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ESSENTIALS OF BUSINESS MANAGEMENT

PROJECT

Buleandra (Balanica) Iuliana


Group 2

2018 – 2019
CONTENT

1. The organization description ………………………………………………. 3


2. The organizational structure ………………………………………………. 4
3. Products and services ……………………………………………………... 4
4. Macromedia analysis ……………………………………………………… 6
5. Micromedia analysis ……………………………………………………… 7
6. Swot analysis …………………………………………………………....... 8
7. Human resources …………………………………………………………. 8
8. Quality management system ……………………………………………… 9
9. Problems identification in the company and solutions …………………… 10

10. Conclusions & Bibliography ………………………………………..…... 11

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1. The organization description
The organization is represented by Deutsche Bahn Cargo Romania, located in downtown
Bucharest, Delea Noua Street number 3. The head office is in Timisoara, Grigore T Popa Street,
number 81. and it is a limited liability company.
The company is ranked number 3 as a market share with a 9% share, being overtaken by CFR
(37%) and GFR (25%), the latter being also the main competitors on the market.
Deutsche Bahn Cargo Romania - the Romanian subsidiary of DB Cargo, the largest railway
carrier in Europe. DB Cargo is the number one European freight forwarder and the largest operator
as volumes transported in Europe. Deutsche Bahn Cargo Romania has been present in Romania since
2000, previously operating as Logistic Services Danubius.
The focus is on national and international traffic, active in industries such as construction
materials, metallurgy, grain and auto. Deutsche Bahn Cargo Romania holds the safety certificates
necessary to operate on a large part of the Romanian railway network.
At the European level, Deutsche Bahn Cargo Romania uses all the resources of the European
Cargo DB network and all customer needs are satisfied.
Almost 34,000 employees in Europe work every day to ensure cross-border transport routes
efficiently and ecologically.
With about 4,200 customers in Europe, DB Cargo offers customers access to one of the
world's largest rail networks and is therefore the European leader in rail freight transport.
DB Cargo is a leading global provider of integrated logistics services and, from the
perspective of freight volumes, it is the largest freight transport company in Europe.
DB Cargo is the only company that offers to its business customers railway transport from a
single source and covers the whole of Europe whatever the field of activity they have. In the DB
Cargo rail network, approximately 5,000 freight trains operate in approximately 4,200 lines of lines
and terminals. [1]

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2. The organizational structure
The organizational structure is made up of 6 major departments: production, finance, sales
and marketing, safety and quality, human resources and project management.

Fig. 1. The organizational structure of DB Cargo Romania [2]

3. Products and services


DB Cargo's block train operations allow transport of high volumes quickly, flexibly and
reliably.
From exceptionally adaptable to exceptionally cost-effective, the block train products offer
customers the ideal solution for any kind of major shipments.
The benefits at a glance:
 Three solution options for transporting high volumes;
 Planning certainty with a binding schedule;
 Flexibility through last-minute booking.
DB Cargo provides various block train solutions:
DBplantrain - Cost-effective planning:
 Plan the train demand customer well in advance;
 Regular transport of high volumes on fixed routes for fixed transport dates and times.
DBvariotrain - pre-booked flexibility:
 Optional reservation of fixed routes for fixed transport dates and times;
 Plan high transport volumes in a variable way. [1]
DBflextrain - the last-minute block train:
 Arrange transport volumes, routes and transport schedule at short notice;
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 Maximum flexibility upon order placement.
This production system is able to fully utilize its strengths across the European transport
network, particularly when it comes to bulk transport.
The DB Cargo Automotive RailNet is a unique industrial network which has been specially
designed to meet the requirements of the automotive industry.
Based on this European rail-network the company develop customized solutions for
component and finished vehicle logistics – from single connections up to complex networks. In the
Automotive RailNet, up to 250 trains a day connect the production plants and sales markets of
customers between Sweden and Turkey, Portugal and Russia and even to China.
The combination and comprehensive management of material and finished vehicle transports
ensures an optimal use of synergies between the different transports and establish high frequencies
and cost-efficient transports. With the Automotive RailNet, customers can flexible integrate even
small volumes into the network und profit from high frequencies, short duration of transport and
decreases the dispatching effort.
The benefits at a glance:
 integrated industry solutions;
 flexible delivery concepts with high-frequent services;
 global, cross-modal incident management;
 integration of various supply chain partners;
 comprehensive management from one single source.
A dedicated siding gives customers direct access to the international rail network and thus all
Europe's key business centers.
To boost the shift of transport from road to rail, the German government passed a statutory
regulation promoting the development of private sidings: the regulation relating to the construction
of new private sidings and the development and reactivation of existing installations. All necessary
information, contact persons and relevant links relating to the initiative, known in German as
"Offensive Gleisanschluss," can be accessed by following the link provided here to the cross-
company website for siding information. [1]

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4. Macromedia analysis
 Economic environment: Company development and profitability are fundamental to long-
term success, and the two must go hand in hand. With a health financial foundation and good
economic performance, DB Cargo is able to invest in new jobs, in the expertise of its employees
and in new business, which in turn will allow them to continue to grow. These investments are
necessary for the organization to be able to support and further expand its position as a leader in
transport and logistics. DB Cargo already has leading positions in all market segments - European
land and rail freight, air and maritime freight, and logistics contracts. Before it can build on these
positions, it must improve profitability by upgrading the IT landscape and expanding the number
of new high margin products. DB Cargo will increasingly move its growth center into newly
industrialized and developing countries to benefit from the greater benefits of rapidly growing
markets.
• Socio-cultural environment: As a top employer, DB Cargo wants to be one of the ten best
German companies by 2020 and also wants to hold a top position outside of Germany. The
company is already a top employer in many countries, such as Poland, where it wants to do
everything in its power to maintain its position. The social responsibility of the organization goes
beyond being an attractive employer; it wants to be a recognized member of society and to express
its commitment to society by supporting social projects. DB Cargo employees are the most
important asset, so the company can only maintain its success on the market if it has motivated
and qualified employees. DB Cargo retention efforts of successful employees are supported by
three key factors: high customer satisfaction, sustainable staff development and a strong corporate
culture.
• The demographic environment: Society is facing growing pressure to protect the
environment. In particular, the transport sector is called upon to make a considerable contribution
to these efforts. DB Cargo aspires to drive the path of environmental protection movement. The
objective of the company is to become the number one supplier of green logistics services and to
prove that CO₂ emissions can really be reduced when transport volumes increase. In addition to
reducing CO₂ emissions, resource and material protection activities are greatly expanded and work
to reduce rail noise considerably. DB Cargo already offers environmentally friendly solutions for
all modes of transport, allowing customers to reduce, compensate or avoid CO₂ emissions
altogether along the entire supply chain. Moreover, DB offers a CO₂-free product for rail transport
and can reduce CO₂ emissions by up to 20 percent in air transport and up to 50 percent in freight
transport at sea. [3]
• Technological environment: The company has made significant advances in achieving the
goal of equipping 2,000 locomotives with diagnostic technology by 2020. Currently, nearly 1,000
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of these high-tech locomotives, operating in Europe, provide information on vehicle status in
following a collaboration agreement with Siemens to upgrade the 150-class electric locomotive to
turn it into what DB Cargo calls "TechLOKs." In addition, class 170 and 191 Vectron locomotives
from Siemens will also be connected to the TechLOK system. Based on these locomotive
telematics units, DB Cargo uses the TechLOK system to collect, view and process information no
matter where it is in Europe, allowing the company to make improvements to its daily operations
and also make it more efficient to maintain, due to the predictive function. Unlike the current
mileage-based or time-based approach, locomotives will be maintained as the data looks like
necessary, and the company can continue to improve vehicle availability and transport quality and
save money. [3]

5. Micromedia analysis

Fig. 2. - The Porter’s five forces model [4]

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6. Swot analysis
SWOT analysis is a framework used to evaluate a company's competitive position by
identifying its strengths, weaknesses, opportunities and threats. Specifically, SWOT analysis is a
foundational assessment model that measures what an organization can and cannot do, and its
potential opportunities and threats. [5]
STRENGHTS WEAKNESSES
• The largest rail carrier in Europe • High power consumption due to
• Significant number of freight trains electric locomotives
and lines and terminals • High cost of periodic technical
• More than 30,000 employees across revisions of locomotives and wagons
Europe
OPPORTUNITIES THREATS
• Contracts with many suppliers and • strong competition on the German
customers rail market
• Access to new sources of investment • The difficult adaptation to rail
transport in Europe, the Western world and
Asia
• Infrastructure

7. Human resources
Strong and professional human resources management helps the organization to keep its
employees on the long run. That's why they are constantly working to improve employee satisfaction.
The organization has clear goals of satisfaction and evaluates this indicator on a regular basis through
employee surveys.
Primary are both employee qualifications and the systematic development of the company's
experts and directors. Moreover, the company aims to make employees' professional development
more flexible in order to better fit their own professional and life phases.
In addition to successful human resources management initiatives, a strong corporate culture
is a prerequisite for dedicated and content employees, and thus a basis for long-term success. The
international character of DB Cargo is challenging by the fact that it has to integrate a variety of
cultures and create a common identity. [6]
In addition to employee retention, recruitment by human resources professionals is an absolute
necessity. DB Cargo has set out to build a reputation as one of the most attractive employers in the
transport and logistics industry. Achieving this goal is a challenge especially in the light of

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demographic change and the current "war for talent." In addition to attractive training offer and
postgraduate programs, DB Cargo has to stimulate its activities for the recruitment of skilled and
motivated employees. To do this, DB Cargo closely cooperates with universities and associations
such as the Bundesvereinigung Logistik eV, a logistics and supply chain management network. [6]

8. Quality management system


For the continuous application and improvement of the integrated quality and safety
management system, the efficient utilization and the maximum yield of the material and human
resources was pursued, so that the services provided by Deutsche Bahn Cargo Romania SRL satisfy
the highest level of customer demand and to achieve a level of competitiveness that the company will
become the leader of the Romanian rail transport market.
This policy of continuous improvement of service quality and safety is primarily aimed at
achieving customer satisfaction, increasing confidence in the services offered by DB Cargo, trust
which, enhanced by quality, opportunity, dynamism and safety, contributes to the good image of the
company. [7]
QMS (Quality Management System)
• Manual quality development, general procedures and working instructions related to QMS;
• Broadcast within the organization of QMS documents;
• Implementation within the organization of SMC and periodic review of QMS documents;
• Elaboration of annual audit program / quality assurance programs and internal audits in the
field of quality at the functional departments of the organization, as well as performance audits
in the field of quality of the suppliers;
• Preparation of internal audit reports / quality providers;
• Establishment of internal audit objectives / suppliers, nonconformity control and remediation
tracking;
• Analysis and demonstration of utility and effectiveness of QMS in the organization;
• Quarterly compilation of the quality report.

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9. Problems identification in the company and solutions
I identified two major problems in DB Cargo Romania company :
 Lack of staff;
 Lack of employee qualification.

The first identified problem is the most common among all organizations because each
employee wants more benefits from the workplace.
Although the company focuses on both employee qualifications and the systematic
development of the company's experts and executives, there is still a staff shortage.
Besides the fact that every employee wants a huge salary, there are other benefits to attract
new employees.
To mitigate these staff shortages, I have thought of the following solutions:
 offering subscriptions to the best private clinics, such as Queen Maria, Sanador
and Monza, as well as subscriptions to gym;
 for employees who like to read a good book, the company should offer
subscriptions to Bookster, the first modern library;
 the company should have contracts with one or two catering companies to offer
employees diversification of food;
 consistent with the previous idea, it would be an excellent idea for the company
to offer daily lunch tickets with a certain amount;
 given that the company has hundreds of employees, it could invest in building
a kindergarten or school that only employees of the company have access to.

The second problem can be solved with the following solutions:


 sending employees to different specialized trainings, both before starting work
and at certain times;
 employees have the chance to receive different benefits, according to the marks
obtained at the completion of the training.

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10. Conclusions
Although DB Cargo Romania is a large multinational German company, there are problems
both in terms of staff and employee qualifications.
Each company has its own problems, but needs to know how to find solutions and diminish
them as much as possible.
So, for DB Cargo Romania, we offered a series of solutions to the problems identified to stay
the largest railway carrier in Europe.

Bibliography
[1] https://ro.dbcargo.com/rail-romania-ro [accessed on 9 January 2019];

[2] The organizational structure of DB Cargo Romania company [12 December 2018];

[3] The macromedia analysis of DB Cargo Romania company [12 December 2018];

[4] The micromedia analysis of DB Cargo Romania company [12 December 2018];

[5] https://www.investopedia.com/terms/s/swot.asp [accessed on 9 January 2019];

[6] The human resources strategy of DB Cargo Romania company [12 December 2018];

[7] The quality management system of DB Cargo Romania company [12 December 2018].

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