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Strategic Planning at United Parcel Service

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Case questions
What are the strengths and weaknesses of scenario planning? What is your evaluation of UPS’s 1997 scenario planning exercise? Its Horizon 2017 planning exercise? How do the two efforts compare? Evaluate the following elements of UPS’s approach to strategic planning:
The UPS charter The Centennial Plan The Strategy Road Map

Why was John McDevitt put in charge of “strategic integration?” Should he remain in that role?

What is the strength and weakness of scenario planning?
Strength
 Build foundation for source of long term competitive advantage  Provide backdrop of strategic decision (pg.6)
• Acquisition of Mail Boxes Etc.

 Change mind-set
• Make people think beyond the operational mind • Prepare to be proactive and creative

 Enable to be sensitive for change in external environment  Alternative views of the future  Provide and prepare the company for potential change in the future’s market.

Weakness
 Lack of realism  Requires learning curve to have adequate result  Too abstract and difficult to apply  Indirect linkage to daily operation or strategy  Depend on participants’ motivation and knowledge  Not point out the strengths and weakness of company

What is your evaluation of UPS’s 1997 scenario planning exercise?
Evaluation on 1997 Scenario planning
Initiative to build foundation for source of long term competitive advantage Positive aspects
• Become backdrop of UPS Charter and changed mission statement • Initiate to have foundation of unified corporate level decision making
 Early years: $11bn project was initiated by small project group

• Lead to define four themes • Provide common vocabulary which unify the organization’s mind-set • Guide to investigate opportunities

Negative aspects
• No early warning signal is defined • Initiate dramatic presentations
 importance doesn’t lie on

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