...WrapItUp: Developing a new compensation Plan – Case Study Why do you think Martha Reyes made a personal visit to the store managers to discuss the program? Key issues: - There was a huge problem of attracting( ACQUIRING) and retaining( RETENTION) top talent - Frustration among employees that there is no pay difference (PARITY) between the top and low range of band - Lack of motivation among managers - LIBERTY TO DECIDE ON MENU IN CONTINGENT SITUATION/ CRAFTING MENU [ WHILE VEGETABLES WERE OUT OF STOCK] WAS NOT ALLOWED - Customers were getting bored of the same menu - The revenue was always flat. ShareIt Pilot When Reyes decided to hire a consultant to study the causes for the problem and to resolve it, they came up with ShareIt programme, a new compensation plan where the profits will be shared among managers, help grow individual store profits and motivate managers. Under the new programme, the profits will directly be equal to the performance metric, the managers appraisal will be linked to the performance and not the revenue of the firm. It was 35:15:50 model where 35% profit will go the manager, 15% will go to the associates and 50% will go the firm. When they decided to launch this as a pilot progamme, they chose two outlets – Santa Monica & Cosa Mesa, Reyes decided to make a personal visit to the places and brief the managers in person because - To motivate the managers and make sure they accept the offer - Being in person will give more confidence about...
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...Service (UPS), is a global logistics company that is based in America and is headquartered in Atlanta, Georgia, United States. UPS was established by James E. Casey in August 28, 1907, in Seattle, Washington, USA. It is one of the world’s largest express delivery service provider (UPS, 2015). The company has an average annual sales growth of 5.15 % (Csimarket, 2015). UPS has started to expand in 1988. Years after years, the company started to build stronger presence worldwide by building more infrastructure and increasing its flight to and from many countries. The company expand in many places by opening several UPS Express centres to have more drop-off and pick up services (IBSCDC, 2006). UPS offers a variety of services for mail Services, packages and documents. Furthermore, UPS offers the facilities to its customers to track its parcels where it is around the world. Examples of services offer are: UPS Ground UPS 3-Day Select, UPS 2nd Day Air UPS 2nd Day Air AM, UPS Next Day Air UPS Next Day Air Early AM, UPS Next Day Air SAVER, Tracking (wne.edu, 2014). In 2014, UPS has a revenue of $58.2 billion worldwide compared to 2009 in which the company has a $45.3 billion worldwide. The company has also a net income of $3.02B in 2014 (Statista, 2015). Furthermore UPS was operating in more than 220 countries with 435,000 employees Worldwide. It has 1.6 million pick-up customers and 8.2 million delivery customers. It has an average of 58.2 million daily tracking requests. UPS has 237...
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...UPS Case Study Vision Statement UPS’s goal is to synchronize the world of commerce by developing business solutions that create value and competitive advantages for our customers. Mission Statement UPS seeks to grow the global business by serving the logistics needs of customers, offering excellence and value in all that we do. We will maintain a financially strong company with broad employee ownership that provides a long term competitive return to our shareholders. We will inspire our people and business partners to do their best , offering opportunities for personal development and success. UPS will lead by example as a responsible, caring, and sustainable company making a difference in the communities we serve. Identify problems: The Problems can be succinctly stated in a 2-3 sentence (short) paragraph for each. 1. UPS has noticed an increase in sales of technology such as cell phones, tablets and other electronics overseas. With that it is critical for the US to come to trade agreements that would boost US exports and economy. With high-tech shipments to grow around 22 percent in the Middle East and India, free trade agreements should be a high priority to capitalize on the opportunity. 2. Customer behaviors are changing on how they feel about paying extra for shipping fees. It’s becoming more apparent that customers are willing to wait for their shipment, as opposed to overnight air, this is likely due to the declining economy over the last several years. ...
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...STUDY CASE QUESTIONS: UPS Competes globally with Information Technology 1. What are the inputs, processing, and outputs of UPS package tracking system? The inputs in the UPS package tracking system is the detailed information about the sender, the destination, and when the package should arrive. The inputs of UPS’s package tracking system was picked up from “smart label” (scannable bar-coded label) attached to the package. The tracking system also include customer signature, pickup, delivery information by using hand held DIADs. The package tracking system also input the information about the current location (while en route) of the package and billing and customer clearance documentation. The processing takes places when the information is input in the scannable bar-coded label which is attached to a package. The information from the smart label is then transmitted to one of UPS’s computer system, and then it is finally sent to the distribution center nearest its final destination where the dispatched downloads the label data. The data is transmitted to the UPS central computer and is stored for retrieval. Data is reorganized so that it can be tracked by customers. The output occurs when the dispatcher of UPS downloads the label data and uses special software to create the most efficient delivery route for each drive that considers traffic, weather conditions, and the location of each stop. The outputs include pickup and delivery times, location while en route, and...
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...CASE STUDY: UPS UPS (United Parcel Service) started in 1907 as a small messenger company. During 100 years developed, now it becomes a package delivery company which expects revenues of nearly US $50b in 2010, with over 400,000 employees operating in over 200 countries and territories around the world. 1. How does UPS compete? In my research, there are three advantages lead UPS to success and more competitive. One is ‘inter-modal approach’. UPS own more than 95,200 vans, trucks, and motorcycles. UPS airlines is one of the 10 biggest airline company in the USA which flies to more than 200 countries and territories around the world, serving 388 U.S. airports with 936 flight segments, and 378 international airports with 755 flight segments daily. Another advantage is globalisation strategy. UPS started their international operations in 1975 in Canada. Then in Germany, Pacific Rim, Africa and Middle East. Now UPS delivers more than 15 million packages a day to 6.1 million customers in more than 220 countries and territories around the world. Recently International revenue accounted for 24% of total. The last is the loyalty from employees. This is because the high salaries and well training, stuff would like to stay at UPS so that ensured company’s stable. 2. In the USA it is federally mandated that the delivery network operated by USPS services each household. What are the implications for UPS? USPS is the U.S. government independent agency responsible for postal services...
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...UPS Case Study 1. Introduction UPS is an internationalized logistic and shipping company in the US, providing customers with quick delivery of parcels to all over the world. UPS is, unquestionably, a successful company, building a good reputation in the world. This group paper will be divided into four major parts including the analysis of UPS, identification of problems encountered by UPS with two causes contributing to the problems, analysis of three alternatives suggested by the case study and our team with both pros and cons, and the recommendation and justification after analyzing the three alternatives by using business model upon decision making taught in class to make a right choice to help UPS resolve the problems in a rational way. 2. Organizational Analysis 2.1 Organizational Strategy The strategy of UPS is: To provide state-of-the-art package delivery services worldwide at low and uniform prices. UPS provides reliable and efficient services to its customers worldwide. It has always delivered its promise to serve every shipper at unified, low prices, regardless of the package sizes and locations of shipments. UPS has also developed a first-class portfolio of logistics capabilities backed by state-of-the-art technology, on which UPS capitalized to assure the reliability and efficiency of its delivery serves. Moreover, UPS also strives to optimize customer experience. It has constantly expanded customers’ access to its...
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...1. I believe that UPS’ approach to talent management has a limited degree constrain on its organic growth and competitiveness. I see evidence of UPS's overcoming obstacles to the best of its abilities and balancing between changing market needs and internal, long-time policies and tradition. This is not to say that there aren’t any lessons to be learned and places for improvement. The UPS article starts with a description on a management committee. Straight from the beginning we get insight to UPS approach to talent management with a quote by CEO, Rogers: “So you’re convinced that we can’t locate this talent internally or develop it in the smart computer-trained kids working in our districts?” This is the gist of UPS's approach, which is, “given the proper tools, our people could do anything". In the 80's, although it had the most extensive ground network, UPS had fallen behind in certain technological innovations which required strengthening of its technological teams (later to be called Information Systems). In 1985 UPS had 700 personal computers in operation and in 1986 that number jumped to 4,000. Although the need to hire people from the outside was recognized as a necessity by most employees at UPS, it was not completely accepted. In his article, Cappelli brings four principles for talent management; the first principle is the most relevant in UPS case and says that talent management is an investment, not an entitlement. UPS indeed hired from the outside, but without...
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...UPS- Redefining IT’s Value to the Enterprise ------------------------------------------------- 1) Can you delineate the IT- related decisions being made in UPS? The IT decisions that have taken in UPS closely relates to the Business strategy that planned and followed throughout the journey. * Setting Strategic direction: UPS started deploying the technology to track the packages moving across European Boarders quickly. It encouraged the UPS to move towards the technology more. Later introduced Package Level Detail Program (PLD), which helps in finding number of innovative solutions for operations and for customers. It contains both barcode and Unique Maxi code information to make sure package reaches the ultimate destination * Developing Technical application suits to Business benefit: The project manager and IT representative working collaboratively helps to develop technical applications suits to Business needs. Telematics, which is an example for technology linked to business strategy. It helps UPS to operate more lean and green way. * Identifying new, disruptive technologies to suit the business opportunity: Conducting brain-storming sessions among teams helps to identify the best suited new innovations. Introducing sending of service messages through twitter was one of the outcomes of above mentioned decision. * Improving the internal operations of IT: Establishing standards and designing a structure to make sure that all the work is in tune with...
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...1. What are UPS “Smart Labels?” What role do they play in UPS operations? A smart label is a scannable bar-coded label attached to a package, which contains detailed information about the send, destination, and when the package should arrive. Smart labels play a huge role in UPS operations by it allows dispatchers to download the label and give the driver the most efficient route so that the package can be delivered in accurate time and effort. The smart label has made the driver job easier and saves UPS 28 million miles a year. 2. Write out the steps a package takes from pick-up by a UPS driver to delivery including the role of DIAD, the UPS Data Center, and the UPS Package Center. First the customer provides information such as details about the package and the destination. Then the UPS personnel are able to insert that information in the main database and after that automatically the system generates a smart label, which will be attached to the package. The driver has their own DIAD IV, which is a wireless device that features a built-in GPRS and a CDMA radio. The DIAD will provide the driver with the necessary updates his/her route for the day and by connecting to different signals it downloads information about re-routings and new pick-ups they might need to do. When a package gets picked-up or delivered by the driver, it’s barcode gets scanned and the information that includes are sent up to the main UPS Data Center. 3. What role does wireless communication play...
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... It is the most complex systems because it involves a wide variety of sensors, actuators, mechanical devices, and computers. These systems use over 3 million lines of software program code. Destination-coded vehicles (DCVs), automatic bar code scanners, ratio-frequency identification tags, and high-tech conveyors equipped with sorting machines are included. 3 What is problem these baggage handling systems are trying to solve? Discuss the business impact of this problem. Are today’s baggage handling systems a solution to this problem? Explain. The baggage handling systems designed to cut down the number of bags delayed or lost, and it can by the way reduce cost. Airline industry’s mishandled baggage rate decreased from the system coming up so that efficiently promotes efficiency on airport. However, the new systems are stopped slowly after JFK event, which is the huge damage paid due to a piece of software failed in the bar code scanning device. 4 what kinds of management reports can be generated from the data from these systems? Management Information Systems provide middle managers with reports on the organization’s current performance. This information is used to monitor and control the business and predict future...
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...1º Quais são as “Ups smart labels “, e qual o papel que desempenham na ups ? A etiqueta inteligente da Ups , pode ser criada por a pessoa que envia a encomenda num computador pessoal , ou pelos operador que recolhe a encomenda, o elemento principal da etiqueta é o código de barras, que é único e contem todos os dados relativos a encomenda tais como, peso, dimensões, local de recolha e entrega , informações do expeditor. As etiquetas tem um papel muito importante para a Ups , pois com elas a confiança aumenta uma vez que o código de barras é impresso por um qualquer computador pessoal e importa os dados do sistema. O tempo de trânsito é melhor umas vez que as encomendas passam pelos sistemas da Ups a uma grande velocidade, não sendo necessário serem verificadas e validadas por um ou vários operadores. Acesso a serviços importantes tais como localização e monitorização da encomenda . Ilustração 1- Exemplo etiqueta 2ª Descreve os passos que um pacote leva desde a recolha do motorista da Ups ate á entrega incluindo o papel do DIAD do data center da Ups e do centro pacotes da UPS ? O Processo inicia-se com a recolha da encomenda pelo operador da Ups, após isso é etiquetado nos serviços da Ups por forma a criar um histórico e todas a informações da encomenda, feito isto a mesma é deslocada para a central local da Ups, onde ai é feita uma triagem , e separadas a encomendas por distancias, onde podem ser expedidas por via aérea ou terrestre . Quando chegam ao...
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...1. ¿Cuáles son las entradas, procesamiento y salidas del sistema de seguimiento de paquetes de UPS? En primera instancia utilizan una computadora portátil llamada Dispositivo de Adquisición de Información de Entrega (DIAD) ya que los conductores de UPS capturan automáticamente las firmas de los clientes junto con la información de recolección, entrega y la tarjeta de registro de horarios, después colocan el DIAD en un dispositivo de transmisión de información ubicado en el vehículo, el cual está conectado a la red de telefonía celular, ya con esto la información obtenida se transmite a la red de computadoras principales de UPS para su almacenamiento y procesamiento, además en diversos puntos a lo largo de la ruta del remitente al receptor existen lectores de códigos de barras los cuales escanean la información de envío, que se encuentra en la etiqueta del paquete, dicha información es enviada a la computadora central y ya con esto, desde cualquier parte del mundo se puede tener acceso a la información contenida para comprobar que se realizó la entrega o para responder preguntas por parte del cliente. 2. ¿Qué tecnologías utiliza UPS? ¿Cómo se relacionan estas tecnologías con la estrategia de negocios de UPS? UPS implementó un conjunto de programas de software personalizado que utiliza la investigación de operaciones y tecnología de mapas para optimizar la carga y entrega de los paquetes, además creó una división de Soluciones de Cadena de Suministros el cual ofrece un...
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...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 scenario...
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...UPS UPS F ounded in 1907, UPS delivers approximately 21 million packages per day. Every minute around the world, the organization is entrusted with 2 percent of the global gross domestic product. UPS’ business enables the movement of goods, information, and funds through one integrated network that operates in more than 200 countries and territories. UPS provides supply chain solutions through supply chain design and planning, transportation and freight services, logistics and distribution services, international trade management, and specialized services. The organization combines sales, marketing, finance, and technology for its supply chain subsidiaries. As a global services enterprise, leveraging technology has allowed UPS to make “small companies look big” as well as be recognized as a comprehensive supply chain partner structured around four main areas: U.S. operations, international package operations, supply chain and freight, and other non-package (the UPS store, UPS Capital Corp, etc.). UPS Chief Executive Officer Mike Eskew cites that commerce has changed considerably over the last few years. In the early years of the organization, commerce consisted of three distinct flows: product request, product creation, and product payment. These flows or transactions were conducted face to face. Today, it is understood that these three flows of commerce converge into point, click, and order, which then translates to pick, pack, and ship. This converged method is significant...
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...Khushbaj Gill Student# 500387450 UPS is a company founded by two teenagers in 1907. It started out as a simple bicycle delivery company which has now grown to be a global corporation worth millions. The success of UPS can be summed up in their motto which they strive to fulfill “The best service at low rates” The company specializes in delivery both national and international. They deliver parcels overseas, air and land. The inputs are the barcodes on the parcels which get scanned and transmitted to the computer, which contains data about the packages sender, destination etc. The processing begins when the barcode data is sent to the computer centre closest to the destination for analysis. Output in this case is after all the data is received and processed it is then transmitted to the DIAD handhelds the UPS delivery workers carry with them. With the DIAD all the information is used to help the driver take the best route to delivery considering traffic and weather conditions. The technologies used by UPS are their own computer networks that have capabilities of automatically tracking the location of each product. They also have a functioning website where you can find out everything about the company as well as track your products at every stage in the delivery process. The logistics and supply chain methods UPS uses is also sold to other companies to give them the same type of competitive advantage they hold in their market. The infrastructure within the company is...
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