...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...
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...9-306-002 REV: JUNE 19, 2006 DAVID A. GARVIN LYNNE C. LEVESQUE Strategic Planning at United Parcel Service We fully recognize that it is not possible to develop a true strategic plan more than a few years out and that business plans should have an even shorter horizon. But we are convinced that it is possible and wise, indeed necessary, to develop a set of very long-range scenarios that can form the foundation for our future strategic plans. — Michael (Mike) J. Eskew, Chairman and Chief Executive Officer, United Parcel Service (UPS) As Mike Eskew walked through the long, open atrium of UPS’s corporate headquarters late in March 2005, he thought about his upcoming lunch meeting with Vice President of Corporate Strategy Vern Higberg. Higberg was preparing a presentation for the senior management strategy committee, the Strategy Advisory Group, on improvements to the strategic-planning process. While the company had made major progress in planning for the future over the past 10 years, Eskew had charged Higberg and his colleagues with developing recommendations for moving forward, citing one of his predecessors, who had said, “The future of our company will be no better or worse than the quality of planning we do to prepare for it.” Company Background History In 1907, 19-year-old Jim Casey borrowed $100 from friends to start the small company that eventually became UPS. From its humble origins delivering messages for the city of Seattle, Washington, UPS...
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...2011 Airborne Express EMI and the CT scanner Juan Perez Strategic Management Juan Perez Strategic Management |Airborne Case 1 Strategic Management 6/7/2011 First Case Analysis: Airborne Express Analysis of the Express Mail Industry: In order to have a clear understanding of Airborne’s position and to make recommendations about future moves, it is critical to examine the industry environment—competitors, customers, and suppliers—and examine the firm internally. To do so, the Porter’s five forces framework and a resource & capability analysis will be utilized. Threat of Substitutes: In today’s aggressive environment, product substitutes are regarded as one of the most threatening forces in competition. In the case of Airborne, it wasn’t the exception. There were other two main players (Federal Express and United Parcel Service) offering similar a similar service –express mailing. The availability of substitutes made the demand for this industry elastic. The case also states that large customers weren’t known for their loyalty for a single carrier, once the contract was up, they look for the best bidder. Threat of Entry: The existent barriers of entry made hard for companies to enter the express mail industry. The costs of becoming established in this industry were so large that discourage potential entrants. For instance, a company entering this industry...
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...2011 Airborne Express EMI and the CT scanner Juan Perez Strategic Management Juan Perez Strategic Management |Airborne Case 1 Strategic Management 6/7/2011 First Case Analysis: Airborne Express Analysis of the Express Mail Industry: In order to have a clear understanding of Airborne’s position and to make recommendations about future moves, it is critical to examine the industry environment—competitors, customers, and suppliers—and examine the firm internally. To do so, the Porter’s five forces framework and a resource & capability analysis will be utilized. Threat of Substitutes: In today’s aggressive environment, product substitutes are regarded as one of the most threatening forces in competition. In the case of Airborne, it wasn’t the exception. There were other two main players (Federal Express and United Parcel Service) offering similar a similar service –express mailing. The availability of substitutes made the demand for this industry elastic. The case also states that large customers weren’t known for their loyalty for a single carrier, once the contract was up, they look for the best bidder. Threat of Entry: The existent barriers of entry made hard for companies to enter the express mail industry. The costs of becoming established in this industry were so large that discourage potential entrants. For instance, a company entering this industry would have to incur large upfront costs to operate, such as constructing a hub and several spokes, and purchasing...
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...DELL INC Strategic Planning at United Parcel Service (UPS) Case Analysis Name Student ID Course Code Course : : : : Harinath Mathavan 30109283 BUMGT 5926 Strategic Management of Change Contents 1.0 2.0 3.0 4.0 4.1. 4.2. 4.3. 5.0 5.1. 5.2. 5.3. 6.0 7.0 Introduction ...................................................................................................................... 2 Company Background ...................................................................................................... 2 Strategic Planning: Critical Assessment .......................................................................... 3 Strategic Problems and Solutions..................................................................................... 4 Strong Local and Regional Government Regulations ...................................................... 4 Rising Fuel Prices............................................................................................................. 4 Intense Competition ......................................................................................................... 5 Strategic Opportunities and Exploitation Strategy ........................................................... 5 Expansion of E-Business .................................................................................................. 5 Geographical Expansion .................................................................................................. 5 Business to...
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...STRATEGIC PLANNING AT UNITED PARCEL SERVICES Reaction Paper Blank Part A Before the 1990s UPS had a small group in charge of formulating project plans (Garvin & Levesque, 2006, p. 3). However, as the company grew in size and the volume of projects, a formal strategic planning group had to be formed. When Eskew became CEO in 2002, the formation of a Management Committee was among the first accomplishments he made. The Committee was tasked to direct the company to its vision for 2007, its first centennial. Eskew's concern, that changes are needed in UPS's strategic planning process, is valid. If the company continues to form only ad hoc groups to focus on achieving a long-term vision, then the sustainable commitment in the group's members cannot be assured. Eskew believes that the only way to move forward is to stop reinventing the wheel. This belief implies that the strategic planning process has to be more systematic than it is, currently. However, the scale of goals to achieve and tasks to accomplish for the Strategic Planning process have become larger as time progressed. UPS will only be capable of transforming itself once more if it has a proportionate level of commitment. A clearer and more straightforward connection between the different components of the strategic process is needed in order to sustain the focus and chart directions. Delegating such task to a Management Committee is a positive step to address the need to link the various components...
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...Handling transportation planning, TMS transformed the way United Parcel Service (UPS) executes their delivery business. Enabling what once was a small business by providing assistance in managing the shipping and receiving of retailers, manufacturers and suppliers goods, United Parcel Service (UPS) is now an international servicing company. The conjoined efforts of UPS and its TMS have allowed brick-and-mortar businesses to focus on core competencies and customer service by eliminating the shipping and receiving responsibility. In this composition basic uses of the TMS within UPS will be discussed. Addressing the factors that influenced the need for a developed transportation system, this article will cover the influences involved in the growth of a TMS system within companies such as UPS. IDENTIFIYING TRANSPORTATION MANAGEMENT SYSTEMS Transportation management system is a subset of supply chain management (SCM) software focused on transportation logistics. Connecting cities, manufactures, retailers and consumers, this system consolidates shipping and plans destination or travel routes. TMS was introduced to the supply chain process in the 1980s (McCrea, 2012). The sole intention of the system creation is to make the distribution of products from manufacturers to consumers efficient and affordable. This system is available to companies such as United Parcel Service (UPS) in many forms; standalone software packages, integrated into enterprise resource planning systems (ERP) or...
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...Handling transportation planning, TMS transformed the way United Parcel Service (UPS) executes their delivery business. Enabling what once was a small business by providing assistance in managing the shipping and receiving of retailers, manufacturers and suppliers goods, United Parcel Service (UPS) is now an international servicing company. The conjoined efforts of UPS and its TMS have allowed brick-and-mortar businesses to focus on core competencies and customer service by eliminating the shipping and receiving responsibility. In this composition basic uses of the TMS within UPS will be discussed. Addressing the factors that influenced the need for a developed transportation system, this article will cover the influences involved in the growth of a TMS system within companies such as UPS. IDENTIFIYING TRANSPORTATION MANAGEMENT SYSTEMS Transportation management system is a subset of supply chain management (SCM) software focused on transportation logistics. Connecting cities, manufactures, retailers and consumers, this system consolidates shipping and plans destination or travel routes. TMS was introduced to the supply chain process in the 1980s (McCrea, 2012). The sole intention of the system creation is to make the distribution of products from manufacturers to consumers efficient and affordable. This system is available to companies such as United Parcel Service (UPS) in many forms; standalone software packages, integrated into enterprise resource planning systems (ERP) or...
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... BACKGROUND OF STUDY Inter modal transport can be described as the transport of merchandise by at least two transport modes with a minimum of one stage being made by train, by truck, or by maritime modes. In other words, it is a cargo unit that is transferred from a transport mode to a another. The optimal combination of modes allows transporters to achieve what is known as economies of scope. In a majority of cases, the first and/or last steps of the cargo itinerary consist in truck transportation and are to be minimized. More than ever, delivery firms' activities are based on inter modal transport to optimize delivery times and, in turn, their overall efficiency. United Parcel Service (UPS) is an enterprise specializing in the collection and the routing of parcels throughout the world. It represents an excellent example of a corporation actively involved in freight distribution and the application of logistics. In 2007, UPS generated incomes around 50 billion dollars and employed...
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...business, and related information services through focused operating companies competing collectively, and managed collaboratively, under the respected FedEx brand. * FedEx Mission Statement Excerpt * We serve the evolving distribution, logistics, and commerce needs of our customer worldwide, offering excellence and value in all we do. We sustain a financially strong company, with broad employee ownership, that provides a long-term competitive return to our shareowners. * UPS Mission Statement * FedEx History * Business model conceived by Fred Smith in an undergraduate term paper. * Invests $4 million of his own capital and raises and addition $91 million. * Launches in 1971 * By 2003 * 50,000 Delivery Trucks * 625 Cargo Planes * 217,000 Employees * Handles 2 billion packages * $22.5 Billion with 37% margins * UPS History * Started in 1907 by 19 year-old Jim Casey then called American Messenger Company. * Became Unite Parcel Service of America in 1929 and began shipping packages on commercial airliners. * By 2003 * 88,000 Ground Trucks * 583 Planes * 360,000 Employees * $2.9 Billion in profits on $33.4 Billion * The Competition * Price competition * Operational Reengineering * Information Technology * Service Expansion * Logistic Services * The European Market ...
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...Justify the design”. COMPANY’S NAME: FLETCHER DELIVERY SERVICES (FDS) TABLE OF CONTENTS 1.0 Introduction 2.0 Problems 3.0 Purpose of Supply Chain Strategy 4.0 Goals of the Company (FDS) 5.0 Strategic Vision 6.0 Strategic Mission 7.0 Corporate or Company’s Vision 8.0 Abstract 9.0 Developing a Strategic Supply Chain Operations Plan 10.0 Components of the Plan 11.0 Implementations of Defined Strategies 12.0 Avoiding Business Failures 13.0 Recognizing Organization Challenges 14.0 Conclusions 15.0 References 1.0 INTRODUCTION FLETCHER DELIVERY SERVICES (FDS) has just gone into business of parcel and package courier delivery service. Before the coming of FDS, deliveries are not on time, parcels and packages are poorly handled without proper care and the security of packages. The company needs a Supply Chain Operations Plan so as to be able to compete and even have a competitive advantage over the existing delivery companies. There is a need for putting in place, a Supply Chain Strategy that will be interactive enough as to be able to constantly evaluate all the operational components including the costs, the benefits and the trade-offs (Happek, 2005). There is going to be in place a Business Strategy (BS) for FDS that among other things, will prompt its core competencies into achieving a defined goal; put in place a very sound and analytical process of making decision that will in turn define the services, timeliness of the deliveries and a plan that will provide...
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...Question 1: Analyse the UPS using competitive forces and value chain models. Value Chain Analysis of United Parcel Service Support Activities: 1. Administration and management: a. Package Level Details (PLD), an automated operational system; able to do data mining in the warehouse which lead to the creation of accurate cost calculations for the accounting function, allow the accountants to use activity-based costing (ABC) to identify the profitability for segments of thousands of delivery routes. 2. Human Resources: a. The PLD system also helps the UPS human resource department to calculate it cost of labor for every shipping segment. 3. Technology: a. UPS developed a GPS-based aircraft navigation system to guide planes into an airport. This system saves UPS several minutes and 50-100 gallons of fuel per flight. 4. Procurement: a. UPS purchased airplanes to deliver their shipment. Primary activities: 1. Inbound Logistics: a. The UPS’s order entry system was able to wring out inefficiencies by having shipping customers enter package information directly into the system by themselves in advance of pick-ups. 2. Operations: a. Geographical information system (GIS), provides UPS with the IT competency of optimizing workflow by automatically assigns resources to pick up, sort, and deliver the packages once the customers enter PLD data into UPS’s order entry system. 3....
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...L. L. Bean – Forecasting and Planning Tracy Goodhew Capella University Bus-FP3022 October 22, 2015 Business Model L. L. Bean has had a growing and changing business model since 1911. The main focus is and has always been catalog sales of outdoor apparel and gear. The L. L. Bean company began with the mailing of catalogs featuring one product, outdoor hunting shoes, and now “The outdoor apparel and gear maker mails more than 200 million catalogs per year” (Reed, S., 2009). Of course, in this new business era L.L. Bean has evolved and now does much of its business online. “Bean's golden rule was to "sell good merchandise at a reasonable profit, treat your customers like human beings, and they will always come back for more". His model, still used today, was to build customer loyalty by providing exceptional service” (Pulido, I.) Supply Chain “Distribution operations are located in Maine and employed nearly 2,500 people during the peak business season in 2014. Over 15 million packages were shipped during 2014, with over one million packages going out during our busiest week. The hub of the L.L.Bean distribution operation is a one-million-square-foot, state-of-the-art facility with the capacity to hold 10 million units. Manufacturing facilities are located in Brunswick and Lewiston, Maine, where over 350 employees produce such iconic products as the Maine Hunting Shoe®, the L.L. Bean Boot and the Boat and Tote® Bag. Customer demand for the iconic...
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...UPS and Its Faster Service: From a One Man Service to a High Technology Provider Lorraine Alvarez Florida Tech University Abstract This paper describes the transformation of the United Parcel Service (UPS) that began as a very small delivery service and evolved into a multimillion dollar company that provides delivery services worldwide. It details how UPS purchased and utilized new technology to improve their performance and provide the best possible service to its customers. It shows the strategic, technical and organizational issues that UPS had to address and how they faced both challenges and opportunities within their logistics and capital business models. History of UPS UPS has increased its speed and efficiency of delivering packages using information technology. UPS began operations in 1907 on the West coast of the U.S. It expanded its business in the 1930’s to include New York and then internationally in the 1970’s. Today, UPS will deliver over 14 million packages all over the world using around 70,000 drivers that are wirelessly connected to the UPS main databases. In the year 1907, America needed delivery service and so Jim Casey borrowed $100 from a friend to begin the American Messenger Company in Seattle WA. In 1913, the company purchased its first Model T, made changes to its delivery methods and changed its name to Merchants Parcel Delivery. In 1924, after expanding outside of the Washington area, they built their first conveyor...
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...and logistic business have a significant impact in the economy of United Stated. Billions of dollar transaction is occurring throughout the world through courier service. The courier company is also earning millions of dollar through those transactions. But this amount of money has made this business more competitive. In this report, we are going to find out those competitive factors for American Global Logistic. We will also find out a marketing strategy for this company. I am very happy to be a part of such important study. Contents 1.00. Introduction 1 Company Overview 1 2.00. Problem Statement 2 3.00. Methodology 1 4.00. Current Situation Analysis of the company 1 4.01. Situation analysis by marketing mix 1 4.01.01.Product 2 4.01.03 .Price 2 4.01.03 .Place 3 4.01.03. Promotion 3 5.00. Segmentation, targeting and positioning (STP) 3 5.01. Market segmentation 3 5.02. Positioning of the AGL 4 6.00. Environmental analysis 4 6.01. SWOT analysis of the company 4 6.02. PESTE analysis 5 6.03. Competitive analysis 6 7.00. Recommendations 7 7.01. By using S.M.A.R.T. goal 7 7.02. Recommendation by using 4p’s 8 8.00. Conclusion 8 References 8 1.00. Introduction A person or company who is responsible for exchanging items or materials between to different parties’ securely is called currier. Couriers are usually employed by a company that charges a flat rate to the party using the courier service. Federal Express, UPS, DHL, and the States Post all employ couriers...
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