United Parcel Service2001120328 서 영 운 2004200016 추 선 진 2004130151 신 덕 영 2005120428 신 승 철 2005120432 조 아 라 2005120434 양 승 희CONTENTS History and background Analysis of current situation and status Answers for questions Any similar case in Korea*Strategic Management*History and backgroundAnalysis of current situation and statusAnswers for questionsAny similar case in KoreaStrategic ManagementHistory and background190719992005$37 billionJim CaseyPackage-delivery company → An international air transportation company → Logistics company190719992005private company → public190719992005The world's largest package -delivery company*Highly centralized Hierarchical OrganizationCorporate OfficeRegional OfficeStrategic ManagementAll strategic decisionsTactical decisionsIssuesHistory and backgroundAnalysis of current situation and statusAnswers for questionsAny similar case in Korea*Strategic Management1907 - 19291930 - 1980A great needs of delivery service Foot, bicycle, teenagers Improvement of tellogy Web-site Expanding services Supply-chain solutionExpanding service worldwide Continuous M A1991-19992000-CurrentHistory and backgroundAnalysis of current situation and statusAnswers for questionsAny similar case in Korea*Strategic ManagementResourcescapabilitiesCore competencesIntangibleHumanFinancialPhysicalTechnologicalOrganizationalInnovativeReputationTangibleAirlines, Motor cycles, Van, Tractor, Service centers, storesProfit, IPONetwork business, Supply chains, Unique strategic processCoordinating system, Reporting structure, internal promotion, Controlling systemContinuous improve -ment, Idea, capacity to innovateTalented CEO, Loyal workforce with low turnover, trustCustomer satisfaction services, Brand name, Efficiency execution, Strong valuesHistory and backgroundAnalysis of current situation and statusAnswers for questionsAny similar case in Korea*Strategic ManagementResourcescapabilitiesCore competencesDistributioneffective use of logistics management techniquesHuman resoResourcescapabilitiesCore competencesThe transparency of information Total service Brand expansion The tied relationship between the UPS and employees Fast and safe door-to-door service with high technology Strategic processHistory and backgroundAnalysis of current situation and statusAnswers for questionsAny similar case in Korea*Strategic ManagementEvaluation of current strategy – viability ?DiversificationConcentrationYesNoThe risk of diversificationLoss of identificationSpecialization of competitorsFinancialOther competitorsIndustry trend Core competencies of UPSHistory and backgroundAnalysis of current situation and statusAnswers for questionsAny similar case in Korea*Strategic ManagementCompetitor AnalysisHistory and backgroundAnalysis of current situation and statusAnswers for questionsAny similar case in Korea*Strategic ManagementCompetitor Analysis - A FrameworkSource: Adapted from M.-J. Chen, 1996, Competitor analysis and interfirm rivalry: Toward a theoretical integration, A us and competitors Integrate discussion for long term into strategy for short term Reducing riskConstant uncertainty Scenario is NOT always perfect and clear Wasting much timeStrength and Weakness of scenario planning*Strategic ManagementUPS : 1997 scenario planning evaluationThe origin of 1997 scenario planningHistory and backgroundAnalysis of current situation and statusAnswers for questionsAny similar case in Korea*Strategic ManagementUPS : 1997 scenario planning evaluationThe outcome of 1997 scenario planning Corporate charter Themes and strategic conversations Mind-set shiftEvaluationSome consider it as lack of realism External factorsBad pointBackdrop for strategic decisions at UPS. It help UPS to have broader scope for globalizationGood pointHistory and backgroundAnalysis of current situation and statusAnswers for questionsAny similar case in Korea*Strategic ManagementAny similar case in KoreaAssumptionAssume the virtual company which acquired logistic company like the Korea ExnaHistory and backgroundAnalysis of current situation and statusAnswers for questionsAny similar case in Korea*Strategic ManagementScenarioChina (Joint venture) - GlobalizationAcceptable service relative low cost Second mover advantageSuccessFailPotential competitor riskIndia - LocalizationC to CB to BHigh quality service Relative high serviceRequired low level service Cost leadership strategy AwarenessHistory and backgroundAnalysis of current situation and statusAnswers for questionsAny similar case in Korea*Strategic ManagementPreparation for scenario executionFocus on intangible resourcesFirstBrand awarenessSecondSkilled employeeThirdBuild a total logistics network and service of global levelHistory and backgroundAnalysis of current situation and statusAnswers for questionsAny similar case in KoreaREFERENCES Strategic Planning at United Parcel Service - Michael(Mike) J.Eskew, CHairman and Chief Executive Officer, United Parcel Service(UPS) Strategic Management 7th Hitt/Ireland/Hoski}