81075682 Ups Final Pr Modified
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Running Head: BUSINESS STRATEGY PROJECT - UPS 1
United Parcel Serice! Inc"r#"rati"n
Bu!ine!! Strateg$
na%e
C"llege
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United Parcel Serice! Inc"r#"rati"n &
About the company
Ja%e! Ca!e$ '"unded t(e A%erican )e!!enger C"%#an$ "n Augu!t &*+ 1,.+ /(ic(
later /a! %erged /it( an"t(er c"%#etit"r c"%#an$ and '"r%ed )erc(ant Parcel
0elier$ In 1,1,+ /(en #r"#er !erice! !tarted in Oa2land+ Cali'"rnia+ t(e c"%#an$
/a! rena%ed a! United Parcel Serice 3UPS4 al"ng /it( it! ne/ "''icial l"g" T(e
t"tal nu%5er "' e%#l"$ee! in UPS /ere 6,.+1 in &1&
UPS currentl$ "#erate! in t(ree di''erent !eg%ent!:
US d"%e!tic #ac2age
o 0"%e!tic #ac2age '"cu!e! "n ti%e-de'inite delier$ "' t(e d"cu%ent!
/it(in t(e United State!
Internati"nal #ac2age
o Internati"nal #ac2age "#erate! in %"re t(an t/" (undred c"untrie! t"
delier t(e #ac2age!
Su##l$ c(ain and 'reig(t
o It include! t(e entire l"gi!tic "#erati"n! acr"!! t(e gl"5e 5$ United
Parcel Serice It "#erate! in %"re t(an 1.7 c"untrie!
T(ere i! a (uge li!t "' it! c"%#etit"r! in t(e d"%e!tic and internati"nal leel! In t(e
d"%e!tic leel+ United State! Parcel Serice! 8 9ede are t(e %a;"r c"%#etit"r! "'
UPS
In t(e internati"nal %ar2et+ t(e %a;"r c"%#etit"r! are li!ted 5el"/:
1 Pur"lat"r
& 0H
t" * #er $ear It i! al!" l""2ing '"r/ard '"r t(e c"%#"und annual earning! /(ic(
can gie gr"/t( "' !(are alue! 'r"% 1 t" 17 UPS i! l""2ing '"r return "n it!
ine!ted ca#ital "' at lea!t &7 It i! al!" l""2ing '"r/ard t" alue !(are("lder! 5$
giing t(e% diidend! and an "#ti"n "' re#urc(a!ing t(e !t"c2! t(i! /ill (el# UPS t"
e#and and aid it! 'inancial re?uire%ent! St"c2 re#urc(a!e! are e#ected t" reac(
D*5illi"n a! (ig(lig(ted in t(e "5;ectie! "' UPS
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United Parcel Serice! Inc"r#"rati"n 7
Strategy of UPS
UPS (a! 5a!ed it! !trateg$ t" t(ree c"%#"nent! 14 alue creati"n+ &4 tran!'"r% it!
#e"#le and tec(n"l"g$ 64 and ine!ting in gr"/t( and deel"#%ent UPS (a!
ac(ieed it! !trategic adantage a! it i! creating alue '"r cu!t"%er! 5$ t(eir
"ut!tanding #"rt'"li" (aing ecellent l"gi!tic! ca#a5ilitie! It i! c"ntinuall$
tran!'"r%ing it!el' t" !trengt(en it! leader!(i# #"!iti"n and i! ine!ting '"r gr"/t( in
2e$ %ar2et! and aailing ne/ "##"rtunitie!
T(e 'inancial anal$!i! i! !tated 5el"/ A! 'ar a! t(e ?uic2 anal$!i! "' t(e c"%#an$ i!
c"ncerned+ it can 5e !aid t(at t(e reenue '"r UPS increa!ed 'r"% D76+17 %illi"n t"
D7=+1&. %illi"n t(at %ean! t(ere /a! an increa!e "' 1,& But t(i! /a! n"t ade?uate
'"r t(e !ucce!!'ul 'inancial #er'"r%ance "' c"%#an$ a! t(e "#erating e#en!e! (ad
5een increa!ing 'r"% t(ree $ear! ie D=6+,= %illi"n in &1+ D=.+&7 %illi"n in &11
and D7&+.*= %illi"n in &11 T(i! %ean! t(at t(ere /a! an increa!e "' 1&6 Suc( a
great increa!e cau!e t(e net inc"%e t" 'all /it( a certain i%#act "' increa!ing
"#erating e#en!e! Net inc"%e 'ell d"/n t" D*. %illi"n in &1& 'r"% D6+*=
%illi"n in &11 T(i! !("/! a !udden decrea!e "' .*. in net inc"%e It can 5e !aid
t(at t(e "#erating e#en!e! increa!ed due t" c"%#en!ati"n and 5ene'it! #r"ided t"
t(e e%#l"$ee! during t(e $ear &11-&1& T(i! created a negatie e''ect "n t(e Ba!ic
and 0iluted earning! #er !(are ie D*= and D*6 #er !(are re!#ectiel$
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United Parcel Serice! Inc"r#"rati"n >
UPS current financial condition
United Parcel Serice! (a! 5een #er'"r%ing er$ /ell in ter%! "' 'inancial gr"/t(
C"n!idering it! #a!t #er'"r%ance!+ it !("/ed D7=+1&. %illi"n in it! reenue! in 9Y1&
It! reenue! /ere D76+17 %illi"n in 39Y114 T(e ta5le in t(e '"ll"/ing !("/! it! #a!t
#er'"r%ance!
evenues of UPS from 2!!"#2!$2
Reenue! (ae !("/n a #"!itie gr"/t( "er t(e #a!t $ear! t(u! #er'"r%ance i! ?uite
!ati!'act"r$
T(e "#erating e#en!e! "' UPS (ae 5een increa!ing !ince &* 5ecau!e "' t(e (ig(er
c"%#etiti"n in t(e %ar2et and it! e#an!i"n! T(ere are !" %an$ rea!"n! due t" /(ic(
it! "#erating e#en!e! (ae 5een increa!ing a! /ell T(e %a;"r and i%#"rtant rea!"n!
can 5e t(e energ$ !ect"r an increa!e in t(e #rice! "' t(e "il %ig(t (ae cau!ed
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United Parcel Serice! Inc"r#"rati"n .
increa!ed e#en!e! in t(e "#erati"n! "' UPS+ al"ng!ide "t(er 'act"r! 9"r n"/+ let!
'"cu! "n t(e #a!t #er'"r%ance "' t(e "#erating e#en!e! T(e alue! in ta5le! are in
%illi"n d"llar!
O&erating '(&enses of UPS from 2!!"#2!$2
T(e "#erating #r"'it! in t(e 9Y1& are le!! t(an t(e "t(er $ear!+ due t" t(e (ig(
"#erating e#en!e! a! di!cu!!ed earlier T(e c"%#an$ need! t" '"cu! "n it! "#erating
e#en!e! t" decrea!e it Here i! t(e detailed anal$!i! "' t(e "#erating #r"'it! T(e ta5le
5el"/ !("/! t(e "#erating #r"'it! in %illi"n d"llar!
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United Parcel Serice! Inc"r#"rati"n *
O&erating &rofits of UPS from 2!!"#2!$2
A! !("/n a5"e+ t(e "#erating #r"'it! declined in &1& due t" t(e (ig( "#erating
e#en!e! C"n!idering t(e 'act+ i' UPS decrea!e t(e "#erating e#en!e!+ t(e c"%#an$
/"uld %a2e #er(a#! increa!ed #r"'it!
N"/ let u! !ee ("/ it (a! 5een #er'"r%ing !ince &* in ter%! "' net inc"%e
T(e c"%#an$! net inc"%e !igni'icantl$ decrea!ed in t(e la!t $ear+ 5ecau!e it!
"#erating e#en!e! increa!ed /(ic( re!ulted in decrea!ed "#erating #r"'it! and 'inall$
re!ulted in decrea!ed net inc"%e
T(e ta5le 5el"/ !("/! t(e decrea!ed inc"%e !ince &*+ 5ut alue! %enti"ned in t(e
are in )illi"n d"llar!
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United Parcel Serice! Inc"r#"rati"n ,
*et income of UPS from 2!!"#2!$2
Financial position, Liabilities and
Stockholders equity
Current+iabilities
T(e 9"ll"/ing current lia5ilitie! are ta2ing in t" acc"unt:
1 Current %aturitie! "' l"ng-ter% de5t and c"%%ercial #a#er
& Acc"unt! #a$a5le
6 Accrued /age! and /it(("lding!
= Sel'-in!urance re!ere!
7 Ot(er current lia5ilitie!
T(e current lia5ilitie! al!" increa!ed 'r"% D>+71= %illi"n in &11 t" D*+6, in &1&
T(i! !("/! an increa!e "' &*.
*on#current liabilities
T(efollo,ing non#current liabilities of UPS are ta-en into account:
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http://www.stock-analysis-on.net/Knowledge-Base/Debt-Currenthttp://www.stock-analysis-on.net/Knowledge-Base/Accounts-Payable-Currenthttp://www.stock-analysis-on.net/Knowledge-Base/Employee-related-Liabilities-Currenthttp://www.stock-analysis-on.net/Knowledge-Base/Other-Liabilities-Currenthttp://www.stock-analysis-on.net/Knowledge-Base/Liabilities-Noncurrenthttp://www.stock-analysis-on.net/Knowledge-Base/Debt-Currenthttp://www.stock-analysis-on.net/Knowledge-Base/Accounts-Payable-Currenthttp://www.stock-analysis-on.net/Knowledge-Base/Employee-related-Liabilities-Currenthttp://www.stock-analysis-on.net/Knowledge-Base/Other-Liabilities-Currenthttp://www.stock-analysis-on.net/Knowledge-Base/Liabilities-Noncurrent -
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United Parcel Serice! Inc"r#"rati"n 1
1
/otal s0areo,ners1 euity
T(e !(are"/ner! e?uit$ decrea!ed 'r"% D.+1* in &11 t" D=+.66 in &1& T(i!
!("/! a decrea!e "' 66=
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http://www.stock-analysis-on.net/Knowledge-Base/Long-term-Debt-and-Capital-Lease-Obligationshttp://www.stock-analysis-on.net/Knowledge-Base/Pension-and-Other-Postretirement-Defined-Benefit-Plans-Liabilities-Noncurrenthttp://www.stock-analysis-on.net/Knowledge-Base/Pension-and-Other-Postretirement-Defined-Benefit-Plans-Liabilities-Noncurrenthttp://www.stock-analysis-on.net/Knowledge-Base/Deferred-Tax-Liabilities-Noncurrenthttp://www.stock-analysis-on.net/Knowledge-Base/Self-Insurance-Reservehttp://www.stock-analysis-on.net/Knowledge-Base/Other-Liabilities-Noncurrenthttp://www.stock-analysis-on.net/Knowledge-Base/Liabilitieshttp://www.stock-analysis-on.net/Knowledge-Base/Stockholders-Equity-Including-Portion-Attributable-to-Noncontrolling-Interesthttp://www.stock-analysis-on.net/Knowledge-Base/Long-term-Debt-and-Capital-Lease-Obligationshttp://www.stock-analysis-on.net/Knowledge-Base/Pension-and-Other-Postretirement-Defined-Benefit-Plans-Liabilities-Noncurrenthttp://www.stock-analysis-on.net/Knowledge-Base/Deferred-Tax-Liabilities-Noncurrenthttp://www.stock-analysis-on.net/Knowledge-Base/Self-Insurance-Reservehttp://www.stock-analysis-on.net/Knowledge-Base/Other-Liabilities-Noncurrenthttp://www.stock-analysis-on.net/Knowledge-Base/Liabilitieshttp://www.stock-analysis-on.net/Knowledge-Base/Stockholders-Equity-Including-Portion-Attributable-to-Noncontrolling-Interest -
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United Parcel Serice! Inc"r#"rati"n 11
Key Ratios for UPS
9"ll"/ing 2e$ rati"! are calculated '"r t(e 'inancial anal$!i! "' UPS
Profitability atios evenue cost of goods soldevenue
2!$$ 53$!5#4$!"253$!5 !622
2!$2 54$2)#4%%)%54$2) !6$4
T(e a5"e c(art !("/! t(at t(e #r"'ita5ilit$ declined 'r"% && t" 1= in &1& due t"
t(e increa!e in t(e c"!t "' g""d! !"ld
O&erating &rofit margin O&erating income evenue
2!$$ %!"!53$!5 !6$$
2!$2 $34354$2) !6!2
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http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=UPShttp://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=UPShttp://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=UPS -
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United Parcel Serice! Inc"r#"rati"n 1&
T(e "#erating #r"'it %argin al!" declined due t" increa!e in "#erating e#en!e! a!
%enti"ned a5"e
*et &rofit margin Profit after ta(es evenue
2!$$ 3"!453$!5 !6!)
2!$2 "!)54$2) !6!$4
Eer$ ele%ent "' #r"'ita5ilit$ i! decrea!ing t" a greater etent due t" increa!e in
"#erating e#en!e!
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United Parcel Serice! Inc"r#"rati"n 16
eturn on total assets Profit after ta(es 7 interest /otal assets
2!$$ 3"!4 7 34" 34)!$ !6$2
2!$2 "!) 7 3%. 3""%3 !6!3!%
It i! eident 'r"% t(e a5"e c(art+ t(at t(e return "n D1 "' a!!et i! "nl$ D6 in &1&
a! c"%#ared t" D1& in &11 T(i! (a! (a##ened due t" increa!e in "#erating
e#en!e! during &1&
eturn on Stoc-0olders 'uity Profit after ta(es /otal stoc-0olders euity
2!$$ 3"!4)$!" !653
2!$2 "!)4)33 !6$)
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United Parcel Serice! Inc"r#"rati"n 1=
T(e c(art '"r return "n !t"c2("lder! e?uit$ !("/! u! t(at t(e ROE reduced t" 1. in
&1& 'r"% 76 in &11 /(ic( %ean! t(at "nl$ D1. i! generated in net inc"%e 'r"%
D1 ine!t%ent "' t(e !t"c2("lder a! c"%#ared t" D76 T(i! i! due t" decrea!ed net
inc"%e in &1& 5ecau!e "' increa!e! "#erating e#en!e!
eturn on invested ca&ital &rofit after ta(es long term debt 7 euity
2!$$ 3"!4$$!.57)$!" !62$
2!$2 "!)$$!".74)33!6!5
Since t(e #r"'ita5ilit$ rati" i! c"ncerned /it( t(e net inc"%e+ t(i! i! t(e "nl$ rea!"n
/($ eer$ #r"'ita5ilit$ rati" (a! decrea!ed in &1& T(e return "n ine!ted ca#ital in
&1& !("/! t(at "nl$ D7 net inc"%e i! generated 'r"% D1 ine!t%e%t "' ca#ital in
t(e 5u!ine!! a! c"%#ared t" D&1 in &11
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United Parcel Serice! Inc"r#"rati"n 17
+iuidity atios
Current ratio Current 8ssets Current +iabilities
2!$$ $22"4%5$4 $6""
2!$2 $55.$"3.! $6"5
N"/ t(i! #articular rati" i! n"t c"ncerned /it( t(e net inc"%e "r return T(i! rati" i!
c"ncerned /it( t(e li?uidit$ "' t(e c"%#an$ T(i! %ean! t(e a5ilit$ "' UPS t" %eet
!("rt ter% "5ligati"n! li2e #a$ing !("rt ter% de5t! T(e rati" !("/! t(at t(e current
rati" reduced 'r"% 1** t" 1*7 5ut it d"e!n"t %a2e an$ di''erent t" t(e li?uidit$
!tatu! "' t(e c"%#an$ T(i! !("/! t(at '"r D1 lia5ilit$+ D1*7 a!!et! can 5e u!ed t" #a$
"'' t(e de5t! "r "t(er "5ligati"n! "' t(e c"%#an$ /(ic( i! !till a g""d !ign
9or-ing Ca&ital Current 8ssets Current +iabilities
2!$$ $22"4 %5$4 5))!
2!$2 $55.$ "3.! )!2$
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United Parcel Serice! Inc"r#"rati"n 1>
T(e /"r2ing ca#ital !("/! t(at ("/ %an$ current a!!et! "r li?uid a!!et! are !till in
t(e c"%#an$ a'ter #a$ing "'' t(e current lia5ilitie! T(e c"%#an$ (a! a 5etter li?uidit$
#"!iti"n !ince t(e /"r2ing ca#ital increa!e! in &1& t" D.+&1 %illi"n
+everage atios
ebt to 8ssets ratio /otal ebts/otal 8ssets
2!$$ 2)5.334)!$ !6).
2!$2 34$3!3""%3 !6")
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United Parcel Serice! Inc"r#"rati"n 1.
T(e leerage "' t(e c"%#an$ i! increa!ing and 5etter t(an t(at in &11 T(e 0e5t t"
A!!et rati" increa!ed t" *. in &1& 'r"% ., in &11 T(i! %ean! t(at t(e c"%#an$
i! rel$ing "n de5t a! a !"urce "' 'inance H"/eer+ t(e indu!tr$ alue i! n"t 2n"/ 5ut
t(e c"%#an$ UPS !("uld ta2e !te#! t" de#end "n e?uit$ a! t(e %ain !"urce "'
'inance
+ong term debt to ca&ital atio +ong term debt +ong term debt 7 euity
2!$$ $$!.5$$!.57)$!" !6%$
2!$2 $$!".$$!".74)33 !6)!
T(e rati" i! ("/eer increa!ing 5ut !till 5el"/ in &1& /(ic( %ean! t(at t(e de5t i!
!till under c"ntr"l and it en!ure! t(at t(e c"%#an$ UPS (a! %"derate de5t! /(ic( can
5e c"ntr"lled T(e rati" increa!ed in &1& 5ecau!e "' reduced !t"c2("lder e?uit$
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United Parcel Serice! Inc"r#"rati"n 1*
ebt to euity ratio /otal ebt/otal Stoc- 0older euity
2!$$ 2)5.3 )$!" 36""
2!$2 34$3! 4)33 )62$
N"/ (ere t(e !cenari" i! etre%el$ c"n'u!i"n A! /e calculated t(e current rati"+
/"r2ing ca#ital etc t(e c"%#an$ !("/ed a 'a"ra5le #"!iti"n "' it!el' /(ile
calculating t(e!e rati"! But t(i! rati" i! n"t in t(e 'a"r "' c"%#an$! 'inancial
!ucce!! a! t(e 5u!ine!! i! at ri!2 T(e rati" increa!ed t" .&1 in &1& 'r"% 6** in
&11 T(i! %ean! t(at t(e c"%#an$ UPS (a! eternal lender! and t"" %an$ l"ng ter%
and !("rt ter% de5t! /(ic( (a! increa!ed t(e rati" t" t(i! etent
+ong term debt to euity raio +ong term debt /otal Stoc-0olders euity
2!$$ $$!.5)$!" $65%
2!$2 $$!".4)33 2634
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United Parcel Serice! Inc"r#"rati"n 1,
T(e a5"e c(art !("/! t(at t(e c"%#an$ UPS (a! getting it! lia5ilitie! increa!ed %"re
in &1& t(an in &11 a! c"%#ared t" t(e e?uitie! "' re!#ectie $ear! T(i! i!
un'a"ra5le '"r t(e c"%#an$
/ime interest earned O&erating incomeinterest e(&ense
2!$$ %!"!34" $)64)
2!$2 $3433.3364
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United Parcel Serice! Inc"r#"rati"n &
T(e intere!t c"erage rati" i! 5etter in t(e $ear &11 It 'all! d"/n t" 6= in &1&
T(i! !("/! t(at earning! are decrea!ing t" %eet t(e intere!t #a$%ent! /(ic( i! (ig(l$
ri!2$ '"r t(e c"%#an$ UPS
8ctivity ratios
ays of inventory ;nventory< 3%5cost of goods sold
2!$$ 345 < 3%5 4$!"2 36!%5
2!$2 3.3 < 3%5 4%%)% 36!)3
9"r t(e t/" $ear!+ t(e da$! "' inent"r$ 5a!ed "n inent"r$ turn"er i! 6. /(ic(
!("/! t(at it ta2e! 6. da$! t" c"nert inent"r$ in t" ca!( "r !ell t(e%
8verage collection &eriod 8ccounts receivables < 3%5/otal sales
2!$$ %24% < 3%5 53$!5 426. days
2!$2 %$$$ < 3%5 54$2) 4$62$ days
T(e c"%#an$ UPS !("uld tr$ t" le!!en t(e receia5le! !" a! t" increa!e t(e reenue
/(ic( /ill (el# in increa!ing t(e net inc"%e a! t(e "#erating e#en!e! are increa!ing
/(ic( /ill 2ee# "n increa!ing in t(e 'uture %a$ 5e
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United Parcel Serice! Inc"r#"rati"n &1
Ups !ternal "pportunities
UPS0as a good &erformance among all t0e ot0er logistic com&anies6 /0e
com&any 0as a name and fame but t0e year 2!$2 creates a need to im&rove t0e
business o&erations of t0e com&any6
It (a! a (uge "##"rtunit$ t" gro, in 8sian mar-et6 ;nnovations and cost reduction
strategies ,ill lead UPS to 0ig0er gro,t0 in its &rofitability6 One t0ing t0at ,e
0ave observed is UPS s0ould start franc0ising around t0e globe in order to
increase its &resence in every country6 ;n order to increase its efficiency= it
s0ould reduce t0e &a&er,or- &rocess and use t0e electronic data of t0e
customers= es&ecially in 8sian countries6 >ranc0ising can 0el& UPS by 0el&ing it
in standardi?ing its service6 Moreover= franc0ising is t0e best ,ay to manage
finances and &enetrate in t0e ,0ole mar-et6
9ranc(i!ing /ill (el# it t" increa!e it! #re!ence in t(e %ar2et+ a! /ell it /ill !tart
earning r"$alt$ 'ee! t(at it /ill c(arge 'r"% t(e 'ranc(i!e "/ner!/0e freig0t
services t0at it &rovides s0ould also increase its efficiency in terms of time
management6 /0e &a&er ,or- s0ould ta-e less time and t0e focus s0ould be on
t0e electronic data6 8nalysing t0e electronic data is muc0 easier t0an t0e &a&er
,or- data ,0ic0 t0e customers &rovide6 /0e e(&ansion of its o&eration ,orld#
&ort in Cologne and in S0ang0ai is a clear e(am&le of t0e real innovation it
s0o,ed bac- in 2!!)6 UPS invested around %!! million dollars in year 2!!)= and
it 0as been &lanning to im&rove its services in ;ndia6 ;t also &lans to invest a lot
in ;ndia1s mar-et= because t0e economy of ;ndia 0as s0o,n a &ositive indicator
to UPS6
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United Parcel Serice! Inc"r#"rati"n &&
8s re&orted= it delivered 46$ billion &ac-ages in >@$2= considering t0at &er day
it delivered $%63 million &ac-ages6 ;n order to im&rove its delivery system= it 0as
to come u& ,it0 more feasible ideas= ,0ic0 ,ill attract customers to,ards
availing UPS services6 One of t0e strategies t0ey came u& ,it0 is &ic-ing t0e
&ac-ages from t0e customers1 0ome6 8s t0ey only 0ave to ma-e t0e call and
&rovide t0eir information to t0e com&any= t0en ,it0out any furt0er delay= UPS
collection team could send t0eir em&loyeesriders to collect t0e &ac-age from t0e
customers &lace in order to give t0e customer more feasibility and convenience6
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United Parcel Serice! Inc"r#"rati"n &6
Ups !ternal #hreats
UPS %a;"r t(reat! are in t(e '"ll"/ing:
1 F"latile #rice! "' energ$ 3"il+ ga! etc4
& Ec"n"%ic !ituati"n "' USA 8 t(e internati"nal currenc$ "latilit$
6
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United Parcel Serice! Inc"r#"rati"n &=
large 'leet a! %enti"ned earlier T(i! t(reat c"uld 5e nulli'ied "r at lea!t reduced i'
UPS !/itc(ed t" a %"re enir"n%entall$ 'riendl$ 'leet
Here i! t(e 5igger #icture "' t(e US une%#l"$%ent+ it! '"r l"nger ter% A! "' t(e
ti%e+ t(e!e !eri"u! i!!ue! cant 5e !"led 5$ t(e US g"ern%ent And it /ill a''ect
5adl$ t(e indu!tr$ a! /ell a! t(e reenue! "' UPS in l"nger ter% acc"rding t" $"u
!ig%a anal$!i!
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United Parcel Serice! Inc"r#"rati"n &7
$nternal Stren%ths of UPS
UPS (a! 5een #er'"r%ing in t(e indu!tr$ '"r a centur$ it! #a!t #er'"r%ance (a!
!("/n t(at it (a! great "##"rtunitie! and great #"tential t" gr"/ in t(e %ar2et S"%e
"' it! internal !trengt(! are %enti"ned in t(e '"ll"/ing+
Str"ng %ar2et #"!iti"n
Br"ad #"rt'"li" "' !erice!
Str"ng reenue gr"/t(
T(e current %ar2et !(are "' UPS in US i! =>76+ /(ic( i! t(e t"tal d"%e!tic %ar2et
!(are UPS (a! e!ta5li!(ed a !tr"ng %ar2et #"!iti"n '"r a centur$ it! e#an!i"n in t(e
%ar2et and it! ti%el$ delier$ !erice! (a! created a !tr"ng 5rand i%age '"r UPS
T(e 5r"ad #"rt'"li" "' it! !erice! (a! catered eer$ !eg%ent "' l"gi!tic!+ c"n!idering
t(e US %ar2et and t(e internati"nal %ar2et+ it! 5r"ad #"rt'"li" "' !erice! (ae
created a !tr"ng %ar2et #"!iti"n '"r it
It (a! a (uge #"tential t" increa!e it! reenue! A! %enti"ned 5e'"re+ t(e "il #rice!
%ig(t (ae a''ected it! "#erati"n! But it can decrea!e it! c"!t! 5$ intr"ducing "nline
!("##ing '"r it! !erice! T(i! /a$+ t(e "t(er e#en!e! /ill decrea!e+ giing UPS t(e
"##"rtunit$ t" increa!e it! #r"'it!
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United Parcel Serice! Inc"r#"rati"n &>
UPS $nternal &eaknesses
UPS (a! 5een 'acing a !eri"u! #r"5le%+ t(at! /($ it (a! n"t #er'"r%ed /ell in t(e
#a!t $ear! Earlier %enti"ned t(e reenue! and it! #r"'it!+ t(e l"/ #er'"r%ance i! due
t" t(e internal /ea2ne!!e! Here i! !"%e !eri"u! internal /ea2ne!! "' t(e c"%#an$
t(at it (a! t" l""2 a'ter:
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United Parcel Serice! Inc"r#"rati"n &.
In la!t #a!t 'ie $ear!+ UPS (a! ine!ted en"r%"u!l$ in di''erent %ar2et!+ /(ile d"ing
%ar2et e#an!i"n A! di!cu!!ed earlier+ it ine!ted en"r%"u!l$ in t(e A!ian %ar2et+
5ut t(e return! !" 'ar (a! 5een n"t t(at g""d One "' t(e rea!"n! can 5e t(e currenc$
"latilit$ But in t(e l"nger ter%+ t("!e ine!t%ent! /ill return g""d due t" t(e %ar2et
gr"/t( "' A!ian c"untrie! e!#eciall$ C(ina
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United Parcel Serice! Inc"r#"rati"n &*
UPS 'ission statement
UPS %i!!i"n !tate%ent !tated a! 'r"% t(e #re!!r""%+
Gr"/ "ur gl"5al 5u!ine!! 5$ !ering t(e l"gi!tic! need! "' cu!t"%er!+ "''ering
ecellence and alue in all t(at /e d"
)aintain a 'inanciall$ !tr"ng c"%#an$ - /it( 5r"ad e%#l"$ee "/ner!(i# - t(at
#r"ide! a l"ng-ter% c"%#etitie return t" "ur !(are"/ner!
In!#ire "ur #e"#le and 5u!ine!! #artner! t" d" t(eir 5e!t+ "''ering "##"rtunitie! '"r
#er!"nal deel"#%ent and !ucce!!
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United Parcel Serice! Inc"r#"rati"n &,
t(e %ar2et 5a!icall$+ UPS i! "''ering t(e !a%e t(ing a! it! c"%#etit"r!+ T" !ere
t(e l"gi!tic need!
($ !("uldnt t(e$ %a2e t(e c"n!u%er /ant t" u!e t(eir !erice!+ rat(er t(an /(at
t(e$ needK T(e$ can c"%e u# /it( di''erent idea! '"r ea%#le+ UPS can !et u# a
tea% t(at c"uld entertain all "' it! cu!t"%er! /(" u!e it! !erice! (en t(e
cu!t"%er! #r"ide t(eir data t(r"ug( electr"nic data+ UPS tea% can (ae t(eir
5irt(da$ date+ and can delier card! e!#eciall$ t" t(eir cu!t"%er! "n t(eir 5irt(da$
T(i! /ill %a2e t(e cu!t"%er! t" 5e l"$al /it( UPS+ and /ill 5ene'it 'r"% it in t(e
l"ng run C"n!u%er l"e! it /(en t(e !erice! t(e$ u!e "' an$ c"%#an$ gie t(e%
?uite g""d attenti"n It /ill %a2e t(e% 5ec"%e t(e l"$al cu!t"%er! '"r a! l"ng a! t(e$
can In t(i! /a$+ it can #enetrate int" t(e unta##ed %ar2et and increa!e it! %ar2et
!(are /it( t(e !trateg$ "' di''erentiati"n In t(i! /a$+ it can rai!e it! 5rand e?uit$+
rai!e li'eti%e alue "' cu!t"%er! and (ence can i%#act cu!t"%er l"$alt$ a! /ell T(i!
!trateg$ !("uld 5e u!ed "nl$ '"r t(e c"n!u%er %ar2et+ and #r"#er %ar2eting
ca%#aign !("uld 5e run t"" T(e c"n!u%er! need !("uld 5e 2e#t a! t(eir 'ir!t #ri"rit$
in "rder '"r t(e% t" (ae a 5etter c(ance t" gr"/ in l"ng ter%
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United Parcel Serice! Inc"r#"rati"n 6
Maintain a financially strong com&any#,it0 broad em&loyee o,ners0it0at
&rovides a long#term com&etitive return to our s0areo,ners
A! di!cu!!ed earlier+ t(e 'inancial #er'"r%ance "' UPS (a! n"t 5een i%#r"ed in t(e
#a!t due t" !" %an$ rea!"n! One "' /(ic( i! t(e e%#l"$ee! #r"ductiit$
T(e e%#l"$ee! #r"ductiit$ i! er$ i%#"rtant t" t(e c"%#an$! gr"/t( T(e
e%#l"$ee! "' UPS u!uall$ 'ace di''icult ti%e! /(en it c"%e! t" #r"ductiit$ Becau!e
t(e c"%#etiti"n i! er$ (ig( and t(e$ cant c"ncentrate %uc( due t" t(e #re!!ure "'
/"r2+ #r"#er training i! er$ e!!ential '"r t(e c"%#an$! e%#l"$ee! Eac( e%#l"$ee
!("uld 5e treated er$ /ell And !("uld 5e a##reciated '"r /(at t(e$ de!ere
B$ "ut!"urcing t("!e "#erati"n! t(at increa!e t(eir "#erati"nal c"!t!+ t(e all"tted 'und
'"r it can 5e decrea!ed And it /ill i%#act it! reenue! in a #"!itie /a$ '"r ea%#le+
P8G (a! "ut!"urced it! %an$ "#erati"nal actiitie! in t(e A!ian %ar2et+ /(ic( gae
t(e% (uge %argin! t" decrea!e t(eir "#erati"nal c"!t! and increa!e t(eir reenue! /it(
(ig( #r"'it!
IT #la$! a ital r"le in t(e "#erati"n! "' t(e c"%#an$ B$ i%#r"ing it! IT dii!i"n+ it
can reduce it! c"!t in di''erent a!#ect!+ !uc( a! (iring internati"nall$ An ea%#le "'
G""gle can 5e ?u"ted (ere+ all t(e initial interie/! are (eld "n t(e G""gle (ang"ut!+
and "nl$ t(e 'inal interie/ ta2e! #lace 5$ t(eir %anage%ent tea%
T(e ca#ital e#enditure! are /a$ (ig(er t(an it !("uld 5e T(e (ig( ca#ital
e#enditure! re!ult in l"/ diidend! A! "' n"/+ t(e ca#ital e#enditure! !("uld 5e
reduced a! %uc( a! #"!!i5le It !("uld 5e ine!ted in "rder t" i%#r"e t(e
#r"ductiit$ and e''icienc$
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United Parcel Serice! Inc"r#"rati"n 61
A;ns&ire our &eo&le and business &artners to do t0eir best= offering
o&&ortunities for &ersonal develo&ment and success
In!#irati"n i! er$ i%#"rtant '"r t(e e%#l"$ee! t" #er'"r% at t(eir 5e!t+ 5ut ("/ t"
in!#ire t(e% "n a dail$ 5a!i! i! t(e ?ue!ti"n
T(e CEO! %e!!age '"r all t(e e%#l"$ee! i! er$ i%#"rtant It! t(e ;"5 "' CEO t"
%a2e eac( e%#l"$ee 5eliee in t(e c"re alue! "' t(e c"%#an$ and #la$ t(eir #art
Becau!e at t(e end "' t(e da$+ eer$ "ne #ut! e''"rt in "rder t" #u!( t(e c"%#an$
'"r/ard ($ n"t t" %a2e t(e% d" it 'r"% t(eir (eart+ and %a2e t(e% 'eel #r"ud t(at
t(e$ are adding alue! t" t(e c"%#an$! g"alK
Eer$ n"/ and t(en+ t(e CEO !("uld c"ne$ (i!L(er %e!!age acr"!! t(e c"%#an$ and
t(e !ta2e("lder! t(at t(e$ are %a2ing t(ing! 5etter+ creating greater alue and
i%#r"ing ecellence '"r /(at t(e$ d"
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United Parcel Serice! Inc"r#"rati"n 6&
+ead by e(am&le as a res&onsible= caring= and sustainable com&any ma-ing
a difference in t0e communities ,e serve
T(e c"%%unit$ t(at t(e$ !ere and t(e cu!t"%er! t(at t(e$ care '"r are er$
i%#"rtant+ and !("uld 5e ta2en int" t("r"ug( c"n!iderati"n (ile #r"iding t(e 5e!t
!erice! t(e c"%#an$ can+ are t(e$ n"t giing !"%et(ing 5ad t" t(e enir"n%entK
Sure t(e$ delier = 5illi"n #ac2age! a $ear+ 5ut /(ile deliering it+ d"nt t(e$ (ar%
t(e enir"n%ent 5$ #"lluting t(e air Car5"n '""t#rint! are c"n!idered er$ i%#"rtant
/(en it c"%e! t" t(e enir"n%ent+ t(e le!! it i! t(e 5etter t(e c"%#an$ credi5ilit$ i!
B$ decrea!ing t(e car5"n '""t#rint!+ t(e$ can !et an ea%#le t(at t(e$ care '"r t(e
enir"n%ent a! %uc( a! t(e$ care '"r t(eir cu!t"%er! 0i''erent CSR 3c"%#an$ !"cial
re!#"n!i5ilit$4 actiitie! /ill gie t(e% a c(ance t" !tand "ut in t(e indu!tr$+ giing
!"%et(ing 5etter t" t(e !"ciet$ /ill gie t(e% l"ng ter% 5ene'it S" '"cu!ing "n t(e!e
t(ing! i! er$ i%#"rtant '"r t(e c"%#an$
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United Parcel Serice! Inc"r#"rati"n 66
UPS business strate%ies
UPS need! t" '"cu! "n 5"t( l"ng ter% and !("rt ter% !trategie! a! "' n"/ T(e current
#er'"r%ance "' t(e c"%#an$ i! n"t !ati!'act"r$ en"ug( t" create greater i%#act! in t(e
'uture
+ong term strategies:
Consumer segment
T(e c"%#an$! #re!ence i! a! i%#"rtant a! it! gr"/t( t(i! g"e! t"get(er in t(e !a%e
directi"n T(e %"re cu!t"%er! !ee t(e #re!ence "' it! !erice!+ t(e 5etter it i! '"r t(e
c"%#an$
A! "' n"/+ UPS !("uld '"cu! "n t("!e regi"n! ar"und t(e gl"5e t(at !ee%! t" (ae a
greater gr"/t( in t(e 'uture In A!ian c"untrie!+ UPS (a! alread$ %ade en"ug(
ine!t%ent! N"/ it! t(e ti%e t" '"cu! "n India and "t(er neig(5"ring c"untrie! "'
India T(e gr"/t( i! en"r%"u!l$ (ig( and t(e la5"r i! c(ea#+ !" l"ng-ter% ine!t%ent
/ill gie UPS t" !tand "ut in t(e cr"/d+ and again+ t(e e%#(a!i! i! "n t(e %ar2et
#re!ence Een i' t(e c"%#an$ 'eel! t(e ca#ital e#enditure! /ill 5e (ig(+ it (a!
al/a$! t(e "#ti"n "' 'ranc(i!ing Ulti%atel$+ it /ill increa!e t(e %ar2et #re!ence "'
t(e c"%#an$ and /ill 5ene'it t(e c"%#an$ in t(e l"ng run
Since t(e digital %ar2et i! gr"/ing er$ 'a!t+ an i%#act'ul ine!t%ent in t(i! %ar2et
/ill 5ene'it t(e c"%#an$ in t(e l"nger ter%+ 5ecau!e in 'uture+ eer$t(ing /ill 5e
d"ne t(r"ug( electr"nic deice! S" /($ n"t create an a##licati"n '"r t(e cu!t"%er! t"
(ae all t(e in'"r%ati"n t(e$ need t(r"ug( t(eir cell #("ne I' t(e$ !end an$
d"cu%ent t(r"ug( UPS+ t(en a'ter a certain ti%e+ UPS c"uld gie t(e c"n!u%er!
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United Parcel Serice! Inc"r#"rati"n 6=
u#date! a5"ut t(eir #ac2age! and all S" t(at t(e$ d"nt (ae t" /"rr$+ "n g" t" d"
"nline c(ec2 a5"ut t(e !tatu! "' t(eir #ac2age
Cor&orate Segment
In t(e c"r#"rate !eg%ent+ t(e i%#r"e%ent! can 5e 5r"ug(t 5$ "ut!"urcing t("!e
"#erati"n! t(at c"!t! er$ (ig( '"r t(e c"%#an$ T(e c"%#an$ can c"lla5"rate /it(
t("!e c"%#anie! t(at #r"ide energ$ !"urce Or it can !tart c"lla5"rating /it( t(e
e(icle c"%#an$ t(at %anu'acture! car! '"r UPS '"r t(e delier$ t(at it u!e! T(e$
can %anu'acture c"!t e''ectie car! "r an '"r t(e c"%#an$ t" reduce it! e#en!e!
T(e la5"r '"rce !("uld 5e trained er$ #r"#erl$ !" t(at in t(e l"nger ter%+ t(e$ !("uld
add greater alue! t" t(e c"%#an$! g"al! and "5;ectie
T(e re!earc( and deel"#%ent de#art%ent !("uld 5e ine!ted in #r"#erl$ !" t(at t(e$
c"uld c"%e u# /it( di''erent ne/ /a$! t" i%#r"e t(e e''icienc$ "' t(e c"%#an$!
#er'"r%ance
C"n!idering t(at in %ind+ reengineering !trateg$ !("uld 5e ad"#ted in "rder t" 5ring a
c"%#lete c(ange in t(e #r"ce!! "' it! "#erati"n! and ne/ /a$! !("uld 5e intr"duced
t" increa!e t(e !erice! t(at it #r"ide!
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United Parcel Serice! Inc"r#"rati"n 67
Short #erm Strate%ies
S("rt ter% !trategie! u!uall$ (el# t(e c"%#an$ t" ac(iee it! !("rt ter% "5;ectie!
T(at /ill ulti%atel$ (el# t(e c"%#an$ t" ac(iee t(e %ain g"al S"%e i%#"rtant !("rt
ter% !trategie! t(at UPS !("uld '"ll"/ are t(e '"ll"/ing:
Hig(er e''icienc$
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United Parcel Serice! Inc"r#"rati"n 6>
c"%#an$ are t(e a%5a!!ad"r "' t(e c"%#an$ t"" i' t(e$ are n"t !ati!'ied '"r /(at
t(e$ d" "r ("/ t(e$ are treated+ t(en t(e 5ad /"rd "' %"ut( can da%age t(e
credi5ilit$ "' t(e c"%#an$ A recent article t(at /e ca%e u# /it( /a! a5"ut H"%e
0e#"t
One "' it! e%#l"$ee! (ad a er$ 5ad e#erience /(ile /"r2ing in t(e c"%#an$ and
/a! %i!treated 5$ (i! %anager (en (e le't t(e c"%#an$+ (e !tarted !#reading (ate
%e!!age! again!t t(e c"%#an$ and it! rule! and #"licie!+ /(ic( da%aged t(e
credi5ilit$ "' t(e c"%#an$ and t(e "t(er e%#l"$ee! /ere al!" %aligned '"r /(at t(at
"ne e%#l"$ee e#erienced S" it i! er$ i%#"rtant t" %a2e eer$ e%#l"$ee 'eel t(at
t(e$ are #r"iding !"%e alue! t" t(e c"%#an$! g"al and !("uld 5e trained li2e "ne
t""
T(e c"%#an$ !("uld '"cu! "n t("!e area! /(ere t(e$ can l"/er t(eir c"!t!+ /(et(er
it! "#erati"n! "r /(ateer it i!
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United Parcel Serice! Inc"r#"rati"n 6.
Mar-eting
0i''erentiati"n !trateg$ /"uld 5e '"ll"/ed and #enetrati"n /"uld 5e d"ne in ne/
%ar2et!
>inance
Attenti"n /"uld 5e gien t" reduce "#erating e#en!e! "' c"%#an$
D
Pr"#er training "' e%#l"$ee! /"uld 5e d"ne and t(e 6> ealuati"n %et("d /"uld 5e
'"ll"/ed
;nformation system
A data5a!e and !"'t/are "' cu!t"%er relati"n!(i# %anage%ent /"uld 5e %aintained
in /(ic( 2e$ acc"unt! /"uld 5e !e#arated
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United Parcel Serice! Inc"r#"rati"n 6*
A! di!cu!!ed earlier+ CRS actiitie! /ill increa!e t(e credi5ilit$ "' UPS a%"ng it!
c"n!u%er!+ and a! %uc( a! CRS actiitie! can 5e d"ne Becau!e it /ill 5ene'it t(e
c"%#an$ in !("rt ter% a! /ell a! in l"ng ter%
Online !("##ing can 5e a (uge "##"rtunit$ '"r t(e c"%#an$ t(i! can 5e er$
e''ectie in C(ina and India+ 5ecau!e t(e!e t/" c"untrie! are gr"/ing tre%end"u!l$
T(eir ec"n"%ic gr"/t( can #r"'it UPS in !("rt ter% a! /ell a! in l"ng ter% T(e
'"cu! "' UPS !("uld 5e "n t(i! !trateg$+ /(ic( i! /a$ %uc( 5etter t(an t(e "t(er
!trategie!
Cu!t"%er care !("uld 5e i%#r"ed a! %uc( a! #"!!i5le+ 5ecau!e t(e cu!t"%er! are t(e
"ne /(" #a$! '"r eer$t(ing !" t(e t"# #ri"rit$ !("uld 5e gien t" t(e% T(e
i%#r"e%ent in t(e cu!t"%er care /ill increa!e t(e cu!t"%er! intere!t in t(e
c"%#an$ and eentuall$+ it /ill 5ene'it t(e c"%#an$
T(e regular cu!t"%er! !("uld 5e gien !#ecial attenti"n 5$ t(e c"%#an$+ 5ecau!e t(e$
are t(e l"$al "ne! and t("!e l"$al "ne! can attract "t(er cu!t"%er! t"" '"r t(e
c"%#an$ in !("rt a! /ell a! in l"ng ter%
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United Parcel Serice! Inc"r#"rati"n 6,
Results of the strate%ies applied
T(e !trategie! t(at are di!cu!!ed a5"e are '"r 5"t( !("rt ter%! a! /ell a! '"r l"ng
ter%
T(e re!ult! '"r t(e !("rt ter% !trategie! are in t(e '"ll"/ing:
S0ort term results
A'ter i%#le%enting t(e !("rt ter% !trategie!+ t(e "erall #er'"r%ance "' t(e c"%#an$
/ill i%#r"e+ t(e cu!t"%er! /ill c"n!ider UPS 5e'"re g"ing t" di!#atc( an$ #ac2age+
and t(e e%#l"$ee! /ill 5e (a##$ t" /"r2 'r"% t(eir (eart '"r t(e c"%#an$!
"5;ectie! t" 5e ac(ieed T(i! %ig(t ta2e a 5it l"ng t" ac(iee all "' t(e%+ 5ut /it(in
a $ear "r t/"+ t(e!e !trategie! /ill 5ring a l"t %"re i%#r"e%ent in t(e c"%#an$!
#er'"r%ance a! /ell a! in t(e credi5ilit$ T(e CRS /ill #la$ a ital r"le '"r eer$
c"%%unit$ in t(e USA a! /ell a! ar"und t(e gl"5e #e"#le /ill c"n!ider it a! a
c"%#an$ t(at care! n"t ;u!t '"r t(e cu!t"%er! 5ut al!" '"r t(e enir"n%ent T(e l"/er
c"!t! and (ig( e''icienc$ /ill attract t(e ine!t"r!+ and t(e ine!t"r! /ill ine!t
(a##il$ in t(e !(are! "' t(e c"%#an$ /(ic( /ill 5ene'it t(e c"%#an$ in !("rt ter% a!
/ell a! in l"ng ter%
+ong term results
In t(e l"ng ter%+ t(e !trategie! i%#le%ented /ill gie UPS an edge t" 5ec"%e t(e
%ar2et leader+ alt("ug( it alread$ i! in t(e t"# c"%#anie! t(at #r"ide l"gi!tic
!erice!+ 5ut t(e l"ng ter% !trategie! /ill %a2e t(e c"%#an$ gr"/ e#"nentiall$
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United Parcel Serice! Inc"r#"rati"n =
Strate%ies to re(ie) and e(aluation
T(e reie/ and ealuati"n "' t(e i%#le%ented !("rt ter% and l"ng ter% !trategie!
/ill 5e d"ne u!ing t(e di''erent data t(at c"%#an$ /ill gat(er eentuall$
0ata 'r"% t(e !ale! /ill indicate clearl$ ("/ %uc( i%#r"e%ent (a! 5een t(ere 'r"%
i%#le%ented !trategie! T(i! data /ill 5e gat(ered 'r"% t(e !ale! tea% t(at /ill 5e
u#dating t(e re!ult! "n a ?uarterl$ 5a!i! !" i' t(e re!ult! are n"t a! #lanned+ it can 5e
c(anged later
T(e #r"'it generated /ill gie t(e eact idea "' ("/ %an$ i%#r"e%ent! (a! c"%e
t(r"ug( t(e i%#le%ent !trategie!
T(e !(are! alue /ill al!" decide t(e c"%#an$! #er'"r%ance and it! #"tential '"r t(e
ine!t"r!
T" ealuate #er'"r%ance "' t(e e%#l"$ee!+ 'it te!t /"uld 5e c"nducted and a %"nt(l$
ealuati"n /"uld 5e d"ne 5$ %a2ing e%#l"$ee! #er'"r% in a!!e!!%ent center!
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United Parcel Serice! Inc"r#"rati"n =1
References
Labor force (Roger Plant) retrieved on 28 January 2008, from international
labor organizational: htt:!!"""#ilo#org!ement!area$!bu$ine$$%
helde$&!'*+02-./!lang%%en!inde#htm
1P* ( R3 4516R7 P9) retrieved ebruary ., 20-2 Revie"ed by John #
;rohol, P$y#9# on $yche central:
htt:!!$ychcentral#com!ne"$!20-2!02!0.!co%"or&er%$uort%reduce$%
"or&lace%$tre$$%u$%roductivity!
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United Parcel Serice! Inc"r#"rati"n =&
1P* omany inancial$, (1n&no"n, un&no"n, un&no"n) Retrieved
4ovember -8, 20-
u$%unemloyment%i$%that%it%i$%no"%li&e%euroean%unemloyment!
http://www.nasdaq.com/symbol/ups/financials?query=cash-flowhttp://www.nasdaq.com/symbol/ups/financials?query=ratioshttp://www.community.ups.com/Diversity/Programs/Leadership+Developmenthttp://www.community.ups.com/Diversity/Programs/Leadership+Developmenthttp://www.forbes.com/sites/timworstall/2013/03/12/the-problem-with-us-unemployment-is-that-it-is-now-like-european-unemployment/http://www.forbes.com/sites/timworstall/2013/03/12/the-problem-with-us-unemployment-is-that-it-is-now-like-european-unemployment/http://www.nasdaq.com/symbol/ups/financials?query=cash-flowhttp://www.nasdaq.com/symbol/ups/financials?query=ratioshttp://www.community.ups.com/Diversity/Programs/Leadership+Developmenthttp://www.community.ups.com/Diversity/Programs/Leadership+Developmenthttp://www.forbes.com/sites/timworstall/2013/03/12/the-problem-with-us-unemployment-is-that-it-is-now-like-european-unemployment/http://www.forbes.com/sites/timworstall/2013/03/12/the-problem-with-us-unemployment-is-that-it-is-now-like-european-unemployment/