Strategic Issues

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Strategic Issues
University of Phoenix

Strategic Issues
In any comprehensive planning process, strategic questions must be addressed. This is the reason United Parcel Service (UPS) examined several companies that have faced similar issues as they have experienced. These companies are Siemens, United States Postal Service, Oracle, JCPenney and 3M. In addition, UPS will show how they will adopt each company’s strategy in dealing with strategic issues and how those companies handled the situation. Siemens

Many companies are zeroing in more about the affects of ecological factors, such as air, water, and land. Many of the world’s largest corporations like UPS are realizing that business activities can no longer ignore environmental concerns. This shift in perspective has in turn led to businesses seeking out ways to achieve competitive advantage through managing the natural environment. This means that large, powerful organizations with access to vast financial and other resources have begun actively to pursue pollution prevention, waste stream reduction, resource conservation, energy efficiency and eco-friendly products (Walton & Galea, n.d.). Siemens is one of the largest global manufactures and has made the environment a core part of their business strategy. Last year in November, Siemens rolled out a $145 million ad campaign called “Siemens Answers” to promote this new positioning, and recently they introduced several new TV spots that are part of the campaign (Maddox, 2008). Ogilvy New York and Ogilvy Frankfurt are the parties responsible for developing the eco-friendly campaigns for Siemens. The reasoning behind it was Siemens wanted to be perceived as a company that not only says they develop products that help the environment, but aligned it with their actions (Maddox, 2008). Some of these efforts include a redesigned home page focusing on Siemens’ Green Mobility program for providing environmentally friendly transportation and logistics services and a sustainability presentation that the sales force uses to show how the company is developing products to help the environment (Maddox, 2008). UPS addressing environmental concerns by adopting their eco-friendly products and services and integrating it with their marketing may gain more of a competitive edge and in turn attract more customers. As for other companies, that have not considered the environment in their business decisions, this strategy may be an act other companies may want to emulate or adopt into their business strategy just as Siemens has done. United States Postal Service

The United States Postal Service is proficient at small-parcel, last-mile deliveries in the ground package deferred segment in which UPS stands behind USPS in comparison. In spite of the recent changes USPS has made, the organization continues to dominate the ground package segment (Gentry, 2008). USPS is one major competitor of UPS in the mail, package and freight delivery industry. USPS built on existing relationships and leveraged their underutilized infrastructure that was originally in place. Hallmark Custom Marketing (HCM) was the major supplier of 100 unique “Ready Post” products, ranging from padded envelopes to mailing tubes to wrapping papers for USPS, but HCM announce it was going out of business (Gentry, 2008). Since it would impact USPS, they had to develop an alternative plan immediately. USPS turned to Ryder Global Logistic for assistance. Ryder was able to go beyond providing transportation for a point-to-point move. Ryder looked at shipping requirements in the broader context of their retail products and recommended alternatives that offered a more productive solution, yielded cost reductions and improved service performance with HCM. For example, HCM had 10 dock doors at the distribution center in Independence, Missouri and only two were being used, which Hallmark shipped the products to a consolidator. After a collaborative meeting between the USPS, Ryder, HCM...
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