Internal and external factors can affect the four functions of management within a business. Globalization, technology, innovation, diversity, and ethics are key factors that a company must consider in order to be successful and stay competitive with other companies in the same field. This paper will identify the role UPS is taking to be a successful company. UPS is a global company with one of the most widely recognized brands around the world. UPS is also the world’s largest package delivery company and leading global provider of specialized transportation and logistics services (UPS, 2008). The flow of goods, funds and information is managed on a daily basis in more than 200 countries and territories worldwide.
Planning – Internal
Internal factors affect planning for UPS. Planning is based on knowledge of the company’s finances, type of services provided, quality control, employee motivation and morale. In order for UPS for continue to be a profitable company, management must consider all available options while still delivering quality service and maintaining the happiness of its employees. Finances will depend on the amount of business UPS receives. The demand for services will determine how many employees UPS will hire and train to keep the production line moving to avoid delays in the delivery of packages.
Planning – External
External factors can also play an important role in planning. Several factors such as weather, gas prices and holidays can affect planning. If possible management must plan around hurricanes, floods, snowstorms and other natural disasters. When gas prices rise, shipping cost increase, which can cause profits to decrease. Holiday’s will also increase the demand for delivery services and must be planned accordingly.
Organizing – Internal
UPS is a well-organized company. However, several factors exist which can affect how UPS does business in the industry. Organization is important and plays a major role for UPS and its employees. UPS employees play an essential role in developing an approving perception by its customers. In order to stay organizes; UPS daily operations depend on employees in varies departments. For the internal factors the first line of communication will be the employee which are assigned to take and distribute the orders, then passes the information to the person which loads the delivery trucks.
In the distribution center the employees loading the truck and the driver works together to ensure the customers receives their packages in a timely manner. Employees working in the distribution center must make sure the packages are separated and loaded on the trucks correctly. Once the trucks have been loaded the driver is responsible for making the delivers on schedule. Through planning, organizing and effective teamwork the employees are able to keep the customers satisfied.
Organizing – External
External factors affect how UPS does business. Several factors such as the increase in gas prices, mechanical problems with delivery trucks and or regulatory laws implemented by the US Department of Transportation. According to UPS, the Department of Transportation has modified the shipping paper requirements to include the number and type of packages (UPS, 2008). All hazardous material items shipped must follow the new regulations (UPS, 2008). Due to the new regulations production and delivery time maybe affected. With the increase in gas prices a surcharge may be added to all shipments. Addition steps will need to be taken to make sure delivery trucks maintenance is completed on a routine basis to ensure trucks do not break down because it will cause a delay in the delivering of packages. Company performance is thus affected by such external factors.
Leading – Internal
Management effectiveness, an internal factor, also affects company performance. Highly effective managers must be leaders of the people around them. A good leader can motivate employees to function and work as a collective unit. At UPS, every employee is assigned a specific duty and responsibility. To keep the employees aware of the status of the department weekly or monthly meetings are held to facilitate employee/management communications and discuss any problems that may arise. Occasionally, employees will experience problems and report to management immediately for resolution. The role of UPS management is to encourage the employee to perform at a high level of competence. Management must seek to motivate their employees and stay in contact with them in order to meet the goals of the company.
Leading – External
Based on the information from UPS website, external factors is address in the UPS Code of Business Conduct (UPS, 2008). According to the UPS Cod of Business Conduct, UPS is committed to conducting its business compliance with all applicable laws and regulation in accordance with the highest ethical principles. In addition all employees must comply and abide by the same rules to maintain the UPS status for honesty, integrity and high quality service. The external factors also include reporting employees misconduct by customers, the time frame of delivering packages and customer complaints due to late deliveries or damaged goods.
According to The State of Business Magazine UPS Corporate Globalization, globalization at UPS began in the 1970s outside of the U.S (Robinson). Globalization was implemented in West Germany and Canada when UPS built “brown operations” that resembled the U.S. domestic model. With the potential of a single European economy on the horizon, in the mid-1980’s UPS recognized a need to expand their operations and expanded their international presence beyond West Germany and Canada (Robinson). UPS customers were looking for an integrated carrier that would handle all the transport requirements, door-to-door in the U.S. and throughout the world.
Through an aggressive strategy of acquisitions and service partners agreements UPS was able to a worldwide distribution network. The worldwide distribution network included the first pan-European integrated air and ground distribution network that was similar to the UPS domestic U.S. operation UPS has in place. Today, the UPS service area includes morn than 200 countries and territories as well as every address in and around the United States.
In the event of major problems, UPS has an IT professional technology solution department that can be trusted (UPS, 2008). UPS technology system is easy and enables customer to track, rate and ship their packages. The IT department makes sure the system has up-to-date software that enables customers to process their shipments without any delays. By staying organized, UPS customers can be assured their packages will be delivered on time. With the tracking system UPS has in place customers can track the status of packages on the UPS website with a tracking number. UPS delivers internationally and use advanced technology which enables UPS to track and process shipments. Advances in today’s technology allow UPS to reassure its customer important documents are safe. UPS also offers a technology that enables users to have a shortcut on his or her laptop for the purpose of checking the status of shipping and delivery of packages.
In 1991-1999 Consistent Innovation stated in 1993 UPS delivered 11.5 million packages and documents daily for more than one million regular customers (pressroom). Due to the massive volume of clients UPS decided to implement a new system device that could maintain efficiency, keep prices competitive and provide additional customer service. The handheld Delivery Information Acquisition Device (DIAD) was implemented to capture and upload delivery information to the UPS network. The device include a digital image of a recipient’s signature, allowing the driver quicker confirmation of final delivery. The device also allows the driver to stay in contact with the distribution center to provide current information on changes in pick-up schedules and other important messages that need to be relayed.
UPS supports diversity by maintaining respect throughout the company from both employee and customers. This visibly helps direct the way UPS does business with its customers and suppliers and strengthens the bond with a multi-cultural community of friends and neighbors for fast and continual service. Diversity affects every aspect of management including planning, organizing, leading and controlling. In planning UPS must take into account the company is a international company. UPS must consider the carrying customs of its global customers. In order to be effective UPS must train its employees in both America and abroad in cultural differences and tolerance through continual workshops, seminars or computer-based training.
Organizing the company forces around the world can be difficult, but UPS must keep tables on all locations. Each location should have a headquarters base for each region and have headquarters report regional activities on a regular basis. Additional requirements are set forth in detain in various individual compliance programs developed by the appropriate departments based on specific expertise and training. UPS drivers have a regular routine for sorting our packages and identifying specific times of delivers. Should a delivery problem occur, the issue is addressed by delegating work to another employee to complete. By researching and understanding UPS policy and procedures the company is doing a good job. As long as the UPS continue to satisfy its customers the company will continue to grow and succeed.
Ups.com (2008). Important Hazardous Materials Regulatory Changes. Retrieved April 15, 2009 from http://www.ups.com/content/us/en/about/news/service_updates/regulatory_update.html Ups.com (2008) IT Professional. Retrieved April 15, 2009 from http://www.ups.com/content/us/en/bussol/itprof/index.html Ups.com (2008). Diversity. Retrieved April 15, 2009 from http:///www.ups.com/content/us/en/bussol/ititprof/index.html Pressroom.com (1991-1999). Consistent Innovation. Retrieved April 16, 2009 from http;//www.pressroom.ups.com/about/history/consistent_container/0,27530 0.html Robinson.edu. The State of Business Magazine UPS Corporate Globalization. Retrieved April 16, 2009 from http://www.robinson.gsu.edu/magazine/forporate.html