UPS had become a global public company with a market capitalization of $ 74000000000, more than 428,000 employees, $ 47 billion in sales and operations in more than 200 countries. A recognized leader in package delivery companies, its growth had been above the industry average and had historically been through geographic expansion. In 1998 UPS changed its business model to Synchronized Chamber of Commerce has a new growth strategy called four-quadrant model, in the hope transf expand its market position through space … Read more »

UPS had become a global public company with a market capitalization of $ 74000000000, more than 428,000 employees, $ 47 billion in sales and operations in more than 200 countries. A recognized leader in package delivery companies, its growth had been above the industry average and had historically been through geographic expansion. In 1998 UPS changed its business model to Synchronized Chamber of Commerce has a new growth strategy called four-quadrant model to expand business in the hope that its market position through space is transformed into a logistics solutions. But eight years after these changes was UPS producing only 17% of its revenue from its nonpackage deliveries, with only $ 2 million, operating profit from the new company. In the company annual report 2006 UPS chairman and CEO acknowledged the disappointing results and realized that these results a reaction to the public market is required.
This is a Darden case study.
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from
Edward D. Hess
Source: Darden School of Business
11 pages.
Release Date: 19, September 2008. Prod #: UV0906-PDF-ENG
United Parcel Service of America, Inc. HBR case solution

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