Strategic Planning at United Parcel ServiceCalcutta Business School
ackground of the Company
n 2006, it was a $37 Billion corporation.
t is world¶s largest package-delivery company.The company was leader in specialized transportation and logistics and it Serves 200 countries.
thad a 3,500 retail locations via purchase of Mail Boxes, etc. and employs 384,000. The companyoperates one of the 10 largest airlines
CEO is Mike Eskew
The organization is centralized, hierarchal with traditional structure at the top
Senior management and staff set direction, priorities, budgets, and initiatives
Tactical at the regional level and is strategic at the corporate level
Low levels of autonomy at the regional level is also observed
Private postal companies ±
Large government-supported agencies ±
Deutsche PostUntil 1994, UPS had so heavily concentrated on continuously improving its operationsthat it had compromised on quality and customer service. Many analysts commented that UPSdid not pay attention to customer needs and customer satisfaction.
n 1994, due to increasingcompetition, UPS realized the need to be more customer responsive and embarked on a major corporate transformation initiative. This case gives a detailed overview of the various humanresources initiatives that UPS
³Consensus building´ and was focused on efficiency and execution.
t believed in continuousimprovement of company. Strong values: service excellence, employee ownership, commitmentto stability Low employee turnover, loyal workforce
The alliance between air freight companies and
TES companies will bring exponential growthto the Air
reight industry. This industry should remain attractive, with concentration oncompetition for market share, service differentiation, and brand image. Current Advertising has been aimed at being better than the competitor for different reasons