Question

Case study 4 UPS in India - Time to shift gear

Provide a finding of fact for International Business

Provide a full justification and recommendation for each finding of fact

Answer 1

The United Parcel Service UPS is the famous package delivering multinational company . It operates all over the world. It was started in 1907 by two teenagers in a basement at Seattle, Washington. By 1919 , with an excellent customer service, it expanded it's operations. The name was changed to United Parcel Service. The Enterprise capitalized on the fuel shortage leading up to world war II. After the war UPS focused on the business to business segment.

By 1990, the delivery service had a customer base of more than four billion people in 200 countries. India was the country they wanted to explore next. In 1997, there was s strike by teamsters union . Though UPS had to take a loss of 650 million in this strike, yet it recovered quickly and went public after two years, with the largest IPO todate.

UPS started it's operations in India in 1988. As India is a growing international market, so UPS is making effort to strengthen it's position in India. It has shifted gears from holding a majority position in an Express joint venture to attain full ownership in it's express services in India.

Some fact finding for a growing international market :

expanding trade with customers

Justification: A large cutomcus base is a foundation on which buisinesses and profits are built upon. Hence it is important for an Enterprise to have a large existing and prospective customer base.

Planned network upgrades.

Justification: good networking is very important to have a successful business. Specially while operating in an international growing economy it becomes essential to have planned network upgrades.

Identifying the needs of the market,meeti me these needs and adapting to the markets.

Justification: gone are the days of simply selling the product. It is the period of meeting the needs of the market and delighting the customer.

India has emerged as an important player in the shipping and logistics sector, and UPS is aiming to meet the supply chain related needs.

Shifting from a joint venture to a full ownership, will help UPS in it's expansion in India.