Internal and External Factors of Ups Essay Example
Internal and External Factors of Ups Essay Example

Internal and External Factors of Ups Essay Example

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James E. Casey borrowed 100 dollars from a friend and started American Messenger Company, bicycle delivery service. In 1913, the bicycle was exchanged for a Model T Ford and the name was changed to Merchants Parcel Delivery. The company expanded from Seattle to Oakland, California in 1919, where the world’s largest delivery service was renamed the United Parcel Service, UPS. In 1930, UPS expanded to the east coast.

Air operations began in 1953. In 1975 UPS became the first package delivery company to service every address in the 48 adjoining United States. By 1988, packages and documents were delivered to 175 countries.

Success of this magnitude requires active management. Leaders must analyze and understand all internal and external factors affecting stakeholders. Globalization, technology, innovation, diversity and ethics all impact decision-making.

Through delegation, goals to assess and manage these factors become attainable. Manageme

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nt Functions The four functions of management are Planning, Organizing, Leading and Controlling. Planning designs both long and short-term strategy by which a business will operate through a Vision, a Mission, Business Objectives and Specific, Measurable, Attainable, Rewarding and Timed (SMART) Goals.

Organizing is concerned with information and tasks flow. Leading involves Staffing and Directing, propelling team members to move towards set goals through motivation, team building and discipline.

Controlling firmly establishes performance standards through feedback and implementing change. Internal and external factors and stakeholders must be considered during all phases and functions of management. Internal Factors The UPS success story starts with an innovative corporate culture of ownership. This culture is emphasized with strategic value messages of history, images and slogans such as What can brown do for you? nd commitment to long-term employee relationships

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UPS has planned aggressively, utilizing every technological advancement, moving from a focus in personal package delivery on bicycle, to business-to-business by vehicle and air, to computer/service parts logistics, to customized networking solutions. The United Parcel Services share of the marketplace commands attention: -400,000 (+) employees -$51.5 billion earned 2008 -14% profit margin -90,000 vehicles and 268 jets -Operations in over 200 countries (Thomas, Linder, & Dutra, 2006).

Organization has allowed UPS to operate in financial, retail, technology and nonprofit markets as well as logistics. Management Leads with the philosophy of talent cultivation through long-term employment relationships, developing committed, aligned and experienced partners. 54% of full-time drivers started as part-time.

68% of management was promoted from within. 78% of Vice-presidents once held non-management positions with UPS (Thomas et al. , 2006). Controlling within UPS develops around the standard of constructive dissatisfaction, the belief that all process can be improved on and all parameters may be extended.

Constructive dissatisfaction, a culture of ownership along with continual training and market awareness keep UPS a pioneer.

External Factors Globalization has empowered UPS to update their strategy to synchronizing global commerce: of goods, information and funds (Thomas et al. , 2006). Once a local delivery service, now UPS is recognized globally, embracing diversity with owners nd customers in from every nation. Concerned with environmental impact of big business, UPS has cut carbon emissions, from airliners, 22% since 1990, and plans to cut another 20% by 2020 (, 2009).

The UPS Foundation donated $49 million dollars worldwide last year out of corporate responsibility, a social expectation. Todays marketplace has become customized. Organization is a balance between consumer-pull and producer-push (Thomas et al. ,

2006).

Legal accusations in lending practices and employee over time compensation have caused UPS to access Delegation and Span of Control. External reports and rankings have served as recognition and goodwill for the United Parcel Service. UPS has been one of Fortune Magazines most admired company for the past 20 years.

Black Enterprise chose UPS as a 40 best company to work for and do business within relation to diversity. These rankings are used by management in Leading, to motivate employees and recruit diverse, high-performance team members. In 1978 competition from Fed Ex, offering overnight delivery propelled UPS to enter airline ownership, where now they are the 10th largest airline in the world (Thomas et al., 2006). Today UPS operates in numerous markets, worldwide. The competition is endless and innovative.

UPS management must actively Control performance expectations through bureaucracy strategy, initialize change as the market commands and instill clan, controlling strategy with a shared mindset, and sense of belonging.

Delegation

Delegation skill is the ability to effectively assign task responsibility and authority to others. Delegation is a personal time management skill. In the past 30 years, business has gone from a vertical organization to a more horizontal. This change, possibly into a more human perspective, seeks to improve business results by reconciling the needs of employees with the needs of the organization.

Participation in decision- making can improve the quality and acceptance of decisions, fosters self- esteem and motivation of workers and improves interpersonal relationships with employees.

When employees feel that their participation in decisions is important, they gain empowerment. Technology requires UPS to delegate technical tasks to specialist. Technology simplifies delegation and has created a global market through

cyber communications and standardized processes and applications. Innovation has created the new flat organization, where all team members ideas are valuable and thinking tasks are delegated throughout the company.

Diversity in the workforce and customer base, designs a unique niche for delegation.

Team members who share cultural and ethical backgrounds with customers may have incite into customers needs. Diverse team members can communicate with diverse customers. Diverse team members add synergy to decision-making, bringing global perspectives. Ethics, once perceived as the social norm, has come to mean legal. Legal matters require legal professionals.

Professional accountants perform financial and auditing functions.

Professional lawyers understand and interpret the law as it relates to particular industries and consumer bases. Individuals and teams are held accountable through intricate systems of checks and balances, where tasks that may be susceptible to fraud or abuse are delegated to different departments. Conclusion From focus in personal package delivery on bicycle, to business-to- business by vehicle and air, to computer/service parts logistics, to customized networking solutions, UPS has harnessed innovation, capitalized on technology, embraced diversity, encompassed globalization and exemplified ethical behavior.

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