Ups Key Success Factors free essay sample

The deliveries must be on time, there should be accuracy by way of deliveries, ownership of not only the land based vehicles but also airplanes are important for success. Key success factors include safe deliveries and an excellent reputation. Recently there are key success factors related to information. Accessing the UPS website gives critical information about the whereabouts of the parcel to any customer at a low cost. Information about the merchandise, customers and goods is critical for success. What are the key success factors and risks for UPS given its business strategy?Timely, accurate and competitively priced services are the key success factors for UPS. Moreover, the ability to provide low cost access to customers information about the location and contents of packages is an important success factor. The latest success factor is the ability of the customer to intercept and change the direction of a delivery. The risks are that owning trucks and planes may make the operation too costly. We will write a custom essay sample on Ups Key Success Factors or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Moreover, UPS depends on its workers for deliveries and there are risks that the delivery may be late, wrongly delivered, or simply abandoned.There is a risk of wrong billing, damaged packages or lost packages. How is UPS performing? What factors are driving this performance? Is the current performance likely to be sustained? Why or why not? UPS is performing well. In 2006 the results of UPS reported earnings increase of $0. 89 and this was an increase of 14. 1% over the results announced in 2005. This performance has been fuelled by an increase of 9% in global small package volume. This increase amounts to 1. 24 million packages every day. This performance is not likely to be sustained because this spurt is faster than the world market growth. How is FedEx performing?How, if at all, do its performance and plans affect your assessment of the sustainability of UPSs current performance? Federal Express is performing moderately well. The sale have grown by 7. 65% compared to the industry 5. 49%, However the net profit margin is 5. 67% compared to the industry figure of 7. 70%. The return on Assets is 8. 52% whereas the industry figure is 11. 10%. Two of FedEx strategies that have worked are its tie up with the US postal system and its first mover advantage in introducing the tracking system for packages. My assessment of the sustainability of UPSs current performance does not change.Given your assessment of the companys strategy and the sustainability of its performance, forecast the key factors for UPSs stock value? The original company strategy has been to deliver goods overnight. Time bound deliveries is its main selling point. It creates security in the minds of its customers by using the Guardian anti missile system on board its flight. FedEx offers a wide range of products that target customers with different needs. Federal Express has been the innovator in the strategy of allowing the customers to track their packages. This facility has developed great confidence in the system of FedEx. In fact, the tracking system of FedEx has forced other shipping companies also to use tracking systems. In promotions FedEx has adapted the strategy of using motor sports. The key factors for UPSs stock value are its size, the increasing revenues from its international operations and the increasing sales of its supply chain solutions. The investors are also impressed by the net profit of UPS that is 8. 48 which is higher than the industry figure of 7. 70. The return on assets is also 11. 75 which is greater than the industry average of 11. 10. The return on equity is also 25. 5 that is higher than the industry average of 23. 55. What is your estimate of UPSs value and its multiple? One approach is to give the total equity as an estimate of the company. This is $15,569 million dollars. However, the investors valuation of UPS must go beyond its book values of assets and liabilities. The market value gives a much better estimate.