Global 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. 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. to organizational culture and expectations. This model provides a platform upon which the company can successfully perform its global operations.A piece of UPS’s successful management is delegating decision making ability to lower levels. This is particularly important and effective in the management of its international operations, which are often somewhat different in nature than domestic actions, mirroring regional culture or complying with foreign laws or even local regulations. As UPS continues to expand, it will have to bring technological platforms to technologically inferior regions, adhere to culture and regulations, diversify its offerings, and employ methods to mitigate economic downs and rising fuel costs.International and global operations have a significant impact on UPS’s operations, from culture and policies, to economic trends. These ideas are addressed further in the following pages.

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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). These offerings are divided among the company’s three main segments: U. S. Domestic Packages, International Packages, and Supply Chain and Freight (Yahoo Finance1, 2008, p.1).UPS operates in over two hundred countries and territories, and for the past three years has realized revenues of over forty billion dollars annually (Yahoo Finance1, 2008, p. 1).

International: With domestic operations successfully underway, United Parcel Service began to pursue plans for international expansion in the 1980s. In a single successful decade for UPS, the company created a strong presence in both Americas continents, Western and Eastern Europe, Africa, the Middle East, and in the Pacific (Boulton, 1999, p. 3). Today, UPS operates in over two hundred countries; all countries in which the U.S. does not have an embargo (UPS, 2008, p.

1).By air, ground, and sea, UPS maintains supply lines and logistical excellence. With access to ports in practically every country, and air hubs in Cologne, Taipei, Miami, Phillipines, and the United States that serve as centralized distribution centers, UPS is able to transport items with minimal turnaround time (UPS, 2008, p. 1). Appendix 1 In the past five years, UPS has realized its greatest advancements in international operations and supply chain management (University of Missouri Business Department, 2006, p.1).International operations still present the greatest area of opportunity for UPS, as it continues to pursue the company’s goal to synchronize the world of commerce (UPS2, 2008, p. 4).

Business Model At the top level, UPS is divided into three major segments: U. S. Domestic Packages, International Packages, and Supply Chain and Freight (Yahoo Finance1, 2008, p. 1). 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.

to organizational culture and expectations. Very closely similar to IKEA, as discussed in Hill (2005), UPS is focused on value, effective strategic planning, and deriving additional efficiency from process and production cost cutting measures (p. 3). Because UPS lives and dies by the success of its supply lines, perhaps the one virtue IKEA possesses that UPS holds most dear is a focus on supply chain/logistical excellence and efficiency (Hill, 2005, p. 3)