Introduction

2.Company Background
3.Evaluation of the internal and external environment of the company
4.Analyse the motivation of the company for international expansion
5.Analyze the reasons for operating in a particular region or country
6.Evaluate its market entry strategy in a particularly region or a country
7.Conclusion/recommendation
8.Bibliography
9.Appendix

• Porter five forces

• Prahalad and Hamel’s core competencies
• SWOT analysis
• PEST analysis

Introduction
This aim of this report is to research into United Parcel Service (UPS) and how they have used their
international business strategy to become a leader within distribution and logistics industry. The
research delves into how UPS have been able to maintain a strong position within their industry and
it was carried out of UPS’s history, their existing market strategy, their entry into various markets,
the internal and external environment of the company.
It also explains their international strategy over the last five years and why there is such interest in
the expansion of the company in various markets. The following theories were used in the in the
analysis;

• Porter five forces

• SWOT analysis
• PEST analysis

The report then concludes highlighting the areas where the international strategy succeeded and
failed.

Company Background
Founded in 1907 by James E. (“Jim”) Casey the company located in Seattle, Washington was known
as the American Messenger Company providing services such as messengers running errands ,
delivery of packages and carriage of notes, baggage, and trays of food from restaurant with
deliveries made on foot and bicycles. It was six years after this that the United Parcel Service would
be established and has subsequently grown to become the world’s largest package delivery
company. Operating from its Atlanta, Georgia headquarters the company has emerged to become a
leading global provider of specialized transportation and logistics services, concentrating on the
provision of transportation, logistics and financial services worldwide providing an ideal mix of
logistics, distribution, transportation and freight services through air, sea, ground and rail
transportation also providing freight forwarding, international trade management, customs
brokerage and specialty services providing services in more than 220 countries including every
address in North America and Europe turning the company into one of the most easily recognisable
brands in the world. It is able to connect faster and easier to a global economy with its 400,600 staff
located worldwide and vehicles comprising of cars, vans, tractors, motorcycles, trailers and
airplanes thus helping it generate revenues of $49.6 billion in the year 2010 with about 3.94 billion
packages and documents delivered worldwide.

PESTLE OF UPS
According to Johnson et al (2008) the PESTLE analysis can be used to identify and understand the
important factors UPS must consider in all areas of the business environment which are the
political, economical, social, technological, environmental and legal thus serving as key drivers of
change.
Political/Legal factors
“Political constraints are placed on firms through fair-trade decisions, anti-trust laws, tax programs,
minimum wage legislation, pollution and pricing policies, administrative jawboning, and many other
actions aimed at protecting employees, consumers, the general public, and the environment”
(Pearce & Robinson, 2010, p. 84). UPS operates in over 220 countries and each country has its own
political and legal barriers. Some countries are quite open to foreign investments while other
countries like China try putting curbs on foreign investment. The domestic mail express delivery has
been listed in the prohibited" category with the Chinese parliament approving in 2009 a postal law
that allows only China Post to deliver letters and documents posted within China, cutting out foreign
firms such as UPS.(Lim 2011).
The various countries within which UPS operates have different laws guiding different issues which
with various legal ramifications if not abided too. Legally the company has been involved in a variety
o f legal wrangling from overtime laws suits, including cases of class action lawsuits being filed
against the company by Canadians with the company seeming to have applied a different set of cost
as regards delivery of packages within Canada to disability discriminations with cases of the
company violating the Ada act of not discriminating against any qualified person with a disability.
(Hatch et al 2007).
UPS has integrated a business code of conduct for staff due to the transnational business which the
company conducts, meaning it is subject to the laws of the countries within which it operates as
these laws help regulate the company’s interaction with foreign governments and their officials,
restrictive trade practices, and import and export shipments. Also all import and export shipments
are subject to regulation by various government agencies, principally Customs, both in origin and
destination countries. (UPS)
Finally, a recent political threat to the UPS is terrorism with governments around the world
tightening air security with tighter international regulations on air cargo which may have a negative
impact on the global economy. (Calabresi et al 2010)
ECONOMIC
The global economic recession's impact on the United States has led to a decrease in
consumer spending and gross domestic product; thereby affecting the UPS's overall revenue
and resulting in falling shipments with consumers limiting unnecessary spending, the UPS, as a
result, loses revenue.(Credeur 2008)
Another economic factor challenging UPS is the high cost of fuel resulting in lower package volume
which leads the company constantly trying to find cost-effective ways to deliver mails and packages.
(Las Vegas Business Press 2011).

Also, “the rise of private express competitors such as Federal Express (FedEx) and United
Parcel Service(UPS), and new mandates to enhance the safety and security of the mail have
adversely affectedpostal finances and will likely continue to do so in the future”
SOCIAL

Case Study - Waitrose

INTRODUCTION

Waitrose was setup at Acton in 1904; it was founded by Wallace Waite, Arthur Rose & David Taylor.
In the year 1906 Taylor left the firm, the first shop named “Waitrose” was formed. The company was
later acquired by John Lewis Partnership in the year 1937. At that time it had 10 small service food
shops and had a turnover of 150000 GBP. After the acquisition, Waitrose now are specialist
Supermarkets, having more than 175 supermarkets all over UK mainly in the south-eastern region. It
now boasts a work-force of over 37000 employees and many new stores. They offer fresh produce,
poultry, bread & meat. Waitrose is a company known for providing high and good quality products
and it targets the higher class with its good and high quality products. Even though it’s a
comparatively smaller company than its competitors (Tesco & J.Sainsbury, Iceland), it was successful
in its business and was a profit making firm, this was all because they use to perform things
strategically.

KEY EXTERNAL FACTORS IN THE WAITROSE ENVIRONMENT

There are many external factors which can be identified, which affect the working culture and
environment of the company & in this case Waitrose. One can categorize these factors by use of
PESTEL ANALYSIS. Here we look at the various external factors under various heads in the analysis
such as Political, Legal, Socio-cultural, and Environmental.

The POLITICAL factors provide some important key drivers of change for Waitrose. The company
Waitrose faced two political environments, one in the United Kingdom and the other in South Africa.
The government was stable in the UK and in South Africa but there was still different in many ways,
which in turn create drivers of change. South Africa was chosen by the company to outsource its
citrus fruits. In order to maintain the quality of products Waitrose created a Foundation in South
Africa for the welfare of the farmers. The trade policies, foreign trade regulations were favourable
for the growth of Waitrose as the company believed in quality and honest pricing; they also hold a
Royal Warrant with Queen. The political factors are very important for Waitrose because maximum
of its seasonal products are imported, thus they have to abide by the laws of the home country as
well as the exporting country.

The LEGAL aspects that affect the working environment of Waitrose are factors such as competition
law, employment law, health & safety. Waitrose is one company which keeps quality of products as
one of the most important aspects in the working of the company. The

Employment laws in the UK are highly regulated, such that the company has to abide by the
disability, racial, sex discrimination, pension laws etc. These laws in turn affect the working of
Waitrose, and it has to device policies in accordance to these laws. Health and safety is an important
external factor for Waitrose. An example of their policy was to help the farmers in South Africa; the
company gave them educational facilities, disease knowhow for their benefit. This gave a positive
effect on Waitrose, the people there trusted them and this increased their goodwill in the country.
The competitive law is also a stringent one which affects the working environment of Waitrose.

SOCIO-CULTURAL factors affect the working of Waitrose in many ways. The UK market was
demanding for better quality and healthy food. This did affect Waitrose and they did reciprocate to
the need of the people. They were the first to launch organic food in the UK. Education was a not a
factor for Waitrose in UK but it was definitely one in South Africa. The farmers were very poor and
thus were not very well educated. Population demographics look into many factors such as income
(as in the minimum wage rate in the UK), age, sex, mobility, location. These factors do influence the
policies and functionality of Waitrose externally. Income distribution is also seen as an important
factor because the products have to be within the reach of the targeted customer.

Environmental factors are affecting the external working of Waitrose. The factors under this are
environmental protection laws, waste disposal and energy consumption. It is because of the change
in climate due to pollution and other environmental issues that the governments have introduced
very stringent environmental laws. Waitrose is affected by these environmental changes because
they are mainly into fruit & vegetable and it products, which are in turn affected by these changes.
Thus they have to keep a close eye on these issues. Waste disposal is also has its impact on the
environment, there are many scientific reasons supporting this argument. For this Waitrose has
reduced miles driven year on year, it tries to source electricity from renewable sources. This helps to
reduce the energy consumption.

Thus these are the external factors which are identified in the working of Waitrose and the
Environment around it.
KEY INTERNAL FACTORS

For identifying the internal factors of Waitrose we use the PORTER’S FIVE FORCES. Here we look at
the following concepts RISK ENTRY BY POTENTIAL COMPETITORS, RIVALRY AMONG ESTABLISHED
COMPANIES AND SUBSTITUTE PRODUCTS. By using these concepts we identify the internal drivers
for change in Waitrose.

SUBSTITUTE PRODUCTS

Waitrose does have substitutes to their products but they have an edge over their competitors in
this context. This is because firstly their quality and brand equity have a good hold over their
customers, secondly they do not target the entire market. Cull says: "Because this is our business,
we want the very best for the customers to ensure future success. It was a key decision to feature
partners in the campaign, which uses them as a point of difference, distinguishing us from our rivals
(www.guardian.co.uk ). The targeted customers of their products are richer class. The most
important reason that they have loyal customers is because of the quality they provide. The
customers of Waitrose believe in the company, such that even if they get the same goods cheaper in
other stores (Tesco, Azda) they will still stick to Waitrose. In the product line the fruits and
vegetables they put on the market are priced at a premium. “For anyone who enjoys food and can
afford to pay a bit extra, it is easy to understand why the chain has built a following”.
(www.guardian.co.uk )

RISK OF ENTRY AMONG POTENTIAL COMPETITORS

When Waitrose was taken over by John Lewis, the status of Waitrose improved in the eyes of the
consumer and the market. With the help of John Lewis, Waitrose strengthened its supply chains and
economies of scale. With the introduction of self scanning in some stores it reduced its cost and
provided better services to the consumer. Waitrose reduced costs in many ways, for example the
internal transport system of Waitrose with the help of high end technology reduced their gas cost
and saved a lot of money. This internal factor was used by Waitrose for maximum benefit.

The consumers of Waitrose were loyal to the company. All credit should be given to the working
culture and brand image of the company. "I must personally get 50 letters a week from people
saying 'when are you going to open in our town?'" says Waitrose managing director Mark Price. "We
don't so much have customers, as fans." (www.guardian.co.uk).
This shows us the loyalty and love for Waitrose from their customers who are ready to buy their
products at a higher price. It difficult for new competitors to enter the market and challenge
Waitrose because of the image it holds in the eyes of the consumer. There are companies entering
the UK market, and there is a potential threat to Waitrose. For example Wal-Mart took over Azda a
few years back. But Waitrose is to an extent on the safer side due to the goodwill they hold in the
market.

Government Regulations can play an important part in internal working of the company. Recently
there was the Congestion Law enforced in London. This law states that one has to pay a certain
amount while entering different parts of the city. And if the Waitrose store is in that part of the city
then the cost of the product will increase. This will have an effect on location of the store, thus it
might be a barrier for Waitrose.

RIVALRY AMONG THE ESTABLISHED COMPANIES

The rivalry among established firms is of great magnitude to companies like Waitrose. There are not
many competitors for Waitrose in the market; Tesco, Sainsbury, Azda & Marks and Spencer are
some of them. The main competitors for Waitrose are Azda & Marks and Spencer, because of they
also supply good quality products in the market. Even though Waitrose holds 4% of the retail market
approximately, relatively smaller to its competitors, it has a strong hold over its consumers. The
growing demand in the market narrows down the competition between the other established firms.
Owing to quality and likeness towards the product by the targeted buyers there was an increment in
the demand of their products. The self-styled "chubby grocer" from Crewe, who believes there is a
direct correlation between the girth of a food retailer and the quality of the food he sells, has had a
bumper year. Last reported profits stand at £242m on sales of £3.7bn, and figures for the end of
2007 are on course to show a jump in sales by 7 per cent. In its weekly update on Friday, the
business reported growth of 5.1 per cent (independent). When it came to fruits, Waitrose is the final
target of the buyer. Thus they this competitive advantage over other established firms. Waitrose
depends a lot on sourcing of its products, thus if one year or season it does not work out for the
country, it will cause a decline in the demand for the product. This will have a positive influence on
the other established firms which will give them a competitive advantage over Waitrose.

High fixed costs can be a problem for the companies. Waitrose being a large organisation will face
high costs in sourcing their products and even maintaining their own farms. This will impinge on the
profits of the company. Due to their strategy of dependence on sourcing products can be dangerous
for the company which can in turn lead to writing off investments on assets.

MAJOR PLAYERS: MARKET SHARE

WAITROSE’S STRATEGY

To explain the strategy of Waitrose in the market we use the concept which is BOWMAN’S
STRATEGY CLOCK.

BOWMAN’S STRATEGY CLOCK

In Waitrose we identify that they use Focused Differentiation as their strategy in working of the
company. The meaning of the strategy used by Waitrose is as simple as the word differentiation
which means being different from the strategy used by their competitors. The fact to be noticed is
that they focus on a particular range of products and a select market, thus they have a focused
differentiation strategy.

Waitrose sources its citrus fruit from South Africa and only recently they started importing other
fruits from there as well. This fruits in the eyes of the consumer hold the quality factor, therefore the
company charges a premium for the product. The company also known for its wine, has a good
reputation for the product. The main market for Waitrose is the south east, and it provides a host of
facilities to maximise their profits in that location. Waitrose has played its game very sensibly, this is
because wherever they have their stores the warehouse for supply is very strategically located. Thus
they save on costs and earn a higher margin. In comparison to its competitors ( For example Tesco)
they do target the broader market, they target on in town stores with a extensive range of food
products which catch the fancy of the upper socio-economic strata of the society. The consumers of
Waitrose are concurrent to the consumers of John Lewis Partnership. As they are a division of the
John Lewis Partnership their profits are also paid back to the employees. Thus the organisation has a
pleasant environment, which makes it honest, fair and ethical for the employees. There is a
transperancy in the working and records of the company. By use of this strategy Waitrose increases
the loyalty of their employees, which in turn has a positive effect on their efficiency.

“ We have the lowest staff turnover levels of any food retailer in this market and we have the
highest level of longevity. It is not uncommon ifor people to stay with us for 20 to 30 years. All our
heads of buying have worked in the business for more than 25 years, and you will find that most
people at senior levels have spent a long time with the partnership. Commercially that gives us huge
strengths because there is a consistency to our operation. People instinctively know our customers,
and what is right and what is wrong.”

( www.news.independent.co.ukt)
SUSTAINABLE COMPETITIVE ADVANTAGE

Waitrose does have a sustainble competitive advantage, but there are some changes that the
company needs to carry out in order to have a an edge over the competitors. Waitrose formulates
all its plans by keeping the long term results in picture. Waitrose introduced SEDEX in order to
strengthen its choice of suppliers. SEDEX is a process which is carried out before they build a
relationship with any supplier. SEDEX looks at many aspects like, if the company is following all the
laws, ethical grounds and reputaion of the supplier. And only then will Waitrose give the supplier the
contract. SEDEX was developed by Waitrose so that they do not face any problem in the future with
its suppliers. The main strategies developed and implemnted for the company is to maintain its
goodwill and respect it holds in the market. There are a few factors which will hinder the long term
goals of the company.To overcome these factors Waitrose has to rework on its strategies so that it is
able to long term advantage. The strategic placement of the stores and warehouses help them to
gain maximum advantage in the current situation as well in the future. But for the long term the
company has to strategically buy new stores and enter new locations in order to capture the
targeted market.

IMPLEMENTATION OF STRATEGIC CHANGE IN A LARGE ORGANISATION LIKE WAITROSE

Strategic Change can be implemented by large companies, depending on the change that is required
to be implemented. That is it depends on the magnitude of the policy or strategy that is to be
implemented, and how will it affect the working of the company ( here Waitrose). We use the
BALUGAN & HAILEY CONCEPT.

ADAPTATION

They are minute changes that can be implemented in the working of Waitrose which can be adjusted
with the current strategies of the company. For example the company can change its strategy for its
internal transport system. They use the strategy of minimising the miles used by means of high end
technology ( EURO V compliant trailers).

RECONSTRUTION

This policy can be executed by Waitrose as they do not affect the core strategies of the company.
These strategic change brought by using this change may need to be implemented immediately. A
situation might occur when Waitrose needs to cut down on costs due financial reasons or change in
the market environment. For example they might need to change their supplier due to cost reasons
or because of the market, they could carry out the procedure without being a hinderance in the
working of the company.
Evolution

This is a type of change which affects the core strategies of a company, but they take effect over a
period of time. Waitrose can face situtaions in which it might have to rectify its core strategies. If the
UK laws change, they might lead to a resultant change in the policies and strategies of Waitrose.
Generally the government gives time to the respected companies to adapt the laws in the strategic
framework. This will not be a problem for Waitrose as it would get the stipulated time to change
their method of working, thus it can implement these changes without much difficulty.

REVOLUTION

Revolutionary changes can be very difficult to put into action by large companies like Waitrose. The
enormity of the change makes it difficult for companies like Waitrose to adapt these changes. For
example there is a financial crisis in the country or the goodwill of the company is declining
drastically, the company has to react to these changes as soon as possible, which makes it more
difficult for the company to implement. For a large company like Waitrose goodwill acts like a spine
for the company, and any damage done will have a significant on the company. These kind of
changes might hamper the work culture of the company if corrective measures are not taken, but if
the measures implemented do not have any positive affect it will have a negative impact on the long
term planning of the company.

Thus companies like Waitrose might be able to implement strategic changes but revolutionary
changes might create a huge problem for them.

CONCLUSION AND RECOMMENDATION

CONCLUSION

Waitrose is a company which follows the focused differentiation strategy, thus it believes in
targeting and achieving long term objectives. The backbone of Waitrose is to maintain the quality
and brand equity of the company. The company has loyal employees as well as customers. As they
were a part of the John Lewis Partenership the profits of the company were shared by the
employees of the firm. This was a added incentive for the employees which would help in deriving a
better performance from them. Waitrose is not established all over UK and has market share of
almost 4%. Waitrose had a limited range of products, but they mastered the selling and sourcing of
those products.It does not compete with the companies like Tesco and Sainsbury, it targets a select
market and maintains it hold over its consumers. Waitrose abides by all the laws of the country and
holds a environment friendly image in the eyes of the consumer. The targeted customers are the
upper socio-economical class. They used SEDEX to help them in perfecting their knowledge about
their suppliers so that they do not have any problem in the future. Whatever strategies, policies,
structures they followed and implemented were for the long term benefit of the company.

RECOMMENDATION

Waitrose has a good strategic outlook towards the market, their policies are very safe. In order to
expand the hold of Waitrose in the UK market it should open stores in new locations. This would
prove advantageous to them because of their goodwill. This would lead to an increment in the share
of Waitrose in the UK market and would increase their profitability. But this should be carried out in
the same way as it done in the south west, with the help of strategically located warehouses.
Waitrose should also look out for different locations for sourcing its products and not stick to South
Africa. This would decrease the dependence of Waitrose on South Africa, and reduce the risk of the
company. The company currently does not have any problem with sourcing from South Africa but it
should be ready for anything in the future. They should also keep the environmental issues in mind.
Waitrose should not diversify and increase its target market, because its too late for them to enter
that market. This would also require a huge investment, which is not possible for Waitrose at this
time. And by entering the larger market it would demote itself in the eyes of the upper market it
targets. Other than these issues, Waitrose is on the right track and would succeed in increase in
increasing profits and market share of the company.

REFERENCES

• www.waitrose.com

• Johnson,G; Scholes,K et all; Exploring Corporate Strategy; FT Prentice Hall, 2005

• www.guardian.co.uk

• http://www.johnlewispartnership.co.uk/Display.aspx?MasterId=81f00253-1639-4749-a590-
d2cd32540b62&NavigationId=613

•
http://andidas.deviantart.net/projects/academic/RetailMarketing_WaitroseTraineeGuide.pdf

• http://news.independent.co.uk/business/analysis_and_features/article3172041.ece

• http://www.templeton.ox.ac.uk/erd/Issue43.htm (By Richard Cuthbertson, Research Fellow,

Templeton College, University of Oxford)

• Cuthbertson, Richard. "Quality fresh opinions, honestly given: interview with Mark Price,
Selling and Marketing Director, W", European Retail Digest, Autumn 2004 Issue

Internal And External Factors Of Ups

Seattle to Oakland, California in 1919, where the world’s largest delivery service was renamed the
United Parcel Service, UPS. In 1930, UPS expanded to the east coast. Air operations began in 1953. In
1975 UPS became the first package delivery company to service every address in the 48 adjoining
United States. By 1988, packages and documents were delivered to 175 countries. Success of this
magnitude requires active management. Leaders must analyze and understand all internal and
external factors affecting stakeholders. Globalization, technology, innovation, diversity and ethics all
impact decision-making. Through delegation, goals to assess and manage these factors become
attainable. Management Functions The four functions of management are Planning, Organizing,
Leading and Controlling. Planning designs both long and short-term strategy by which a business will
operate through a Vision, a Mission, Business Objectives and Specific, Measurable, Attainable,
Rewarding and Timed (SMART) Goals. Organizing is concerned with information and tasks flow.
Leading involves Staffing and Directing, propelling team members to move towards set goals through
motivation, team building and discipline. Controlling firmly establishes performance standards
through feedback and implementing change. Internal and external factors and stakeholders must be
considered during all phases and functions of management. Internal Factors The UPS success story
starts with an innovative corporate culture of ownership. This culture is emphasized with strategic
value messages of history, images and slogans such as What can brown do for you? and
commitment to long-term employee relationships. UPS has planned aggressively, utilizing every
technological advancement, moving from a focus in personal package delivery on bicycle, to
business-to-business by vehicle and air, to computer/service parts logistics, to customized
networking solutions. The United Parcel Services share of the marketplace commands attention:
-400,000 (+) employees -$51.5 billion earned 2008 -14% profit margin -90,000 vehicles and 268 jets
-Operations in over 200 countries (Thomas, Linder, & Dutra, 2006). Organization has allowed UPS to
operate in financial, retail, technology and nonprofit markets as well as logistics. Management Leads
with the philosophy of talent cultivation through long-term employment relationships, developing
committed, aligned and experienced partners. 54% of full-time drivers started as part-time. 68% of
management was promoted from within. 78% of Vice-presidents once held non-management
positions with UPS (Thomas et al., 2006). Controlling within UPS develops around the standard of
constructive dissatisfaction, the belief that all process can be improved on and all parameters may
be extended. Constructive dissatisfaction, a culture of ownership along with continual training and
market awareness keep UPS a pioneer. External Factors Globalization has empowered UPS to update
their strategy to synchronizing global commerce: of goods, information and funds (Thomas et al.,
2006). Once a local delivery service, now UPS is recognized globally, embracing diversity with owners
and customers in from every nation. Concerned with environmental impact of big business, UPS has
cut carbon emissions, from airliners, 22% since 1990, and plans to cut another 20% by 2020 (, 2009).
The UPS Foundation donated $49 million dollars worldwide last year out of corporate responsibility,
a social expectation. Todays marketplace has become customized. Organization is a balance
between consumer-pull and producer-push (Thomas et al., 2006). Legal accusations in lending
practices and employee over time compensation have caused UPS to access Delegation and Span of
Control. External reports and rankings have served as recognition and goodwill for the United Parcel
Service. UPS has been one of Fortune Magazines most admired company for the past 20 years. Black
Enterprise chose UPS as a 40 best company to work for and do business within relation to diversity.
These rankings are used by management in Leading, to motivate employees and recruit diverse,
high-performance team members. In 1978 competition from Fed Ex, offering overnight delivery
propelled UPS to enter airline ownership, where now they are the 10th largest airline in the world
(Thomas et al., 2006). Today UPS operates in numerous markets, worldwide. The competition is
endless and innovative. UPS management must actively Control performance expectations through
bureaucracy strategy, initialize change as the market commands and instill clan, controlling strategy
with a shared mindset, and sense of belonging. Delegation [pic]Delegation skill is the ability to
effectively assign task responsibility and authority to others.[pic] Delegation is a personal time
management skill. In the past 30 years, business has gone from a vertical organization to a more
horizontal. This change, possibly into a more human perspective, seeks to improve business results
by reconciling the needs of employees with the needs of the organization. Participation in decision-
making can improve the quality and acceptance of decisions, fosters self- esteem and motivation of
workers and improves interpersonal relationships with employees. When employees feel that their
participation in decisions is important, they gain empowerment. Technology requires UPS to
delegate technical tasks to specialist. Technology simplifies delegation and has created a global
market through cyber communications and standardized processes and applications. Innovation has
created the new flat organization, where all team members ideas are valuable and thinking tasks are
delegated throughout the company. Diversity in the workforce and customer base, designs a unique
niche for delegation. Team members who share cultural and ethical backgrounds with customers
may have incite into customers needs. Diverse team members can communicate with diverse
customers. Diverse team members add synergy to decision-making, bringing global perspectives.
Ethics, once perceived as the social norm, has come to mean legal. Legal matters require legal
professionals. Professional accountants perform financial and auditing functions. Professional
lawyers understand and interpret the law as it relates to particular industries and consumer bases.
Individuals and teams are held accountable through intricate systems of checks and balances, where
tasks that may be susceptible to fraud or abuse are delegated to different departments. Conclusion
From focus in personal package delivery on bicycle, to business-to- business by vehicle and air, to
computer/service parts logistics, to customized networking solutions, UPS has harnessed innovation,
capitalized on technology, embraced diversity, encompassed globalization and exemplified ethical
behavior. Planning, Organizing, Leading and Controlling through a strategy of ownership and long-
term employee relationships, UPS reigns as a global leader in fiscal and managerial excellence.
References (2009, July 7). UPS to cut airline's carbon output. Atlanta Business Chronicle, p. . Thomas,
Robert J., Linder, Jane C., & Dutra, Ana. (2006). Inside the values-driven culture at UPS. Outlook ,
September (), .

It is also a leading provider of specialized transportation, logistics, consulting, e-commerce,

technology, and even financial services. UPS Supply Chain Solutions, UPS Capital, UPS Consulting
unit, UPS Mail Innovations unit, Mail Boxes Etc. (MBE), UPS Foundation.
Since its inception, United Parcel Service has continued to reinvent its products and services.
The company's efforts to bring service and quality to higher levels and its commitment to process
innovation and integrated technologies have led the company to global imprint. "The
transportation giant delivers more than 13 million packages and documents per business day
throughout the world. It uses fleet of about 88,000 motor vehicles and 575 jet aircraft to serve
about 1.8 million shipping customers" (www.hoovers.com). At the end of 2003 United Parcel
Service had an employee count of 355,000 employees worldwide, all of which have played an
integral role in making UPS synonymous with world commerce, a role that today, has clearly
translated to the bottom line.