amresh 418 dive resource audit

8/8/2019 Amresh 418 DivE Resource Audit

1/6


2/6

Resource Audit: h re s u rce a u it i en ti i es th e re s u rce s ava i able t a b usi ne ss Some of th ese can be owned (e.g. plan t andac hinery, t rademark s , re t ail out le ts) wherea s oth er re source s can be ob t ained th ro ugh par t ner ships, join t

en tu re s or simply su ppl ier arrangemen ts w ith oth er b usi ne ss es.

I am choosing a Shipping and `Logistics company named, A.P Moller MAERSK lines for my resource audit. It is the largest container ship operator andsupply vessel operator in the world. A.P. Moller - Maersk is based in Copenhagen, Denmark,with subsidiaries and offices in more than 135 countries worldwide and around 120 ,000employees. It ranked 106 on the Fortune Global 500 list for 2009, up from 131 in 2008.

usiness lines of A.P.Moller are:

1. Maersk Line:

The large st opera ting un it in A.P. Moller - Maer sk by reven ue and st aff (aro und 22,000 employee s) is Maer sk Line. Involved in global l iner shi pp ing serv ice s, Maer sk Line opera t es over 450 ve ss els and has acapac it y of 1.9 m illion(Twen t y-foo t Equi valen t Units) . It is curren t ly th e large st con t ainer shi pp ingcompany in th e world. Maer sk Line t ook del ivery of 26 owned ve ss el in 2008.

2. Safmarine

Safmar ine is an independen t ly opera t ed shi pp ing company in th e A.P. Moller - Maer sk Gro up w ith roo ts inAfrica. It opera t es a flee t of more th an 40 con t ainer ve ss els and more th an 20 M PV s(Multi Pu rpo seVess els) . [A.P. Mller - Mr sk A/S ann ual Repor t 2008].

The company has f ive con t ainer ve ss els and fo ur MPV son order for del ivery in 2009-2011.

3 . D amco

Damco is th e new, comb ined brand of th e A.P. Moller - Maer sk Gro up' s log isti cs ac tiviti es prev ious lyknown a s Maer sk Log isti cs and Damco.

Damco is involved in supply c hain managemen t and fre ight forward ing soluti on s all over th e world.Damco has 10,500 employee s in off ice s in more th an 93 co un t r ies .

4. Maersk Line, Limited Maer sk Line, Lim it ed, is a US-ba sed su bsid iary of A. P. Moller-Maer sk Gro up w hich manage s a flee t of US-flag ve ss els and prov ide s U.S. governmen t agenc ies and th eir con t rac t or s w ith t ran spor t ation and log isti cserv ice s. Head qu ar t ered in Norfolk, Virg in ia. It manage s th e world' s large st flee t of US-flag ve ss els .Beg inn ing w ith a rela ti vely small n umber of ve ss els focus ed on handl ing commerc ial and US Governmen tsubsid ised cargoe s , MLL's flee t of ve ss els engaged in commerc ial liner serv ice s.


3/6

. Other

Maersk Container Industry A / S: Container manufacturing w ith factories in Tinglev (Denmark , China, andthe UK.

Container Inland Services (Includes; Depots, E uipment Repair, Trucking, Container Sales etc.

e ce A d

t

i ci l Resou rc es:

inancial resources concern the ability of the business to "finance" its chosen strategy. For example, a strategyat re uires significant investment in ne w products, distribution channels, production capacity and workingpital w ill place great strain on the business finances. Such a strategy needs to be very carefully managed from a

nance point-of-vie w . An audit of financial resources would include assessment of the follo w ing factors:

or this , I have Analyzed the cash flo w statements and Balance sheet for the year ending 2009.

Exis t ing finan ce fun d s y C ash balances -:

For the year ending 2009, it suffered a loss of $2.1bn. The cash flo w fromoperating activities was USD 0.25 billion compared to USD 2.2 billion in 2008.Investments made were USD 1.4 billion compared to USD 3.2 billion in 2008 .Gains on sale of ships, etc. amounted to USD 59 million compared to USD 346million in 2008 .


4/6

y W ork ing cap it al (e.g. st ock s , deb t or s) already inve st ed in th e b usi ne ss Cash flow from opera ting ac tiviti es led t o red uction of USD 565 m illion in th ework ing cap it al.

y Ass ets Curren t ass ets - USD 3.452 Bn.Non Curren t ass ets USD 19.434 Bn.

y Reven ues The company earned a t ot al reven ue of USD 20.6Bn. It wa s 28% le ss th an th eprev ious year pr imar ily beca us e of fall ing fre ights and vol ume s

Overall th e scenar io wa s really t ough for global shi pp ing ind ust ry in year 2009. Beca us eof global econom ic cr isis of 2008-09, th e marke t con t rac t ed by 13%. A t th e same time ,th e su pply of t onnage increa sed by 5%, th ereby squ eez ing th e ra t es f ur th er. Some how,maer sk wa s able t o w ithst and it beca us e of its rela tively good f inanc ial performance inth e prev ious year s .

Abili y o raisenew fun

s y The gro up is high ly recogn ized in Dan ish marke t . The company is list ed a t 106 in

for tu ne 500 l ist . It is a reg ular d ividend payer in th e marke t .

y The company has a hu ge n umber of shi ps , which can be lea sed t o var ious organ iza tion s. This a po t en tial source of genera ting f und s .

y Curren t ly more th an 90% of world t rade happen s th ro ugh sea. Hence it is hu gemarke t w ith grea t po t en tial of reven ue genera tion. Also maer sk own s th e clo set o 500 shi ps.

y It is list ed on th e Copen hagen st ock e xchange. T here is alway s a po ssi bilit y t ogenera t e f und s from th e marke t .

uman Resources:

he hear t of th e issu e w ith Human Resource s is th e sk ills -ba se of th e b usi ne ss . W hat sk ills doe s th e b usi ne ss lready po ss ess? Are th ey su ff icien t t o mee t th e need s of th e chosen st ra t egy ? Cou ld th e sk ills -ba se be fle xed /re t ched t o mee t th e new re qui remen ts? An a ud it of hu man re source s wo u ld incl ude a ss ess men t of th ellow ing fac t or s

E x is ing s affingresources/ rainin g:

-Maer sk gro up has a pre sence in more th an 130 co un t r ies . Curren t ly it has employeest reng th of more th an 1,20,000. Maersk International Shipping Education (M.I.S.E.) wa s th e t wo year managemen t t ra inee program con stitut ed t o develop th e f utu re leader s of th e A.P. Moller-Maer sk Gro up.

Each year appro xima t ely 450 t ra inee s were enrolled repre sen ting more th an 80 co un t r ies in t o th e M.I.S.E. Programme. Tra inee s were selec t ed from more th an 85,000 appl ica tion s rece ived eac h year and underwen t an in t en sive ed uca tion. T he program comb inedprac tical and th eore tical ed uca tion acro ss all major d ivision s of th e gro up w ith ext en sive


5/6

m u lticu ltu ral e xpo su re and in t erna tional job oppor tu n iti es w ithi n Maer sk uponcomple tion.

St ar ting 2009, th e M.I.S.E programme has been d iscon tinued and Maer sk w ill beg in t oopera t e b usi ne ss spec if ic en t ry level programme s. In a utu mn in 2009 Maer sk Linelaunc hes a new grad uat e programme called th e Maer sk Line Grad uat e Programme

(M.L.G.P) .

En try v progr n A.P. M o r - Mae r k

y Maer sk Line Grad uat e Programme (M LGP) .y Finance Programme (M IFP) .y Tec hnology & Sc ience (M ITAS).

Ch anges require

o resources

- Maer sk is collabora ting w ith var ious Govt t ra in ing institu e for employee t alen t augmen t ation. In Ind ia, th ey have tie w ith be st college s like DMET e t c, MMD(Mercan timeMar ine Depar t men t) . People are send here for spec ial ized co urses .

Maer sk is hir ing from d ifferen t par ts of th e world. T hey have a st rong c u ltu re of d iver sit yand this is w hat th ey ma in t ain in th e ir workforce.

hysical Resources:

he ca t egory of p hysical re source s cover s w ide range of opera tional re source s concerned w ith th e p hysicalpab ilit y t o del iver a st ra t egy. T hese incl ude :

Tec h nological facili ies

- Repre sen t ed in all major t rade s w ith off ice s in more th an 100 co un t r ies, Maer sk Linehas th e ne t work and th e re source s t o t ran spor t your cargo t o prac tically any par t of th e world. Maer sk Ship s have st at e of th e ar t cargo handl ing , refr igera tion fac iliti esThey have d ifferen t t ype s of ve ss els like reefer con t ainer s w hich is us ed t o handle andt ran spor t sen siti ve it em s.

Apar t from all this , Maer sk line ha s acce ss t o its APM t erm inal acro ss several por ts of th e world . T his w hat th ey have e st abl ish ed in Gujra t and C henna i por t .

Marke ing facili ies

- Maer sk ma in t ains its onl ine sit e reg ularly , promo ting var ious new in iti ative s ,busi ne ss line s et c. This is a par t of th eir Viral Marke ting.

- It has a pre sence in more th an 130 co un t r ies . Thro ugh its local off ice s aro und th eworld, it con st an t ly promo t es abo ut its several fea tu re s.

- It has been a con st an t su ppor t er of var ious Mar iti me Conference s. It has been apod ium for th em t o projec t th em selve s as grea t employer, and le t th e world knowwha t th ey have done in th e recen t time and th eir f utu re projec t .

- Maer sk R&D depar t men t has been a reg u lar commen t a t or/col umn ist in var ious magaz ine s and jo urnal s. Thro ugh this med ium , th ey le t th e world know any recen t


6/6

advance s in mar ine t ec hnolog ies et c.

tangible Resources:

is ea sy t o ignore th e in t ang ible re source s of a b usi ne ss w hen a ss essi ng how t o del iver a st ra t egy - b ut th ey cane cr ucial. In t ang ible s incl ude:

R epu ! a ! ion A.P. Moller-Maer sk ranked #31 overall in Rep ut ation Institut e' s - Global Rep ut ation Pu lse2009 S tu dy of th e world smo st rep ut able compan ies. Rep ut ation Institut e' s GlobalRep ut ation Pu lse is an ann ual onl ine su rvey of th e general p ubl ic mea su r ing th e corpora t erep ut a tion s of more th an 1000 compan ies in 32 co un t r ies .

war "

s an"

R ecogni ! ion :

y Maer sk Line 'Be st Global S hipp ing Line', 'Be st Shipp ing Line forAsia-Europe', and Be st Green Serv ice Prov ider S hipp ing Line 2009.

y Maer sk Line awarded Con t ainer S hipp ing Line of th e Year 2007.y Maer sk Line w ins Shipp ing Line of th e Year 2007.

iles # ones: On 28 A ugust 2006, Maer sk Line t ook del ivery of th e m. s. EMMA MRSK bui lt byden se St eel S hipyard. EMMA MRSK wa s th e f ir st in a new ser ies of PS-cla ss ve ss els and sh e is one of th eost env ironmen t ally fr iendly con t ainer ve ss els bui lt t o da t e. As par t of Maer sk Line sflee t of modernn t ainer ve ss els, th e EMMA MRSK sets new st andard s for global shi pp ing, crea ting f ur th er oppor tu n iti es r o ur c ust omer s.

arket outlook 2010:th e con t ainer shi pp ing marke t , a 7-10% add ition of t onnage is expec t ed for th e global con t ainer flee t . Cargo

olume s are e xpec t ed t o r ise by 3-5% in 2010 rela tive t o 2009 and fre ight ra t es are al so e xpec t ed t o r ise. This ill lead t o a sign if ican t improvemen t in re su lts if th e level of ve ss els t aken o ut of serv ice is sust ained. How- ever,t es are no t expec t ed t o lead t o an accep t able re tu rn in 2010.

amresh 418 dive resource audit

Documents