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1-3 Journal: Company Research and Selection
Matthew T. Cox
Southern New Hampshire University
MBA-540-Q2722 Organizational Strategy in a Global Environment
Instructor Dr. Cedric Alford
December 10, 2023
2
Headquartered in Atlanta, Georgia, United Parcel Service, Inc. (UPS) is a publicly traded company that specializes in transportation services, specifically packages and freight delivery. That primary business function is broken down into three reportable business segments: Supply Chain Solutions, International Package, and US Domestic Package ("10-K," 2023). The US Domestic Package business operations comprise the majority of UPS’s business, about 64% of their revenue, and includes functions such as time-sensitive delivery to businesses and residential addresses, air and ground package transportation, and UPS SurePost, a residential
package delivery service for items that are not time-sensitive ("United Parcel Service Inc," 2023).
The International Package business operations are very similar to the US Domestic Package, as it entails package delivery of both time-sensitive and non-urgent parcels. This service is conducted in most areas of the world, to include ground delivery across borders in Europe and from the US to both Canada and Mexico. This business segment accounts for just under 20% of UPS’s revenue ("United Parcel Service Inc," 2023).
Lastly, the Supply Chain Solutions business operations include logistics and distribution, forwarding, and truckload brokerage, and other similar functions in more than 120 countries across the globe, and accounts for just over 16% of the company’s revenue ("10-K," 2023).
UPS’s customer base is comprised primarily of other businesses, with Amazon being their largest customer, comprising over 11% of their consolidated revenues for 2022. The large amount of business from Amazon led to almost 60% of the daily volume of shipments to be business-to-consumer ("10-K," 2023). Parcel delivery is unique in the sense of both the entity shipping the parcel and the entity receiving the shipment feel as though they are the customer. In
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