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Management can be understood as the process of coordinating people and other resource to achieve organizational goals. Management is "the achievements of objective through other people" in an organization. (Peel, 1991 , p. 2) Management activities for that matter include - planning, organizing, staffing, coordinating, motivating, leading and controlling. Management activities also help organization in achieving results through other people by process of delegation. Every organization at the heart of their processes takes a discourse of management and its practice. When we reflect our understanding of the management aspects in the organization, we see reason enough to assert that management is a critical and centrifugal part of organization and acts as the lifeblood of organization activities.
Considering these ideas that erupts and our understanding of the management concepts, we feel that it is a necessity to identify an organization. For that reason, the selected organization/company is UPS (United Parcel Service).
Thus, it should be clarified that the objective of this work is to address the following questions.
What are/what defines the leadership styles of the UPS CEO?
How a recent technological innovation has impacted the company/organization?
In order to reach these conclusions we are of the opinion that looking at the background of the company, its business, leadership components and market environment is very important, which is discussed as follows in two (2) parts.
PART 1: Company Overview: UPS (United Parcel Service)
UPS (united Parcel Service) was founded way back in 1907. The company is based in Unites States. Today the company has growth into a multi-million dollar corporation, given the huge revenue that it generates from its business. The history of UPS is rich in the achievement that the company has achieved in the past many decades. (UPS)
UPS Line of Business
Since the very day when the company was founded it has multiplied and grown into a global corporation. Today it ranks as the number one company in global parcel deliveries services, logistics, supply chain management and e-commerce. Its business line for that matter has evolved overtime and space. (UPS)
UPS main competitors
It is to our common knowledge that the main competitor of UPS is no other than
FedEx Corporation (FDX).
Other competitors in similar line of business are:-
United States Postal Service.
Deutsche Post AG.
What makes FedEx Corporation, United States Postal Service and Deutsche Post AG a competitors to United Parcel Service (UPS) is the market cap to be precise, which is tabled below.
UPS and its Competitors Chart
US Postal Service
Deutsche Post AG.
Number of Employees
Market Cap (in Billion)
Source: Yahoo Finance (http://in.finance.yahoo.com/q/co?s=UPS)
From the above chart, we learn that UPS main and primary competitors are FedEx, US Postal Service and Deutsche Post AG. The number of employee and market comparison itself is justification enough as to what makes these three companies a competitor to UPS in the global market rating. (YahooFinance, 2010)
Below are the financial chart and its comparison when it comes to UPS and its competitors in term of Revenue and Income.
Revenue and Income
US Postal Service
Deutsche Post AG.
Revenue for the Year 2010 ( in billions)
Net Income for the year 2010 (in billions)
Quarterly Revenue Estimates/Growth
Source: Yahoo Finance (http://in.finance.yahoo.com/q/co?s=UPS)
We are of the opinion that UPS income considering its revenue is good and its quarterly revenue growth also is showing a good sign of growth. (YahooFinance, 2010)
Leadership we assume has been an important ingredient in the company and its history. Tackling touch issue and challenging business environment through its approach of the best management practices have been at the core of leadership undertaking in UPS. The cultural segmentation in UPS also defines the object where promotion within the organization is a regular affair. This shapes the leadership factor, no doubt, since it helps create a ladder of leadership that is well attuned to its culture. (Rictandag, 2011)
Brief Industry Background
The logistics and transportation industry is a multi-billion industry. The industry for that matter is calculated at US$ 78 billion, which is projected with an annual growth of 15-20% (percent). (IWLA, 2009)
UPS Leadership Styles of CEO
It is assumed that leadership components in UPS define the new era of management aspects. We learn that Scott Davis is the current CEO of UPS. The leadership component of the company CEO for that matter is a rational approach to business issues. Economics theories and its manipulation have also been at the helm of CEO and his decisions. The CEO for that matter is well versed with the economics of the world and the global economy (UPS). It would be right to define that 'transformational leadership' is at the roots of UPS CEO leadership.
PART 2: Technological Advancement in UPS
Major Advance in Technology and its Impact
Our research also shows that almost all forms of technology are a welcoming sight in UPS. Its impact in the company and its operation for that matter is also huge. It is learnt that for business efficiencies, UPS make the use of technology. Technology and its invigorating practice in the company are in the form of innovative approach to cut on the loss of fuel consumption and directly contribute towards environmental cause. Fuels consumption of its delivery vans/vehicle has been major worries for UPS. It business also largely depends on it. Hence, the company innovative approach went for a change when it comes to its delivery vehicles, which they opted for fuel efficient deliveries vehicles. The company today operates close to 2000 fuel alternative vehicles, where in CNG, LNG, Hybrid and Electric vehicle mark the innovative change of the company preference for deliveries vehicles. Above all, Fuel Cell vehicles, and Hydraulic Hybrid Vehicles also are a major component of UPS delivery vehicles. This signifies that innovation and technology begin within the mechanism of its business management. (UPS-PressRoom)
Information System Management and its Change Factor at UPS
Technology and its impact is a critical segmentation in UPS and its operation over the past many years. E-commerce is one example of it, besides other forms of IS (information System) management making inroads in the company. UPS stand out from the other business establishment with similar line of business because of its ability to cope with the change, especially when it comes to technology and how well the company copes with advancement in technology to its advantages. (UPS)
To justify this point, the E-commerce and technology that the company have won is one example of it. Way back in 2002, UPS won the Webby award, given the company ability to make the best use of information technology. Besides, the company also won an American award for the most innovative company, given the technological advancement that UPS have invigorates when it comes to air freight and its management. Above all, UPS also have marked itself a name in the area of supply chain management due to its ability to nourish technological innovation in facilitating its business process in the most effective way. To top it all, technological features in the form of information system management defines the face of UPS business operation. (UPS, E-Commerce/Technology Awards) This is reason enough to conclude that technology, its advancement and innovation is at the core of UPS operation.
UPS Technological Advantages
Major changes in the technological approach in the company can be seen to the delivery vehicle preference and advancement in IS (Information System) for effective service delivery. As far as it goes to the preference of fuel efficient vehicles for deliveries, the significant mark and shirt in that regard can be looked to the cost factor, which have reduce dramatically. Cost that goes into fuels and the likes have decreased, besides, the impact of fuels efficient cars in UPS also signify he shift of the company and its commitment towards environmental friendly business practices.
Shift in delivery vans and the company switch towards hybrid, CNG, and other compressed fuels vehicles not only defines the technological change and the company preference for innovative approach to global warming and cost, but also the advantages of it that have helped the company business delivery mechanism and to contain cost. (UPS-PressRoom) Thus, the advantage of technology in UPS operation and cutting emission rate is one example, besides it also helps reduce the cost. Secondly, we have discussed that IS mark a significant place in UPS and its overall operation. The advantages of IS at UPS in the form of 'Parcel Flow Technology' can be looked in respect of UPS global communication network that are integrated. What we learn is that there are more than 3200 network sites. The advantages of this is that it helps in the delivery mechanism and managing online tracking of its service and parcel deliveries or logistics in the most effective and accurate way, where time, cost and resource are employed effectively for business outcome and results. (UPS, Technology)
Furthermore, the advantages of technology and the place that it mark in the company also can furthered be justified to the many rewards the company have won when it comes to its business process, where technological integration have been considered to have changed the face of global service deliveries of UPS. In addition, media report highlights that way back in 2007 UPS made a great leap to technology, through the implementation of Package Flow Technology. This technology apart from IS (Information System) management and innovation for delivery vehicle and vans/vehicle have had a great impact for the company. And the benefit and advantages of it are numerous. Being a service company, the introduction of Package Flow Technology has enabled the company to sort out millions of packages in a day through a domain, which helps in tracking the flow of material and nurture the effectives of package deliveries to consumers across the globe. Package Flow Technology to a great extent has evolved in meeting the demands of e-commerce and online shopping of consumers. Besides, it also adds to the flow of service delivery mechanism and its management and contributing to the long-term strategy fo the company in the globalized market, says company insiders. (Witt, 2005 )
Technological Drawbacks and its Implementation at UPS
As we have mentioned above, major technology in UPS are the advanced tracking system, IS, preference for fuels efficient and compact vehicle, besides the Package Flow technology. These technological combined have been a major grosser in streamlining the business process and its management at UPS. However, at the heart of it we wonder how their implementations were brought about. Question also arises as to what are the drawbacks of these technologies during their implementation phase?
In order to understand these, we feel that a first look into the component of these technologies is critical.
Package Flow Technology and its Implementation Flaws at UPS
We are aware that package flow technology makes use of advanced mechanism. Given to the demand of the time and business, and the shift in technological forms, UPS took it at it stride to create a seamless integration of technology that makes it easier for consumer to chose UPS from other service provider. Accordingly, Package Flow Technology was not a spate technology strategy, but technology that enabled the strategy. The way UPS achieved the integration of technology in the company is the through the development of consistent set of business activities. As a matter of fact, technology is not treated as a separate functional area. Instead it is integrated into all the working team in the company. One example of this kind of technological integration is the creation of Package Flow Technology at UPS. (Margaret A. White, 2010, p. 64)
However, its implementation has not been that smooth for the starts. As media report relates and highlights that the introduction of Package Flow Technology in UPS has been up to the mark. The issue as the company admitted was the implementation of the technology on the worldwide scale of its centers. The implementation phase of Package Flow technology has not been a smooth sailing one, since problem erupts in more than 300 centers of UPS where this technology was implemented. The main problem was identified t be the package flow software suite, which was developed in-house at UPS since 2003. (Rosencrance, 2005 ) Hence, it is very clear that flaws in the development of the software and its components were at the root of the Package Flow Technology, which acts as a drawback.
Moreover, major drawback to this technology also can be seen to the factor where the time span for its implementation took longer than what the company was planning. As per the report, Package Flow Technology was introduced in the early part of 2003. However, the implementation phase took longer than the scheduled timeline set by the company. Till the year 2005 also, the implementation of this technology in major centre in US also have not been successfully completed. As company spokesperson admitted that completion of the implementation hat was hampered due to the software is likely to be completed only by 2007, (Rosencrance, 2005 ) which bring us to the point to see the drawback of this technology and its implementation phase in UPS.
UAE Company and its imitation of UPS management
The success factor of UPS is primarily due to its strategic management and how effective the company has been to rope in the benefits of technology to change the face of its worldwide service deliveries, which set an example for other companies. For that reason, we would also like to suggest that Kanoo Rapid Transit, a courier company based in UAE with branches in Qatar and Oman also can benefit by following similar strategy as that of UPS, which is further discussed below.
Kanoo Rapid Transit Business Strategy Imitation of UPS
The company was founded in 1990. Since its foundation, Kanoo Rapid Transit has been serving the local market in the Middle East with commitment through its excellent and efficient services. Courier is at the heart of the company service we speculate, given that the company specializes in local and international courier services. Besides, at the helm of its business activities also storage and warehousing of customer products and its distribution forms the core business activities and operation of the Kanoo Rapid Transit. (KRT)
Current Situation of KRT
The company and its operational market cap as we can speculate is mainly in the Middle East, especially in UAE, where its concentration in Dubai and Abu Dhabi is huge and tremendous. However, in comparison companies in the similar line of business, let say for example FedEx, TNT and DHL are nowhere near in the comparison chart. Although KRT have been excellent in the local market, their objective to mark a mark in global courier and service deliveries still lacks behind since its market concentration is only in Dubai, Abu Dhabi, Qatar and Oman where MNC such as DHL and TNT are the main competitors in the local market as well. (Kanoo Rapid System)
The current situation of KRT thus is a cut throat competition from global MNC such as DHL and FedEx, which have major share in the industry.
UPS Technological Imitation in KRT
We have discussed that UPS use major technology such as Package Flow Technology, advanced IS technology, innovation in the delivery vehicles and the likes. KRT for that matter also don't rely much on technology such as that which is used in UPS. Besides, delivery vehicle of the company also are dependent on service providers or third party delivery vehicle. The overall cost we assume that goes into the business process of KRT is huge.
Thus, it is suggested that KRT should approach its business management mechanism with the introduction of Package Flow Technology. This wills not only help the company tracks courier real time, but also help to management the courier and cargo with more efficiency. Thus, at the root of KRT, the basis to introduce technology at every helm of its business should be taken with persuasion as to the advantages of technological imitation. It won't be wrong also to seek consulting companies for the implementation and development of technology such as that of UPS Package Flow Technology and its customization as per the need of the company.
The Expected Benefits of Technology at KRT
There are many benefits of technology making its way in the management realms of businesses. The case of UPS is an exemplification that technology can turn around the tide of business efficiency. The same also can be expected with KRT. Being a local company and its vision and mission invest in people and technology and systematic business process, there is reason enough that such mission also can be accomplished through the introduction of advanced technology to enhance its business process.
Expected Benefits and its Description
Some benefit of technology, especially Package Flow Technology and its imitation in KRT can be in the following forms:
Innovative approach to service deliveries: We are aware that Package Flow Technology is meant to ease the management aspects of compiling parcel and couriers, as well as all forms of supply chain management. The case has been highlighted in UPS and the many benefits and advantages of it, which we have explained. Thus, the expected benefits can be emphasized in the same situation when it comes to KRT, where innovative approach through the introduction of advance technology would further enhance the business and cutting cost.
Customer orientation of business management: Customer orientation is also at the heart of technological solution such as Package Flow Technology, where the advantages of it have been explained in the case of UPS. Hence, it is natural that such an exemplification also is expected in the case of KRT. KRT is known to be committed to serving its customers; hence, the introduction of technology will further advance the commitment of the company in the courier delivery mechanism.
World class service delivery mechanism and real time tracking solutions: We are aware KRT have its business goals set on the global stage. Thus, the introduction of technology such as Package Flow Technology is a major ticket to such advancement and in realizing its goals in the most effective and streamlined way.
The success factor of UPS is primarily due to its strategic management and how effective the company has been to rope in the benefits of technology to change the face of its worldwide service deliveries, which set an example for other companies. Management aspects of UPS are an important ingredient, which designate how well UPS is able to reap the benefits of the business environment and its factor due to its active and sound resilience and transformational leadership undertaking.