Final exam - Final Exam 1 Chapter Questions Chapter 12 DHL...

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Final Exam 1 Chapter Questions Chapter 12: DHL DHL’s service is similar to other large shipping companies. DHL provides the means of delivery for the package that someone needs delivered. They provide services to individuals and to businesses. However, many companies that are exporting items still may feel it is more beneficial to ship items in-house. Depending on the size of the company and the items being shipped, it may be more beneficial to do in-house shipping rather than paying for a carrier such as DHL to do the shipping. There are many advantages in acquiring an existing business. By acquiring Airborne, DHL did not have to do much groundwork to get their operations running in the U.S. Airborne may have provided DHL with an existing clientele, which means an established income and reputation. DHL was able to focus their attentions on improving their services and establishing their name, rather than setting up an infrastructure. By acquiring Airborne, DHL can look at previous problems and mistakes that Airborne made and learn from them. They could have used former Airborne employees to work for DHL and used their experience. However, there are many disadvantages in acquiring an existing business. DHL had to come up with a large sum of money to obtain DHL, and still need plenty of money left over to use while DHL gets the business up and running. There also may have been many existing problems within Airborne or else why would they be selling in the first place? DHL can definitely use their on-site customs clearance service to obtain a competitive advantage. Many companies who use in-house services will have to ship a large amount of items before it will be worth it for them to pay for clearances. DHL can provide their services and give
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Final Exam 2 on-site customs clearance for their applicable rate. Many companies would rather outsource the shipping process and let companies who specialize in international shipping, such as DHL handle
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This note was uploaded on 11/22/2010 for the course BUSI 528 taught by Professor Harper during the Spring '10 term at Columbia College.

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Final exam - Final Exam 1 Chapter Questions Chapter 12 DHL...

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