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UPS's competitors include: United States Postal Service, Deutsche Post (& subsidiary DHL), Deutsche Bahn Aktiengesellschaft, Fed Ex, and others Freight (Yahoo Finance2, 2008, p.1).Despite rising oil prices and declining business transactions, UPS has managed to keep operating expenses at and profit at a moderately consistent level.UPS's founder, Jim Casey, was dedicated to the creation of a company that embodied the characteristics inherent to a virtuous organization.
These ideas are addressed further in the following pages.
UPS Case Study Operations: In its global operations, United Parcel Service provides letter, document, and package delivery; import/export and customs services; freight transportation; logistics management; consulting; and finance & lending services (Yahoo Finance1, 2008, p.1). Middle The company employs over four hundred thousand individuals; approximately three hundred fifty thousand domestically and seventy thousand internationally (Datamonitor, 2008, p 4).
"Brown" signifies dependability, quality, trustworthiness (UPS2, 2008, p.5).
These are all virtues at the core of UPS's operations, a significant contributing factor of another of UPS's competitive advantages; organizational culture.
Ø Formerly headquartered in Seattle, WA and then Greenwhich, CT.
Ø Worldport is their main air hub is in Louisville, KT.UPS Founded in 1907 in Seattle Washington as American Messenger Company Ø Started with just 0 dollars.Ø 1919 started service in Oakland, CA Ø 1930 started service in New York, NY Ø 1952 Began to offer Air service (threw 3 rd party airlines) Ø 1988 launched its own air fleet Ø 1999 UPS becomes a public company Ø Locations Ø Headquarters are now based out of Sandy Springs, Georgia (near Atlanta).Imperative to successfully operate such a dynamic and logistically precise company, UPS possesses an effective business model.This business model encompasses tangible and intangible assets and characteristics, from physical assets, systems, etc. This model provides a platform upon which the company can successfully perform its global operations.UPS maintains an infrastructure of facilities with a price tag high in the billions.These sites are operated using the "hub and spoke" model.Similar to Airlines, UPS realizes supreme efficiency (see diagram below).This operational model centralizes and consolidates functions and large scale activities in a manner that increases speed; decreases operational costs, facility, asset, and labor requirements; and supports management through policies, procedures, and quality standards.In fact, UPS's CIO considers his company "a technology company with trucks", as opposed to a transport company (Kohli, 2007, p.199).Intangible Drivers of the Business Model: First and foremost, the UPS brand is a significant asset that has received hefty investments from the company in the recent past.