The Strategic Planning Process At United Parcel Commerce Essay

The Strategic Planning Process At United sheaf Commerce EssayUPSs basal care is the delivery time identification of packages and documents worldwide. In recent years, UPS has extended their service portfolio to include less than truck transportation (mainly in the U.S.) and supply chain services. UPS reports its operations divided into three parts U.S. municipal help Package operations, International Package operations, and Supply Chain transportation activities.Based on the Case study, the purpose of this report is to answer the following questionsIdentify the strategic problems and opportunities that exist at United Parcel Service and discuss a coherent set of actions that will address these.What are the potential problems involved in implementing these actionsCritically measure out the approach to the Strategic Planning process at United ParcelIdentify the strategic problems and opportunities that exist at United Parcel Service and discuss a coherent set of actions that wi ll address these. tog up is an acronym of the internal strengths and weaknesses of a company and the opportunities and threats to the environment in which the company is facing. SWOT analysis is a widely used technique through which managers create a quick overview of the companys dodge. This technique is modestd on the assumption that an effective strategy derives from a sound fit between a companys internal resources (strengths and weaknesses) and its external situation (the opportunity and threat). An appropriate maximum strength and opportunities of the business and minimize the weaknesses and threats of it.This candid assumption has a strong impact on the design of a successful strategy, United Parcel Service UPS offers transportation services, primarily in domestic and external mail and package delivery Packet through its subsidiaries, it also provides transportation, logistics and vary financial services company is one of the largest companies provide packages in the world , in terms of revenue and volume. UPS is one of the leading providers of less than trucking service. size large operations of the company allows it to cater to a large customer base in the world-wide market. However, the increase in fuel prices can have a direct impact on corporate profits by ca utilise an increase in the cost of operation of the UPS.Strengths Sustainability UPS is the environmental leader in the U.S. package delivery industry. UPS to reduce its carbon emissions through integrated network, modern channel fleet, alternative fuel sources, and extensive use of the tracks. Network UPS has a network of established and continue to invest in network expansion, especially in China. top-notch Financial Strength UPS is kn bear for maintaining high operating margins than its competitors.It is highly profitable, the average ROE of 28% in six years. Value of dividends Strength has consistently change magnitude dividends every year except 2009, in which it is held constant.Si nce 2000, the ratio of annual dividends have increased by an average of 2.53%. instigant equity UPS is synonymous with the delivery of bundles. embrown tones of the delivery truck and logo is iconic for the dispersion industry.WeaknessesAwareness of traffic ground instead of overnightHeavy union presenceLag Brand While the brown trucks of UPS recognized, who cannot have a complete picture of the full capacity of the UPS.Trade unions the sweat force of the UPS is unionized and thus affect the labor cost of the UPS. The threat to strike UPS can cause pressure to increase wages.Debt UPS has a higher ratio of financial debt compared to its competitorsOpportunitiesExpansion of online shoppingThe emergence of the international middle classBusiness to business growth increase B-to-B growth will help to expand operating profit due to economy of scale. Asiatic markets By increasing the expectations of customers higher quality products, UPS scalability in a fragmented Asian market. They fi rst entered the market by working with key business players in the market with a focus on export / import. After that, they will pursue acquisitions and more of a domestic drama.Logistics Business Solutions UPS promote its network by providing logistics solutions for the retail and manufacturing companies. Business has been growing double-digit expansion before the crisis and in2009 revenues decreased 20%. However, this has recently reversed by We Love Logistics campaign.Global healthcare distribution network the new facilities are being added to the U.S., Asia, Europe, and Canada to adapt to the rapid growth in the medical field.Productivity growth While DHL, market prices down, leaving the U.S. parcel market more than two years ago, we believe that pricing power is partly delayed after shipment contracts often is 1-3 years. So UPS can be increased margins by controlling prices.U.S. mail volume eliminate Over the past 10 years, USPS has steadily lost market share to UPS and FedEx. Continue their decline may benefit modest volume for UPSThreats Rising fuel prices UPS fuel surcharge in the domestic and international package and LTL services as their primary means of reducing the hazard of adverse changes in fuel prices. They also periodically on the option contracts on energy commodities to manage price risk with forecasted transactions related to refined fuels such as jet fuel. challenging weather conditions Bad weather can damage the quality and efficiency in delivery impact. In addition, bad weather can affect retail sales and other groups UPS partner that could hurt sales. While the UPS cannot control the weather, they have improve their tracking platform for customers by providing more information and provide an updated time for customers in case of any delay doubt. Currency Headwinds headwind currency in their international business can affect inflation be. However, UPS has delivered the strong cost that we believe make them competitive with others in the industry. With over a century of experience, we believe that UPS has specialized in foreign currency hedging activities using the derivate financial instruments such as forward currency contracts and currency options.What are the potential problems involved in implementing these actionsPorters five forcesPorters Five Forces will be used to determine industry competition as well as the strategic impact on Apple. in the altogether Entrants- Low UPS has established brand equity Long-term contracts with corporate customers Capital intensive industries related to aircraft, vehicles, software, and storageReplace Medium Some customers have of necessity not time sensitive logistics can trade down using the slower delivery options and less expensive, such as USPS Companies can create their own housing in the supply chain and logistics solutions rather than outsourcing work with a company like UPS Threats to business mail delivery as a solution of a movement to electronic documentsPowe r supply LowUPS does not rely on specific suppliers for their business activities outside the major capital costsBuyer Power MediumSmaller customers are less likely to negotiate the price for fixed priceLarger companies using the full clutch of logistics solutions have pricing power due to their ability to negotiate long-term contractsCompetitive rivalry -Private postal companies Federal ExpressMost government agencies conduct USPS Deutsche PostUntil 1994, UPS has mainly focused on continuously improving their operations that they have to compromise on quality and customer service. Many analysts noted that UPS did not pay attention to the needs of the customer and customer satisfaction.In 1994, due to increasing competition, UPS recognized the need to have many customers meet and embark on a major transformation initiatives of the company. This case gives a detailed overview of the various human resource initiatives UPS Nearest competitor, FedEx, similar services in the freight and logistics business UPS focused on overseas growth and expansion of business supply chain be able to compare prices in the industryCritically assess the approach to the Strategic Planning process at United ParcelThey have invested in the core business of worldwide distribution and logistics. The company is twist capacity in the integration of goods, funds, and information. They use technology to create new services. They began to attract talented people. Study customer behavior and predict their needs. Practice unveiling leads to growth. Build an environment that allows them to treat each customer as if he was the only one.We believe that UPS has high potential in the fragmented Asian emergent markets such as China, Malaysia obvious its recent expansion in 2010 and bought seven new aircraft in 2011. Air Freight transportation is developed here.UPS has high gratify activities and will earn higher profits when the economy recovers andHave the right to set higher prices in 2012 and 2013.UPS developing supply chain and transportation division, using customized logistics solutions. While they have been used for many retail and high-tech companies, they are branching out into the market global distribution of health care, we believe in that respect is high growth potential for distributed this song. In January, UPS announced the expansion of health care facilities in Kentucky, Singapore, the Netherlands, and Canada.UPS operates in a competitive environment with their direct competitors unsloped FedEx.Developments in the past have shown that they are able to set the price on the exchange rate as well as pass on higher costs in the business, such as energy prices rise.The companys financial strength has allowed them to generate stable cash flow through all business segments of businessEPS is expected to reach the highest of all time