Ups Case Analysis

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To: Vern Higberg From: Christopher Inverso Date: March 1, 2005 Subject: UPS Strategic Process - Analysis and Recommendations Overview The opportunities that lie in front of UPS, because of its competitive position in the primary industries it serves and its high level of operational effectiveness, are vast. However, UPS must address deficiencies in its overall strategy process in order to fully capitalize on these opportunities. Specifically, the overall strategy process at UPS fails to systematically integrate an appropriate set of individual strategy-related elements into a cohesive cycle that generates, evaluates, and executes its strategy. The three root causes of this systematic breakdown are: 1. A company bias toward overreliance on operational effectiveness 2. The absence of an architecture that functionally coordinates strategic analysis and strategic implementation with strategic thinking 3. A failure to appropriately identify who should be involved in the strategy process, how they should be involved, and when they should be involved All three root causes can be simultaneously addressed through a restructuring of and augmentation to UPS’s overall strategy process that includes: A. Leveraging internal corporate communication channels to continually communicate messages that reposition strategic thinking as a company value that is not at odds with operational effectiveness, but rather one that directs and creates the need for operational effectiveness B. Dividing the Corporate Strategy Group (CSG) into two divisions: The Strategic Analysis Division and the Strategic Implementation Division C. Creating a network of Regional Advisory Groups (RAGs) made up of operations managers and employees that discuss strategy at a regional level and that interact with the Strategy Advisory Group (SAG) on quarterly basis D. Modifying the most recent version of its scenario
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