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UPS - Case Study Example

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UPS Case Study
The paper is based on a careful analysis of the organization in terms of its mission, key products, and processes including the current state of the organization as it relates to the problem…
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UPS Case Study
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Download file to see previous pages The last part of the paper will sum up the main points discussed and recommendations will be given with regards to the measures that can be taken in order to effectively deal with the problems discussed. Description of the organization and problem identification United Parcel Service was founded in 1907 in USA and it specifically dealt with delivering an assortment of parcels and goods sent through its office to different clients. It started from humble beginnings where all packages were delivered by foot, street bicycle as well as street car. However, the company re-engineered itself to become a state-of-the-art delivery service when it introduced its first delivery car, a Model T Ford in 1913.
The organization witnessed positive developments and went through different stages until 1980 which saw the passage of the passage of Motor Career Act which deregulated the whole trucking industry. The organization even introduced air services as it sought to diversify its activities to counter competition which was intensifying as a result of the deregulation exercise of this industry. However, increased competition as a result of deregulation compelled the organization to allocate large amounts of capital to modernize its data processing department. The deregulation of the freight industry also posed immense challenges to UPS given that the emerging entrants utilized low cost services such as the Federal Express Corporation. As such, it has been observed that data processing operated with poor equipment and the service provided was poor given that it fell beyond the competition that existed in technological and programming capabilities. Up until 1981, the department of information faced unprecedented challenges of technologically more advanced competition from Federal Express and RPS. It was realized that in order for UPS to remain the dominant carrier package delivery service, it had to join the competitors in the age of computer technology. Whilst UPS had the most extensive ground network, it had apparently been left in core areas such as technological innovations which included scanning, radio-dispatched pickups, package tracking, and data-acquisition devices. Despite the mission which was meant to “to provide management with the information it needs to meet the company’s goals in a responsive manner and at a reasonable cost,” the company fell short of achieving this goal given that it had limited numbers of employees with the requisite skills to execute the information requirements of the company. The main problem facing UPS is that it has to implement changes in order to meet the marketing and technological challenges that have been compounded by the deregulation exercise in this industry. It is facing a dilemma particularly in making decisions to hire or recruit talent from within the company or hire experienced people in information systems from outside. The problem with locating talent within the company is that most of the employees have experience in hub and package centers and have less experience in the new dispensation of information and communication technology. On the other hand, the problem related to hiring people from outside is related to re-orienting them to fit in the culture of the organization, training them, matching their expectations and helping them grow to meet the expectations of the organization. Stakeholder analysis The main players in this particular case are the employees who are responsible for executing all the tasks within the organization. Any change to the ...Download file to see next pagesRead More
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