Analyzing UPS's Strategic Challenges and Future Strategies

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STRATEGIC MANAGEMENT ASS 2
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Table of Contents
Introduction........................................................................................................... 3
Critical evaluation of united parcel services..........................................................3
Future strategies................................................................................................... 4
Reflection upon the Strategy Process Model..........................................................7
Conclusion............................................................................................................. 8
References............................................................................................................. 9
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Introduction
The assignment is exploring the challenges which are faced in the organisation
due to a lack of strategic process. The job focuses on the critical strategic
process, which helps in optimising effective planning and in implementing an
innovative strategic model for United Parcel Services. Along with this process,
it is determined in this assignment that how aspects of strategic process model
will help in developing active learning and in implementing the planning process
in the organisation. Further, the transfer explores the effective decision-making
process and evaluating the significance of critical strategic planning in the
development of United Parcel Services.
Critical evaluation of united parcel services
United parcel services are a part of the logistics industry. The primary function of
the organization is to assist the customers with the delivery of their packages
from one place to another. The company likewise provides several logistics and
transportation services to its customers (About UPS, 2019). The company
handles the operation of both the domestic and international market and is very
popular for providing quality services to its customers. Every organization has to
deal with a variety of internal and external factors that can hamper their
productivity. In the same manner, it is essential for the concerned organization
to have a look at the external and internal elements of the firm and to evaluate
the issues that are hampering its productivity. The internal and external factors
of the firm can be assessed with the help of the TOWS matrix. The respective
matrix will help in evaluating the Threats, opportunities, weaknesses and
strengths of the individual organization (About UPS, 2019). This evaluation will
showcase the factor that can hinder the production of the firm in both a positive
and negative manner. With the help of this process, the managers of the firm
can develop strategies for the growth and stability of the organization. The TOWS
analysis of united parcel services is as follows:
Threats: The major threats of the firm are its competitors. In this era of
modernisation, there is a variety of logistic company that are satisfying the
customers with quality services. This can hinder the goodwill of the firm in a
negative manner. The major competitors of the firm are FedEx and DHL.
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Opportunities: As the customers are highly satisfied with new techniques and
ideas, so this can be an opportunity for the firm. The managers of the firm can
gain competitive advantage and can attract the customers by proposing new
ideas in the market such as 3D printing, RFID, outsourcing, and so forth (About
UPS, 2019).
Weakness: The revenue management system of UPS is very outdated. It is the
primary and most effective weakness of the firm. As a number of customers are
interested in enjoying the services of the respective company, but due to its
revenue management policy, they are not able to exercise it in an effective
manner. Apart from this, the management of the firm is not effective in
managing the traffic of the firm in an effective manner. The consumers of the
firm are not satisfied with the post-delivery service of the firm (About UPS,
2019).
Strength: The most impactful strength of the firm is its brand value and
network. The respective organization is able to reach to various corners of the
world and is successfully operating its business in diversified boundaries. Along
with this, the firm is known for making use of the most effective and upgraded
technology that helps in attracting the consumers towards the firm (Maas,
Schuster and Hartmann, 2014).
Future strategies
With regards to the TWOS analysis of UPS, it is evaluated that competition is the
major factor that is hampering the productivity of the firm in an insignificant
manner. Due to this factor, the managers of the firm are not able to grow its
business and are also not able to reach the target market. Therefore it is
essential for the marketers of the firm to evaluate sound future strategies for the
growth of the organization. With the evaluation of these strategies, the
managers of the firm will be able to grow their business. They will likewise be
able to fight the competition and overcome their weaknesses. The managers of
UPS can make use of SMART technique in order to frame strategies for the
organization. With the help of this technique, the managers will be able to frame
realistic, reliable and scalable plans for the organization (Maas, Schuster and
Hartmann, 2014). This will help the managers in achieving the goals of the
organization. As per the respective model, the strategies of the firm must be:
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Specific: The strategies of the managers must be specific to the issues of the
organization. They must be formulated after evaluating all the issues of the
organization. The goals must be simple so that the managers can achieve them
with the support of the subordinates (Chan and Wang, 2012).
Measurable: The goals or strategies formulated by the managers must hold
meaning or value for the organization. They must be motivating for the staff of
the organization. Without motivation, the subordinates will not be able to
achieve the goals of the organization.
Achievable: The strategies as formulated by the managers must be achievable
and suitable for the organization. They must be formulated as per the nature and
the financial status of the organization. Before framing the policy, the managers
must try to grant approval from the senior authorities. Al0ong with this, they
must likewise try to ask for the feedback of the employees working for the same
(Maas, Schuster and Hartmann, 2014).
Relevant: The strategy must be in relevance to the issue of the organization. The
managers must try to formulate a reasonable strategy that will not involve the
wastage of resources in any manner. There must be an effective result of the
strategy without this practice the plans of the managers will hold no value for the
organization.
Time-bounded: This is the last factor of the SMART approach. As per this factor,
the strategies formulated by the managers must follow a schedule or are time-
based. They should not be costly for the organization and must not be
consuming more resources of the firm (Chan and Wang, 2012).
With the satisfaction of all the factors of the SMART approach, the managers of
the firm will be able to frame some of the most effective decision for the growth
of the organization. With the adoption of this approach, the managers of the firm
will be able to amend some of the most reliable and achievable policies for the
organization. A variety of future strategies that are based on the respective
approach are:
CSR policy
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The managers must try to stick to the norms of CSR or corporate social
responsibility. With the help of this factor, the organization will be able to serve
the society and environment the most significant manner. This process will help
the firm in expanding its customer base (Chan and Wang, 2012). In this era, the
consumers are very attracted towards the organization, which tries to contribute
to the society in one or other manner. Therefore with the help of this strategy,
the managers will not only be able to satisfy their employees but will likewise be
able to attract the majority of the customers. This strategy will help the
managers of the organization in gaining a competitive advantage. The managers
will be able to serve society in the most effective manner. This strategy is fully
based on SMART objectives. With the accomplishment of this strategy, the firm
will be able to improvise its brand name and equity in the market. This strategy
will help the firm in gaining back is the market share and its potential consumers
(Maas, Schuster and Hartmann, 2014).
Introduction of Managerial software
With the help of the TOWS matrix, it is evaluated that the major weakness of the
firm is related to its revenue management system. The managers of the firm are
not able to manage the resources of the firm in the most effective manner, and
this is impacting the productivity of the firm in a negative manner. Therefore it
can be recommended to the managers of the respective firm to make use of
managerial softwares like MIS and SAP for maintaining a record of all their
resources, time, cost and revenue (Grosse and Meyer, 2019). This will help them
in the process of planning and will provide them with an opportunity to make use
of their resources in an optimum manner. With the help of this strategy, the
manager will be able to save their resources and will likewise be able to
improvise the adequacy of their operational activities.
Hiring a new marketing team
Along with the effective execution of the above-recommended strategies, the
managers of the firm are likewise able to hire a new and efficient marketing
team for themselves. They can also try to outsource the task of marketing to an
advanced company (Grosse and Meyer, 2019). With the help of this strategy, the
managers of the firm will be able to fight the unbeatable competition effectively.
This strategy will help them in understanding the changes in the market and will
provide them with an opportunity to work as per the requirements of the market
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and the customers. This is the most significant strategy that will help in resolving
all the issues related to consumers dissatisfaction and competition of USP
(Grosse and Meyer, 2019).
All of the above-mentioned strategies are recommended with the help of SMART
approach and also my understanding of the external and internal factors of the
firm. With the implementation of these strategies, the firm will be able to embark
its success in the global market and can fight its competitors effectively (David
and David, 2016).
Reflection upon the Strategy Process Model
The strategic process model is playing an essential role in developing my
personal skills in the workplace. From workshops, I have learned about all the
significant aspect of the strategic process model, and it helps me in developing
my critical thinking approach through which I can see all the aspects for
preparing strategic planning. Strategy process model helps in setting up
effective planning for the organisation through which managers can analyse the
market requirements and can develop an effective planning process accordingly
(Schlagwein, 2015). After setting up planning, model help in formulating and
evaluating strategy with the help of the decision-making process and by
generating ideas. Further with the help of this model I have learned how to
develop decision thinking skills and how I can generate ideas by analysing the
market area and situation in the context of the company (David and David,
2016).The essential motive behind implementing the strategic model in the
organisation is to enhance the sustainability and efficiency of the company. At
the end of my learning workshops activities, I have determined that after
evaluating strategy, model help in implementing the strategy in the organisation,
which leads to productive result for the company (Schlagwein, 2015). Through
this workshop, I have developed my own learning, and I have learned how
effectively I can implement the strategy process model in the organisation.
Conclusion
It is concluded from the above report that key strategic planning process is
playing an essential role in the development of the organisation. The challenges
which are faced by the United Parcel Service are analysed and determined by
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the strategic process model, which help in developing effective planning and in
enhancing the planning process. The proposed model has provided a suitable
path to the organisation and has helped in developing effective key strategic
planning through which company can overcome its challenges in an appropriate
manner. Further, it was concluded that the strategic process model has helped in
developing the critical thinking approach of the organisational manager.
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References
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at: https://www.ups.com/us/en/about.page?
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on firm differentiation and the moderating role of environmental
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 Schlagwein, D., 2015. Strategy Process Model. [Online] Researchgate
Available at: https://www.researchgate.net/figure/Strategy-Process-
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