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Ups Ipo Case

Autor:   •  October 13, 2013  •  Case Study  •  523 Words (3 Pages)  •  2,749 Views

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Question 1: What are the key success factors and risks for UPS given its business strategy?

Timely, accurate and competitively priced services are the key success factors for UPS. Moreover, the ability to provide low cost access to customer's information about the location and contents of packages is an important success factor. The latest success factor is the ability of the customer to intercept and change the direction of a delivery. The risks are that owning trucks and planes may make the operation too costly.

The competitiveness in the package-delivery industry pushing prices down and squeezing margins is a major risk for UPS. Because UPS depends on its workers for deliveries, there are some risks associated with the human factor that must be considered. There are risks that the delivery may be late, wrongly delivered, damaged packages, lost packages, or even strikes when workers refuses to work. Moreover, UPS strategy of expansion to other countries may be threaded by changes in political alliances between the countries involved in the shipping process (sending/receiving). Tariffs and other political barriers may be created as retaliation or protectionism to the national industry in the "receiving country".

Question 2: How is UPS performing? What factors are driving this performance? Is the current performance likely to be sustained? Why or why not?

Performance of UPS generally including 13 million packages were delivered each business day to over 200 countries worldwide; contacting with 1.8 million customers and making deliveries to 6 million business and residential addresses daily. In 1999, was recognized as the "World's Most Admired Global Mail, Package and Freight Delivery Company" and "Company of the Year".

The factors that were driving the performance include operational and service-excellence culture,

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