Running Head: UNITED PARCEL SERVICE ECONOMIC ENVIROMENT 1
Topic: United Parcel Service Economic Environment
Perhaps logistic offering companies have a place in the global market. United Parcel Inc
provides logistical support services all over the world. Its headquarters in the United States of
America makes it a leading logistic service company. This paper concentrates on the economic
environments of United Parcel service Inc. it considers the domestic as well as global aspects.
The united parcel service organization operates in the northern region of America. The
corporation has the brand UPS. The UPS Inc is perhaps one of the leading logistical and
companies for the region. The organization operates in many regions of the world. This means
that the organization has to work with individuals of different cultures. In their branches
employees represent diverse cultures, believes and religions. As an equal employer UPS
operations consist of offering packaging services as well as delivery. The operations of the
organization are closely supervised at its headquarters in Georgia (Kadaba, 2003). In terms of
operations, the organization delivers over 15 million packages per day. This delivery meets
almost 6.1 million customers in over 200 countries.
In terms of the organization culture and image, brown delivery trucks best identify the
organization operations. This image has made the company gain the name “Brown”. In recent
UNITED PARCEL SERVICE ECONOMIC ENVIROMENT 2
years, the corporation operates their own air cargo and airline. The organizations history begins
with their inception in Seattle in 1919 with a debt of $100 (Kadaba, 2003). By the year, 1930 the
organization had began operation in New York. This trend went on to the 70s when the
organization moved its headquarters to Connecticut.
However, the company has undergone various challenges in its years of operations. The
challenges that the organization face on the local and the international market include
competition. In the year 1974, the organization experienced an image-shuttering event from an
explosion. The organization experienced a package explosion that led to the death of one man.
Apart from this challenges, the organization face challenges that comes from competition,
financial effects as well as international changes.
The domestic environment for UPS operation includes its customers, government and
domestic competition. The internal environment includes the payment of tax to the government
and statutes of operations. According to information from Rostow and Galbraith various
perspective influence UPS domestically. In relation to data from Rostow the company domestic
environment, include transportation costs (Schement & Curtis, 1995). The company on the other
hand reduces its emission through its fleet of trucks, airplanes. To conserve the environment the
organization recycles its packaging materials and offer green deliveries. The organization on the
other hand values contributions of their employees. Employees in the organization undergo
various training programs and understand ethics of the transactions (Kadaba, 2003).
In relation to the domestic environment according to Galbraith, the internal environment
of the organization includes its distribution networks. The organizations duties include timely
UNITED PARCEL SERVICE ECONOMIC ENVIROMENT 3
delivery of letters and documents. The organization’s area of operation on the other hand covers
almost the entire region of the United States of America. On the domestic scene, United Parcel
service Inc competes with organizations such as FedEX as well as other carriers in the region.
The other important aspects that influence United Parcel operation include conservation of the
Various contributions of environmental grants to the community are perhaps the most
fascinating aspects. In terms of community participation, both Rostow and Galbarigh illustrates
that the domestic community include villages and neighborhoods. The organization has a
network to reach customers in almost the entire region of America. Further, the organization
offers grants, transfer skills, make donations and offer volunteering opportunities to local
On the global scene UPS faces many challenges. Its challenges relate to the state of the
international market and competition. Global competitors for the organization include DHL,
Deutche post, Canada post as well as others. According to Galbarigh there has been an increased
awareness on the influence of logistics on the environment. Fuel consumption has an influence
on the global environment. This therefore implies that new techniques of operations need to be in
use (Schement & Curtis, 1995). With regard to this aspect, the organization has an online
shopping feature that ensures timely ordering and delivery (Kadaba, 2003). In respect to the
viewpoint of Rostow, UPS offers sustainable response to community needs. On the global arena
UPS employees, serve the community through their Global Voluntary Month (Goyal & Goyal,
UNITED PARCEL SERVICE ECONOMIC ENVIROMENT 4
This has seen the organization meet various stakeholders’ needs throughout the world.
For example, data reveals that the organization has participated in tree planting in Madrid.
According to Goyal & Goyal (2002), in the USA, the organization has collaborated with Miami
County Park in conserving the environment. Its operation has seen its presence in lands such as
in South Africa. In terms of its interaction with the global community, united parcel service has
a service demand rate of up to 15 packages per day.
The countries global environment entails operations in almost 220 countries. The
communities of this organization benefit from free grants, as well as from funds through its
foundation. Other factors that influence the organization on a global scale include international
standards on operations. These standards include standards of certification. UPS has earned the
prestigious Gold and Energy star certification standards (Kadaba, 2003). In order to meet these
standards, the organization’s engineering team ensures that they have a sustainable site of
operation. Another aspect of consideration is efficient use of water resources. The organization
conserves energy through using efficient lighting materials. Further aspects of responsible
purchasing, recycling and waste management is of importance (Goyal & Goyal, 2002).
UNITED PARCEL SERVICE ECONOMIC ENVIROMENT 5
Kadaba, N. (2003). U.S. Patent No. 6,539,360. Washington, DC: U.S. Patent and Trademark
Goyal, A., & Goyal, M. (2002). Business Environment. FK Publications. Delhi, India.
Schement, J. R., & Curtis, T. (1995). Tendencies and tensions of the information age: The
production and distribution of information in the United States. Transaction