OPERATIONS STRATEGY Lecturer

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OPERATIONSSTRATEGY

Lecturer:

UPS

Corporate Objectives examples

Marketing Strategy

Order Qualifiers

Order Winners

Operations Strategy

Operating design choice example

Infrastructure example

Grow global business

Offer different products and services that enable our customers to access global markets.

Exceptional customer experience

Flexible planning.

Boosting consumer value.

Employing talented individuals.

Monitoring customer behavior.

New services.

Benchmarking.

Embracing sustainable technologies.

UPS subsidiaries

Leverage growing technology.

UPS ONLINE Tools

Call center.

Maintain a financially strong company

Invest to stimulate growth in key traditional markets and to capitalize on strengths.

Quality and efficiency, and reliable technology

Enhancing cash flow management.

Decreasing per-unit costs.

New revenue streams.

Demand responsive model.

Annual Additional investment.

Online Cash On Delivery receivables.

New data networking applications.

FederalExpress

Corporate Objectives examples

Marketing Strategy

Order Qualifiers

Order Winners

Operations Strategy

Operating design choice example

Infrastructure example

Grow profitable revenue

Grow internationally

Global coverage

Expand supply chain capacities.

Cut costs.

New runways.

New warehouses.

Private cloud data center architecture.

Service-oriented architecture.

Super-Hub

International &amp regional Air hubs.

Efficient customs operations.

A-380 &amp B747

Increase returns to shareowners

Grow through the provision of new services &amp establishing new alliances.

Modernize technology.

Opening new innovative distribution centers.

New customer care center.

Reducing inefficiencies

Rely on service providers for IT work.

Increase technological innovation.

Acomparison between FedEx’s and UPS’ corporate objectives clearlyshows that the two transporting companies will be employing differentmarketing strategies that consequently demand different operationsstrategies. Though both companies share common global aspirations,their eventual outcomes contrast. FedEx aims to expand its servicesglobally while UPS is enabling its customer base to expand theirbusinesses globally. Hill’s Strategy Development Framework shows usthat FedEx is primarily concerned with its own growth while UPS isfocused on customer growth.

Alook at the two different companies’ infrastructure reveals theirdifferent strengths. UPS is scoring high on efficiency due to thereliance on IT. UPS’ operations strategy enables them to offerexemplary customer satisfaction and this is their competitiveadvantage in satisfying their order qualifiers and order winners.FedEx on the other hand is incurring a lot of costs establishingglobal physical infrastructure for long term growth. Their operationsstrategy is their competitive advantage since it serves to satisfytheir order qualifiers and order winners..

BothFedEx and UPS seek to reduce their total transportation logisticscosts and time [ CITATION Gon13 l 2057 ]by adopting different operations strategies. UPS’competitive advantage is in its cost effective operations strategywhich attracts steady funding towards its projects from shareholders.FedEx on the other hand is looking forward to reap from its decisionto rely on IT service providers. This is its competitive advantage asit is satisfying its marketing strategy by reducing inefficienciesand cutting down costs.

References

Gong, Y. (2013). Global Operations Strategy: Fundamentals and Practice. New York: Springer Science &amp Business Media. Retrieved October 16, 2016

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