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UPS Next Day Air Shipping -Macro Environment

Technological Environment

UPS is affected by the highly changing technology. The changing technology leads to

demand using new machinery in shipping goods hence making the old machinery lie behind idle.

The company uses technology to offer fast services to its customers. The firm spends vigorously

on technology ($1 billion every year for over the last two decades) to advantage its efficiency

and improve the client experience. It is evident that the internet use has extended the company’s

compass of direct showcasing. The firm has been paying down debt throughout the most recent

five years while relentlessly expanded working capital, in accordance with building up the

foundation to bolster the most recent in logistics technology and their clients' push towards JIT

producing (Singh, S. Paul, et al, 230). The company as well makes use of technology to offer a

new range of services. Finally, the company practices innovation that prompts development.

Political Environment

UPS is obliged to consent to laws and regulations by different elected, state elements,

including the US the Federal Aviation Administration, Department of Transportation, and the US

Department of Homeland Security. iT SHOULD ADHERE TO THE Transportation Security

Administration, that regulate safety, administration of unsafe materials, water releases and air
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discharges, strong waste transfer and the discharge and cleanup of regulated substances. The

organization's business is liable to license and different necessities forced by the US Department

of Homeland Security as a consequence of expanded spotlight on country security and Customs-

Trade Partnership against Terrorism affirmation. The organization's business is likewise subject

to various different laws and regulations regarding its operations, including Food and Drug

regulation of the transportation of pharmaceuticals, and state and government giving regulations

(Yüksel 52). These laws and regulations influence the organization's operations on its client

destinations and, in a few examples, the force included expenses the organization's business. An

infringement of these laws and regulations could bring about the burden of fines and

punishments or the organization's end contracts. Such regulations could put weights on the

organization and influence its expense structure.

Works Cited

Singh, S. Paul, et al. "Measurement and analysis of the next‐day air shipping environment for

mid‐sized and lightweight packages for DHL, FedEx and United Parcel

Service." Packaging Technology & Science 19.4 (2006): 227-235.

Yüksel, Ihsan. "Developing a multi-criteria decision-making model for PESTEL

analysis." International Journal of Business and Management 7.24 (2012): p52.