Project 2- Final Situation Audit Winter 2018 MBA 610 .doc

Excellent performance in brand new markets xpo

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Excellent Performance in brand New Markets – XPO Logistics has developed an expertise at going into different markets and becoming very successful. (Fern Fort University, n.d.) Weakness of XPO Logistics The areas that the company can improve upon are called weaknesses. The tactic is making choices and the weakness is where an organization has room to improve and build on its competitive advantage and strategic positioning. (Fern Fort University, n.d.) The profitability ratio and Net Contribution % of XPO Logistics are below the industry average. There are gaps in the product range sold by the company. This lack of choice can give a new competitor a foothold in the market. High slow destruction rate in job force compared to other companies in the same industry XPO Logistics has a higher attrition rate and have to spend a lot more compare to its competitors on training and development of its employees. Page | 21
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22 The investment in research and development is not as strong as the faster growing organization in the industry. XPO Logistics is currently spending above the industry and not able to compete with industry top players products based on tested features in the market. (Fern Fort University, n.d.) Conclusions & Recommendations XPO Logistics is one of the worlds larges 3rd party logistics company that is still growing. Even though the growth has been continuous and successful, there are still many areas of development and areas that need to maintain in order to preserve the success of the organization. The areas of focus that will support continued growth and success is he company’s MGVO’s, competitive advantage, critical resources and the strengths and weaknesses of XPO Logistics MGVO’s The mission, goals, values and visions are the standards that XPO attempts to abide by in order to uphold ethics and morale. XPO needs to incorporate the MGVO’s with everything within the organization from meetings on all levels within the corporation, decision making and also over coming company discrepancies. The mission of XPO Logistics is to deliver results. Delivering results requires XPO to perform to the highest standards of business professionalism at all times. XPO must not compromise any values to meet commercial objectives. (XPO Values, 2018) Competitive Advantages Page | 22
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23 The better the competitive advantage that a company has over its competitors will determine the financial capability of a organization (Competitive Advantage, 2005). XPO will need to continue to dominate the industry from successful mergers and innovation to customer satisfaction. XPO is doing a great job at attempting to grow, however the growth needs to be a little more contained and avoid any toxic growth, only well though out contribution to the relationship.
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