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Businesses’ are operating in a troubled economy. The troubled economy cannot be pinpointed to any specific region of the world. Companies must consider economic trends that affect its industry (Pearce & Robinson, 2004). Now, more than ever, managers must consider the general availability of credit, the level of disposable income, and the propensity of people to spend (Pearce & Robinson, 2004). One needs to look no further than the shipping industry to understand how growth has slowed. Shipping is an excellent gauge for the health of the global economy. The industry is responsible for moving raw materials and finished products around the globe. Maersk Line is the world’s leading container shipping line (Marine Connector, 2008). At the beginning of 2008, Maersk revisited its strategy to drive the turnaround of the business and return to sustainable profitability (E-Logi, 2008). Maersk has developed a long-term strategy comprising of four core elements (E-Logi, 2008). The core elements of the strategy are: filling its ships with profitable cargo, provide the most reliable product demanded by our customers, provide a faster, more responsive service closer to customers, and reduce complexity (E-Logi,
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In addition, it has layed-up eight vessels due to the worsening market conditions (Marine Connector, 2008). These eight vessels will remain at anchor until conditions improve. Another area for reducing costs is lay-offs. Maersk plans on cutting 2,000 to 3,000 employees (E-Logi, 2008). Maersk has also found opportunities to reduce costs at individual terminals. For example, the company was able to find a way to use less space and equipment at its Wando Welch Terminal location (Moreland Advisors, 2009). These cost savings and reduced labor at the Wando Welch Terminal will allow Maersk to keep its Charleston, South Carolina operations profitable (Moreland Advisors, …show more content…
(2007, June). Maritime air emissions and MARPOL Annex VI: Strategies and consequences. IPIECA.org. Retrieved March 28, 2009, from http://www.ipieca.org.
Maniscalco, R. (1995). The employment staffing alternative. Information Systems Management, 12, Retrieved October 20, 2007, from EBSCOHost database.
Marine Connector. (2008, 11 December). Maersk Warns Shipping Industry Needs a Lifebelt. Marine Connector online. Retreived March 29, 2009, from http://www.maritime-connector.com.
McKee, D. O., Varadarajan, P.R. & Pride, W. M. (1989). Strategic adaptability and firm performance: A market-contingent perspective. Journal of Marketing, 53(3), 21-35. Retrieved March 29, 2009 from EBSCOHost database.
Moreland Advisors. (2009, February 9). There may be help for Maersk in Charleston. Moreland Advisors online. Retrieved March 29, 2009, from http://www.morelandadvisors.com.
Nelson, Jeffery (2009) Verizon Wireless Fosters Global LTE Ecosystem as Verizon CTO Dick Lynch Announces Deployment Plans. Verizon Wireless News Center. Retrieved March 29, 2009 from http://news.vzw.com.
Partner Program. (2009). Value of Partnering. Retrieved March 28, 2009 from
In addition, it has layed-up eight vessels due to the worsening market conditions (Marine Connector, 2008). These eight vessels will remain at anchor until conditions improve. Another area for reducing costs is lay-offs. Maersk plans on cutting 2,000 to 3,000 employees (E-Logi, 2008). Maersk has also found opportunities to reduce costs at individual terminals. For example, the company was able to find a way to use less space and equipment at its Wando Welch Terminal location (Moreland Advisors, 2009). These cost savings and reduced labor at the Wando Welch Terminal will allow Maersk to keep its Charleston, South Carolina operations profitable (Moreland Advisors, …show more content…
(2007, June). Maritime air emissions and MARPOL Annex VI: Strategies and consequences. IPIECA.org. Retrieved March 28, 2009, from http://www.ipieca.org.
Maniscalco, R. (1995). The employment staffing alternative. Information Systems Management, 12, Retrieved October 20, 2007, from EBSCOHost database.
Marine Connector. (2008, 11 December). Maersk Warns Shipping Industry Needs a Lifebelt. Marine Connector online. Retreived March 29, 2009, from http://www.maritime-connector.com.
McKee, D. O., Varadarajan, P.R. & Pride, W. M. (1989). Strategic adaptability and firm performance: A market-contingent perspective. Journal of Marketing, 53(3), 21-35. Retrieved March 29, 2009 from EBSCOHost database.
Moreland Advisors. (2009, February 9). There may be help for Maersk in Charleston. Moreland Advisors online. Retrieved March 29, 2009, from http://www.morelandadvisors.com.
Nelson, Jeffery (2009) Verizon Wireless Fosters Global LTE Ecosystem as Verizon CTO Dick Lynch Announces Deployment Plans. Verizon Wireless News Center. Retrieved March 29, 2009 from http://news.vzw.com.
Partner Program. (2009). Value of Partnering. Retrieved March 28, 2009 from