Learning Activity
If you were the CEO of
UPS, describe the Internal Assessment approach you would undertake to
understand why this situation occurred and what corrective actions would have
to be put in place to avoid these challenges in 2014.
Relate your response
to considerations that have been introduced in the readings for this week.
http://www.bloomberg.com/video/how-did-ups-miss-so-many-christmas-shipments-EiozJnLSRQKGZrvl~6x4EQ.html
Student Post 1:
If I were CEO of UPS
the Internal Assessment approach I would have taken to understand the situation
of demand being higher than anticipated, would be to understand the firm’s
weaknesses and strengths at the current time. Information would be gathered
from sections of operations and management information systems. Than perform a
significant analysis of narrowing down the list of strengths and weakness in
order to have successful impact in the future and to better evaluate
strategies. Than the computing of a financial ratio analysis would help to
reflect the specific situation during the holidays and will help to identify
strengths and weaknesses as well . Also the usage of financial analysis by
comparing ratios over time can help UPS’s industry to better evaluate strengths
and weakness. Activity ratios and trend analysis would help USP understand how
effectively the firm is using its resources and time. Looking into the growth
ratio will help understand how to maintain the firms’ economic position in the
growth of the economy and its industry. Another area to consider in
understanding UPS’s situation during the holidays and make effective
corrections would be to create a production and operations’ audit checklist.
Performing an Internal Factor Evaluation (IFE) Matrix will contribute to better
understanding of the firm’s strengths and weakness during the holidays by
further evaluation and summarization. This can provide important information
for strategy formulation like hiring more personnel and expansion of equipment.
A corrective action to
avoid these challenges would be implement better and further planning and to
provide the market with an advance notice of a policy change for the holidays.
Planning is imperative because of future increases that are occurring with
online shopping and planning is the most effective way to reach desired
objectives. Planning will prepare UPS to overcome unexpected demand. Along with
forecasting is necessary to meet the volume of growth of shipments and
environmental factors. It also essential for successful strategies, elevations,
and controlling activities (David, 2013). Changing the policy for the holidays
will encourage shoppers to shop earlier, help UPS better strategize and meet
the consumer’s demand and improve the firm's weak areas of anticipation.
Creating a policy will help better strategizes for environmental factors and
unforeseen demands. Contingencies for weather and emergencies should be in
place.
Student Post 2:
The most important
issue here is planning. Planning is the cornerstone of effective strategic
formulation, and it enables one to avoid the trap of working extremely hard but
achieving little (David, 2013, p. 101). Although UPS prepared for the busy
holiday rush, they did not properly plan organize and control the activities
that were consistent with reaching their goals. I would assess the entire
organizational structure to make sure we do not repeat the same debacle of
2013. I would start by auditing the functions of management, the organizational
structure, the lines of communication and the control mechanisms that are
currently in place. After my assessment, I would:
- Make sure managers clearly specify tasks and objectives
to the employees
- Re-organize (as needed) to ensure the structure is
conducive to the goals of the organization
- Promote more effective communicate lines
(internal/external) and synergy
- Make sure control mechanisms are in place to handle the
“unknown”
