External/Internal Factors Paper

Topics: Management, Factor analysis, The Delivery Pages: 5 (1646 words) Published: January 31, 2011
External/Internal Factors Paper
Andrenette Ray
University of Phoenix – Direct Study
Pamela Washington, Instructor
April 20, 2009

External/Internal Factors
Internal and external factors can affect the four functions of management within a business. Globalization, technology, innovation, diversity, and ethics are key factors that a company must consider in order to be successful and stay competitive with other companies in the same field. This paper will identify the role UPS is taking to be a successful company. UPS is a global company with one of the most widely recognized brands around the world. UPS is also the world’s largest package delivery company and leading global provider of specialized transportation and logistics services (UPS, 2008). The flow of goods, funds and information is managed on a daily basis in more than 200 countries and territories worldwide. Planning - Internal

Internal factors affect planning for UPS. Planning is based on knowledge of the company’s finances, type of services provided, quality control, employee motivation and morale. In order for UPS for continue to be a profitable company, management must consider all available options while still delivering quality service and maintaining the happiness of its employees. Finances will depend on the amount of business UPS receives. The demand for services will determine how many employees UPS will hire and train to keep the production line moving to avoid delays in the delivery of packages. Planning – External

External factors can also play an important role in planning. Several factors such as weather, gas prices and holidays can affect planning. If possible management must plan around hurricanes, floods, snowstorms and other natural disasters. When gas prices rise, shipping cost increase, which can cause profits to decrease. Holiday’s will also increase the demand for delivery services and must be planned accordingly. Organizing – Internal

UPS is a well-organized company. However, several factors exist which can affect how UPS does business in the industry. Organization is important and plays a major role for UPS and its employees. UPS employees play an essential role in developing an approving perception by its customers. In order to stay organizes; UPS daily operations depend on employees in varies departments. For the internal factors the first line of communication will be the employee which are assigned to take and distribute the orders, then passes the information to the person which loads the delivery trucks. In the distribution center the employees loading the truck and the driver works together to ensure the customers receives their packages in a timely manner. Employees working in the distribution center must make sure the packages are separated and loaded on the trucks correctly. Once the trucks have been loaded the driver is responsible for making the delivers on schedule. Through planning, organizing and effective teamwork the employees are able to keep the customers satisfied. Organizing – External

External factors affect how UPS does business. Several factors such as the increase in gas prices, mechanical problems with delivery trucks and or regulatory laws implemented by the US Department of Transportation. According to UPS, the Department of Transportation has modified the shipping paper requirements to include the number and type of packages (UPS, 2008). All hazardous material items shipped must follow the new regulations (UPS, 2008). Due to the new regulations production and delivery time maybe affected. With the increase in gas prices a surcharge may be added to all shipments. Addition steps will need to be taken to make sure delivery trucks maintenance is completed on a routine basis to ensure trucks do not break down because it will cause a delay in the delivering of packages. Company performance is thus affected by such external factors. Leading – Internal


References: Ups.com (2008). Important Hazardous Materials Regulatory Changes. Retrieved April 15, 2009 from http://www.ups.com/content/us/en/about/news/service_updates/regulatory_update.html
Ups.com (2008) IT Professional. Retrieved April 15, 2009 from http://www.ups.com/content/us/en/bussol/itprof/index.html
Ups.com (2008). Diversity. Retrieved April 15, 2009 from http:///www.ups.com/content/us/en/bussol/ititprof/index.html
Pressroom.com (1991-1999). Consistent Innovation. Retrieved April 16, 2009 from http;//www.pressroom.ups.com/about/history/consistent_container/0,27530 0.html
Robinson.edu. The State of Business Magazine UPS Corporate Globalization. Retrieved April 16, 2009 from http://www.robinson.gsu.edu/magazine/forporate.html
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