United Parcel Service


Annual Report Analysis-United Parcel Services

United Parcel Service is a global company with its headquarters in Atlanta, Georgia. It has branches all over the major cities of the world with offices in more than 200 countries in which it does business. Its line of business is in shipments and delivery of parcel to clients anywhere in the world under constraints of time and cost. United Parcels Service company vision is to meet clients demand through improved efficiency of parcels delivery at reduced cost while striving to remains as the industry global leaders in parcel deliver through increased company expansion in tandem with the market challenges and requirements. Its business operation is on three levels, domestic parcel delivery within the U.S, international parcel delivery worldwide and in product supply chain management logistic services (2009 Annual Report United States Postal Service)

The 2009 company annual report released end year focus was on the company's growth and achievement in the just concluded year. In summary it described the company unique role in meeting the industries challenges and the need to evolve more and adapt to the emerging market trends, the company financial outlook, and special challenges in new emerging technologies, other areas covered were audit reports, organizational ethics, employee motivation, company financial projections and future strategic direction of the company (2009 Annual Report United States Postal Service)

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The first chapter of the report immediately after the glossary is a summary of the historical evolution of United Parcel Services company to it modern day position in the industry, while this has been well presented in the report I feel that a chapter of executive summary of the annual report should have preceded these historical overview section. The purpose of an executive summary is very important for a reader who needs to get the general overview of the content without having to read the entire document. Except for the glossary that indicates the main areas of the 2009 annual report, it is impossible to get the drift of the company's trend for the just concluded year (Geraldine, p.2).

The theme of the 2009 annual report for the company was "The Challenge to Deliver" which is also the title of the company 2009 annual report; this is a bit confusing to the audience since the document does not make it obvious that the report is actually an annual report and the topic the theme of the year instead. The need to provide relevant title is very important feature for managers in report preparation and presentation since it guides the reader in finding relevant areas of interest. In their domain website that offers online learning in managerial communication, McGraw-Hill Higher Education Incorporation explains that management reports headings should serve three purposes, navigating the reader through the document, indicate relevance of the area they cover and provide seamless transition between different parts of the report.

The year 2009 saw the worst global economic recession that put many companies and organizations out of business, including massive job cuts through retrenchment and unprecedented financial losses in many organizations including blue chip companies. Hardly was there an organizational that was left unaffected in the aftermath of recession and many companies posted financial loss or significant reductions in their profit. This being the case the financial highlights of the company should not have come immediately after the company history profile. Managerial communication requires a manager to place negative information of this nature towards the end of the report through use of indirect order that would enable one to deemphasize the impact of negative information, since the company year financial loss was in the region of $3 billion (Geraldine, p.1).

The preceding chapter after the financial highlights is a summary of the message from the General Postmaster, John Potter and the Companies Chair person to the Board Carolyn Lewis, as a matter of fact the report erroneously indicates the position of Carolyn Lewis as the Chairman of the Board of Governors where it should have been more appropriate to refer to her as the chairperson or chairlady, a grammatical error in the least or at worst lack of general report writing skills.

However the summary of the message from both the General Postmaster and the Chairlady of the board is very well presented and provides a general overview of the annual report and the achievements and challenges faced in the year ending 2009, perhaps in what the executive summary section should have included (Geraldine, p.1). Another point is that this section should have preceded all the other parts of the report and included as a foreword.

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The report main body as well has few areas that should have been reorganized for better presentation, impact and ease of reading. Being the annual end year report of the company it is an important document that many people are interested in reading in order to get an insight of the organization (Geraldine, p.2) For instance for those who are considering buying the companies market shares, or company shareholders whose interests are limited to specific sections of the report such as dividends, legislators among others. While the report seems to consider all this parties as the target it is more of an internal report whose target group are the organization employees.

In it financial report section, the report does not offer the advantage of ease of reading for an average person who has no advanced knowledge in accounting and it is very taxing to follow the various expenses and costs in the statement that significantly contributes to the end year financial outcome of the company. But on the other hand it has devoted quite a lot of space that addressed the company's financial aspect dedicating a total of five chapters on finance alone out of a total twenty five topics, or to put another way a third of the report was essentially on company finance (Geraldine, p.2). With the market performance and the company financial base being major area of interest, this was a careful inclusion in the report.

Finally the report has no conclusion part which is an essential part of a report, more so for a company's annual report whose importance cannot be stressed enough. The back matter, which refers to the conclusion section of a report provides the reader with a recap of the main idea as captured in the report and sometimes the way forward, it also serves to signal to the reader the end of the report as well as a forum where recommendations are included if necessary. According to Geraldine (p.1), the 2009 annual financial report completely omits this section perhaps out of design or by purpose and leaves the reader with a hanging feeling, brought about by the abrupt ending immediately after the quarterly financial data of the year ending 2009.

Overall the report is well structured in a way that communicates and presents the main ideas of the company's activities in the year ending 2009. It is also broad enough and incorporates all the relevant parts that needed presentation. Its main areas of weakness which might need improvement are in introduction and conclusion parts.

Works Cited

  • Geraldine, E.H. MacGraw-Hill Higher Education Incorporation. 2008. 14 Apr. 2010.
  • http://highered.mcgraw-hill.com/sites/0073525049/student_view0/chapter6/html>.
  • "The Challenge to Deliver- 2009 Annual Report United States Postal Service." United Parcel
  • Services of America, Incorporation. 2010. 14 April. 2010.
  • .
  • "United Parcel Services Incorporation." Research and Market. 2010. 14 Apr. 2010.
  • http://www.researchandmarkets.com/reports/61855