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United Parcel Service

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MBA 7200 Financial Analysis Paper: United Parcel Service

20 September 2014

Wilmington University

United Parcel Service United Parcel Service (UPS) was founded by 19 year old James E Casey and 18 year old Claude Ryan in Seattle, Washington, August 28, 1907 as a bicycle-messenger service with one bicycle between them and $100 borrowed from a friend to establish the “American Messenger Company” (Hiskey, 2012). Fast forward to 2002 UPS officially establishes an air hub in Louisville, Kentucky with an International hub in Cologne, Germany in 2014. Its headquarters are presently in Atlanta, Georgia. From humble beginnings as a bicycle messenger service, UPS has become a global leader as the largest logistic package delivery service. The number one shipping company service 54 counties in domestic delivery and export services to over 220 countries and territories, including shipping outside the United States supply chains & freight segments in numerous capacities in over 175 countries. (Top 5 Shipping Companies, 2013) In addition they maintain a 99K ground fleet and 266 jet air fleet to include container transport. In the past three years significant developments within the company show a heavy investment project in the Renminbi currency to assist the companies funding growth projects in China, giving them more resources to support supply chains and healthcare logistics solutions. The most significant current event affecting UPS was the computer virus found July 31, 2014, UPS took immediate action and fixed it the following month, tying in the 23 affected states and continuously monitoring its system. On the technology side, they have been able to launch the most technologically advanced air package sorting hub in the world giving them the ability to increase volume by 37% and to keep up with global demand with this expansion plan. Along with a major

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