OPERATIONSSTRATEGY
Lecturer:
UPS
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Corporate Objectives examples |
Marketing Strategy |
Order Qualifiers Order Winners |
Operations Strategy |
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Operating design choice example |
Infrastructure example |
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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. |
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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
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Corporate Objectives examples |
Marketing Strategy |
Order Qualifiers Order Winners |
Operations Strategy |
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Operating design choice example |
Infrastructure example |
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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 & regional Air hubs. Efficient customs operations. A-380 & B747 |
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Increase returns to shareowners |
Grow through the provision of new services & 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 & Business Media. Retrieved October 16, 2016