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Impact of technology on business
Technology and its impact on business
Impact of technology on business
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General Company Introduction UPS United Parcel service UPS was founded in 1907 as a messenger company in the United States and now has grown into a $49.7 billion corporation by clearly focusing on the goal of enabling commerce around the globe. Today UPS is a global company with one of the most recognized and admired brands in the world. UPS has become the world's largest package delivery company and a leading global provider of specialized transportation and logistics services. Every day, UPS manages the flow of goods, funds, and information in more than 200 countries and territories worldwide. A SWOT analysis is a measure tool to summarize a company’s internal and external aspects. By measuring the company’s strengths, weaknesses, opportunities and threats and looking for improving solutions by using the strengths and opportunities to improve on the weaknesses and take the necessary actions concerning any threats a company can survive in today’s world market. Strengths: Global Brand, Strong Distribution Network, Globalization, Cost Cutting and Internet commerce; Globalization & network; UPS has set their name, is known all over the world and expanding at a rapid pace. Cost cutting; Technology plays a significant part in package delivery companies capability to assist customers in cutting their inventories which UPS owns. The UPS system processes packages using advanced information technology and are transported by the companies’ own aircraft, fleet or delivery vehicle so UPS does not rely on other companies. Internet commerce; which is in a huge need for shipping and UPS offers the ability to track all packages around the world. Weaknesses: Perception... ... middle of paper ... ...eputation of honesty, quality, and integrity. It is also each employee’s responsibility to report to the company any situation where the standards or the laws are being violated. UPS is a global parcel transportation company, if we look at the numbers we could say that UPS is the third biggest parcel delivery company in the world. And despite the stiff competition, UPS is guided by the principles of strict policies on customer courtesy, reliability, round the clock service and low rates. They have an incredible range of technology, from special designed package delivery vehicles to global computer and communications system. All the other aspects of this company show that even if the economic situation at this point is not that bright their sales is rising, and that all is the result of hard work within and outside the company, UPS structure and UPS management.
As a kid, I remember asking my parents “How does Amazon do this?” and I remember them saying that I will need to major in a topic that will help me understand this process. Every time I ordered an item from them, I would think about the process of obtaining the packages using robots, packing the items safely, and then shipping them off to customers. This is an example of logistics and efficiency at its finest. As a junior, I still do not understand this process fully, since I am currently taking IDIS 240.
In 2003 in an unprecedented move, UPS teamed up with rival FedEx to keep DHL from entering the US parcel market. DHL had purchased Airborne Express in an attempt to enter the US market. UPS and FedEx identified that DHL would distort US competition because DHL could subsidize its competitive activities with revenues gained from its postal monopoly in Germany. Unable to compete against the two US shipping giants, DHL announced in 2013, it would close its North American operations. In May 2013 DHL started outsourcing some of its operations to UPS.
Business depends very critically upon Fed Ex. If Fed Ex had a major disruption to their delivery system, flowers would not be delivered on time, resulting in dissatisfied customers. For example, if Fed Ex employees went on strike, there would be no alternative equivalent to Fed Ex to deliver flowers to customers. UPS, although an alternative, did not deliver perishable products in the same timely fashion as Fed Ex.
The company chosen for this project is the United Parcel Service (UPS). UPS was started in 1907 by Jim Casey, under the name American Messenger Company (AMC), in Seattle, Washington. In 1913, they changed their name to Merchants Parcel Delivery (MPD) when they acquired their first Model T Ford. After making their first expansion to Oakland, California, in 1919, they once again changed their name to what it is today: United Parcel Service. In 1981, UPS bought its first aircraft and in 1982, UPS obtained a portion of the Louisville Airport for use and began operations from the Louisville International Airport’s air hub ("UPS: About UPS", 2014).
Real Threat of Substitute Products or Services: High customer satisfaction earned through conscientious drivers, high reliability, and Internet-based tools has kept UPS at the top. UPS has created an economic advantage by assembling a dense integrated global shipping network that is unlikely to be matched by any but a few global players.
They have a strong core transaction processing infrastructure for meeting operational needs of a company this size.
In 2005, UPS and Overnite entered into an agreement for UPS to acquire Overnite Corporation for $43.25 per share. It will allow UPS to expand its service portfolio by offering a variety of less-than-truckload and truckload services to its North American customers (Widgets RSS, 2013). In order to achieve a greater marketing power, UPS will use acquisitions which are a strategy used to buy a controlling, or 100 percent, interest in another firm with the intent or making the acquired firm a subsidiary business with its portfolio (Hitt, Ireland, Hoskisson, 2013, p. 196).
The United States Postal Service is a reliable, excellent, and efficient delivery service. Overall customer rating of any business makes it a profitable and reliable industry. The post office has met these expectations and has gone above and beyond to serve their customers. This delivery service and its employees contribute in many ways to citizens across the nation. They are the best shipping industry in the United States.
The company has a very good information systems support in being able to make strategic and routine decisions. They research and look into every available option prior to committing to purchasing or contracting with the companies in making sure that they are able to make the best quality product at the lowest costs.
We believe that honesty and integrity engender trust, which is the cornerstone of our business. We abide by the laws of the United States and other countries in which we do business, we strive to be good citizens, and we take responsibility for our actions. Respect Others: We recognize that our success as an enterprise depends on the talent, skills and expertise of our people and our ability to function as a tightly integrated team. We appreciate our diversity and believe that respect for our colleagues, customers, partners, and all those with whom we interact is an essential element of all positive and productive business relationships. Perform With Excellence: We understand the importance of our mission and the trust our customers place in us.
Founded in 1907 as a messenger company, United Parcel Service has grown into a world renowned provider of specialized transportation and logistics services. This multi-billion corporation enables and manages the flow of goods, information, and funds to over 200 countries and territories around the globe (UPS.com, 2013). Air, freight, oceanic is just a few of the modes that UPS uses to move the flow of goods around the globe. The company structure of UPS entails operations in three segments: U.S. Domestic Package operations, International Package operations, and Supply Chain & Freight operations. It’s just about an everyday occurrence to see an brown UPS truck on the road as we go about our everyday lives, the U.S. Domestic Package operations are comprised of delivery of documents, packages, and letters around the United States. The International Package operation delivers specifically outside the United States. Providing deliveries to the world’s major business hubs up to three times a day, UPS can deliver packages to at the best time possible for their customers. UPS has teamed up with the U.S. Commercial Service, an agency of the U.S. Department of Commerce, to help customers get started exporting or increase their sales to new global markets (UPS.com, 2013). Partnering within a supply chain can prove to be very important in the success of the overall supply chain. Communication within a supply chain that flows freely between partners reduces in-efficiencies such as excess inventory (bullwhip effect), and lost profits. The Supply Chain & Freight operation within UPS entails forwarding and contract logistics operations and UPS Freight. As a freight forwarder they organize shipments from various sources to their final p...
Team building and collaboration. This is the value for which they have chosen to embrace the big ideas from everywhere, all the respect for all individuals. Innovation, customer and consumer needs of spotting this simple, where creative solutions to meet them. They have a Compelling Vision-is, where is to create a path to Achieve it to de fine a sustainable future. Strives for is results-
FedEx has annual revenues of $20 billion and is the leading global provider of transportation, e-commerce and supply chain management services. FedEx accounts for a large market around the world. It is a fact that FedEx reported an average daily express package volume of 3,167,000 for the fiscal year ended May 2004, with U.S. volume of 2,771,000. Of those U.S. shipments, 1,846,000 (66.6%) were overnight shipments, and 667,000 (24.1%) were overnight letters. Total international daily package volume was 396,000, just 12.5% of all shipments, and FedEx does not break out overnight shipments (www.yahoo.com) (Appendix A)
In 2008, when FORTUNE magazine and the Great Places to Work Institute released the 100 “Best Companies to Work For” is a list in which FedEx which is the leading global logistics solutions provider was one among them and was the largest employer in the year 2008 list the only shipping company included. A Tennessee based company called Memphis which ranked in 97th place overall and now figured in the list in 10 position for a period of past 11 years. Package Delivery Company was named to be the “Best Companies to Work for” Hall of Fame in the year 2005. FedEx like its main rival United Parcel Service (UPS) is considered to be a forerunner of U.S. economic health. Over the years, FedEx had started established
Private persons, big and small businesses at a point would have to either send or receive parcels, shipment, among other things. This cannot be done without the help of cargo companies, which are highly involved in the process of transportation of goods and services from one point to the other, but in short and long distances. And the demand to have this parcel and shipment delivered in a faster and more secured way , has brought about a high competition among several companies in the world , and they all have adopted both similar and also different measures to tackle the issues they deal with in the delivering order and tracking issues.