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UPS Company Strategy - Case Study Example

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UPS Company Strategy

It goes without saying that drivers of organizational change vary across organizations and businesses. However, the main drivers of organizational change can be summarized as follows:
(1) information availability and distribution;
(2) the pace of technological advancement;
(3) the growing availability of technologies;
(4) increased business competition;
(5) rapid shifts in the global labor and product markets;
(6) changes in environmental responsibility and requirements; and
(7) changing customer expectations and demands (John, Cannon & Pouder 2001).
More often than not companies operating in the present day business environment pursue change to align their strategic goals with the emerging information capabilities and, consequentially, use them to meet the rising consumer demands. As the number of companies in the logistics industry increases, the ability to satisfy customer satisfaction in the most cost-effective manner becomes the main source of companies’ competitive advantage. Nevertheless, the number of challenges faced by companies in the global market does not decrease. “Integrating activities both within and beyond organizational boundaries has become a major challenge at century’s end and will likely continue for the foreseeable future” (John, Cannon & Pouder 2001, p.145). ...
The diversification of companies in the logistic market had the potential to distract UPS consumers with more attractive rates, prices, and services. Second, before the 1990s discipline and efficiency had always been the company’s top strategic priorities. According to Garvin and Levesque (2001), along with discipline and efficiency, continuous improvement had been the company’s principal legacy. The company had historically operated in the atmosphere of constructive dissatisfaction, which further instilled the values of continuous improvement and service excellence on company employees (Garvin & Levesque 2001). The historical commitment to efficiency and discipline and continued attention towards operations left many customers dissatisfied. Apart from the fact that UPS failed to envision changes in customer preferences and demands, discipline and efficiency left little room for monitoring changes in the external business environment. Finally, UPS had never had a formal strategic planning process, which made the implementation of strategic innovations difficult and problematic. As the entire world was changing, UPS definitely needed a fresh breath, and the new CEO had to restructure the company’s basic operations. Since the beginning of the new millennium UPS was constantly trying to define how exactly it could develop and sustain a competitive advantage. The creation of the new strategic planning process became part of the strategic innovations within UPS. Looking further into 2017, UPS anticipates that understanding the factors and forces affecting its market position will become its main strategic goal for years ahead (Garvin & Levesque ...Show more

Summary

Drivers of change and ways to sustain a competitive advantage UPS is one of the major players of the international post and logistics market. Since its inception in 1907 the company has passed a long way to developing a sustained image of success and profitability…
Author : ukshlerin
UPS Company Strategy essay example
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