UPS Case Study!

UPS CASE STUDY By:

Review Questions

1. Describe UPS’s Competitve advantage.

UPS is a very successful company for delivering packages around the world through mail, e�ciently with low cost. They have recently introduced technology as their companion to achieve better delivery status and quality of it as well. Their Worldport located in Kentucky uses special cameras to scan documents, irregular packages, small packages etc, with an astonishing speed of over 300,000 packages per hour. UPS has access to better and more e�cient technology than any other delivery company, their high levels of success can enable them to join online businesses and work with them. They also have air, land and sea transportation as their own, which helps with global mail over other companies. UPS innovative technology will help them make future delivery faithful for their customers.

2. How does UPS approach customer relationship management?

UPS is very good at providing solutions for its customers e�ciently and quickly. For example overseas deliveries are made easier by creating logical and manageable suppliers with legitimate contracts. They also simplified the order processing, post-sales parts and servicing and international trade for their customers. Their solutions rely on physical and virtual infrastructure for managing the flow of goods for different customers, which helps customers simplify delivery components.

3. How does technology enable UPS to be a quality-driven organization?

Technology in today ’s era is a big role that plays out in almost every business and task. It has made life easier for all of us and more e�cient.UPS’s is a quality driven organization by responding to their customer either physically through mail, in store service or virtually through phone and the internet. Technology helps them be more productive and e�cient to provide any means necessary to their customers.

You Do The Research

1. Describe the general environmental factors that affect UPS and its competitors in the package delivery industry.

The general environmental factors that affect UPS and its competitors are Porter’s Five forces. The first one is “threat of entrants'' meaning more companies investing their way into delivery businesses. A threat to this force could be Lyft, who are planning to invest in a delivery business line. It can potentially be better and may take over the delivery companies such as UPS. The threat in this case is very low because it is known for providing vehicles for business and not delivery since they do not follow that format of business. Secondly the “bargaining power of suppliers “ is having a lot of suppliers do the same thing globally. Something that affects UPS and its competitors is that all suppliers can get the necessary components in order to make delivery achievable from many sources such as cars, boats, planes and trains, which has a high level of threat for all of them because they highly relaie on those sources and not achieving those sources can have a direct affect on the business, suppliers, customers and reputation. It also has an effect on the power of labour they hold and the rights the government provides in order to make delivery globally. Thirdly the “bargaining power of buyers'' is the power the customers hold over the product. The threat level is high because the customer needs the delivery to be made at a certain time and place, this puts pressure on the bargaining power of suppliers since they are the ones to make this task achievable

for the customer. Fourthly the “threats of substitute” are things to replace the current supplier. The threat level for this force is low because there are not a lot of companies that may overtake the standard delivery companies. UPS and its competitors are known globally and customers put their loyalty and trust towards it, which has a lower risk of being replaced. Furthermore, these companies are advancing in technology day by day to make delivery faster and efeince for all of us. Lastly the “rivalry among competitors” is very high because there are many companies that do global deliveries with different business models such as Fedex, Amazon, Aliaba and many more. This causes them to change the way they deliver and include discounts to catch the customers attention.

2. identify the Stakeholders for UPS, and explain how these stakeholders potentially influence the company.

Stakeholders that may potentially influence the company are customers, suppliers, trade unions and the government. Customers are very important for any business to start making income and gain reputation. Providing good service and product play a big role in the company and can influence other stakeholders to play a part of it such as the suppliers. Suppliers are the engine of UPS, they keep it running and delivering to the customers within a given schedule. The trade unions help workers with benefits, safety standards, working conditions, bargaining etc. This is very important for employees because they value their rights. Without trade unions the business will fall off and can possibly be exterminated. UPS requires governments “go” in order for them to deliver either internationally or domestically. Without rights and contracts it will not allow them to compete globally and can throw shade over customers in terms of their service.

3. Describe the organisational culture at UPS and the role it plays in the company’s success.

The organisational culture at UPS is set up by employee satisfaction. UPS has heavily invested in training their employees and giving them higher ranks as they work. Their satisfaction with the employees creates loyalty and trust, it further

builds a stronger relationship with their employees. The core values set for employees such as high delivery standards, prominent communication etc, have built an immense foundation for the company. The role this plays in the company ’s success is by providing their loyalty and trust to customers and building customer-employee relationships. This helps achieve customer satisfaction and helps the employees achieve high ranks in the system and further enhance their core values.

REFERENCES

UKEssays. (November 2018). United Parcel Service (UPS). Retrieved from https://www.ukessays.com/essays/business/ups.php?vref=1

Mining, Lauren. “The 10 Types of Stakeholders That You Meet in Business.” Email Marketing - Marketing Automation - Small Business CRM, ActiveCampaign, 2 Mar. 2021, www.activecampaign.com/blog/types-of-stakeholders.

Khanwalkar, Vaibhavi. “Lyft May Expand Into Delivery Business To Offset Losses From COVID-19.” International Business Times, 11 Nov. 2020, www.ibtimes.com/lyft-may-expand-delivery-business-offset-losses-covid-19-3080412.