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Ups Executive Summary

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Executive Summary

United Parcel Service, a logistics company has established itself through its strong corporate culture, continuous ability to innovate, and its far-reaching global network. The company has maintained a competitive advantage over the years by implementing continuous growth strategies—the first was geographic expansion, next the early adaptation of electronic tracking technologies, and then came a series of acquisitions. Although UPS is financially strong and is able to maintain its role in the courier and delivery industry—it is vital that UPS continue to act strategically as to strive for long-term success. UPS is heavily dependent on the U.S. economy and it is important that it find greater and more profitable ventures …show more content…

Since 2013, UPS has updated their mission statement and core goals. Although the company addressed aspects of employee ownership, long-term growth, and social responsibility, the firm has since expanded on their commitment to sustainability and their importance on a caring corporate culture for employees and shareholders. The proposed vision statement emphasizes UPS’s strategic position to create a competitive advantage through the globalization of trade and the development of …show more content…

market. This suggests that the company is highly influenced by the condition of the U.S. economy. UPS is currently in a strong position in terms of increasing shipping volumes (directly affecting the domestic segment) as a result of the improving economic climate and increase in consumer spending. Although the U.S. economy is progressing, consumers remain weary and tend to limit their spending and prefer lower-cost alternatives. The price of raw materials is also a significant factor. Oil prices in particular are highly volatile and a number of external factors such as foreign exchange fluctuations, foreign policy agendas, and supply and demand levels from emerging markets all affect dramatic price changes. The U.S. Energy Information Administration estimates 2016 fuel prices will decrease from the previous year, to a predicted price per gallon of $2.38 (Investopedia). As companies like UPS take initiatives to cut costs and maintain efficiency, profit margins have increased from 11.9% in 2011 to an estimated 13.5% in 2016. This increase is a result of implementations such as UPS’s Worldport expansion of utilizing more “fuel-efficient aircrafts to help lower operating costs” (IBIS). With the increase use of e-commerce platforms, U.S. consumers have access to more information than ever before—allowing them to make more informed purchase decisions. Technology has allowed

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