Premium Essay

Scenario Planning at Ups

In: Business and Management

Submitted By amyndossa
Words 443
Pages 2
When UPS starting the scenario planning for Horizon 2017, they decided to limit the number of participants from the 1997 scenarios. The purpose of this was to steer clear of similarities between the two scenario-planning sessions. But as an end result, they ended up with scenarios still biased towards the 1997 scenarios. To assist UPS in avoiding this bias would be to have two different scenario-planning sessions. One session would include the participants of the Horizon 2017 session, one with limited 1997 scenario bias. The second session would only include members who did not participate in the 1997 session at all. For this second session the members can get a grip on issues/barriers of the future with a non-bias way of thinking. Their results can be compared and contrasted with the first session, so UPS can see the vision of the company’s future from both sides of the road.
Along with the new scenario designing, there were participants who didn’t even truly believe that these meetings were even affecting how UPS does business. UPS is planning for all of these external forces but yet they are not recognizing the internal issue that not everyone is even accepting these meeting as helpful. This can greatly affect the company when external/worldwide forces cause barriers for UPS.
In this article, UPS implements SWOT analysis’s but in a more in-depth manner with the scenario planning to improve UPS’s competitiveness. They combined all of the aspects to paint a clearer picture for the company’s position. Any scenarios on the top half incorporated their strengths, while left-hand side dealt with weaknesses. Scenarios on the bottom half handled threats, while the right-hand side brought attention to opportunities. Strengths include deregulation, globalization, scope economies and customization. Weaknesses include strong...

Similar Documents

Premium Essay

Strategic Planning at United Parcel Service

...questions What are the strengths and weaknesses of scenario planning? What is your evaluation of UPS’s 1997 scenario planning exercise? Its Horizon 2017 planning exercise? How do the two efforts compare? Evaluate the following elements of UPS’s approach to strategic planning: The UPS charter The Centennial Plan The Strategy Road Map Why was John McDevitt put in charge of “strategic integration?” Should he remain in that role? What is the strength and weakness of scenario planning? Strength  Build foundation for source of long term competitive advantage  Provide backdrop of strategic decision (pg.6) • Acquisition of Mail Boxes Etc.  Change mind-set • Make people think beyond the operational mind • Prepare to be proactive and creative  Enable to be sensitive for change in external environment  Alternative views of the future  Provide and prepare the company for potential change in the future’s market. Weakness  Lack of realism  Requires learning curve to have adequate result  Too abstract and difficult to apply  Indirect linkage to daily operation or strategy  Depend on participants’ motivation and knowledge  Not point out the strengths and weakness of company What is your evaluation of UPS’s 1997 scenario planning exercise? Evaluation on 1997 Scenario planning Initiative to build foundation for source of long term competitive advantage Positive aspects • Become backdrop of UPS Charter and changed mission statement •......

Words: 711 - Pages: 3

Premium Essay

Scenario Planning

...* What is scenario planning? Under what conditions is it useful? How important do you think scenario planning is as a context for international marketing planning? Scenario planning is defined as strategic planning method that organization use to make flexible long term plans based on generating a number of “what if” situations and then options on how they might respond to those situations( Keeley, 2011). In other word scenario planning a method for learning about the future by understanding the nature and impact of the most uncertain and important driving forces affecting the business. It is strategy tool used to discover potential future environments in order to understand how today’s strategic decisions will have an impact on an organizations in times to come. The key elements in scenario planning are “creative thinking, imagination, an informal methodology and use of qualitative, subjective information” scenario planning does not predict the future; rather it considers the complete scope of likely forces that might have impact on an organization. These may be intellectual, natural, social, political, economic, cultural or technological. Scenario planning is an important strategic tool for the business. Marketers can make choices through the scenario planning. The options can be screened by matching them to possible scenarios. Scenario planning provides tools for an organization to respond critical changes. It provides methods for......

Words: 1358 - Pages: 6

Premium Essay

Ups Case Study

...UPS, United Parcel Service, was first established in 1907 as a messenger company in the United States. UPS is by far one of the world's largest package delivery company, while also being a leading global provider of specialized transportation and logistics services. UPS uses advanced technology, which grants them complete access to global resources. In addition, they are part of an integrated network of physical, technological, and also human assets. Moreover, UPS provides and demonstrates a very strong and prominent competitive advantage that in turn greatly helps you sustain repeat customers and thereby consistently grow your business. Over the years, UPS has grown into a multi-billion-dollar corporation by drawing their focus in on the primary goal of enabling commerce around the globe. Currently, UPS is a global company with one of the most recognized and admired brands in the world. They have became the world's largest package delivery company and a leading global provider of specialized transportation and logistics services. As each and every day passes, UPS maintains the flow of goods, funds, and information in more than 200 countries and territories worldwide. To briefly discuss how UPS understands where they are positioned in the marketplace, from a strategic standpoint, a SWOT analysis pictured below (Google Images). A greater break down was also founded at (http://www.wikiwealth.com/swot-analysis:ups) Question 1: What are the strengths and weaknesses of......

Words: 1656 - Pages: 7

Free Essay

Case Scenario

...This case gives us an opportunity to reflect on the difficulties of strategic planning and the strengths and weakness of the process used . It also provides a comprehensive introduction to scenario planning. Scenarios are possible views of the world that provide context in wich managers can make a decision In a range of possible worlds, decisions are better informed and the strategy is more likely to succeed In scenarios we can understand the drivers of change and have more control of the situation. 1. What are the strengths and weaknesses of scenario planning? Strenghts Allows one to project the future back into the present to help articulate the strategies necessary to achieve the point in future the scenario is conducive to success or help implement strategies to avoid the scenario in cases where it is not going to be successful - Allow a shared view of the future to be developed - Provide the oportunity for an organization to consider how they want to be positioned in that future - Promotes flexibility and responsiveness - Permit to see the mayor drivers of change: globalisation, economics, technology, - It can be used to do Risk assesment, identify early warning indicators and decide how will we respond. Weakness Simplification of the future: Difficult to predict the future as the number of variables used maybe less |than required for a better plan. Scenario planning is expensive because it requires a huge commitment of time: time consumer......

Words: 692 - Pages: 3

Free Essay

Internatioanl Marketing

...Scenarios planning is the main technique to study the future, and it have been used since long time by the government planners, corporate managers and military analysts, as important tool to help them in making decision to face the uncertainty. The idea of scenario planning is to establish about possible future where it can minimise surprises and broaden the span of managers. Today the scenarios planning they have become extremely popular. ( Chermack, T. J. 2003).  Scenario planning
is
a
group‐based
decision
making
tool, which
has
its
roots
in
post‐
WWII
military
planning
and
the
petroleum
industry
of
the
1970s such as Royal Dutch Company.
Unlike
its
cousins, 
forecasting
 and
 prediction, 
 scenario
 planning
 does
 not
 attempt
 to
 project
 future
outcomes
 based
 on
 data
 from
 the
 past.
 
 These
 methods
 can
 often
 lead
 to
 “tunnel
vision”, 
 due
 to
 their
 preference
 of
 one
 outcome
 over
 another. Scenario
 planning, 
 as
 described
 by
 Peter
 Schwartz, 
 Chairman
 of
 Global
 Business
Network
(GBN),
“…is
a
tool
for
better
decision
making…Business
and
governments
employ
this
tool
because
it
helps
them
to
make
better
strategic
decisions.”

 (Schlegel, G. L., & Murray, P. 2010) The History
of
Scenario
Planning
Scenario
 planning
 arose
 out
 of
 a
 need
 to
 plan
 for
 futures
 filled
 with
 much
uncertainty.
This
uncertainty
is
particularly
magnified
in
military
operations,
which
is
 why
 scenario‐type
 planning
 can
 be
 traced
 back
 to
 19‐century
......

Words: 1750 - Pages: 7

Free Essay

Reflection on Scenario Planning

...Having to learn of the existence of a tool called scenario analysis was itself a blessing for me. Scenario planning affords us the opportunity to make decisions in context of various futures that may play out. It incites us to challenge our assumptions about the future. By basing our plans and decisions in line with the most likely scenario, we can be ensured that our decision are sound even if conditions change According to Ged Davis “the use of scenarios does not imply we will be absolutely right – we only need to be less surprised than those who are not thinking in this light … ideally, to be able to interpret what others see as crises as normal human affairs”. Scenario planning can be applied at the work place, it can also be applied to one’s personal life. I decided to include in this report a demonstration of how scenario planning can be applied at the work place. The following steps illustrate this 1. Problem definition – The problem in this case is how a particular project in the company can be completed within budget at the end of the scenario horizon i.e. end of 2016 2. Data gathering – The next thing to do is to identify trends, factors that may affect the plan. Here I am looking at trends such as the political situation in the company - will there be prolonged strikes at some point? How will this affect the plan? Another point to consider is cost of hire? Will this go up during the course of the year? Or will the schedule be affected due to unavailability...

Words: 869 - Pages: 4

Premium Essay

Marketing Ups Case Study

...STRATEGIC PLANNING AT UNITED PARCEL SERVICES Reaction Paper Blank Part A Before the 1990s UPS had a small group in charge of formulating project plans (Garvin & Levesque, 2006, p. 3). However, as the company grew in size and the volume of projects, a formal strategic planning group had to be formed. When Eskew became CEO in 2002, the formation of a Management Committee was among the first accomplishments he made. The Committee was tasked to direct the company to its vision for 2007, its first centennial. Eskew's concern, that changes are needed in UPS's strategic planning process, is valid. If the company continues to form only ad hoc groups to focus on achieving a long-term vision, then the sustainable commitment in the group's members cannot be assured. Eskew believes that the only way to move forward is to stop reinventing the wheel. This belief implies that the strategic planning process has to be more systematic than it is, currently. However, the scale of goals to achieve and tasks to accomplish for the Strategic Planning process have become larger as time progressed. UPS will only be capable of transforming itself once more if it has a proportionate level of commitment. A clearer and more straightforward connection between the different components of the strategic process is needed in order to sustain the focus and chart directions. Delegating such task to a Management Committee is a positive step to address the need to link the various components...

Words: 757 - Pages: 4

Premium Essay

Scenario Evaluation Plan

...Scenario Evaluation Plan Karen Crawford HSM/270 Dakira Starks-Walker 12/29/2012 As you read this paper you will find that it is going to be about a fictional program scenario that I have chosen to work with. The scenario that I have chosen is scenario three PEACE Domestic Violence Agency. Also it will be comparing program planning with program evaluation in human services organizations and how the components are related. It will be identifying specific examples of how program planning and evaluation interrelate in the scenario that was chosen. Last it will be identifying technical and political aspects of program planning and evaluation that may be encountered in the scenario and how the aspects could affect the planning and evaluation process. After reviewing the material provided about program planning and program evaluation in human service organizations it seems as though they do compare to each other. According to the reading it states that “When planned carefully, these two set of activities can be integrated into an organized set of ongoing operations that promote and support each other” (Mika, 1996, p. 6). “Program planning and evaluation are both the process and the product of the political and economic environments” (Yuen & Terao, 2003). So from what can be understood they both are a process, but they do differ in how they process things in an organization. They way that both of the components are related is once one has his or her plan in order then...

Words: 853 - Pages: 4

Premium Essay

Hsm 270 Program Planning and Evaluation Paper

...Program Planning and Evaluation Paper HSM 270 Date Your Name As you read this paper you will find that it is going to be about a fictional program scenario that I have chosen to work with. The scenario that I have chosen is scenario three, the PEACE Domestic Violence Agency. Also I will be comparing program planning with program evaluation in human services organizations and how the components are related. Identified will be: specific examples of how program planning and evaluation interrelate in the scenario that was chosen. Lastly, we will be identifying technical and political aspects of program planning and evaluation that may be encountered in the scenario and how the aspects could affect the planning and evaluation process. After reviewing the material provided about program planning and program evaluation in human service organizations it seems as though they do compare to each other. According to the reading it states that “When planned carefully, these two set of activities can be integrated into an organized set of ongoing operations that promote and support each other” (Mika, 1996, p. 6). “Program planning and evaluation are both the process and the product of the political and economic environments” (Yuen, F., Terao, K., 2003). So from what can be understood they both are a process, but they do differ in how they process things in an organization. They way that both of the components are related is once one has his or......

Words: 852 - Pages: 4

Premium Essay

Ethics Situations by Sara

...Ethics: 1. As the manager of an event planning company, you get asked by friends to plan several events throughout the year. During one of these events, your close friend asks you to take a break and have some drinks with them. Knowing that one of your main policies is to never drink during an event, you… A. Drink it up! B. Take a few sips since they are one of your friends but get straight back to work. C. Do not drink at all. D. Wait until the party is almost over to make sure everything went well and then have some drinks. 0. A- No! Our policy is to never drink. 5. B-Although they are your friend, it is still unprofessional and against policy. 10.C- is the correct answer. Our policy is to NEVER take a drink no matter what the event is unless you are a guest and not involved in the process of planning or working the event. 5. D- You must wait until the event is completely over. 2. You have been planning a wedding for a bridezilla (one of the worst brides you have ever dealt with) and the event is only a few days away. When you pick up the placement cards you realize that 3 names are missing and the ink of some of the cards is also faded. The bride will probably go crazy if she finds out… A. Just give her the cards, she is too busy with everything else and won’t notice. B. Have them reprinted and tell her about the situation. C. Have them reprinted but don’t mention the situation to her so she does not get mad. D.......

Words: 794 - Pages: 4

Premium Essay

Controlling- a Management Guide

...company and specifically address planning, organizing, leadership, control and the external environment. Section1 - The External Environment As a manager at Just Web Inc you will play an important role in assessing the external environment. It will be important for you to understand your role in the customer’s needs through these assessments. Theses assessments will give you a baseline to start all projects as well as recognize a need for change prior to losing market share to other ISP’s. It is written “that to remain competitive they must explicitly manage their intellectual resources and capabilities” (Zack,N.D.) At Just Web Inc we will periodically assess the external environment to stay relevant in our business plan, structure, and methodology. To complete these periodic assessments we will use the strategic management process. This process is a six step process that you will use to identify goals, complete external and internal (SWOT) analysis, formulate a strategy, implement strategies, and then evaluate the results (Robbins & Coulter, 2009). Once this plan is developed it will give a path or process for the analysis, formulation, and implementation of our plan. After that I complete it provides us with the opportunity to assess our results. This is an excellent time to involve employees so that they can participate in the change. Section 2 – Planning As a manager at Just Web Inc, you will be responsible for planning in your department. Depending......

Words: 966 - Pages: 4

Premium Essay

Negotiation Strategy

...used in negotiation, which include collaboration, competition and accommodation (Lewicki, Saunders, & Barry, 2006). Each strategy situation is different and will need to be analyzed and adjusted to see which one would work best. In these scenarios, I chose to review the Seabrook Mall suit and negotiating new vehicle purchases (Chiaramida, 2010). I will analysis compare and contrast each article for the differences in the negotiation techniques. Article One Seabrook settles mall suit (Chiaramida, 2010). In this article the Seabrook planning board used a collaboration technique and avoidance as part of the negotiation strategy. There was a developer who wanted to build a mall on 47 acres of land they needed to get approval from the planning board to precede with the mall. The name of the company was Developers Diversified Realty. During the time DDR was trying to purchase the land the planning board was holding up the process so, they chose to file a lawsuit to force the board to meet. The Seabrook planning board proceeded to set a date of November 2010. The meeting was not open to the public for discussion. The community was not happy about this but; Seabrook planning did say it would be made available to the public. They planning board agreed to allow DDR to proceed with development of the land to build the mall if DDR would drop the lawsuit. They also stated DDR would need to do road improvements to the main roads around the mall. Article Two The second......

Words: 955 - Pages: 4

Premium Essay

Functions of Management

...together in order for you to be an effective manager. Functions of Management There are many different types and styles of functions of management. The Functions of Management describe the manager’s job in a whole. The most known functions of management are planning, organizing, leading, and controlling. Planning Planning is the function of management that involves setting objectives and determining a course of action for achieving these objectives. It also requires that managers be good decision-makers. There are many different types of planning some examples are: Strategic, Operational, Scenario and Tactical. (Satterleee, A., 2009) In one of my articles it states that “Strategic planning is one of the most critical means of fostering the success of an institution, and the achievement of its vision, mission, and strategic goals.” (Achampong, F.K. 2010) In a book review that I read it talks about scenario planning, in this review it states that, “Scenario planning is a revolutionary alternative to traditional strategic planning, because it recognizes the unpredictable nature of the future.” It also states that, “scenario planning makes uncertainty part of the plan.” (Chermack T.J. 2011) “Planning can be performed at all levels of an organization.” (Satterleee, A., 2009) Organizing “Organizing is the function of management that involves developing an...

Words: 1187 - Pages: 5

Premium Essay

Human Resource

...helps in filling up the positions in the organization structure. Therefore Human resource function is known to be the pillar of any organization because having right people on the right job can take the firm on top and also wrong people can lead to the failure of the business. These days Human resource is considered to be one of the most important functions of management because of the rapid changes in the technology, increasing size of the firm and also the complexity in the behavior of humans. And therefore no organization can be successful without its staff members which are required to fill the various job positions in organization structure (Human Resource Management… 2015). Now discussing about the concept of Human resource management (HRM), it is a function that should be performed by the Human resource managers in order to fill the different job positions and also maintain the job positions by having qualified people place at the job positions. HRM is closely related to organizing as it maintains employees and place them on the right job and also train and motivate the employees in order to achieve the common goals of an organization (Saini 2013). Therefore this essay would be focusing on the human resource management and human resource planning process, and how human resource activities helps an organization in achieving its mission i.e. objectives and also how these activities help in effective recruitment of qualified personnel. Human Resource Planning Human......

Words: 1684 - Pages: 7

Premium Essay

Traffic Forecasting

...FORECASTING The essence of port traffic forecasting is to find out: (a) What kinds and tonnages of commodities will move through the port? (b) How will these commodities be packaged and carried as maritime cargo? (c) What ship types, tonnages and frequency of calls will this result in? Traffic forecasting requires a combination of commercial and economic knowledge and the mathematical techniques are of minor importance and can often be omitted entirely. Far more important is the need to bear constantly in mind the very high degree of uncertainty in any forecast, and to take steps to minimize the risk which this causes. Any forecast of future trade will be uncertain, and ports are particularly vulnerable in view of their long planning time-scale and limited ability to influence demand. All forecasts should be linked with the overall national development plans. Furthermore, maritime trade is going through a period of rapid change which critically affects the volumes and types of traffic likely to use any port. Errors in forecasting can be serious, and the consequences of overestimating and underestimating are not equal. To over-build may add only a few dollars, at most, per ton to freight costs, but to under build may cause congestion leading to additional costs of $100 per ton. Even when all precautions have been taken to reach realistic and well-reasoned forecasts, the remaining uncertainty usually produces a wide variation of possible levels of traffic when......

Words: 1426 - Pages: 6