Centralizing certain aspects of the business is important so that the flow of the company is consistent from area to area, country to country. Every customer should experience the same good service no matter what UPS location they use. (UPS. com, 2006). Although UPS’s headquarters is located in Atlanta, Georgia a customers and employees know what to expect whether they are in Atlanta or Beijing due to the international structure of the organization. United Parcel Service, UPS, understands that in order to be an international company they need to diversify certain aspects of their company and the way they offer their services.
“Because of its global impact, UPS has many unique opportunities to reach a broad range of diverse customers. UPS understands that diversity is essential as the company expands and finds ways to solve the individual needs of all customers” (UPS. com, 2006). UPS is a well known for the service they provide and communication amongst themselves and the customers. UPS is structured for success and will continue to improve and grow as they add services and products to remain one of the top shipping companies worldwide. UPS has several ways to transport, such as ground, air, sea and railway.
UPS has International package operations for exporting and In-Country operations. They offer overnight shipments coast-to-coast, freight forwarding, etc. UPS- 7 At an Investors conference that was held on February 26, 2002 in Louisville, KY they stated that “There is no issue more critical to the future of commerce than managing global supply chains, which is why the future of UPS is bright. ” (UPS Discusses Strategy, 1994) The conference was held to discuss the company’s strategy and critical role in global commerce.
Mike Eskew, one of the Investors that attended the conference stated: “We believe UPS is one of just a few companies, across all industries that actually has a direct impact on the way global commerce is conducted. More than ever, businesses realize there’s still too much fat in their distribution systems. But these are costs that can be reduced and managed more effectively with better supply chain planning and execution. ” (UPS Discusses Strategy, 1994) UPS operates using a global strategy, defined as offering the same products using the same marketing strategy in all markets.
(Wild, Wild, Han. 2006) UPS serves many countries but has located air hubs in a few select locals to optimize performance and cost. This is why UPS has been migrating to a complete supply chain company. UPS is a company that makes it easier for a customer to ship a package or manage a supply chain from Iowa to India as it is from Iowa to Indiana. The future of UPS depends on its ability to develop a strategy that will reduce shipping cost while allowing it to be easier and more efficient for customers to use and track package information from all points on the globe.
Some other developments that were discussed at the investors conference was how the company has been successful with pursuing the domestic initiatives that have produced record service levels and saved on cost significantly. Adding new establishments in Asia for operations will add new service capabilities throughout Asia UPS – 8 and Europe. UPS’s export business in Europe grows in excess of 15% per year and the company is poised to expand the market presence. Eskew stated; “We believe we are in the leading position to revolutionize the flow of commerce.
” (UPS Discusses Strategy, 1994) “We have a great core business, as evidenced by the $1 billion, state-of-the-art air hub now operating here in Louisville; a domestic ground business that remains unparalleled, and an international business growing at a strong rate. ” (UPS Discusses Strategy, 1994) In doing this it will further expand the substantial competition ahead. International changes will allow the organization to become more effective if its employees possess the skills and competence to implement these changes. To give its managers these necessary skills, UPS dedicated $550 million to training in 1996.
Workshops, developed by The Atlanta Consulting Group, Inc. , were the major expense: Trust & Teamwork (developed in 1994) and Quality at Work (developed in 1995). All management and full-time business professionals (non management) were required to attend the three-day workshop, which was comprised of lectures, games, and various learning exercises. The workshop concentrated on showing the relationship between trust and organizational performance, and how teamwork requires a win/win mindset as opposed to a win/lose mindset.
UPS is ahead of the competitors when it comes to recognizing the needs of the customer and the steps required to operate a fiscally sound company. Other companies would benefit from look at the strides UPS has made in globalization when deciding how to further expand their international operations. The Four Ps: Product: The Product management and Product marketing aspects of marketing deal with the specifications of the actual good or service, and how it relates to the end-user’s needs and wants. Pricing: This refers to the process of setting a price for a product, including discounts.
Promotion: This includes advertising, sales promotion, publicity, and personal selling, and refers to the various methods of promoting the product, brand, or company. Placement or distribution refers to how the product gets to the customer; for example, point of sale placement or retailing. This fourth P has also sometimes been called Place, referring to “where” a product or service is sold, e. g. in which geographic region or industry, to which segment (young adults, families, business people, women, men, etc. ). These four elements are often referred to as the marketing mix. A marketer can use these variables to craft a marketing plan.
The four Ps model is most useful when marketing low value consumer products. Industrial products, services, high value consumer products require adjustments to this model. Services marketing must account for the unique nature of services. Industrial or b2b marketing must account for the long term contractual agreements that are typical in supply chain transactions. Relationship marketing attempts to do this by looking at marketing from a long term relationship perspective rather than individual transactions.
Fact Sheets-UPS Structured for Success (1994) UPS. Retrieved on March 7, 2006 from www.pressroom.ups.com/mediakits/factsheet/0,2305,897,00.