planning and controlling of marketing communication programs
b. Training Focus:
competencies. The core competencies include marketing
communication. The development and evaluation of these
skills are based on IIM’s proprietary KASAC management
c. Key Concepts
Marketing Mix 4Ps (Product, Price, Place and Promotion),
Relationship Management. Public Relations. Advertising.
Weaknesses, Opportunities and Threats (SWOT) Analysis.
Porter’s Competitive Advantage. Porter’s 5 Competitive
Forces and Value Chain. Product Lifecycle (PLC). Marketing
d. Course Outline / Customization Subjects
Marketing Principles: product/service lifecycle (PLC), the marketing “Ps”, product design, distribution, packaging,
presentation, pricing, promotion, and people
implementation, and control of marketing strategies
needed to attain and sustain a competitive market
e. Marketing Research:
Understanding customers to create value – understanding
the psychological aspects of buyer behavior. How clients
make buying decisions and interpret advertising and sales
f. Competitive intelligence
Advertising and Brand Communications: managing the
brand, the elements of the marketing-mix product policy,
channels of distribution, communication, and pricing to
satisfy customer needs profitably.
elements of marketing communication program including
advertising, personal selling, public relations, sales
promotion and direct marketing. Understanding the
decision-making process when developing promotional
campaigns to support a firm’s brand or product/service
Publicity and Public Relations: study of the implications of public relations on marketing, corporate identity, public
policy advocacy and lobbying, issues management,
5.3.5 Promotional activities
Advertising is the name given to the process of commercial
promotion of goods and services in order to increase its sales. Advertising can be done by means of a number of mediums
like television, newspapers, wall paintings, billboards, magazines, Internet, by the word-of-mouth and in many other ways. Advertising informs the buyers about the availability of a certain product or service in the market and encourages them to buy it.
There several medium can be used in promoting product and
services provide by Nationwide Express such as using page
advertisement in selected newspaper and we choose to advertise it through NSTP Group of Newspaper because it offering us 3 paper combo packages with a relevance price. While for advertising through mass media, we choose to promote it in TV3 in a
commercial break during Malaysia Hari Ini.
Introduce products and services by Nationwide Express and
try to increase demand for use among them.
Increase sales by in informing user through media to improve user awareness about the product and services.
encouraging consumers to try out each of them using
Widespread the news through advertising and this will
encouraging customers to try Nationwide Express product
and services because it give them more choices rather than
other courier service.
Allows us to reach a huge number of people in a given
Involve high cost to do promotional activities.
Lack of skill – New staff hired are still not very experienced to highly implement marketing programmes and need to be
trained wisely and it is time consuming.
Special courier service
Visit academic institution
End of each semester at academic institution, a lot of student need to bring their luggage, bag or packaging back to home and not all of them are fetch by their family and need to go back home by bus. So, Nationwide Express can promote the special courier service to the student one month before the end of semester and announce to student on what time the Nationwide Express truck will pick up all those thing and sent it directly to home and this service might have a good response from the students. This type of promotional
activities is targeted to new customer focusing on students at the academic institution who want to post their bag or luggage back to home using courier service.
There are 20 Public Universities in Malaysia and below is the list of several targeted academic institution/
Universiti Sains Malaysia (USM)
Universiti Kebangsaan Malaysia (UKM)
Universiti Malaya (UM)
Universiti Teknologi Malaysia (UTM)
MARA (University Technology MARA)
Universiti Putra Malaysia (UPM)
Universiti Malaysia Perlis (UniMAP)
Universiti Teknikal Malaysia Melaka (UTeM)
Kolei Universiti Teknikal Kebangsaan Malaysia (KUTKM)
Universiti Tun Hussein Onn Malaysia (UTHM)
Universiti Sains Islam Malaysia (USIM)
Malaysian Armed Forces Academy
Universiti Malaysia Kelantan (UMK)
Universiti Darul Iman Malaysia (UDM)
Universiti Malaysia Pahang (UMP)
Universiti Pendidkan Sultan Idris (UPSI)
International Islamic University Malaysia (IIUM)
Universiti Malaysia Terengganu (UMT)
Universiti Utara Malaysia (UUM)
Universiti Malaysia Sarawak (UNIMAS)
Kolej Universiti Kejuruteroan Utara Malaysia (KUKUM)
Universiti Malaysia Sabah (UMS)
1. Increase sales by using new strategies and target student as their target
2. Market segmentation is already identify and the services in confirmly will be used by the students.
3. Targeted promotion activities, can reduce promotion cost
because the marketing people focus on selected academic
institution with high possibility using courier services.
1. More trucks needed to accommodate peak season at the
end of semester.
2. More trucks mean more drivers also needed and it will
increase financial cost in hiring new people.
COST OF RECOMMENDATIONS.
Basis of Cost
Changing the old truck
(RM 110 000/unit x 1)x 11
with the new ones.
months = RM 1 210 000
Enhancing the smart truck
(RM 140 000/ unit x 1) x 5
months = RM 700 000
RM 1 910 000
Head of Marketing
RM 70 350/yr including
bonuses with 7% annual
RM 46 245/yr including
bonuses with 7% annual
Social (Advertising & PR)
RM 46 245/yr including
bonuses with 7%
10 General staff
RM 345641/yr including
bonuses with 7%
10 Truck drivers.
RM 100700/yr including
bonuses with 7%
RM 609 181
RM 5000/session x 2 =
RM 10 000
RM 4000/session x 10 =
RM 40 000
Safety driving & technical
RM 3000/session x 10 =
RM 30 000
RM 80 000
Pamphlet & Brochure
1.50/item x 10 000sheet
=RM 15 000
RM 80 x 300 = RM 24 000
RM 60 x 300 = RM 18 000
RM 144 x 12 = RM 1728
3+1 combine (4 line
RM 3500 6/yr (once in a
month) RM 21 000
2 units x 4WD vehicle =
Booth concept at selected
RM 300 000.
PV OF COSTS
110,868,000 120,107,000 129,346,000
267989896 364,515,605 465,872,635
The NPV of the strategy after 5 years is about RM 466 million with a payback period of less than 1 year.
Interview for Client
Interview for Sales
Changing old truck with the new ones.
Prepare proposals and
invoices to buy new
approve, Deal with
truck company and
buy it. (buy one truck
receive the truck &
start change it with the
Smart truck project
Propose paper work to
enhance smart truck
Discuss in Board of
Approve, start to buy
the smart truck
Interview for new
Smart Truck Driver
(once in a two month)
Open booth at
(end of semester)
Safety driving &
ANNUAL OBJECTIVES & POLICY
To achieve long term objective of the company, the implementation plan need to be broken into annual action so that from time to time the company will move on the right track to achieve all the objective. The annual or short term objectives of Nationwide Express are; 1. To increase user awareness about the existence of Nationwide Express as courier service company.
2. To be the most effective and efficient company in delivering goods to customer locally.
3. To create relationship with other countries with high population and deal with small medium courier service company as a start to expand the service globally.
5.7.1 The SMART Test.
Accoring to Purdi (2008) SMART objective are narrow, specific, short term and measurable objectives are good, SMART
objectives are objectives that are:
Describe a specific outcome
Linked to a rate, number, percentage or
With a reasonable amount of effort, they
can actually be achieved
The people involved have the necessary
knowledge, authority and
Include clearly defined finish and/or start
For Nationwide Express, the annual objective was test using
SMART test as below.
a. Annual Objective 1.
Implement the promotional activities that
have been plan.
50% user awareness for Nationwide
Use promotional materials such as banner,
fliers, pamphlets and also promotion
through mass media and so forth.
There are sufficient person in marketing
unit that will come out and implement the
b. Annual Objective 2
Delivering goods more faster and reduce cost
using smart truck and new truck.
Cost: RM 1 910 000
Can be achieved but the process of buying
must be done month by month.
There are sufficient financial support in order
to but new truck and smart truck each month
for the first and second year.
February 2012- January 2013.
c. Annual Objective 3
To expand Nationwide Express courier service
globally starting with India and China that has high
20% year on year growth.
Based on Nationwide Express performance, this
company has possibility to do market penetration
and expand the company globally by start with two
countries which is India and China.
There is possibility to expand the services
Nationwide Express because now Nationwide
Express has already expand their services at
By end of 2012
6.0 STRATEGY REVIEW & EVALUATION
6.1 PROCEDURES OF STRATEGY REVIEW AND EVALUATION
Strategy review and evaluation is the process of by which corporate
activities and performance results are monitored so that actual performance can be compared with desired performance. According to David (2007), the strategy review and evaluation consist of three elements as shown in Figure 8: Analyzing the strategies of the organization, measure firm performance and taking corrective actions. Figure 8: Framework of Strategy Evaluation
6.2 CONTINGENCY PLAN
Contingency plan is activity to ensure that proper and immediate followup steps will be taken by a management and employees in an emergency. Its major objectives are to ensure the emergency will be under the organizations’ control. Besides, the major objectives of contingency planning are to ensure the continuity of the key operations of the organization. In some organization, they have one team that is responsible to handle this matter. As Nationwide Express, the Risk Management Committee is responsible to:
Formulate risk management framework
Identify broad risk categories
Assess potential losses in relation to value at risk
Monitor management’s action and progress in risk reduction initiatives
Review risks rating & ensuring compliance.
6.2.1 Identify Potential Risk
Logistics Solution Plan
Lack of fund.
– Purchase of Smart truck
Lack of skills.
Lack of experience / no experience in
– Launch of Smart truck
– Hire new staffs
Lack of fund.
– Visit academic institution
6.2.2 Identify Trigger Points
Logistics Solution Plan
Smart truck offers a unique and latest
Lack of staff in Marketing Department.
The cost of advertising is to too high.
Respective customer not aware about the
service provided due to lack of promotion.
6.2.3 Assess the Risks (Likelihood and Impact)
Likelihood / Impact Assessment
Logistics Solution Plan
Material of advertisement – high selling
price of the advertising material
Lack of promotion will give the high impact
to the business operation where customer
will be not aware about the services
provided by Nationwide Express.
6.2.4 Develop Contingency Plan
Logistics Solution Plan
Buy one or two smart truck for express
Provide on-going training for staff
Hire staff who expert in marketing field
(Client Communication Manager and Social
Participate in the events that organized by
profits or non-profits organization
6.2.5 Impact on HR, Costing and Schedule
Acquisitions of new truck
with technology driven
Provision enough budget for acquisitions of
Delay in delivery of item
Provide on-going training
Provision enough training for employees
Provision enough fund to organize the
Schedule will be delayed to provide training
and induction programme
Hire expert and
Position will be occupied approximately 3 to
Schedule will be delayed due to waiting for
Schedule will be delayed to provide training
and induction programme
Participate in the events
Nationwide Express should have a good
that organized by profits or
relationship with other organization (private
and public sector).
Provision enough staff in marketing unit are
needed to implement this activities.
Schedule – 2 or 3 days event and the staff
should actively attract customer during the
Strategic management is important to every organization. The implementation of strategic management is the process of determining the successfulness of the organization. The knowledge, skills and expertise gathered by the employee are the main factors that determine the success of each organization. Human capital is the most important assets of Nationwide Express. Human Capital Development Unit is responsible to improve the employees’ ability in order to increase their productivity in line with their corporate strategy and to better support the business. They identify that efficient and effective training is essential to meet the desired objective.
Over the last 26 years, Nationwide Express has grown to become a Malaysian household name with a well-earned reputation in providing fast and reliable door-to-door express deliveries. From the observation, we think that Nationwide Express have a great chance to succeed and can move forward to internationally because they have their own target markets around them. With the strengths of located in over 180 locations supported by over 500 motorbike couriers and 244 truck drivers that enable them to instantly respond to the customers’ urgent collections and delivery instructions within 24/7.
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TOPICS IN THIS DOCUMENT
Courier, Strategic management, FedEx, Customer service, TNT N.V., United Parcel Service, Marketing, Pony Express
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