Strat-Management Essay Example | Topics and Well Written Essays - 1500 words

Strat-Management - Essay Example DP world is amongst the world’s largest port operating entities that has an established business base and considerable potential with the ventures expanded over different major ports of the world that are hub to the services, containers and shipping. Company specialization: It specializes in the ports and terminal operations. The company has enjoyed control over three major cargo terminals in this area and has recently decided to sell as high as 60 percent of its terminal stakes (portstrategy 2012). It facilities the functions of performing cargo terminal services across the major docks and primarily on the Belgian docks as in this particular case. This move of selling the shares comes as a result of agreement and settlement with a locally operated company in the name of Zuidnatie, which aims to overtake and purchase as many as 60 percent of the overall shares of the company that were owned by it previously. This decision has various repercussions ranging from business view po int, to economic and strategic since the brand name is already established and also the services delivery infrastructure has been in place as well. Therefore understanding its long term, short term impacts is vital along with the possible angles and dimensions under which this move may have been initiated. Core idea: The idea behind selling its break bulk terminal is trigged by the move and motive to focus on the core services which is that of deep water container facility. This move is accompanied by that of expansion of its services and facilities usage in the Delwaide Dock terminal, which again is a front line terminal and would enable better focus on the core stream. The overall sales are worth around 60 million dollars. Repercussions: Since the decision is of major significance, it has both internal impacts and external, each of these need to be evaluated in terms of the possible impacts on DP world, this will be looked into with reference to the internal variables, internal fa cilities, the workers response, and on external front, it would be gauged against the supply chain factor, the market competition, the rivals response, the possible loss of customers and clients by giving up the terminal that has long been associated with DP world and other factors. All these need to be critically evaluated and observed in order to assess the impacts and determine whether this decision would augur any positives for the company or possibly lead to the negative impacts on the overall organization. It is potentially amongst the top three largest stevedores in the Port of Antwerp and its decision to abandon and sell its services will have impacts both on DP world itself and the overall terminal’s environment since it is an established entity and has been around and has earned the clients trust for considerable time (Barnard 2012). Under the law and rules and regulation of the porting industry, 70 jobs have to be cut off in lieu of this decision which would includ e 40 white collar jobs, and 30 blue collar jobs (Nobx 2012). The trend: DP world has exhibited similar behavior in recent times, and this is not the only and unique function being performed, the selling of its 20 percent shares to the Russian giants was one similar example. Another similar event came to forth in form of DP world’