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:WHAT CAN BROWN DO FOR YOU?

p. s. u. :WHAT CAN BROWN DO FOR YOU?. nited. arcel. ervice. claudia arniella lauren biddle martin lawson steven nichols luke studer payam vaghefikia whitney watts. p. s. u. company overview. nited arcel ervice. the world’s number one package delivery company

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:WHAT CAN BROWN DO FOR YOU?

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  1. p s u :WHAT CAN BROWN DO FOR YOU? nited arcel ervice claudia arniella lauren biddle martin lawson steven nichols luke studer payam vaghefikia whitney watts

  2. p s u company overview nited arcel ervice • the world’s number one package delivery company • founded in 1907 in Seattle, Washington • employs 360,000 people worldwide • deliveries serve over 7.9 million customers daily

  3. p s u core business model nited arcel ervice consists of three basic business segments: 1. domestic package delivery 2. international package delivery 3. non-package operations • supply chain solutions: consulting, logistics and distribution, • international trade management • financial services: global trade finance • electronic services

  4. p s u revenue and profitability • total revenues: • $31.3 billion in 2002, market capitalization of $79.9 billion • analysts project $33.4 billion for 2003, with stock priced at $75.21 per share in 1 year • largest revenue segment is easily domestic package delivery at $23.9 Billion • UPS stock is currently priced at $71.07 per share nited arcel ervice • profit margin • cumulative margin of 13.1% in 2002 • most profitable segment is also domestic package delivery at 14.9% • international margins have recently grown to 6.9%, whereas non-package margins have shrunk significantly down to 7.4%

  5. p s u revenue nited arcel ervice

  6. p s u profit margin nited arcel ervice

  7. p s u SWOT nited arcel ervice • strengths: • e-tracking • supply chain technologies • wide store network- acquisition of mailboxes, etc. • future-focus on tech. improvements • weaknesses: • inflexible delivery routes • unionized workers • domestic market not very dynamic claudia

  8. p s u SWOT nited arcel ervice • opportunities: • e-tracking • supply chain technologies • asian expansion • diad IV • “green” delivery vehicles • threats: • barriers to int’l growth • unionized workers • high short term costs • decreased domestic growth

  9. p s low medium none high u porter’s 5 forces model nited arcel ervice • threat of new entrants • threat of substitutes • bargaining power of suppliers • bargaining power of buyers whitney

  10. p s u worldwide nited arcel ervice • ups has spent a billion dollars a year on technology for the last 15 years and will continue at that level for the foreseeable future. • accessible in 21 languages and dialects, ups.com has dedicated content for 104 countries. • ups serves more than 200 countries and territories worldwide using nearly 600 aircraft. • operating profit more than doubled for ups’ international segment in 2002. • 2002 revenues for ups were $31.3 billion on a volume of 3.4 billion documents and packages. payam

  11. p s u Brand Reputation nited arcel ervice • big brown truck • “world’s most admired” company in its industry as named by fortune magazine • incomplete recognition of marketing effort • ability to change rapidly with market trends • provide a reliable service that is easy to use lauren

  12. p s u New Technologies at UPS nited arcel ervice • "At UPS, technology is so closely interwoven with the business that it powers every service the company offers and every operation it performs." -Chief Information Officer Ken Lacy

  13. p s u New Technologies at UPS nited arcel ervice • “Smart Label” • Scanners • Wireless Computers • New Software • New Standard Processes

  14. p s u “Smart Label” nited arcel ervice • Cornerstone of the new system • Printed out by customers • Mid-shipment delivery adjustments • Streamlines deliveries • -More efficient truck loading • -Pre-planned delivery routes

  15. p s u future possibilities for growth nited arcel ervice • seeking to become a leader in: • movement of goods, information, and funds • synchronized commerce • supply-chain management • current assets: • operating margins • efficient operations • management team • credit rating • cash reserve

  16. p s u future possibilities for growth nited arcel ervice • challenges: • competition • possible market saturation • aggressive marketing • bigger discounts • high stock prices • responses: • faster delivery on key routes • UPS Basic • pursue FedEx’s market • customer relations • international expansion • new image

  17. p s u future possibilities for growth nited arcel ervice • predictions: • 12 - 18% higher earnings per share • 3 - 4% increase in domestic deliveries • 7 - 9% increase in long-run margins • 6% annual growth for 5 years full? we’re just getting started.

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