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Question 1: Analyse the UPS using competitive forces and value chain models. Value Chain Analysis of United Parcel Service

Support Activities:
1. Administration and management: a. Package Level Details (PLD), an automated operational system; able to do data mining in the warehouse which lead to the creation of accurate cost calculations for the accounting function, allow the accountants to use activity-based costing (ABC) to identify the profitability for segments of thousands of delivery routes.

2. Human Resources: a. The PLD system also helps the UPS human resource department to calculate it cost of labor for every shipping segment.

3. Technology: a. UPS developed a GPS-based aircraft navigation system to guide planes into an airport. This system saves UPS several minutes and 50-100 gallons of fuel per flight.

4. Procurement: a. UPS purchased airplanes to deliver their shipment. Primary activities:

1. Inbound Logistics: a. The UPS’s order entry system was able to wring out inefficiencies by having shipping customers enter package information directly into the system by themselves in advance of pick-ups.

2. Operations: a. Geographical information system (GIS), provides UPS with the IT competency of optimizing workflow by automatically assigns resources to pick up, sort, and deliver the packages once the customers enter PLD data into UPS’s order entry system.

3. Outbound Logistics: a. UPS’s systems able to process the customer-entered information by the supplier and scheduled direct delivery to the producer. b. Delivery Information Acquisition Device (DIAD), able to generates an electronic manifest to help the UPS truck driver to deliver the shipment by using the most efficient route.

4. Marketing and Sales: a.

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