Strategic Issues at Ups

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Strategic Issues at UPS Abstract In 1907 there was a great need for private messenger and delivery services which led to the founding of the United Parcel Service. James E. Casey, borrowed $100 from a friend and established the American Messenger Company in Seattle, Washington at age 19. With only a few automobiles in existence, most deliveries were to be made on foot or by using a bicycle for the longer trips. Beginning in 1913 United States Parcel Service focused more on package delivery to stores, due to the increased usage of telephones and automobiles that led to the decline in the messenger business. The company also began to use motorcycles to make deliveries instead of doing it completely on foot. The company’s first delivery automobile was the Model T Ford, and with the name “Merchants Parcel Delivery”. This small business began to grow rapidly, and because of its high standard of service the company built a strong reputation throughout the city. In 1916, Charlie Soderstrom joined the company bringing automobiles for company deliveries with him. He also brought the color brown. In 1919 the company expanded beyond Seattle to Oakland, California, and changed their name back to United Parcel Service. “The word “United” served as a reminder that the companies operations in each city were part of the same organization, “Parcel” identified the nature of the business, and “Service” indicated what was offered” (UPS WEBSITE). In 1924 UPS “debuted another of the technological innovations that would shape its future: the first conveyor belt system for handling packages” (UPS WEBSITE). In the year 1930, UPS extended its reach to the East Coast when it began consolidating the deliveries of several large department stores in New York City and Newark, New Jersey. In 1929 they became the first package

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