Table of Contents
2.0 Challenges facing by Maersk.
3.0 Application of relevant tools, theories, and frameworks to sort out Maersk’s managerial problems
4.0 Four factors that contribute to the successful management of Maersk Group.
- a) Focus on growth and synergies.
- b) Better utilization of assets.
- c) Optimizing energy value.
- d) Improvement of customer experiences.
5.0 Analysis of Maersk’s external environment and its impact on its activities.
6.0 Chosen strategies for Maersk’s with their justification.
Defining and positioning the target market
Competitive marketing strategy.
Maersk Group a leading integrated transport & logistics company that is operating in a global market with multiple brands. Maersk Group was founded by a leading shipowner, called Peyter Maersk Moller, in 1862. Maersk Group mainly working in container shipping and ports. It is now operating in 130 countries, where it has employed about 88000 staff. Maersk Group is mainly working in two sectors: transport and logistics, and energy (Maersk, 2016).
In the transport & logistics sector, Maersk Group has extended its business in Maersk Line, APM terminals, Maersk Container Industry, Svitzer and Maersk, Damco industry. In this case, the mission of the Maersk Group is to be able and facilitate the global supply chain, and to provide opportunities for its target and potential customer for trading in the global market. Maersk Line is recognized as the world’s biggest container shipping organization which provides flexible, reliable, and eco-efficient services.
Maersk Line includes business in several sectors such as Seago Line, Safmarine, MCC, and SeaLand. Maersk Line operates in more than 120 countries and it has a fleet of above 600 ships sailing trade lanes over the world. Only in 2015, it gained revenue worth $23.7 billion and $1.3 billion in profit and employed about 32700 people. APM terminal gives inland infrastructure and port for driving global business. This is now operating in 36 countries and 57 ports and terminals. In addition, it providing inland service in 46 countries in 154 locations.
It gained $4.2 billion in revenue, $654 million in profit, and employed 21171 people in 2015. Damco is a leading brand for supply chain management and freight forwarding. The activities of Damco are to uncover efficiency improvement and simplify a complex supply chain, which supports the customer to reduce operational costs, inventories, and improve long-term competitiveness through short-term saving. It gained $2.740 billion in revenue in 2015, $19 million in profit and employed 11087 people only in 2015. Svitzer is an organization that provides safety and support at sea. This is a leading brand in towage and emergency response that has a fleet with more than 500 vessels and operating across the world. It gained $669 billion in revenue, $120 million in profit and employed 2847 staff.
Maersk Container Industry manufactures and develops Star Cool refrigeration machines, dry containers, and refrigerated containers, and other products in the intermodal industry such as leasing companies, fruit multinationals and shipping lines (Maersk, 2016).
In the energy sector, Maersk Group is operating in different industries including Maersk drilling, Maersk, Maersk Tankers, and Maersk Supply Service. Maersk Oil is a leading global gas and oil company that has been working successfully for the last forty years. This company produces oil from Qatar, UK sections, Danish, Algeria, and Kazakhstan. It gained $5.6 billion in revenue, $-2.1 million in profit, and employed 4427 people in 2015. Maersk Drilling works with oil and gas companies by supporting them with high-efficiency drilling services across the world. It has been providing a modern fleet that has included deepwater semi-submersibles, harsh environment jack-up rigs, and cantilevered drilling barges.
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It gained $2.5 billion in revenue, $751 million in profit, and employed 3965 people in 2015. Maersk Tankers is an organization that operates and owns a large fleet of product tankers and oil carriers. This fleet is operating under three different brands: handy and medium-range tankers, LR2 tankers, and intermediate tankers. It gained $1.058 in revenue, $160 million in profit, and employed 2366 people only in 2015. Maersk Supply Service is a leading company that is operating in offshore marine services. It has a fleet of more than 60 vessels where above 2000 crew members are working and about 200 staff are working as onshore staff. It gained $613 billion, $147 million and employed 2066 people in 2015 (Maersk, 2016).
2.0 Challenges facing by Maersk
Although Maersk has been growing up in the global market, it has been facing a number of challenges. First of all, Maersk has been facing challenges in gaining an expected profit margin. This is because container shipping is a very volatile industry. Thus, when the supply and demand do not come in balance, it is difficult to gain expected profits. In this case, Maersk is trying to be cost-efficient to make sure of top-line instability and recover losses. Maersk has been considering radical fuel efficiency because it covers about 20% of total costs. The second challenge is coming from a diversity of customer changing demand and expectations. Customers are looking for more sustainability information than ever before which making the business of Maersk more complex and difficult.
In this case, Maersk is using the standard measurement of social performance and environment in container shipping, which is supporting the Maersk business to respond to the customer queries and compete on sustainability for real. Thirdly, it has been a very challenging issue for Maersk to balance supply and demand. The flee efficiency can be improved by buying new ships but it is expensive and creates an imbalance in consumer raw materials……………….